Has the embattled group left the hotel business?
According to media reports, due to recent problems, Agrokor has recently left the ownership structure of the tourist company Karisma Hotels Adriatic (KHA), which it founded four years ago with the TUI group and the Mexican company Karisma Resorts International, reports Poslovni.hr on April 11, 2017.
This unofficial information, which has not been confirmed by Agrokor, appeared because KHA intended to take over management of the Montenegrin Ulcinj Riviera company. Small shareholders of the Montenegrin company were in panic because they thought that Agrokor and its problems might spoil the deal. However, sources say that the process of removing Agrokor from KHA’s ownership is already underway, which will give the company a better chance at the Montenegrin tender, and also a better perspective in the tourist season, which is beginning very soon.
KHA answered reporters’ questions yesterday. “Agrokor is currently part of the ownership structure, and for now there is no change. We will inform you about further details and any news. The activities that will be taken will be intended to continue successful business operations of the KHA group, whose results have already confirmed the power brought by TUI and Karisma,” said KHA.
The response suggests that there is some truth in speculations that there will be no new investor entering KHA, but that the company would continue to be led by the other two co-owners. Although details about the ownership shares in KHA have never been published, rumours are that it was evenly divided between the three co-owners. KHA was established in the spring of 2013, after two years of negotiations, and Agrokor served as a local partner who made it easier for foreign investors to enter the market.
Agrokor’s idea was to expand to the sector in which they are already partly present as suppliers and partners, from food and drinks to construction and travel agency business. The goal was to create a new hotel chain and increase the number of tourists in the Adriatic region, including Montenegro.
KHA first took over Koločep, then in 2014 Hotels Živogošće, and last year completed the purchase of the Hotels Plat. Hotels Plat are currently being renovated, and the plan is to invest about 428 million kuna. Last year, they finally realized the first investment in Montenegro, by signing the management contract for the Ruža Vjetrova Resort, and their next target is Ulcinj Riviera, which they could lease for 30 years.
