Annual Report • Jun 8, 2016
Annual Report
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Integrated Company annual report and Corporate SoCIal reSponSIbIlIty 2015
It is with great pleasure that I present herein the first Valamar riviera Integrated Company Annual Report and Corporate Social Responsibility 2015. driven by Valamar riviera's firm commitment to transparency and open communication, the main aim of this report is to present a comprehensive, strategic and long-term view of the Company to all relevant stakeholders, including our shareholders, employees, partners, guests, and the community at large.
the year 2015 was a very successful year of change and growth for Valamar riviera. It was the first year as an integrated company with a new organizational structure, after all related group companies were brought into one entity in 2014. the integration process greatly improved our efficiency and cost structure. at the same time our growth in sales and revpar was strong and driven by a HrK 1 bn investment cycle in the portfolio since 2012. overall this led to a strong increase in ebItda and record net profit.
2015 was also the first year Valamar riviera was listed on the official quotation of the Zagreb Stock exchange, during which our market capitalization increased by 21%. I am especially pleased that as a
result we were able to pay out and commit to a sustainable dividend for our shareholders.
last year has also been a year of change in management. We have appointed a new Ceo who is the right choice for successfully leading and growing our company. the management board has introduced a new corporate structure, which will further improve our efficiency and put greater authority on the management levels below the management board. I would like to take this opportunity to thank our long-term management board leaders edi Černjul and niko Koncul for building the foundation that enabled Valamar to get to the level of success we are seeing today.
looking ahead, we recognize that Valamar is ready to set its sight on new horizons of growth in the european hospitality sector, which motivated the formulation of our Corporate Strategy by 2020 as presented in this Integrated report for the first time.
our corporate strategy is based on our first and overall priority: the guest. We are acutely aware that the quality of guest experience is a key driver of future growth. We therefore plan to invest further in upgrading our asset portfolio of hotels, resorts
and campsites, but also, and equally important, in the training and development of our management and employees. We are convinced that only satisfied employees can provide the quality of service that makes for a great hospitality experience. ultimately, in our industry, the quality of service is the best guarantee that our investments will have strong returns and contribute to the bottom line.
the presently favorable market conditions and low financing costs together with our strong balance sheet and moderate debt level present a very solid springboard for Valamar's growth strategy and allow us not only to accelerate investments in our owned portfolio, but also to make new acquisitions, both in Croatia and abroad, with the ultimate aim to continue to grow market capitalization.
Valamar's development strategy also elaborates our commitment to sustainability as a key principle of good governance. In this integrated report the company reports widely on our numerous efforts to preserve natural resources, reduce our impact on the environment and develop the destinations where we work and live, making Valamar a leader in sustainability and corporate social responsibility in Croatia.
the successful implementation of our strategy is of course subject to many factors beyond our control: only a stable and investor friendly environment will allow us to invest as planned, and thus support employment and growth not only for Valamar riviera, but for the tourism sector and the economy in general. as representative of the largest shareholder and Chairman of the Supervisory board I can only pledge my commitment and support to the strategy of Valamar riviera as the right path to creating superb guest experiences, high employee satisfaction and great shareholder returns.
I look forward to successfully meeting our strategic goals as well as our commitments to all our stakeholders.
Sincerely, Gustav Wurmböck, Chairman
Gustav Wurmböck, chairman
Željko kukurin, ceo
last year we completed the ownership and business restructuring of all the companies in Valamar group. as a combined company, Valamar riviera nowadays has an exceptional future perspective. We have strengthened the organisation and the key positions with new people and new responsibilities. today, we are the leading Croatian tourism company operating in attractive tourist destinations, including poreč, rabac, island of Krk and dubrovnik, employing over 4,100 people, accommodating more than 800,000 guests annualy and managing around 10% of the categorised Croatian accommodation capacity in 25 hotels and resorts and 13 campsites. over the years, Valamar riviera has invested HrK 2.6 billion in its portfolio, which makes it one of the larger investors in the Croatian tourism. moreover, our investments have considerably raised the quality of our products and services towards 4*/5* level, which is also the company's future ambition – to target premium guests by improving the quality of our offer.
all that has not been accomplished in the space of a single year; it is the result of the work carried out by all those who used to be a part of babin kuk, Zlatni otok, Hoteli baška, rabac d.d., riviera poreč, Valamar management company, Valamar group and all other companies that are today consolidated into Valamar riviera. In some way, this year we turned a new page and started a new chapter, which is why I would like to use this opportunity to thank all of you who have built, developed and integrated these companies over the past more than 60 years of successful tourism history. Furthermore, a special thank you goes out to the shareholders who knew how to recognise opportunities and wisely guide the company in the past.
For Valamar riviera, 2015 was truly a dynamic year. at the start of the tourist season, we presented our largest investment in tourism, Valamar Isabella Island resort 4*/5* on the island of Sveti nikola – worth nearly HrK 300 million. only a few days later, we completed our first acquisition on the adriatic coast, worth HrK 372 million. apart from influencing the growth of financial results, the two business events have confirmed our strategy and determination to maintain a leading position in the Croatian tourism sector. Furthermore, with the acquisition of Hoteli baška, we became Croatia's biggest tourism company with more than 48,000 beds. Continuing investments in upscaling the portfolio and possible acquisitions in the coming period are key strategic initiatives for future growth. thus, the level of success in our business activities in 2015 demonstrates the capability of the management and the organisation to manage the process of development and acquisitions.
last year was a record-breaking year. our total revenues amounted to HrK 1.29 billion, up by 19% y-o-y, while operating profit increased by 49% to HrK 423 million as compared to 2014. as a result of consolidation and restructuring, as well as positive returns on investments from the previous period, we increased our operating efficiency and our ebItda margin grew by 6.8 percentage points to 32.7% (25.9% in 2014). that kind of business growth coupled with a stable net debt and a favourable average cost of financing of 2.5% clearly demonstrates the potential for further investments as well as growth in the value of the company.
thanks to our excellent sales team and positive trends during the tourist season, we increased our sales revenues by 18% y-o-y, at the same
time increasing the number of overnights by 10.9% and the average daily rate by 6.9%. In addition, the company's commitment to continued improvement of service quality and excellent work by the operating management led to an increase in customer satisfaction rate to 84%, as well as an extremely high percentage of recommendation by our guests of 97% and a high likelihood of return to Valamar of 83%. the indicators of growth of sales and customer satisfaction point to the fact that we were right to focus on guests and service excellence.
as Croatia's leading tourism company, we carry a huge responsibility – towards our shareholders, employees, management, partners and investors, and in particular to the local communities where we operate. the cooperation between a tourism company such as Valamar riviera and its stakeholders is vital for success in tourism. based on our conviction that growth and development, as well as long-term business sustainability and social responsibility, are the key preconditions for continued creation of added value, we have drawn up a strategy of Valamar riviera's development until the year 2020. last year's results, organizational restructuring achieving a high level of operating efficiency, favourable situation on the capital market, and the currently positive trend of tourist demand have resulted in our need to redefine the company's goals and strategy for the coming period. our business strategy is based on our work and success so far but also proposes a new company vision and mission. In an effort to improve our communication with investors and all other stakeholders, we have outlined our new strategy in this integrated report.
