After a three-year wait, new owner Danko Končar can go ahead with his plans for Hotel Medena in Seget Donji near Trogir.
For those of you who can remember that far back, Hotel Medena was one of the most popular resorts in the 80s, and since then it hasn’t really been an example of a well managed or well-maintained hotel. However, on May 23, 2016, after the final settlement was reached between the hotel and its creditors, it looks like better days are ahead.
The pre-bankruptcy settlement is the beginning of a large transformation for this former tourism star. After half a century of being in the hands of the state and increasing debt, Medena is now becoming a private company, owned by Danko Končar’s Kermas energy, company that invests in various sectors from energy to tourism and the owner of Trogir shipyard.
After the initial recapitalization, next order of business will be the refurbishment of the hotel, and according to new owners, complete renovation should be completed by 2018: “We will need at least two years for the refurbishment, then we expect revenues that are three to four times bigger than what they are now, additional 60 million kuna. We are planning to invest 30 million euro” Končar stated. He also added that after re-capitalization, the Hoteli Medena’s equity will be around 140 million kuna while all of their financial obligations and debts will be paid.
Since the settlement took longer than expected, for administrative reasons (surprise, surprise), the amount needed for recapitalization has risen from 79 to 89 million kuna, with the extra 10 million being the result of the fact that the company could not be restructured for three years while they were waiting on the final settlement.
After the settlement becomes active, in 90 days, Končar is planning on offering to buy the rest of the State-owned shares (around 19%).
The new owner will tackle the market with 650 room keys in all accommodation units, however, they are now within a 2-star object and their annual occupancy is around 30 % with humble revenues. The plan is to raise the hotel category to 4 stars and to increase the annual occupancy to 50%. Let’s wait and see if they succeed, but it will be nice to see Hotel Medena back in its full glory after decades of neglect and poor management.
