Published 27. February 2017.
Valamar Riviera reported 1.58 billion kunas in total revenues in the consolidated audited annual report for 2016, which represents an 18% increase on 2015 results. Sales revenues reached 1.46 billion kunas and grew by 15%, while overnights grew by 8% and the average daily rate grew by roughly 5%.
Valamar also reported a strong growth in operating profit (EBITDA) of 21% to 513 million kunas. Operating efficiency measured by adjusted EBITDA margin grew from 34% in 2015 to 35%. The enterprise market value increased by a marked 40%.
The excellent performance in 2016 is due to an increased demand for Croatia as a destination, continuous investment in the upgrade of products and services, excellent operating results in the preseason period due to large destination events, increased direct sales and the 2015 acquisition of the hotel group in Baška.
The proposed decision on dividend payout as well as other proposals for the General Assembly will be determined by 22 March 2017.
One of the key business events in 2016 was the presentation of Valamar Riviera's strategic goals up to 2020 including investments in the portfolio of up to 2 billion kunas and double-digit growth in operating profit. Investment projects worth 873 million kunas are underway for the year 2017. This represents the largest investment cycle by a tourism company in a single year. The largest investment will result in the construction of two luxury resorts in Rabac, Family Life Bellevue Resort 4* and Valamar Girandella Resort 4*/5*, which will receive 2,700 guests and employ 630 people. This investment’s total value is 562 million kunas. In 2017 Valamar Riviera also continues to invest in campsites to develop premium camping resorts, and has a range of other projects related to the improvement of quality and operating efficiency.
At year-end 2016, Valamar Riviera established a strategic partnership with AZ pension fund successfully taking over Imperial d.d. Rab. Valamar Riviera now manages a portfolio that includes 30 hotels and resorts and 15 campsites that can welcome 55,000 guests daily. Both partners, Valamar Riviera as the leading tourism company and AZ pension fund as the leading institutional investor in Croatia expect to achieve significant synergies in the future development of Imperial’s portfolio and Rab as a destination.
“Our 2016 results confirm Valamar Riviera’s ambition to continue achieving double-digit growth in operating profit through investments, strategic partnerships and business performance. While global trends report low interest rates and market demand focuses on safe tourist destinations, Croatia has the opportunity to reposition its tourism offer by incentivizing investments in high value-added products and services that stimulate employment and economic growth, as evident in Valamar’s performance last year. However, the current unfavorable trends such as the increased VAT rate for hospitality services, labor shortages and potential increases of the real-estate tax and tourist tax can hinder competitiveness and limit further investment potential. Nonetheless, I believe that through dialogue with the government, we will be able to create a stable and stimulating environment for investors and support the further growth and development of tourism,” said Željko Kukurin, Valamar Riviera CEO.
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