August the 15th, 2026 – Increased operating costs squeeze the profitability of Croatian hotels even during the very height of the summer season.
The primary reason for better revenues is the rise in average prices, and only to a lesser extent the growth in the number of overnight stays. Despite the continuation of negative trends that are eroding profitability due to the intense rise in costs, tourism companies listed on the Zagreb Stock Exchange are demonstrating a high level of resilience.
Sinisa Malus reports for Poslovni that the beginning of August is the period when we analyse the six-month performance of hotel companies whose shares are listed on the Zagreb Stock Exchange. Of course, special focus is on the second quarter because in that period most companies open their accommodation capacities. These companies traditionally generate the bulk of their revenues in the third quarter. Given the importance of the tourism sector in the Croatian economy, it is no surprise that it is the most numerous in terms of listed shares on the Zagreb Stock Exchange, the third by market capitalisation, and accounts for approximately 20 percent of trading, which corresponds to tourism’s share in total Croatian GDP.
Sanja Čižmar, director of the company 505 savjetovanje, says in a statement for PD Vikend that the analysis of the business results of thirteen companies whose shares are listed on the Zagreb Stock Exchange is indicative for the entire hotel sector in Croatia, since these companies generate 41 percent of the hotel sector’s operating revenue and as much as 59 percent of the profit achieved in the hotel sector in 2025.
average prices have risen
In the first half of 2026, companies listed on the Zagreb Stock Exchange achieved a 7 percent growth in operating revenues compared to the same period of the previous year. Čižmar points out that the main reason for the increase in revenues should be sought in – the rise in prices.
“The growth in revenues is mainly the result of the rise in average realised prices, and only to a lesser extent the growth in the number of overnight stays, and this mainly in those companies that have invested in product improvement (renovations and reconstructions of facilities), or opened facilities somewhat earlier than last year. The revenue growth in the first half of this year can be assessed as very good, given the increasingly complex competitive conditions and the recession in the main source markets,” says Čižmar. However, there is also a burden that tourism companies have been feeling for several years, and it is called – the rise in costs, especially in the labour segment.
“It is worrying that the growth rate of operating expenses in the first six months of this year significantly exceeds the growth in revenues. Operating expenses are growing at an annual rate of 10 percent, with labour costs rising the most (+11.1 percent). As a consequence of the intense growth, labour costs have increased their share in operating revenues, which in the first half of 2026 reaches an extremely high 38.8 percent, compared to last year’s also high share of 37.3 percent. The rise in labour costs is equally the result of an increase in the average number of employees (5.5 percent more compared to last year) due to the reopening of several renovated facilities and the expansion of accommodation capacities, as well as the continuation of the intense growth in wages,” Čižmar is clear.
EBITDA, as the most representative measure of operating performance, shows a 10.2 percent decrease in the first half of this year compared to the same period last year and a decrease in the share of total revenue from 10.2 percent in the first six months of last year to 8.5 percent this year.
Although due to the seasonality of operations, a loss in the first half of the year is usual, it is worrying that it has increased by as much as 29 percent.
losses also increased
Although a loss in the first half of any given year is atypical due to the seasonality of operations, it is worrying that it has increased by as much as 29 percent compared to the first half of last year and in the first six months of 2026 reaches almost 20 percent of realised revenues (compared to 16.5 percent in the same period last year).
“Almost all tourism companies on the Zagreb Stock Exchange are recording a loss in the first half of this year, with the exception of the companies Ilirija and Mon Perin. Namely, Ilirija, as one of the traditionally financially most successful tourism companies in Croatia, achieves positive operating results in the first half of the year due to balanced revenue throughout the year thanks to the nautical marina within the company, and this year the positive effect has been further enhanced by even more efficient cost management. On the other hand, the profit of the company Mon Perin is the result of a very high revenue growth this year, with a significantly smaller growth in operating costs,” reveals Čižmar.
In conclusion, despite the continuation of negative trends eroding profitability due to the intense rise in costs, tourism companies on the Zagreb Stock Exchange are demonstrating a high level of resilience through appropriate revenue growth and thus confirming their status as the most successful part of the hotel-tourism sector in Croatia. Below we bring a brief overview of the operations of the most important tourism companies.
the situation with valamar
Valamar achieved operating revenues of 158 million euros in the first six months, which is 10 percent more than last year, primarily thanks to the opening of Pical Resort, the largest single investment in Croatian tourism worth more than 200 million euros. In the first half of the year, two million overnight stays were realised, while boarding revenues amounted to 125 million euros, with a growth of 10 percent on a half-yearly basis, the company reports.
