June the 15th, 2024 – Dalmatie Group has given new life to a Gradac hotel complex that seemed to be an endless, bureaucracy infected saga. The investment will revitalise this part of Dalmatia.
As Poslovni Dnevnik/Ana Roksandic writes, ahead of the rapidly approaching summer tourist season with extremely good forecasts, another hotel has been presented that will enrich the accommodation offer of the popular Split-Dalmatia County.
Dalmatie Group, the Croatian subsidiary of Indotek Group, a pan-European real estate investment and asset management conglomerate, presented a renovation project for the Hotel Labineca in Gradac, worth 20 million euros.
The completion of the renovation of the hotel with a total of 248 rooms is scheduled for the height of 2025’s summer season. The Dalmatie Group plans to transform the Labineca hotel into a state-of-the-art facility with 248 rooms and three plus stars, which the group says will give the feeling of being four stars. The hotel will be focused on families.
“Our hotel will revitalise and reposition Gradac as a key tourist destination,” claimed Tim Wilkinson, head of international acquisitions at Indotek Group.
Wilkinson also announced that “the project will generate an increase in jobs, introduce new sources of income and strengthen the local offer. It will also benefit the municipality, local businesses and the town, as well as families looking for affordable and high-quality accommodation in one of the most pristine locations on the Croatian coast”.
Wilkinson said that this Dalmatie Group investment comes after a detailed analysis, and the local community is always consulted about all local issues.
“Real estate is a very complicated business and projects are worked on for years. We breathe new life into projects that need new investment. In addition to the hotel industry, we also do this in shopping centres,” explained Wilkinson, who also believes that a lot more can be done at the southernmost point of Split-Dalmatia County in order for it to reach its full potential. For them, the investment in Gradac represents only one point in a much larger plan of possible investments in Croatia.
cooperation between dalmatie group and gradac’s administration
Dalmatie Group’s cooperation with the Municipal Mayor of Gradac Municipality, Matko Burić, was crucial for the improvement of the project.
“We’re extremely pleased to be able to cooperate with Dalmatie Group on this renovation project of Hotel Labineca. It represents significant progress for Gradac and turns a decades-long wait into reality, offering both economic and sentimental value. The strength of our partnership guarantees significant benefits for the local community through the development of this project,” said the mayor.
Mayor Matko Burić believes that much better hotels that will be presented soon will raise the level and competitiveness of the tourist offer of this particular beautiful location. Excellent cooperation with the Municipality is also confirmed by Nives Grzunov, head of the Indotek Group for Croatia.
All of the planned improvements aimed at prolonging the tourist season in Gradac had a minor impact on the project’s time frame, but not on the target date of the hotel’s reopening. Wilkinson said that after the opening of Labinec, they will start working on the Laguna Hotel, which is scheduled to open in the summer of 2026.
“Dalmatie Group remains committed to restarting operations for the peak of the 2025 tourist season,” said Nives Grzunov, head of Indotek Group for Croatia.
the croatian coast and beyond…
The Indotek Group noted that back in August 2023, in order to mitigate the potential economic impact of the temporarily closed hotel on the local community, Dalmatie Group paid the local government certain concession fees and taxes for 2024 and 2025 in advance.
The hotel complex consists of four buildings: the central nine-story building is located directly on the beach, while three three-story apartment buildings are located behind the hotel building. New tourist facilities include a state-of-the-art wellness centre and top conference halls.
With gorgeous panoramic outdoor terraces, the redesigned restaurant will offer à la carte and buffet services, enhancing the dining experience. The outdoor pool area will be completely renovated, complemented by a new jacuzzi and spacious terraces, giving guests plenty of space to relax with a beautiful view of the sea.
In addition to Croatia, the group is interested in investments across the entire Mediterranean area, as well as beyond it. The group recently started a project in Athens, and they want to expand to Italy. Wilkinson emphasised that there are many opportunities for investment in Croatia, not only on the coast, but perhaps also in the segment of business and office space in Zagreb.
Hotel Labineca in Gradac was otherwise acquired by Dalmatie Grupa as part of a package of bad loans. Its previous owners had no intention of investing in the renovation or maintenance of the hotel, leading to disastrous conditions and numerous outstanding issues, including outstanding taxes, contributions and debts owed to suppliers.
Dalmatie Group made reasonable settlements with debtors, offered concrete help to partners and worked to retain all employees during the coronavirus pandemic. Currently, more than 40 former employees of the hotel work in other facilities owned and managed by Dalmatie Group.
