March the 1st, 2024 – The Valamar investment continues, and what this large Croatian tourism company is doing is being called the most important investment in domestic tourism.
As Poslovni Dnevnik writes, the largest hotel group in Croatia, Valamar Riviera, rounded off a very successful 2023 with net profits of 33.6 million euros, which represents a significant 58.2 percent increase when compared to 2022. This is all according to Valamar’s financial report, from which they also pointed out that they set a dividend of 22 cents per share for 2023, which is 10 percent more than the year before.
According to Valamar, this financial report includes the consolidated data of the parent company Valamar Riviera, then the subsidiary company Imperial Riviera (owned by 46.2 percent) and the company Magicne stijene (a subsidiary company owned by 100 percent until August the 3rd, 2023) and Bugenvilia (another subsidiary company also in 100 percent ownership), which make up the entire Valamar Group.
There is also information on the company Helios Faros (in 20 percent ownership) and Valamar A GmbH (in 24.5 percent ownership), which are managed in accordance with the equity method, given that Valamar Riviera does not have control over them, but rather significant influence.
Valamar’s total revenues for the year 2023 increased by 13.1 percent to an impressive 375.4 million euros, while the recorded operating revenues of 372.2 million euros are 14.4 percent higher than they were back in 2022. This was followed by an increase in operational costs (personnel, material and others) by 11.4 percent, to 250.5 million euros.
The increase in business income is said to be the result of a significant Valamar investment in improving quality, with their premium hotels and camping segment recording excellent results, especially in northern destinations. Down south in Dubrovnik however, full recovery still hasn’t been reached.
Valamar also stated that the operating profit (adjusted EBITDA) of 109 million euros is six percent higher than it was back in 2022, and this is the result of significant investments in human resources, the positive impact of a high share of direct sales and the negative impact of inflation on operating costs. In addition, they owe that figure to the new costs that come with renting tourist land and the result of adjustments for previous periods which reduced the operating profit by 4.7 million euros in 2023.
The Valamar investment number for 2024 is higher than in 2023, and there will be 8000 employees during the height of the season
Last year, Valamar Riviera realised investments totalling 58 million euros, with a maximum of 32 million euros in the destination of Dubrovnik. This Valamar investment primarily regarded the improvement of three hotels and the opening of Maro World, the largest family entertainment centre on the entire Adriatic.
In December 2023, they opened their third hotel in nearby Austria, more specifically in Obertauern (PLACES by Valamar), which is also their first hotel with that brand outside of Croatian borders.
Looking at the Valamar investment picture, they also stated that in 2023, they invested around 13 million euros in sustainable development projects and raising the overall quality of their destinations (the doing up of their beaches, promenades, bike paths and other publicly accessible facilities open to the local community).
They invested an additional 25 million euros in the increase of workers’ wages and reward programmes, and the number of employees in the main season in the companies in which Valamar manages exceeded 8,000. 83 percent of that number was made up by local employees.
For 2024, an 82 million euro Valamar investment in further improving their portfolio and raising their overall level of quality has been announced.
