Valamar invests over HRK 700 million in 2018 season

Valamar invests over HRK 700 million in 2018 season

Published 30. April 2018.

Valamar Riviera achieved strong 2018 first-quarter results driven by the earlier Easter holiday period and the successful organization of a large number of destination events on Krk Island and in Dubrovnik that contributed to the 39% growth in sales revenues (from HRK 28 million to HRK 39 million).

The increased demand and active management of sales channels resulted in 106,083 overnights and a HRK 360 average daily rate, representing a 27% growth over 2017 results. First-quarter results are not indicative for overall annual results as the largest part of tourism turnover is achieved in the second and third quarter.

As part of the 3-year investment cycle worth HRK 2 billion by 2020, Valamar is currently finalizing investments worth over HRK 700 million that are seen as major growth drivers on which Valamar builds a positive outlook for the forthcoming season. This year’s key investments are the completion of Valamar Girandella Resort in Rabac where Valamar’s first Kinderhotel – Valamar Girandella Maro Suites 5*- was recently opened, the repositioning of the Valamar Argosy hotel in Dubrovnik, the reconstruction of the Valamar Imperial hotel on Rab Island and continuing investments in Valamar’s campsites in Istria and on Krk Island.

Valamar created 600 new jobs this year and will employ around 6,600 people in the forthcoming season in its destinations in Istria, on the islands of Krk and Rab and in Dubrovnik. Valamar will add another hotel for seasonal employees at two locations in Poreč. With staff residences already open in Krk and Rabac, the company will have four hotels offering top-quality lodging for employees.

“The investments and preparation for the forthcoming season are proceeding as planned. Demand and booking pace are increasing, especially for our new investments and higher-end accommodation. We proceed with our investments to develop products and destinations and to improve salaries and work conditions in hospitality as it is an important part of our growth strategy,” said Željko Kukurin, CEO at Valamar Riviera.

Valamar Riviera bought a 55.48% stake in Hoteli Makarska in partnership with AZ pension fund in early April this year.

Financial Quarterly Reports for Q1 2018 are here.