Valamar riviera is the biggest employer in the Croatian tourism sector and for a number of years now it has been recognised as employer partner. We continually work on increasing the
employment rate, improving salaries and working conditions and educating our employees. We intend to continue with those efforts because we are convinced that managing human resources will be our biggest challenge in the coming period. this is why one of our key strategic initiatives is focused on our employees, along with our guests. the 2015 average gross salary at Valamar riviera amounted to HrK 7,887, which is 13% higher than the industry average. We will continue to adequately compensate our employees' work and harmonise the growth of the salaries with the growth of the company. Furthermore, it is important to underline that 75% of our employees live in tourist destinations where they also work, which we believe is a differentiating value that makes our hospitality authentic. that is why we have launched a number of initiatives to maintain a high percentage of local employees and increase employee loyalty to the company. the repositioning of our portfolio towards upscale and premium service requires staff with greater hospitality knowledge; therefore, in the coming period we intend to educate our employees even more intensely to achieve the goal of increasing service
quality further.
I am confident that with the support from our investors and all other stakeholders, we will continue to drive a paradigm shift in regional tourism develpment. Valamar riviera's business model, based on the idea of symbiotically managing assets, hospitality services and destinations with the aim of developing the local economy through tourism, is sustainable in the long-term. Such a business model increases the added value for both guests and employees, results and profitability, and, consequently, value for
shareholders.
Yours sincerely, Željko Kukurin, of Valamar riviera
President of the Management Board
| 1. | IntroduCtIon About this Integrated report |
9 9 |
|---|---|---|
| 2. | about Valamar Valamar at a Glance History of Valamar Valamar's Business Model |
11 11 14 16 |
| 3. | tHe HoSpItalIty InduStry Trends in the Hospitality Industry Croatian Market Development |
20 20 22 |
| 4. | Valamar'S Corporate Strategy Vision, Mission, Core Values What we aim for: Strategic Goals Our Strategic Initiatives |
25 26 27 28 |
| 4.1. FoCuS on tHe gueSt |
30 | |
| 4.2. employeeS and organIZatIon |
36 | |
| 4.3. groWtH Strategy |
44 | |
| 4.4. InnoVatIon and dIgItalIZatIon |
50 | |
| 4.5. reSponSIble deVelopment oF tourISm and deStInatIonS |
54 | |
| 5. | InVeStor relatIonS |
65 |
| 6. | aWardS & reCognItIonS |
69 |
| 7. | Corporate goVernanCe |
75 |
| 8. | rISKS and rISK management |
87 |
| 9. | buSIneSS reSultS & Key IndICatorS 2015 |
95 |
HRPSOR Opinion on this Integrated report 109
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I n t r o d U C t I o n
I n
I n t h i s r e p o rt , Va l a m a r h a s i n t e g r a t e d s u s t a i n a b i l i t y r e p o rt i n g w i t h b u s i n e s s r e p o rt i n g a n d h a s f o r t h e fi r s t t i m e a p p l i e d G 4 G l o b a l R e p o rt i n g I n i t i a t i v e ( G R I ) g u i d e l i n e s 2 . T h e o b j e c t i v e o f t h i s r e p o rt i s t o c o m p r e h e n s i v e l y p r e s e n t t h e d e v e l o p m e n t s t r a t e g y o f Va l a m a r R i v i e r a , b u s i n e s s r e s u l t s , c o m p a n y c u l t u r e a n d o u r a p p r o a c h t o c o r p o r a t e s o c i a l r e s p o n s i b i l i t y t o o u r k e y s t a k e h o l d e r g r o u p s .
t h e fi r s t p a r t o f t h e r e p o r t s u m m a r i s e s c o m p a n y i n f o r m a t i o n , a s w e l l a s o u r r e n e w e d v i s i o n , m i s s i o n a n d c o r e v a l u e s . W i t h i n t h e p r e s e n t a t i o n o f o u r c o r p o r a t e s t r a t e g y , o u r s t r a t e g i c i n i t i a t i v e s a n d o u r p e r f o r m a n c e i n 2 0 1 5 a r e e l a b o r a t e d c o n c u r r e n t l y w i t h e c o n o m i c , h u m a n , e n v i r o n m e n t a l a n d s o c i a l i m p a c t a n d r i s k m a n a g e m e n t . W e r e p o r t e d c o m p r e h e n s i v e l y t h e a r e a s o f e m p l o y m e n t , e n v i r o n m e n t a l p r o t e c t i o n a n d c o m m u n i t y i n v o l v e m e n t , o f w h i c h w e a r e p a r t i c u l a r l y p r o u d . I n a d d i t i o n , w e p r e s e n t e d t h e l a r g e
n u m b e r o f a w a r d s a n d a c k n o w l e d g e m e n t s Va l a m a r h a s r e c e i v e d a s a c o m p a n y , a s w e l l a s i n d i v i d u a l p r o p e r t i e s , o u r e m p l o y e e s a n d t e a m s .
t h r o u g h o u t t h i s r e p o r t Va l a m a r r i v i e r a a l s o s e t s o u t s t r a t e g i c b u s i n e s s o b j e c t i v e s a n d s u s t a i n a b l e d e v e l o p m e n t g o a l s f o r t h e f o r t h c o m i n g r e p o r t i n g p e r i o d . o u r s p e c i fi c o b j e c t i v e s i n c l u d e l o n g t e r m p r o fi t a b i l i t y , e m p l o y e e e m p o w e r m e n t a n d s k i l l s e n h a n c e m e n t , d e s t i n a t i o n d e v e l o p m e n t , l o c a l c o m m u n i t i e s a n d t o u r i s m p r o g r a m m e s a n d a w i d e a r r a y o f o b j e c t i v e s i n t h e a r e a s o f e n v i r o n m e n t a l p r o t e c t i o n , e ffi c i e n t e n e r g y u s e a n d r e n e w a b l e r e s o u r c e s .
t h e r e p o r t i s a v a i l a b l e a t t h e Va l a m a r r i v i e r a w e b s i t e w w w . v a l a m a rr i v i e r a . c o m .
