Published 27. October 2015.
In 2015 Valamar Riviera expects to achieve operating revenues between 1,270 and 1,290 million HRK or revenue growth between 15,7% and 17,6% followed by exceptional growth of EBITDA which is expected to reach between 405 and 415 million HRK for the full year.
Valamar Riviera d.d. from Poreč, a leading tourism company in Croatia, reported consolidated operating revenues of 1,223 million HRK for first nine months of 2015, 20% up on the same period last year. Consolidated EBITDA for the first three quarters reached 556 million HRK, or 45 percent more than in the same period last year.
Strong revenue growth in the first nine months is a result of a 15.3% growth in overnights and average room rate increase of almost 7%. Average spending per guest was also up as a result of continuous efforts to raise the quality of products and services through investment and development. In 2015 Valamar completed an investment cycle worth 354 million HRK. This year’s largest investment project, Valamar Isabella Island Resort 4* achieved excellent operating results in its first season.
The highest growth of 20% in board revenues was achieved in 4 & 5* hotels and apartments which came as a confirmation that continuous investments in the hospitality portfolio, innovation and high quality services are among the key factors of success in achieving sustainable growth in tourism operations.
According to the Management Board report of 27th of October, Valamar Riviera expects consolidated operating revenues for the whole year to range between 1,270 million and 1,290 million HRK or between 15,7 and 17,6% up on last year. Valamar’s outlook statement also forecasts an exceptional growth of operating profit in 2015 leading to a total EBITDA between 405 and 415 million HRK, which is an increase of 121 to 131 million HRK or up to 46% more than last year.
„Very good results in 2015 came from the synergy of several key drivers – increased operational efficiency due to reorganization and restructuring, significant investments in properties and services which boosted growth, acquisition of Hoteli Baška and a very good tourism season overall. The results for the year so far are considerably up on last year’s figures and show that Croatia’s tourism offers a great opportunity to those hospitality companies that invest in the competitiveness of their portfolio and their destinations. We must, however, reiterate that the highest VAT rate on the Mediterranean and the still unresolved issue of touristic land limit the investment potential of the tourism sector which is also the reason why Valamar Riviera plans to reduce its investment level in 2016. Tourism continues to be insufficiently recognized as an opportunity for Croatia’s economy which is evidenced by the fact that, apart from financing through Croatian Bank for Reconstruction and Development, there is a lack of other measures to enable faster growth and development necessary to raise competitiveness to the level of our Mediterranean competitors“, said Željko Kukurin, CEO of Valamar Riviera.“