As a result of our acquisitions and development projects between 2001 and 2010, we have established a coastal property portfolio consisting of 1,354 hotel rooms, 184 apartments and 653 berths in marinas.
The financial source of these developments was the owner’s equity and bank loans.
In 2001 we acquired concession rights of one of the most beautiful and - in terms of sailing and navigation - best positioned ports. By 2003 we developed it into a marina with 250 maritime berths and 150 land docks, with an apartment block, restaurant, boat service facility and a fuel station. Marina Tribunj was awarded the 3rd most beautiful marina in Croatia. Marina Tribunj was constructed without delay with above average quality which established our investment reputation in Croatia and significantly promoted our subsequent acquisitions.
In 2002 we acquired practically the entire seaside touristic properties in the town of Primošten, consisting of 1,000 hotel rooms (Hotel Raduča, Hotel Marina Lučica), and a renovated marina expanded to a capacity of 400 berths. Primošten, in the vicinity of the Kornati archipelago, is the third most attractive, easily accessible destination on the Croatian coastal area after Opatija and Dubrovnik.
In 2003 we purchased through privatization the complete set of coastal touristic properties in Jelsa, located on the island of Hvar - which is considered as one of the ten most beautiful islands in the world. The portfolio consists of 434 hotel rooms and 117 apartments. In the course of recent modernization process, we renovated all 205 rooms of Hotel Hvar and completely reconstructed 48 apartments at Fontana Resort. The four-five star apartments offer an unprecedented quality of service.
We bought the most beautifully located coastal properties of the Makarska Riviera in 2004. The three hotels (Labineca, Laguna and Faraon) have 554 rooms and 72 apartments, of which 32 apartments were completely renovated in 2006.
The acquired hotel companies were in an extremely difficult position. The transformation of socialist state companies took several years. In the course of this process, we thoroughly audited all the companies, rationalized costs, laid off unnecessary workforce, hired new, experienced management and entered the international tourism sales markets. By today the operation of our group is clearly transparent and far more profitable than before.
The aggregate sales revenue of our group rose from EUR 11.6 million in 2003 to EUR 26.1 million in 2010 corresponding to an increase of 125%. Owing to the continuous rationalization of costs our hedge increased to 15.3% in 2010 (this indicator equaled 9.6% in 2006). By the fourth year of operation, the consolidated result of our portfolio was positive. The outstanding loans of the Group equaled EUR 45 million at the end of 2010.
Between 2010 and 2014, the total sales revenue of our businesses will increase from EUR 26 million to EUR 30 million, corresponding to a rise of 15%. With controlled costs, our hedge will increase to approximate 24% by 2014. In this period our investment activity focuses on projects constituting the second pillar of our strategy.
Sales revenues, hedge amounts are in Euro
(2010: actual, 2011–2014: forecast)