W e i n v i t e a l l s t a k e h o l d e r s t o s u b m i t t h e i r c o m m e n t s a n d s u g g e s t i o n s a t t h e f o l l o w i n g e m a i l a d d r e s s : i n t e g r a t e d r e p o rt @ v a l a m a r. c o m .
t h i s i n t e g r a t e d r e p o r t f o r va l a m a r r i v i e r a d . d . , r e f e r s t o t h e r e p o r t i n g p e r i o d f r o m 1 s t j a n u a ry 2 0 1 5 t o 3 1 s t D e c e m b e r 2 0 1 5 , a n d i s b a s e d o n t h e c o n s o l i d a t e d c o m p a n y a n n u a l r e p o r t 2 0 1 5 p u b l i s h e d o n 1 5 t h m a r c h 2 0 1 6 . 1
1 g r o u p Va l a m a r r i v i e r a ( a l s o i n t h e t e x t : c o m p a n y , g r o u p , Va l a m a r , Va l a m a r r i v i e r a , i n c l u d e s t h e f o l l o w i n g e n t i t i e s : Va l a m a r r i v i e r a d . d , Va l a m a r h o t e l i i l e t o v a l i š t a d . o . o . , Va l a m a r H o t e l s a n d r e s o r t s g m b H , p u n t i ž e l a d . o . o . , b a s t i o n u p r a v l a n j e d . o . o . , C i t a t i s d . o . o . , e l a fi t i b a b i n k u k d . o . o , m a g i č n e s t i e n e d . o . o . , p a l m e t u r i z a m d . o . o . , b u g e n v i l i a d . o . o . , p o g a č a b a b i n k u k d . o . o . , w h i l e t h e b u s i n e s s d a t a a n d fi n a n c i a l r e s u l t s f o r n e w l y a c q u i r e d c o m p a n i e s i n b a š k a d e s t i n a t i o n a r e i n c l u d e d f r o m J u l y 1 2 0 1 5 . 2 Va l a m a r p l a n s t o p r e p a r e i t s 2 0 1 6 I n t e g r a t e d r e p o r t i n f u l l c o m p l i a n c e w i t h t h e c o r e g 4 v e r s i o n o f g r I g u i d e l i n e s , a s p r e s c r i b e d b y t h e e u d i r e c t i v e f o r n o n fi n a n c i a l r e p o r t i n g f o r a l l c o m p a n i e s w i t h o v e r 5 0 0 e m p l o y e e s .
va l a m a r c a n a c c o m m o d a t e m o r e t h a n 4 8 , 0 0 0 g u e s t s o n a g i v e n d a y i n o u r 2 5 h o t e l s a n d r e s o r t s , a n d 1 3 c a m p s i t e r e s o r t s w h i c h a r e s i t u a t e d i n p r i m e t o u r i s t d e s t i n a t i o n s o n t h e c r o a t i a n a d r i a t i c f r o m i s t r i a a n d kv a r n e r t o D u b r o v n i k . va l a m a r o p e r a t e s a b o u t 1 0 p e r c e n t o f c r o a t i a ' s c a t e g o r i z e d a c c o m m o d a t i o n c a p a c i t y , m a k i n g i t c r o a t i a s l a r g e s t t o u r i s m g r o u p .
Va l a m a r ' s f a c i l i t i e s s e t t h e b e n c h m a r k s o f q u a l i t y i n p o r e č , r a b a c , I s l a n d o f K r k , a n d d u b r o v n i k . Va l a m a r o w n s Va l a m a r H o t e l s & r e s o r t s , a n d C a m p i n g a d r i a t i c b y Va l a m a r b r a n d s . K n o w l e d g e , p r o f e s s i o n a l i s m a n d h a r d w o r k o f o u r 4 . 1 0 0 e m p l o y e e s a r e t h e f o u n d a t i o n o f s e r v i c e e x c e l l e n c e , s u s t a i n a b i l i t y , a n d f u t u r e d e v e l o p m e n t .
t h e C o m p a n y ' s s t r a t e g y i s g u i d e d b y a p r i n c i p l e t h a t i n v e s t m e n t i n i m p r o v i n g t h e q u a l i t y o f o u r h o s p i t a l i t y p o r t f o l i o , t a l e n t d e v e l o p m e n t , i n n o v a t i v e s e r v i c e s a n d d e s t i n a t i o n d e v e l o p m e n t a r e t h e k e y d r i v e r s o f g r o w t h a n d f u t u r e s u c c e s s .
A B O U T V A L A M A R 2 .
va l a m a r r i v i e r a i s t h e l e a d i n g t o u r i s m c o m p a n y i n c r o a t i a a n d o n e o f t h e m o s t a c t i v e i n v e s t o r s i n c r o a t i a n t o u r i s m w i t h i n v e s t m e n t s t o t a l i n g 2 , 6 b i l l i o n H r k o v e r t h e p a s t 1 2 y e a r p e r i o d .
M I C R O F A C T S Va l a m a r p r o p e r t i e s h o s t o v e r 8 0 0 , 0 0 0 g u e s t s e a c h y e a r
| 1,333 |
|---|
| 423 |
| 2.6 |
| 4,112 |
| 310 |
| 810,000 |
| 48,019 |
| 4,750,823 |
| HrK] 3.2 |
| 3.1 |
| 21,243 |
1 By overnights 2015
2 As of April 2016
3 Incl. rental, sport, laundry and other operating revenues
4 By keys/pitches
5 By revenue
| 2011 - 2015 consoliDation anD listinG on ZaGreb stock excHanGe |
|||||
|---|---|---|---|---|---|
| the company valamar riviera as it stands today has been developing and growing on the croatian market for over 60 years. its development has comprised of several phases, against the backdrop of social and political changes, tourism development and continuous evolution of its business |
intensive construction |
Zlatni otok d.d., rabac d.d. and dubrovnik – Babin kuk d.d. were merged to riviera Adria d.d., which was later on merged with Valamar grupa d.d. and Valamar Adria holding d.d. |
|||
| strategy to address global trends in the hotel industry. | 1967 Hotels and apartments Luna 1968 |
the consolidated company started operating under the name Valamar riviera d.d. and was listed on the official market of the ZSe |
|||
| beGinninGs of tourism in poreČ |
Hotel neptun and the tourist village Lanterna 1971 |
2012–2015 upscalinG of tHe asset portfolio |
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| 1895 | Hotels Crystal and rubin | First 5-star hotel - Valamar dubrovnik President |
|||
| First public bathing area on Sv. nikola island, Bagno Parentino 1910 Hotel riviera in poreč opens after |
birtH of tHe company 1953 Founding of riviera Poreč, a predecessor of |
1976 Hotels diamant and Zagreb, and the pavilion Solaris 1979 |
1999 founDinG of tHe Dom fonD |
manaGement company valamar Hotels & resorts beGins to manaGe Hospitality |
Completion of Valamar's largest investment project – Valamar Isabella Island resort 4/5* |
| which the company is named | Valamar riviera d.d. | Hotel Pical, first hotel of the highest category in Poreč |
establishment of the | operations | 2015 recorD business result anD |
| 1913 i 1923 Hotels Venezia and Parentino |
management of hotels, bungalows and restaurants |
1986 | largest privatization investment fund during |
Introduction of the first tourism brands Valamar |
GroWtH |
| opened, owned by the company to this day |
in Poreč and on the Sv. nikola island |
Hotel fortuna, on the Sv. nikola island |
the voucher privatization period in Croatia |
Hotels & resorts and Camping on the Adriatic |
reorganization of the company and growth of financial results |
| 1895-1950 | 1950-1965 | 1965-1990 | 1990-2000 | 2000-2010 | 2010-2015 |
| CROATIAN TOuRISM HISTORy: 120 years of tourism |
RIVIERA pOREč: Start of organized tourism in Croatia |
CROATIAN TOuRISM dEVElOpMENT: Dynamic growth of tourism activity and building of a great majority of assets |
pRIVATIzATION ANd OwNERSHIp TRANSFORMATION: Post-war economic transformation and privatization processes |
BuSINESS ANd pORTFOlIO dEVElOpMENT: Investments to raise the quality of facilities and services |
NEW STAGE OF GROWTH AND LEADERSHIP: Consolidation of management strength |
| MERGERS & ACQUISITIONS | |||||
| 2011 Zlatni otok d.d. (est. 1956), rabac d.d. (est. 1961) |
|||||
| 2013 dubrovnik-Babin kuk d.d. (est. 1971) |
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| 2014 Valamar Adria holding d.d. (est. 2003) and Valamar grupa d.d. (est. 2005) |
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| 2015 Valamar hoteli i ljetovalista (est. 2000) |
acquisition of the majority stake in Hoteli Baška d.d. (est. 1949)
valamar riviera's business model includes development and maintenance of our touristic assets, operating management of hotels, resorts and campsites, and providing other hospitality services in our destinations. this approach enables valamar to manage the complete guest experience, and to serve as an important stakeholder in our destinations. our experience in property development and technical maintenance optimizes investments and returns. our portfolio asset management approach ultimately raises the quality of service provided and revenue achieved per guest.