“The successful opening of Pical Resort in mid-March and the completion of investments in the Brulo cluster, including Sunny Poreč by Valamar 4* and Aquamar Brulo, which started operating at the beginning of July, have further improved the quality of the portfolio and strengthened Valamar’s market competitiveness ahead of the peak of the tourist season. The effects of these investments are also confirmed by the results of the Poreč destination, which achieved 21 percent higher boarding revenues compared to the comparable period of the previous year,” Valamar reveals. Adjusted EBITDA amounted to -2.2 million euros, compared to 4.3 million euros in the same period of the previous year. The result was mostly affected by the later opening of Sunny Poreč by Valamar facilities due to investment activities and pre-opening costs related to the opening of Pical Resort. Given the seasonality of the business model, the largest part of annual EBITDA is usually achieved during the third quarter, i.e. at the peak of the tourist season.
Maistra achieved sales of 827 thousand units in the first half of the year, which is three percent more compared to last year’s reporting period. The Istrian part achieved three percent higher sales and eight percent higher operating revenue, while in Zagreb hotels an increase in sales and operating revenues of three percent was recorded. In the Dubrovnik part of tourist operations, sales of two percent fewer units were achieved with a one percent higher revenue growth.
The tourist part achieved revenues from the sale of goods and services in the amount of 130 million euros, which is five percent more. Operating EBITDA of 24 million euros was achieved, which is a growth of two percent. Reported EBITDA amounts to 36 million euros.
This year there is also a strong inflationary effect of labour costs and an increase in depreciation costs. Net profit from regular operations in the first half of 2026 amounts to minus 2.8 million euros, while reported net profit is 6.7 million euros. The difference stems from the sale of non-operating assets, with a capital gain realised in the tourist part of operations.
Expected investments in the tourist part of the Group this year will amount to more than 100 million euros, and the largest part relates to camps in Istria, for example the Koversada camp and the Amarin pool complex in Rovinj. In the hotel part of the portfolio, investments relate to the Monte Mulini hotel in Rovinj and the Marjan hotel in Split. The Monte Mulini hotel was opened in May after renovation in an investment cycle worth nine million euros. Along with a refreshed identity and contemporary design, Monte Mulini introduces Riva Destinations, an exclusive lifestyle concept of the Italian brand Riva, part of the Ferretti Group, one of the global leaders in the luxury yacht segment. In this way, Rovinj becomes part of a selected circle of eleven world destinations: Monaco, Venice, Paris, Naples, Como, Mallorca and other prestigious destinations that offer guests a complete Riva experience beyond nautical activities.
Arena Hospitality Group achieved 50.8 million euros in consolidated revenues in the first six months of 2026, 3.2 percent less than a year earlier. On a comparable basis, revenues grew 2.2 percent, while EBITDA decreased to 2.6 million euros. The Group closed the period with a pre-tax loss of 7.8 million euros. Total consolidated revenues of Arena Hospitality Group in the first half of the year amounted to 50.8 million euros, compared to 52.5 million euros in the same period last year.
The 3.2 percent decline on a reported basis is partly the result of the closure of the Park Plaza Wallstreet Berlin Mitte hotel in the second half of 2025. When its last year’s contribution is excluded from the comparison, the Group’s revenues grew 2.2 percent.
Accommodation revenues decreased by 5.8 percent, to 39 million euros. EBITDA fell 27.8 percent, from 3.6 million to 2.6 million euros, while on a comparable basis it decreased by 16.1 percent. The pre-tax loss amounted to 7.8 million euros, the same as a year earlier.
savudrija resort and plava laguna
The operating revenues of the Plava laguna Group in six months grew by 4.3 percent, while operating profit (EBITDA) is lower by 4.5 percent primarily due to the reduced contribution of Hotel and Residence Garden Istra Plava laguna as a result of reconstruction and reopening only in mid-July. During the first six months the Group achieved a total of 1.72 million overnight stays, which is at the level of the same period of the previous year, while in hotels and apartments a 2 percent lower volume was realised.
Total operating revenues of the group in the first half of the year reached 82.1 million euros, which represents a growth of 3.4 million euros, or 4.3 percent compared to the same period last year. The revenue growth is the result of higher average accommodation prices in solid facilities and significantly better performances (prices and occupancy) in campsites based on investments made, as well as growth in other sales revenues. The cumulative reporting period in question was marked by a significant investment cycle aimed at further raising the quality of accommodation capacities, improving facilities for guests and strengthening the competitiveness of the tourism product.
