Arena Hospitality Group has announced that it has signed an agreement to purchase 88-room Hotel in the centre of Belgrade for HRK 47m. The completion of the transaction is subject to certain steps and conditions to be fulfilled in this year.

This acquisition of city 88-room hotel expands Arena’s exposure to growing CEE region and to upscale hospitality market segment that will positively influence company’s portfolio. Company had in 2018 66% of revenue realized in Croatia while expansion in city hotel segment abroad will give balance to overall portfolio and ensure higher occupancy.

This acquisition increases Arena’s investments in 2019 to HRK 288m, which besides hotel in Belgrade consist of Arena Kažela Camp (HRK 128m), art’otel berlin kudamm (HRK 53m) and Verudela Beach resort (HRK 60m). Hotel in Belgrade and Verudela Beach resort investments will show impact on revenue in 2020. Together with the investments in Hotel Brioni in the amount of HRK 190m ( expected in 2020) the Group would have invested almost HRK 500m since the public offering done in mid-2017 when it has collected HRK 788.4m. We see this development positive for the share price as the Group is stepping up the pace of investment announced in SPO with the goal to further refurbish its portfolio and expand business into Central Europe. The share price has increased 2.3% on the day of announcement of the acquisition.