owing to more than 60 years of company history we have a truly enviable tradition in hospitality and a unique asset portfolio structure. our asset portfolio, accounting for a book value of Hrk 3.2 bn, represents a key aspect of our success.
We manage assets on more than 520 ha of land on prime locations along the adriatic coast and operate more than 34 km long
seaside. our asset position is a major strength and an excellent opportunity for future development. Furthermore, over years, we have developed the organization and knowledge to develop tourism products and efficiently maintain the value of our assets. our policy is to annually invest minimum 5% of total revenues in capital expenditures aimed at maintenance and FF&e in order to enhance the value of the products.
MICROFACTS
Valamar riviera has more than doubled its ebItda since 2010
our policy is to annually invest minimum 5% in investment maintenance and FF&e
MARITIME dOMAIN
lANd
53% under concession2 47% ownership
GroWinG per-Guest revenue Due to active value cHain manaGement
optimal investment anD return on assets 1 Incl. HQ building and non-core assets 2 Applications for priority concessions on touristic land were made in 2011 according to the Law on touristic land, to be granted
Valamar riviera today manages 25 hotels and resorts, and 13 camping resorts - 41% of which are premium and upscale, 36% midscale and 23% in the economy
| Hotels anD resorts | campinG resorts | ||||||
|---|---|---|---|---|---|---|---|
| assets | keys | beds | assets | keys1 | beds | ||
| PReMIuM | 9% | 3 | 1,037 | 2,163 | 1 | 511 | 1,533 |
| uPSCAle | 32% | 5 | 1,422 | 3,243 | 4 | 4,437 | 13,562 |
| MIDSCAle | 36% | 11 | 3,113 | 6,496 | 5 | 3,375 | 9,537 |
| eCOnOMy | 23% | 6 | 2,356 | 6,359 | 3 | 1,810 | 5,586 |
| TOTAl | 25 | 7,928 | 18,261 | 13 | 10,133 | 30,218 |
1 Camping pitches 2 April 2016
other than operating and managing our own portfolio of hospitality properties, facilities and services, Valamar riviera manages over 300 restaurants and retail outlets in operation or in partnership, as well as a whole range of other tourist services such as beaches, transportation,
excursions, sport facilities, catering etc. In that regard, Valamar riviera serves as a professional destination management company possessing extensive local knowledge, expertise and resources, specializing in design and management of events, activities, transportation and program logistics to its clients. Valamar riviera provides an excellent localized service based on deep knowledge of the destinations where we operate.
| Keys | ||||
|---|---|---|---|---|
| Valamar Dubrovnik President Hotel | ★★★★★ | dubrovnik | 292 | premium |
| Valamar Isabella Island Resort | ★★★★★ (4&5) |
poreč | 344 | premium |
| Valamar lacroma Dubrovnik Hotel | ★★★★+ | dubrovnik | 401 | premium |
| Valamar Club Tamaris | ★★★★ | poreč | 507 | upscale |
| Valamar Riviera Hotel & Residence | ★★★★ | poreč | 135 | upscale |
| Valamar Zagreb Hotel | ★★★★ | poreč | 230 | upscale |
| Hotel & Casa Valamar Sanifor | ★★★★ | rabac | 242 | upscale |
| Valamar Argosy Hotel | ★★★★ | dubrovnik | 308 | upscale |
| Valamar diamant Hotel & residence | ★★★★ | poreč | 372 | midscale |
| Valamar Crystal Hotel | ★★★★ | poreč | 223 | midscale |
| Valamar Pinia Hotel & residence | ★★★ | poreč | 266 | midscale |
| Valamar rubin Hotel | ★★★ | poreč | 258 | midscale |
| Valamar Bellevue Hotel & residence Albona | ★★★★ | rabac | 350 | midscale |
| Allegro Hotel | ★★★ | rabac | 245 | midscale |
| Miramar Hotel | ★★★ | rabac | 178 | midscale |
| Hotel Corinthia | ★★★ | Island Krk | 480 | midscale |
| Zvonimir Hotel, Atrium & Villa Adria | ★★★★★ (4&5) |
Island Krk | 177 | midscale |
| Valamar Koralj romantic Hotel | ★★★ | Island Krk | 226 | midscale |
| Valamar Club dubrovnik | ★★★ | dubrovnik | 338 | midscale |
| naturist resort Solaris | ★★★ | poreč | 284 | economy |
| Pical Hotel | ★★★ | poreč | 359 | economy |
| tirena Hotel | ★★★ | dubrovnik | 208 | economy |
| Girandella tourist Village | ★★ | rabac | 377 | economy |
| Lanterna Apartments | ★★ | poreč | 910 | economy |
| Marina Hotel & Mediteran residence | ★★ | rabac | 218 | economy |
| CAMpING RESORTS2 |
||||
| Keys | ||||
| Camping Krk | ★★★★★ | Krk | 511 | premium |
| Camping Jezevac | ★★★★ | Krk | 738 | upscale |
| Camping lanterna | ★★★★ | poreč | 2,993 | upscale |
| Camping Marina | ★★★★ | rabac | 306 | upscale |
| naturist Camping Bunculuka | ★★★★ | Island Krk | 400 | upscale |
| Camping orsera | ★★★ | poreč | 594 | midscale |
| naturist resort Solaris | ★★★ | poreč | 1,485 | midscale |
| Camping Zablaće | ★★★ | Island Krk | 534 | midscale |
| Camping Škrila | ★★★ | Island Krk | 348 | midscale |
| Camping Solitudo | ★★★ | dubrovnik | 414 | midscale |
| naturist Camping Istra | ★★ | poreč | 1,006 | economy |
| Camping Brioni | ★★ | pula - puntižela | 654 | economy |
| Camping tunarica | ★★ | rabac | 150 | economy |
| Keys | ||||
|---|---|---|---|---|
| Valamar Dubrovnik President Hotel | ★★★★★ | dubrovnik | 292 | premium |
| Valamar Isabella Island Resort | ★★★★★ (4&5) |
poreč | 344 | premium |
| Valamar lacroma Dubrovnik Hotel | ★★★★+ | dubrovnik | 401 | premium |
| Valamar Club Tamaris | ★★★★ | poreč | 507 | upscale |
| Valamar Riviera Hotel & Residence | ★★★★ | poreč | 135 | upscale |
| Valamar Zagreb Hotel | ★★★★ | poreč | 230 | upscale |
| Hotel & Casa Valamar Sanifor | ★★★★ | rabac | 242 | upscale |
| Valamar Argosy Hotel | ★★★★ | dubrovnik | 308 | upscale |
| Valamar diamant Hotel & residence | ★★★★ | poreč | 372 | midscale |
| Valamar Crystal Hotel | ★★★★ | poreč | 223 | midscale |
| Valamar Pinia Hotel & residence | ★★★ | poreč | 266 | midscale |
| Valamar rubin Hotel | ★★★ | poreč | 258 | midscale |