A thorough reconstruction of the Savudrija Tourist Resort with a future capacity of 250 accommodation units is underway. The new resort will consist of a hotel and garden suites as well as other attractive facilities, including pools, wellness zones, family zones and various sports and recreational facilities that complete a contemporary tourism product in the family demand niche. Completion of works at Savudrija Resort is planned for spring 2027. The most significant project for the 2026 tourist season is the extensive renovation of Hotel Garden Istra Plava laguna, which has significantly improved the quality of accommodation and enriched the offer of facilities for guests of all generations.
In the first half of 2026, the operations of Liburnia Riviera Hotels proceeded in line with this year’s market trends. The more challenging market environment was influenced by a series of external factors, among which stand out a different schedule of holidays and school breaks in key source markets, as well as the holding of major international sporting events, which partly affected changes in the dynamics of guest arrivals. In these circumstances, sales revenues recorded a correction of 0.9 million euros (-4 percent).
The burden that tourism companies have been feeling for several years is called – the rise in costs, especially in the labour segment.
Operations in the observed period were also marked by inflationary and macroeconomic pressures on the prices of materials and services, while staff costs increased by 0.8 million euros (+8 percent). The said growth primarily stems from continuous investments in improving working conditions, increasing the competitiveness of employee remuneration and ensuring a stable and high-quality workforce, which is one of the key prerequisites for maintaining a high level of service and guest satisfaction. As a result, the adjusted operating result (EBITDA) for the first six months is lower by 1.9 million euros and was achieved in the amount of 1.6 million euros.
Jadran achieved 8 percent fewer commercial overnight stays in the period from April to June 2026 compared to the same period in 2025. The decline in overnight stays compared to the previous year was recorded in almost all sales channels, except for the group and individual channels. Jadran’s total revenues in the second quarter of 2026 amounted to 5,888,323 euros and were 7 percent lower than the revenues achieved in the same period of 2025. Operating revenues in the second quarter of 2026 amounted to 5,874,930 euros and were 7 percent lower than the revenues achieved in the same period of 2025. Financial revenues amounted to 13,393 euros and were 8,177 euros lower than those achieved in the same period of 2025.
The company achieved total expenses of 8,063,816 euros from April to June 2026, which is 6 percent more than the expenses achieved in the same period of 2025. Material costs amounted to 3,462,596 euros and were 11 percent higher than the costs achieved in 2025. Staff costs amounted to 2,465,390 euros and were 4 percent lower than the costs achieved in 2025. Helios Faros records an 18 percent growth in sales revenues as a result of growth in the number of overnight stays and prices and partly due to the earlier opening of individual facilities given the growing market demand for the Places and Amicor brands on the island of Hvar. The largest increase in costs in the first six months of 2026 compared to the same period of the previous year relates to employee costs due to the earlier opening of individual facilities and due to the increase in coefficients and the base of the tariff supplement.
Employee costs compared to the previous period rose by 15 percent with a growth in the average number of employees of 6 percent. Costs of raw materials and materials rose by 9 percent compared to the comparative period. The bulk of the increase relates to the rise in the price of heating oil by 85 percent. On the other hand, other costs were reduced by 13 percent on the basis of lower other employee costs which in the previous year compensated for lower bases and one severance payment was paid in 2025. Adjusted EBITDA is characteristically negative for this period given the opening of facilities at the end of April and the beginning of May, but due to double-digit revenue growth with weaker cost growth, it is better by 26 percent compared to the same period of the previous year.
mon perin and ilirija
According to the results, Mon Perin and Ilirija stood out with the quality of their performance. Mon Perin’s total revenues in the first six months amounted to over 5.9 million euros, and compared to the same period last year they rose by 837 thousand euros or 16 percent. At the same time, operating revenues rose 18 percent, to 5.26 million euros, while EBITDA increased by 40 percent, from 1.44 to just over two million euros. After last year’s loss of approximately 50 thousand euros, they closed the first half of this year with a net profit of 616 thousand euros. Particularly pleasing is the fact that revenues are growing faster than physical traffic, which confirms that the market recognises the quality of the product and that they are succeeding in achieving higher added value per guest.
Ilirija realised total revenues in the amount of 13.9 million euros in the first half of the year, which are higher by 3.02 percent compared to the same period in 2025, when they amounted to 13.5 million euros, and were generated by the growth of operating revenues. Operating revenues amount to 13.8 million euros and achieved a growth of 3.4 percent, and are the result of revenue growth in the Company’s sectors with year-round business activity. The nautical and DMK Ilirija Travel sectors were marked by significant growth in business activities in the first half of the business year in key physical business indicators (number of vessels on contractual berths, arrivals and transit overnight stays, number of organised events and persons at events), which was simultaneously accompanied by growth in revenues in the real-estate sector which are higher by 9 percent.
