Valamar restarts project Pinea – the largest single investment in Croatian tourism

Published 28. June 2023.

The Supervisory Board of Valamar Riviera announces changes in Board composition and gives prior approvals for investments and business development in the following period.

Franz Lanschützer, who previously served as Supervisory Board Vice-President, was appointed as the new Chairman of the Supervisory Board. Now former Supervisory Board Chairman, Gustav Wurmböck, has held the position for 20 years and will remain a Supervisory Board member until the end of his term of office in 2025, and continue to be involved as a long-term Valamar shareholder. Daniel Goldscheider, who has been serving as a Supervisory Board member, was appointed to the position of Vice-President of the Supervisory Board. These changes will ensure continuous support from major shareholders in Valamar's governance structure, driving value for stakeholders through long-term investments in service excellence, employees, destinations, innovation and positive social impact.

 Valamar has also announced a restart of the Pinea project which began in 2019, in the total value of EUR 130 million. Construction was suspended in March 2020 due to the pandemic, and then delayed due to the energy crisis, inflation and slowdown in economic growth. Valamar Riviera Supervisory Board has approved preparatory activities to restart the construction of Pinea Valamar Collection 5* hotel in the next investment cycle.

 “Hotel Pinea represents the largest single investment in Croatian tourism making the Pical zone one of the most attractive leisure zones in Croatia. With extra focus on developing high-end amenities for year-round operations, I believe that the hotel will contribute to Valamar’s portfolio development, enrich the destination and have an overall positive impact on the region’s sustainable tourism, “ – said Željko Kukurin, President of the Valamar Management Board.

 Valamar has successfully realized investments for the 2023 season in the total amount of EUR 58 million. Main investments worth EUR 32 million include the reconstruction and repositioning of three hotels in Dubrovnik: Valamar Tirena, Valamar Lacroma Dubrovnik and Valamar Club Dubrovnik. The largest family entertainment center on the Adriatic coast is now located in Dubrovnik and equipped with numerous educational and entertainment facilities for children of all ages. For 2024 season, prior approval was given for investments of Valamar group totaling EUR 66.2 million, including EUR 37.5 million Imperial Riviera investments which will be allocated to the repositioning of Eva Hotel on Rab island and the renovation of Rivijera tourist complex in Makarska.

 The Supervisory Board has also adopted a long-term incentive plan awarding shares to key managers in the period from 2023 to 2026, to motivate loyalty, focus on achieving business goals and increase value for shareholders. The value of the remuneration program is determined by the annual increase in market capitalisation and operating profit growth. The total annual amount awarded cannot exceed 10% of dividend paid to shareholders in that year.