| Valamar Bellevue Hotel & residence Albona | ★★★★ | rabac | 350 | midscale |
| Allegro Hotel | ★★★ | rabac | 245 | midscale |
| Miramar Hotel | ★★★ | rabac | 178 | midscale |
| Hotel Corinthia | ★★★ | Island Krk | 480 | midscale |
| Zvonimir Hotel, Atrium & Villa Adria | ★★★★★ (4&5) |
Island Krk | 177 | midscale |
| Valamar Koralj romantic Hotel | ★★★ | Island Krk | 226 | midscale |
| Valamar Club dubrovnik | ★★★ | dubrovnik | 338 | midscale |
| naturist resort Solaris | ★★★ | poreč | 284 | economy |
| Pical Hotel | ★★★ | poreč | 359 | economy |
| tirena Hotel | ★★★ | dubrovnik | 208 | economy |
| Girandella tourist Village | ★★ | rabac | 377 | economy |
| Lanterna Apartments | ★★ | poreč | 910 | economy |
| Marina Hotel & Mediteran residence | ★★ | rabac | 218 | economy |
| CAMpING RESORTS2 |
||||
| ★★★★★ | Keys | |||
| Camping Krk | ★★★★ | Krk | 511 | premium |
| Camping Jezevac | ★★★★ | Krk | 738 | upscale |
| Camping lanterna Camping Marina |
★★★★ | poreč rabac |
2,993 306 |
upscale upscale |
| naturist Camping Bunculuka | ★★★★ | Island Krk | 400 | upscale |
| ★★★ | ||||
| Camping orsera | ★★★ | poreč | 594 | midscale |
| naturist resort Solaris | ★★★ | poreč | 1,485 | midscale |
| Camping Zablaće | ★★★ | Island Krk | 534 | midscale |
| Camping Škrila | ★★★ | Island Krk | 348 | midscale |
| Camping Solitudo | ★★ | dubrovnik | 414 | midscale |
| naturist Camping Istra | ★★ | poreč | 1,006 | economy |
| Camping Brioni | pula - puntižela | 654 | economy | |
| Camping tunarica | ★★ | rabac | 150 | economy |
On an international level the hospitality industry is experiencing a shift in market trends. A strong demand for authentic guest experiences requires customtailored product formats that address and meet specific needs of each targeted guest segment. The hospitality industry is also strongly influenced by recent political events in europe and northern Africa that have made destinations' security a key decision criterion when choosing a holiday destination. Being perceived as a highly secure destination, Croatia is benefiting from these developments.
the hospitality industry is experiencing significant growth which is expected to continue over the next years. this growth is accompanied by four key trends that are of high relevance for valamar's business model.
guests are more than ever looking for a unique and authentic experience they can share with their friends and retell all year long. In addition to that, guests are becoming more demanding and expect customized and individualized product offering that corresponds to their demographic characteristics and interest areas. For example, millennials (generation born between 1980 and 2000) and Silver-Haired (above 60 years of age) are becoming the two largest travel segments with very particular interest areas and needs. In order to create unique experiences across different segments it is essential to, first of all, understand unique needs of different guest segments and, ultimately, tailor services and offering to those groups accordingly.
new emerging traveler segments and the increasing guest demand require dedicated product formats. Whereas families in the high season look for excellent properties and animation program for their children, in addition to relaxation facilities and activities for adults, Silver-Haired, millennial or mICe travelers in the low season require completely different formats. In order to participate in the growing segments, high innovation efforts are needed to tailor product formats to the attractive guest segments' needs.
the hospitality industry is already highly digitized. Share of online bookings and, especially, share of mobile bookings have been growing rapidly over the past years and are expected to grow even stronger in the upcoming years. guest demand for additional convenience and transparency throughout the entire guest journey is and will remain a key driver of digitization in the hospitality industry. apart from its huge potential to improve the customer journey, digitization offers significant levers in operational efficiency: smart data for better understanding of the guest, self-check-in and check-out to accelerate the process and many more. as an enabler of these processes, widespread and reliable wifi broadband has already become a given and basic need that customers take for granted.
In light of recent war and terrorism threats, security has become increasingly important over the past years only to become a crucial decision factor for guests and tour operators when choosing their travel destination. Croatia is perceived as a highly stable and secure country, which is confirmed by the "global terrorism Index 2015", that classified Croatia among countries with the lowest impact of terrorism.
the hospitality industry is strongly influenced by recent political events that have made security a key decision criterion when choosing a holiday destination
over the past years the croatia as a tourist destination has been growing strongly. croatia has a geographically favorable position as it is within driving distance from key central european source markets, such as austria, northern italy, slovenia, Germany and the czech republic.
While overnights in competitor mediterranean destinations such as italy, cyprus, Greece and spain, grew by 1.7% on average between 2009 and 2014, croatia's overnights soared by 3.9% in the same period. this growth was over-proportionally driven by strategies for shoulder season prolongation. a future outlook for croatia's tourism looks bright. the croatian tourism board predicts an annual average growth in overnights of 4.4% until 2020, whereas spending is expected to grow by 8.1%.
