Valamar Riviera plans investments of 260 million kuna in 2016.

One of the largest hotel companies in Croatia, Valamar Riviera expects an operational profit growth of 46 percent this year compared to last year, and plans investments worth around 260 million kuna for the next year aimed at repositioning its portfolio towards higher quality.

– In 2015. we expect to achieve nearly 1.3 billion kuna in business revenue and strong operational profit (EBITDA), which will reach between 405 and 415 million kuna on an annual basis. This is an increase of as much as 46 percent, or 130 million kuna more than last year. This year, Valamar Riviera’s stock has also achieved exceptional success as the price has risen by more than 20 percent since the beginning of the year, Valamar emphasizes in response to inquiries about expectations for the end of this year.

Regarding investments, they emphasize that next year they will invest around 260 million kuna, focusing primarily on converting camps into modern camping resorts with 4/5 stars, targeting guests with higher purchasing power, which is also the current European tourism trend.

Camping Krk becomes the first in Croatia with five stars

Part of the planned investments for 2016 also relates to the repositioning of Camping Krk, which they opened three years ago as the first camp with wellness offerings and a panoramic pool in Croatia, and which is expected to enter the next season as the first with five stars in Croatia. They also plan investments in the leading Istrian camp Lanterna, which will raise its category from three to four stars in accordance with the development plan of that camp towards a top-notch camping resort. Valamar also notes that these two camps are members of the prestigious association “Leading Campings of Europe” and holders of the ADAC/ANWB (German and Dutch automobile club) recognition Best Campsite 2015, placing them among the best in Europe. In addition to these two, they plan investments to raise quality in other camps from their portfolio in Istria, on the island of Krk, and in Dubrovnik.

Integration process begins at Baška Hotels, and they are also interested in Imperial and Maestral

In response to inquiries about what they plan with Baška Hotels in Baška on the island of Krk, which they acquired in mid this year for 23.2 million euros, Valamar states that they are working on their integration, i.e., merging with Valamar Riviera with the aim of further quality development.

– We can confirm that all business processes related to Baška Hotels are proceeding as planned, adds the company which signed purchase agreements on June 10 of this year, acquiring a majority stake in three limited liability companies, Baškaturist, Mirta Bašćanska, and Vala Bašćanska, which collectively own 83.82 percent of the shares of Baška Hotels d.d.

This was also the first major acquisition for the company on the Adriatic, confirming its intention to see future growth through expansion on the Adriatic and in the region. This is further confirmed by their interest in the Rab hotel company Imperial and Dubrovnik’s Maestral Hotels, for which they sent letters of interest in the recently completed non-binding round of bidding for the purchase of majority state shares.

– We have expressed interest in the state hotel companies Imperial Rab and Maestral Hotels in Dubrovnik, where we believe we can be a good partner to the state and the local community through investments to enhance the value of these companies and destinations, Valamar states.