Liburnia Riviera Hoteli (LRH), one of the largest hotel companies in Croatia and the largest on the Opatija Riviera, has 18 accommodation facilities in its operational portfolio, many of which are symbols of the Riviera. A new CEO took the helm of the company in November last year, bringing with him international experience in hospitality gained from the USA, through Europe to Asia, raising expectations for the future of Liburnia. We spoke with Ante Barić, CEO of LRH, about the achieved business results, future plans, and the vision for the further development of the company.
It has been more than a year since you took the helm. How do you see Liburnia today and what achievements are behind you?
– Indeed, it is hard to imagine that it has been almost a year and a half since I took over the management of the company with Filip Močibob. We have had a dynamic and successful period during which we defined our strategy, shaped a long-term business plan, and initiated the transformation of the company. The achievements are significant – from greater vertical integration of operations and a new organizational structure to the formation of a leadership team and the introduction of an individualized approach to the hotel portfolio. In 2024, strong financial results have also been achieved. Business revenues increased by nine percent, operating profit (EBITDA) grew by 18 percent, and a record EBITDA per accommodation unit was achieved, as well as a record, multiple times higher level of net profit. At the same time, we successfully reduced the Company’s debt level by 25 percent, making Liburnia an exceptionally stable, successful, and competitive hotel company today. Our vision is not only to be a financially successful company but also to become the most progressive hotel company in the region. We opened as many as seven hotels throughout almost the entire year, becoming leaders among Croatian tourism chains in terms of the number of hotels with year-round operations. Most importantly, a strong platform has been created for further investment cycles and the development of the company, which has been recognized by various external stakeholders, from credit institutions, a number of the most prestigious international hotel corporations, design houses to other international participants in the hotel industry.
For years, Liburnia has not had significant investments. What are your development plans? Will you initiate an investment cycle?
– We are extremely proud that after just over a year of working in a high-octane mode, we presented an investment plan of 50 million euros to the Supervisory Board, which was unanimously approved and represents the historically largest three-year investment phase of the Company. This investment plan represents the first chapter of our overall investment program. For decades, Liburnia has been a company based on the paradigm that mid-range products are the most promising part of the business because they supposedly ensure higher margin operations. We want to change that, as the greatest sustainable value for all stakeholders in today’s global tourism lies in high-end products. Therefore, we need investments that completely reposition our hotel facilities. We cannot afford just cosmetic changes. Quality is our imperative, and there is no compromise on that. Such a change in the overall business model, besides shareholder support, requires determination, responsibility, and consistency. We have certainly set our strategic goals high, but from day one, I believe in the potent future of Liburnia, the potential of the portfolio and the Riviera, and that is why I returned to Croatia.
What is included in the 50 million euro investments?
– The 50 million euros primarily include two major investment projects: the Palace Hotel in Opatija and the Bristol Hotel in Lovran. We will transform the Palace Hotel into a true grand hotel that Opatija needs, and project activities have already begun. It will be a luxury hotel of the highest standard, with the most spacious rooms in the destination, and will be part of one of the world-renowned hotel brands. The design will be in the hands of the most experienced international historical hotel design houses. Our goal is not only to create an icon of the destination but also to preserve its historical heritage. The reconstruction project will last two years, and we will start building as soon as the ongoing design is completed. Along with the Palace Hotel, there is also the Bristol Hotel, which we plan to completely renovate and thus return to function a facility with one of the most beautiful locations in Lovran. The approved investment plan also includes a new outdoor restaurant at the Ambassador Hotel, renovation of the restaurant at the Imperial Hotel, new conference space, and new wellness at the Ičići Hotel, repositioning programs, and inclusion of our most prominent hotels in world-recognized consortia and associations, as well as many other aesthetic, functional, and technological interventions. Additionally, a project is underway to revitalize the prominent terrace of the Kvarner Hotel, aiming to become one of the most attractive terraces with an exclusive restaurant and café and a year-round gathering place on the Riviera this year. Within our financial priorities, we are also considering an investment in the redesign of the interior of the Istra Hotel to enhance the product’s attractiveness to younger generations, which is one of the important steps in building the long-term sustainable appeal of the Opatija Riviera.
