On May 25 2015 Valamar Riviera d.d. approved a share purchase agreement which proposes that Valamar acquire a majority ownership stake in three limited liability companies jointly holding 83,82% of Hoteli Baška d.d. shares.

According to the proposed agreement, shareholders in the three companies, Mirta Bašćanska d.o.o., Vala Bašćanska d.o.o. and Baškaturist d.o.o., would sell their stakes for a total of 24,1 million euros (183,1 milion kuna). In the proposed transaction the implied valuation of each Hoteli Baška d.d. share stands at 96 euro or approximately 730 HRK per share implying an acquisition multiple of almost 10 x 2014 EBITDA. The transaction is expected to close this summer.

Baška is a well-established destination accounting for almost a quarter of all overnights on Krk island, situated on one of the most beautiful beaches on the Croatian Adriatic. Hoteli Baška d.d. is one of the oldest and largest tourism companies on the island realizing 440.000 overnights and 96,4 million kuna in revenue in 2014.  The company’s key properties are Hotel Corinthia 3* with 431 keys, hotel Zvonimir 4* at 85 keys, Atrium and Adria 4/5* offering 92 keys and two campsites with a capacity of almost 3,000 guests. Hoteli Baška d.d. has been one of the most successful tourism companies on island Krk achieving excellent business results and guest loyalty. 

«We are very positive about the potential of Baška as a destination and the future of Hoteli Baška d.d. as a company.  We are especially impressed with the entire team in Baška who have successfully grown the company to the current level, and we look forward to developing Baška with the help of existing employees. Baška has a considerable potential for future growth fueled by investments in further development of both hotels and campsites. As Valamar has been actively seeking the right opportunities for expansion through acquisition, we believe that Hoteli Baška d.d. represent an opportunity to strategically expand our portfolio on Krk Island and in the Kvarner region.

Valamar’s approach to continuous investment in employees, products, services and destinations has delivered added value to our shareholders. In Baška we have the opportunity to achieve the same», said Franz Lanschuetzer, Valamar Riviera Management Board President.

Majda Šale, director of Tourist Board of Krk island welcomed Valamar’s interest to further develop tourism on Krk island. “Valamar is one of the largest investors in tourism in Croatia and also on Krk island, and the investments in campsites and hotel Koralj have had a great impact on Krk as a destination. But more importantly, Valamar is one of the best employers in tourism in Croatia.  Valamar understands that investing in employees and their development is the best way to ensure great service to guests, and that is key to success in tourism.