Today we bring you an overview of the latest planned and executed capital expenditures for 2022 by some of the largest Croatian tourist companies.
As the tourist companies operate in an asset-heavy industry, with a lot of apartments, hotels, camps, and buildings in general, it can be said that investments into their current and future portfolio have a proportionately higher influence on their profitability than let’s say a company in a more asset-light industry like technology (especially if software orientated). Because of this, looking at how much the companies invest into maintenance, refurbishment of current, and acquisition of new assets can give us a rough idea of what can be expected by these companies.
Arena Hospitality Group
Starting with Arena, the company has estimated that they will spend app. HRK 325m for investments during 2022. However, given the current geopolitical situation and the inflationary pressures, they are certain that only several of their planned investments will be completed, while several might be on hold. The investments that are set in stone are the following: hotel refurbishment in Zagreb, worth HRK 135m, is expected to open in December. Hotel Riviera in Pula, an investment worth HRK 75m, is expected to start refurbishment after the summer season. Finally, Budapest art’otel, whose refurbishment is expected to be done any day now (in June), and will in total cost the Company HRK 24m. The remaining HRK 91m, which would include investments into Arena Stoja, Ambrela, Belgrade 88 Rooms, and some smaller camps, have not yet bet initiated and the company is waiting to see how the situation develops. What should also be taken into account is that the company opened Hotel Grand Brioni Pula in May (now part of the Radisson brand collection), an investment that was worth HRK 260m.
Maistra (Adris Group)
Moving on to Maistra, at the end of 2021 the Company made a new long-term investment plan. In the next 3 years, the company plans to invest additional HRK 1.2bn, mainly in improving the portfolio of its assets into 4* and 5*. This refers to the reconstruction and repositioning of the Hotel Panorama in Zagreb, as well as an HRK 100m investment into the improvement of the camp quality. There are also preparations being made for the investment into the Hotel Westin in Zagreb, as well as the Hotel Marjan in Split. In total, Maistra plans an investment of app. HRK 200m in 2022, with the largest part of the investment going into improving the quality of the camps.
Valamar Riviera
Finally, taking a look at Valamar Riviera, they plan a total investment of HRK 530m for the 2022 season. These investments will be aimed at hotels, resorts, and camps managed by the company. One of the largest investment projects in 2022 is Imperial Riviera’s repositioning of Dalmacija [PLACEHOTEL] by Valamar in Makarska, which opened in May and was an investment worth HRK 67m. Another HRK 220m investment from Helios Faros is intended for the construction of the Valamar Amicor Green Resort and Aquamar swimming pool complex on the island of Hvar. Investments also include the renovation of hotel Corinthia in Baška on Krk island, which will be rebranded as Valamar Sunny Plus, upgrading Valamar Bellevue Hotel in Rabac, and the construction of Padova beach with its facilities on Rab island. Finally, further investments are made into Istra Premium Camping Resort and Lanterna Premium Camping Resort.
CAPEX of Select Croatian Tourist Companies (2022, HRKm)
