Published 13. February 2015.
In 2014, Valamar Grupa and Valamar Adria Holding merged with Riviera Adria, creating a consolidated company Valamar Riviera which increased its revenues in 2014 by HRK 30 million, with net profit coming in at HRK 52.2 million and EBIDTA of 284 million kuna. Restructuring was aimed at streamlining performance and strengthening of brand and market position. In 2015, Valamar Riviera will invest 330 million kuna in its hotels and resorts.
Valamar Riviera’s total consolidated revenues for 2014 came in at HRK 1.116 billion, which was HRK 30 million up on 2013, with the net profit of HRK 52.2 million, according to the nnual unaudited Management Board report.
Sales revenues at HRK 1.074 billion were up by 2.5% or HRK 26.2 million compared to 2013. Last year’s sales were negatively impacted by the VAT rate increase from 10% to 13% for accommodation and hospitality services as of January 1st 2014. Valamar estimates that the VAT increase took out some HRK 26 million from sales revenues.
Last year, Valamar Grupa d.d. and Valamar Adria Holding d.d. merged with Riviera Adria d.d. thus creating a new company Valamar Riviera d.d. Financial results need to be considered within the context and the impact of the said mergers.
„The goal of our legal and organizational restructuring was to consolidate management, tourism asset ownership and several separate companies into one strategic company Valamar Riviera d.d. in order to increase business efficiency, transparency and understanding of value creation in tourism activities to shareholders and investors. This is also the reason why we decided to list the company on the Official market of the Zagreb Stock Exchange which was well received by the investment community. Valamar Riviera will continue to invest to raise the quality of our services, with the ultimate goal of strengthening our brands and our market position“, said Franz Lanschützer, CEO of Valamar Riviera.
In 2014, Valamar registered 4,284,979 overnight stays, which is 1.3% down compared to 2013, mainly due to a decrease in demand for destinations in Istria. Significant increase in the number of overnights compared to 2013 was achieved on the island of Krk (+3.6%) and in Dubrovnik (+3.8%). Valamar Riviera continued its strong investment cycle in 2014 by investing HRK 370 million. The largest investment projects were Hotel Valamar Dubrovnik President, which as a result became the first Valamar Riviera’s five-star hotel, whilst Hotel Zagreb in Poreč and Argosy in Dubrovnik were upgraded to four stars.
This year, Valamar began reporting annual revenue per available accommodation unit, (RevPAR) which came in at HRK 51,694, with the occupancy of 122 days at the average daily rate of HRK 424.
The annual accommodation revenue per available unit (RevPAR) in the 4 star and 5 star hotels was HRK 131,480 with an annual occupancy of 166 days and an average daily rate of HRK 791. In 2 star and 3 star hotels and apartments including hostels RevPAR was HRK 64,816 with an annual occupancy of 143 days and an average daily rate of HRK 455, while in the campsites it amounted to HRK 20,919 with an annual occupancy of 98 days and the average daily rate of HRK 212.
Valamar’s operating profit came in at HRK 80 million with EBITDA of HRK 284 million.
"In 2015 Valamar Riviera plans to invest HRK 330 million in capital investment projects, as a key driver of revenue growth, competitiveness and innovation in tourism. However, 2014 business performance reflects increased pressure on the return on investment in tourism. Investment activity would receive a considerable boost from a lower tax burden on the private sector and additional incentives for investors“, said Ivana Budin Arhanić, member of the Valamar Riviera Management Board.