Things are finally looking bright for Hvar’s flagship hotel group.
After years of arguments and feuds between owners over the rights and obligations of shareholders of Sunčani Hvar, the tourist company has finally stabilized its business operations which had been marked by massive losses. In 2014, when the company concluded the pre-bankruptcy settlement, Sunčani Hvar managed to post a profit in the amount of 23 million kuna. In comparison, the year before the company recorded a loss of 176 million kuna. According to information provided by the company to the Zagreb Stock Exchange, it is expected that the gross operating profit at the end of 2015 was 68 million kuna, reports Liderpress on January 17, 2016.
According to the company Board of Directors which is chaired by Gordana Tomičić, the successful completion of the pre-bankruptcy settlement proceedings marked the beginning of stable and profitable operations which brought about the preconditions for starting a new investment cycle. Sunčani Hvar had stagnated in investments longer than other hotel companies in Croatia (for as long as 10 years), but has recently announced the first phase of the new wave of investment, with 50 million kuna to be invested in the renovation and upgrading of the Pharos Hotel, which is considered to be one of the company’s resources with the greatest potential. The investment includes the renovation of 202 rooms, the main building and the surrounding area, and the hotel is expected to open as early as June 2016. The hotel will be tailored to the needs of younger guests and will be classified as a “bicycle friendly” hotel, with all the necessary facilities for development of cycling tourism.
The company management expects dynamic growth of occupancy rates and prices at the Pharos Hotel, precisely due to the fact that they will move away from the usual framework of hotel services. It expects that the investment will become profitable within five to six years, which is almost twice as fast as usual in the Croatian hotel industry. Last year, the company has increased its presence at key markets in the United States, Great Britain, Australia, South Korea, Taiwan and Brazil.
The pre-bankruptcy settlement agreement included the restructuring plan through a capital increase, which proved to be crucial for the survival of the company. The capital increase in the amount of 221.5 million kuna included owners of ORCO Property Group, Prime Tourist Resorts and the Republic of Croatia. The state ownership share of 32 percent has remained unchanged. The paid-in capital of Sunčani Hvar today stands at 388 million kuna.
