Yesterday, Valamar Riviera held its Supervisory Board meeting, during which the Board gave the approval of the planned investments for 2025 and 2026. According to the press release, EUR 105.6m of investments will be made at the Company level, and EUR 161.1m will be made at the Group level.

Valamar noted that the majority of investment will be geared towards the construction of the Pical 5* premium resort in Poreč, in which Valamar plans to invest a total of EUR 139m within a two-year period. Valamar also noted that this makes it the largest single investment in Croatian tourism. The Company further noted that Hotel Pical 5* will be open year-round, with plenty of diverse amenities for various types of holidays, increasing the quality of tourism in Poreč, Istria, and Croatia. Pical Resort will employ around 600 employees in full-time positions. Valamar also noted that Pical Beach, all sports and entertainment services, indoor swimming pool, promenades, and other recreational facilities will be open to the public.

Furthermore, Imperial Riviera, part of the Valamar Riviera Group, announced that investments into its own assets will amount to EUR 55.5m in the 2025/2026 cycle. This would bring up the total investments made on the Group level to EUR 161.1m. Imperial’s investments are primarily focused on continuing the first phase of the reconstruction of Suha Punta Tourist Resort on Rab, i.e. Valamar Collection Rab Resort 4*/5*, that will firmly position Rab among the top family holiday destinations on the Adriatic, and on repositioning Rivijera Tourist Resort in Makarska.

Lastly, the plan also includes further investments in beaches and other amenities in all destinations, renewables, green energy, and digitalization, all within the sustainability and responsible business framework. Also, the final decision on investments for the 2025/2026 cycle should be made by the end of 2024.

Valamar Riviera, CROBEX10 share price performance (2019 – 2024 YTD, %)

Source: Bloomberg, InterCapital Research