On Friday, Valamar Riviera announced that its associate company in Austria is acquiring another ski hotel. Therefore, Valamar is extending the number of hotels under management in Austrian ski-resorts.

The purchase and transfer of 100% of the business shares in Kesselspitze GmbH KG, and acquisition of the Kesselspitze Hotel in Obertauern is done by Valamar A. In this company Valamar holds 24.54% of shareholding, and its financial results on Valamar Riviera are evidenced by equity method (below operating line). Therefore, Valamar is extending its operations by asset-light strategy and it is increasing its management income fee.

The announcement was made after the Supervisory Board of the Company gave its consent in order to further expand the business in Austria. This included the approval of the new Valamar A Business Plan, and the subsequent signing of the purchase and share transfer of 100% business shares in Kesselspitze GmbH KG, through which Kesselspitze Hotel in Obertauern was acquired. The transfer was done between Valamar A as buyers and Lurzer Obertauern GmbH & Co KG as sellers.

Valamar estimates that the hotel would be repositioned as Valamar Collection Kesselspitze Hotel for winter 2022/2023 season. The Hotel is categorized as a 5* hotel, containing 66 keys, a restaurant, a pool, and wellness facilities, combined with a location that has immediate ski-in/out access to the ski resort. The SPA was signed on Friday, while the closing of the entire transaction and the takeover of the hotel’s management is expected in early July 2022.

The acquisition continues the internationalization of Valamar’s business, with a focus on expanding the portfolio towards Austrian winter destinations, through the business cooperation in Valamar A which was established in 2021. As a reminder, Valamar is a holder of 24.54% of the shares in this Company. This makes the Hotel Kesselspitze the third hotel under Valamar’s management in Austria, following the previous acquisition of Valamar Obertauern in 2018 and Marietta Hotel in November 2021.

At the same time, the Supervisory Board also approved the conclusion of several allotment agreements for 2022 with TUI Group companies, with a total estimated value of EUR 7.83m, on the Valamar Group level, and EUR 5.48m at the Valamar Riviera d.d. level. Valamar estimates that the value of the allotment agreement will be app. 26% of the total value of business transactions with TUI Group during the 2019’s season.