Croatian hospitality industry is still highly dominated by private accommodation, accounting for roughly 50% of all beds. the other half is primarily split in Hotels and Camping resorts. In the hotel market 3* and 4* hotels account for roughly 80% of the beds. However, there is an evident trend of asset uplifting towards 4* and 5* over the past years, with Valamar among the leaders. being a market leader in the hotel and camping market in Croatia, Valamar has actively been taking part in market development. by 2020 tourism in Croatia is predicted to invest around HrK 52.5 bn in new and
uplifted product and service offers. the Croatian government forecasts an average annual increase in tourism spending of 8.1% until 2020. In the same period the number of overnights is expected to increase on average by 4.4% annually. Increased spending is therefore primarily driven by an increase in average spending owing to higher quality offering and the prolonged season.
traditionally, Croatia has been a summer leisure destination which is reflected in a rather short high season during June, July and august and relatively low utilization rates in the shoulder season. Hospitality industry along with destination management has been successfully developing events and infrastructure for tailored offers in the shoulder season: Wine & Food initiatives, Cycling tourism, business tourism or Cultural tourism have been strongly promoted over the last years and are already showing significant effects. overnights in the shoulder season have been growing at almost double the pace compared to high season.
MICROFACTS Croatian hospitality industry is still highly dominated by private accommodation
| Germany | 24% | |
|---|---|---|
| slovenia | 10% | |
| austria | 9% | |
| czech republic | 8% | |
| italy | 7% | |
| poland | 7% | |
| the netherlands | 4% | |
| slovakia | 4% | |
| uk | 3% | |
| other countries | 24% |
1 eurostat
3 2009 not available
4 refers to hotel only. excl. tourist apartment and apartment hotels
5 Strategy of tourism development in republic of Croatia by 2020
(0.8%) private accomodation (2.0%) 53% 26% Hotels (1.5%) 18% others (-2.9%) 3% 13%
Jan feb Mar Apr May Jun Jul Aug Sep oct nov dec
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V A L A M A R ' S C O R P O R A T E 4 .
va l a m a r r i v i e r a m a n a g e s h o s p i t a l i t y p r o p e r t i e s t h a t r e p r e s e n t a b o u t t e n p e r c e n t o f c a t e g o r i z e d t o u r i s t a c c o m m o d a t i o n i n c r o a t i a , t h u s e x e r c i s i n g s i g n i fi c a n t i n fl u e n c e o v e r t h e t o t a l e x p e r i e n c e o f t o u r i s t s i n c r o a t i a a t t h e n a t i o n a l l e v e l a s w e l l a s i n i n d i v i d u a l d e s t i n a t i o n s .
We make our guests feel very welcome and highly appreciated
2. AMBITIOuS
We set ourselves challenging targets and strive for excellence in everything we do
We are responsible in our business partnerships, caring for our employees, supportive towards society and committed to the environment
We engage in collaborative innovation to improve our performance, stay alerta nd always remain open to change
We take pride in our destinations and in being part of the Valamar family
To drive a paradigm shift in regional tourism development.
To harness a symbiotic relationship between hospitality and destination management that develops local economies, builds sustainable futures and creates a more enriching guest experience.
by retaining market leadership in the Croatian market with two digit ebItda-Cagr over the next 5 years and through acquisitions or strategic partnership in selected destinations in the leisure hospitality sector in europe
while maintaining a solid balance sheet and generate premium returns by steadily growing ebItda margin to 35-38% with a sustainable net debt/ebItda ratio
by achieving 50% of revenue from direct bookings and 30% of returning guests
with internationally recognized players in order to prolong the season and diversify the customer base BE RECOGNIzEd AS THE MOST dESIRABlE EMplOyER IN TOuRISM
by paying above-average wages for Croatia, achieving 70% seasonal worker return rate and developing more than 80% of our management internally
investing at least 2.5% of revenues in corporate social responsibility, education, tourism and destination projects
by significantly increasing our market capitalization
by 2020, we want to...
in order to realize our strategic goals valamar has defined five key strategic initiatives:
provide superb quality to create positive moments and lasting memories for every guest each day and address him individually throughout the entire year
develop, empower and reward employees to become the heart of a guest-centric service organization and create long-term and trusting relationships with employees
Focus on strong growth in both revenues and profits by utilizing internal capabilities, enhancing guest focus and development through strategic partnerships and m&a
dIGITIzATION be a leading innovator in leisure hospitality industry in europe and leverage opportunities provided by digitization to fully meet our guests' needs
in the development of Croatian tourism, our destinations and corporate social responsibility
Guests, especially in the premium segments, are becoming more demanding. We are responding to this prevailing trend by constantly evolving and developing tailored products and service models. Better meeting the needs of target groups such as: families, adults, seniors, active lifestyle guests, MICe, leisure groups & tours, luxury camping and camping short stay not only increases guest satisfaction, but also ensures new revenue sources.
We are continuously innovating and developing our service concepts ranging from our highly acclaimed food & beverages offer to our recognized children club maro. as a next step we are elaborating premium services, day & night entertainment, destination concierge and other new concepts which will help us to even further differentiate Valamar from its competition.
Guest focus is reflected in our commitment to create authentic experiences and positive memories for every guest each day and address him individually throughout the entire year. We are convinced that a key to success is being guest-centric at the core of our business model and our organization. To further strengthen our focus on the guest we have defined five key elements of our strategy.
Hotels & resorts
Service uplifting is an approach at Valamar that was implemented in 2013 in order to consistently deliver excellent services and, in turn, achieve guest satisfaction and loyalty.
We understand that great service is not simply about delivering expected service, but rather about striving to provide unexpected value by recognizing guest´s specific situation, needs and wishes. the key enabling factor of this approach is the creation of a service-focused culture
across the entire organization which empowers employees to customize their service delivery to a particular situation. Service uplifting is also carried out by aligning employee selection, training and compensation systems to the desired hospitality vision and service excellence goals. as a result our guests rate Valamar services and guest orientation very highly, and are especially complimentary of our hospitality.
97% of our guests would recommend us, and 83% are likely to return to Valamar.
To round the guest experience and offer a truly comprehensive offering, Valamar launched a Perfect experience Creator program that serves as information, service and sales platform.
the program offers information and advice on various services and amenities in the destination (such as destination attractions, gourmet offer, events, outdoor activities, transportation, and other) and even enables guests to easily make bookings and purchases.
valamar maro branD of our guests would recommend us to their friends 97%
of malfunctions resolved to satisfaction 96%
the perfect experience Creator program enables guests to easily make bookings and purchases
By using different tools to evaluate guest experiences and their perceptions of the quality of our services, Valamar gets to understand its guests better and thus can provide excellent customer care.
Valamar is measuring guest satisfaction during guest stay via paper and tablet questionnaire, and through post stay online questionnaire.
Furthermore, Valamar is using trustyou online reputation management tool in order to efficiently incorporate key data and information and improve management of its online reputation. Valamar is highly present on the Internet, on social networks and opinion sites which is an excellent channel for maintaining a two-way relationship with guests.
Knowing our guests is a prerequisite to offer best-in-class tailored services. We believe we can further strengthen our guest centricity by systematically collecting and analysing our guests' preferences through our CRM approach. our know-how enables us to target individual guests before, during and after their stay throughout the entire year. the Crm approach is supported by our loyalty programs, Valamar plus Club for hotels and resorts and Camping adriatic plus Club for our camping resorts. the programs are designed to be an attractive platform from the very first day of membership. owing to our efforts we increased our guest return rate to 25% in 2015. We believe that with further upgrades of our loyalty programs we will be able to improve guest knowledge and reach the aimed 30% guest return rate. CRM MARKETING dATABASE 850.000 guests in marketing database lOyAlTy pROGRAM 32.000 loyalty program members* RECOGNITION OF GuESTS Customization and personalization of services ANAlyTICS data analysis for decision making support dIRECT COMMuNICATION newsletter & Customer relationship campaigns Data collection Cleansing / Merging Guest marketing profile Segmentation Metrics Communication Hotels & Resorts Camping Resorts Reservation center Perfect experience Creator Web * *Loyalty program was launched In our two-way, personalised customer relations management model, managing feedback is a key point. With this in mind, Valamar Quality department manages complaints, comments and suggestions that its customers make while in property in direct communication with staff, over tablets, through in-room feedback forms, via post-stay questionnaires or social networks. this model allows Valamar to manage service quality across operational areas with agility, providing responses within a maximum period of 48 hours from receipt thus further building strong customer relationships and elevating trust in the company.
Recommendation Rate
of guests are likely to return to Valamar
2015
online reputation index 83%
tripadvisor average rating 4.1
booking.com average rating 8.5
Guest satisfaction 88%
in May 2015
Valamar Riviera is one of the largest and most desirable employers in Croatia. In 2015, the average number of employees increased 9 percent over 2014 and totaled 2,581 full time equivalents (+18% '15/'12).
during the high season on august 31, 2015, total employment in all Valamar riviera destinations was 4,112 persons, including full time, temporary, seasonal and contract employees. Consistent with the nature of tourism business the number of employees shows significant oscillations during the
course of the year. each year Valamar riviera engages a large number of seasonal employees totaling more than 60 percent of Valamar's workforce without students and pupils. almost 65 percent of seasonal workers return to Valamar annually. the key objectives of Valamar's human resource strategy are being recognized as the most desirable employer in tourism by offering compensation above the Croatian average, having at least 70% of the seasonal workforce return each year and developing 80% of the management internally.
Our goal is to develop, empower and reward employees who are the heart of a guest-centric service organization. Service excellence as defined by Valamar can be consistently achieved only by highly motivated, experienced, skilled and loyal employees. The key to the Valamar Riviera human resource strategy is to create competitive working conditions, gain the loyalty of employees, increase local employment and develop professional talents. A smile from the heart of our employees is what we ultimately aim to achieve in our human resource management.
| Total | 4,112 |
|---|---|
| Students & pupils | 515 |
| permanent seasonal | 359 |
| Seasonal and temporary | 2,160 |
| Full time permanent | 1,078 |
national Bureau of Statistics in 2016
Our award-winning Valamar academy education program has successfully developed a large share of our management team. A prime example is the development of our property General Managers. Currently over 60% of our property General Managers and General Manager assistants have been developed internally by our Academy.
In house talent development has been primarily focused on general managers, sales & marketing managers and heads of departments in operations. as a next step we are planning to extend the academy programs to include talent, skills and knowledge development in other corporate functions. our numerous training programs for operational staff will be strategically managed and aligned with our human resource strategy under the umbrella of the Valamar academy.
this will enable us to further uplift and standardize training programs and consequently uplift the performance of our employees who are an instrumental and indispensable backbone of a service organization. as a leading company in tourism we are also planning to further develop strong partnerships with educational institutions, such as high schools and universities, in order to offer new academic programs and be an initiator of educational change in Croatia.
…pER EMplOyEE BASEd ON AVERAGE
development and training programs
in tourism we are planning to further develop strong partnerships with educational institutions to be an initiator of educational change in Croatia
Valamar academy not only results in higher satisfaction with corporate climate and culture but it also significantly increases employee loyalty to the company
over the last ten years 139 employees who are currently in junior, middle or top management roles at Valamar have successfully completed our Valamar academy program.
Valamar academy not only successfully develops our employees but it also results in increased satisfaction with corporate climate and culture and significantly affects their loyalty to the company. It has also had a very positive influence on the image of Valamar as an employer which has resulted in growing number of open job and internship applications.
Valamar has been growing significantly over the past years. We understand that, with the increasing size and complexity, new management models, a strong corporate culture and high involvement of the entire organization in change initiatives and processes are a priority.
We are especially focused on strengthening our organization to support our future investment, developement. Key elements are the empowerment of onsite managers and employees, training and development of staff. our guest-centric uplifting Service program is designed to develop a corporate culture which motivates employees to understand customers, go beyond expectations and deliver unbelievable service. the program is fully aligned with our compensation and rewards programs and activities.
In 2013 Valamar began implementing "uplifting Service" as a service management approach with the goal of transforming our hospitality culture and becoming the most best and the most recognized hospitality service provider on the adriatic. uplifting Service is a systematic approach to service excellence which aligns communication, motivation, education and every day tools for employees in order to create an environment and culture which is fully oriented towards the guest.
In 2015 we have designed a new complaint management system and our entire management team in properties has gone through a variety of custom-designed uplifting service training programs. uplifting as an approach to service excellence, quality management and employee engagement has been awarded as the best Hr practice in Croatia.
*without management who are motivated through annual bonus programs
of our guests rated our staff as either unbelievable or Great in 67,776 surveys received in 2015
We are fully aware that Valamar's success depends on its employees. To realize our strategic goals, and achieve service excellence we rely on exceptionally educated, highly motivated and satisfied employees.
therefore, our aim is to become the most desirable employer in Croatia. For this purpose we are developing tailored packages for our seasonal and full-year employees, including a comprehensive compensation policy, improved working conditions, special education programs and individualized career planning programs.
In 2015, the Company was awarded an employer - partner Certificate for the tenth consecutive year. Valamar is also the only tourism company among the top 5 employer partners in Croatia. top 5 employer partners include companies who have successfully integrated a strategic approach to human resource management, including transparent employee placement process, setting clear goals, measuring employee's output, awarding results, supporting career advancement, investing in employee career development, and encouraging two way communication
through variety of channels. Valamar riviera confirms our commitment to employees through a collective agreement which guarantees our employees base compensation levels and other benefits such as compensation for sick-leave or other disability, retirement package, Christmas bonus, financial support for children and various others.
Valamar measures the satisfaction of employees on various dimensions through an annual Corporate Culture and Climate survey which collects employee feedback in the following seven areas: organization of tasks and processes, leadership, education, attitude towards the employer, career opportunities, compensation and lifework balance. the level of satisfaction has been stable and high at 3,9 out of 5 for several years. all key areas of Corporate Climate and Culture achieve employee satisfaction over 3,3, and the following areas rate very highly (over 4): organization of tasks and processes, leadership, education and attitude towards the employer. In 2015 3,099 employees submitted the Corporate Culture and Climate Survey
the level of employee satisfaction has been stable and high at 3,9 out of 5 for several years
In order to improve the authenticity of our service and to support the local economies Valamar especially promotes employment in destinations, with average share of local workers in a destination of 75%.
Since 2012 we have invested yearly average of 255 mn HRK in order to upgrade the portfolio whereby we increased our share of premium and upscale keys from 29% to 42%.
most of the upgraded projects exceeded expectations and are providing an excellent return on investment. besides high efficiency in investment and construction processes, the right level of CapeX is crucial for optimal returns. We believe our successful track record best proves our ability to further upgrade the portfolio in order to bring the portfolio to an optimal state. therefore, we plan to intensify our investment activity in the next period by investing 1.5-2.0 bn of HrK in upgrading and repositioning of the portfolio
Valamar has an excellent track record of growth in both revenues and profit which we aim to carry on in the future.
We currently recognize a huge potential in the market on one side and affordable financing cost on the other side. Therefore, we are convinced of our strong internal capability to continue down our strong growth path in the years to come. We identified eight key elements that will support our growth initiative in both revenues and profits.
Creating loyal and returning guests not only boosts our revenues, but also provides us with an opportunity to increase the share of direct bookings. In 2015 Valamar Riviera generated 46,5% of roomnights or 372.5 mn HRK through Valamar direct distribution system: call center, direct reservation through web or mobile platform and loyalty program.
We have extensive experience in uplifting our assets with a clear guest focus. A key component of our guest-centric initiative is a clear portfolio positioning that efficiently addresses our target groups.
translating it into our organization means having not only the optimal portfolio differentiation, but also clear branding and service concepts designed to fulfil specific market segment needs and desires. by enhancing our positioning, we expect to increase occupancy and average daily rates, which will in turn, boost our revenues and ebItda.
total of Hrk 2,6bn
We see strategic partnerships as an important initiative to improve profitability, optimize revenue streams and generate know-how. Thus, we are particularly proud of our strategic partnerships with tour operators and travel agencies, which we aim to strengthen even further by exploring new cooperation areas.
We managed to intensify our strategic partnership with tuI by extending our offer to tuI's Family life Hotel concept in 2016. We are developing our new F&b and outlets strategy, which will further involve our operating partners in joint improvement of services in the next years.
We establish and maintain good long-term relations with our partners. Valamar co-operates with a vast array of reputable companies. Valamar riviera builds longterm business relations with a large number of partners and suppliers, primarily focusing on excellence of products and services in compliance with international standards and sustainability principles. Supply and delivery of goods and services is primarily contracted with local suppliers (over 95%), which directly strengthens the local market economy. the involvement of local suppliers encourages healthy competition, strengthens supply and demand, contributes to cost efficiency, encourages long-term partner relations and raises guest satisfaction through the experience of local and authentic products and services. adhering to high standards of quality of products and services, maintenance of ethical and correct business relationships, meeting deadlines and maintenance of long-term business co-operation are imperative for joint business success and growth of Valamar riviera and our partners.
Over the past years we have built trustworthy relationships with our strategic partners and the destinations we operate in.
For years now, we have been working with important tour operators such are tuI and rewe group, tennis specialists Zicshka and Wagner, as well with Croatian specialist Id riva and camping specialist gebetsroither. all of the mentioned are successful examples of cooperation with tour operators and
travel agencies and we aim to establish similar cooperations in the future with partners that can help to increase occupancy by bringing new fly markets and specialized groups. We also aim to further intensify our event management activities to create additional business in shoulder season. to round up our efforts we aim to continue developing special programs for specific target markets in order to create products that can increase the business out of the sun&sea season such are: tennis, bike, gourmet, short-break and similar.
MICROFACTS We aim to continue developing special programs for specific target markets in order to create products that can increase the business out of the sun&sea season
We believe in the potential of growth of Croatian tourism and we are actively looking for further enlargement of our portfolio to reinforce our leadership in the Croatian leisure market.
our corporate structure and business model of being at once an asset, hospitality and destination management company provides a competitive advantage for expansion due to the destination-based structure of the tourism sector in Croatia. there are still many
companies and property portfolios in Croatia that have not been seriously invested in over the last years and/or they have a need for destination development or professional operational management, which are the competitive advantages of the Valamar riviera model. due to similar source markets and potential operational synergies we are also considering expansion to other markets in the alpeadria region with the goal of acquiring a cluster of keys in known leisure destinations.
Valamar Riviera has for years had a clear focus on revenues. We implemented revenue management in the organization years ago and trained specialists in revenue management.
We define excellence in revenue management as selling the right room to the right client at the right moment at the right price in the right distribution channel with the best commission efficiency.
the achieved continuous growth in revenues per available unit over the last five years as well as the increase in revpar of 5,1% in 2015 was achieved largely through an increase of average price per unit (adr), which amounted to +6,9% ('15/'14).
Over the past years we have invested significant efforts in optimizing our cost structure and streamlining our processes. Since 2009 we improved our eBITDA margin from 15.4% to 32.7%.
our business model of operating a cluster of properties in one destination helps to centralize operational services such as laundry, horticulture, maintenance or energy management and to increase efficiency. In addition, due to our size on the Croatian market we are able to utilize economies of scale in operations and realize purchasing advantages. a high standard of professionalism helps us to efficiently implement best practices across the organization. We aim to continue to use these strengths in order to reach our profitability targets.
occupancy
occupancy
*Consolidated in Valamar riviera's p&l as of July 1st, 2015
* note: Financial information until 2014 refers to Valamar grupa d.d. consolidated statements; thereafter refers to Valamar riviera d.d. consolidated statements
15.4%
Creating innovative products and services is a prerequisite for meeting future guest demand. Therefore, at Valamar we continuously innovate and improve our products, services, processes and capabilities to achieving superior customer experiences and operational efficiency.
Innovation has always been a part of Valamar's identity, and one of the key ways Valamar is recognized by our guests and partners. Innovation at Valamar can be found in all areas of business activity, from daily operations to large investment projects. examples of innovation include our family service concepts, food & beverages offer, entertainment programs, property design and services in camping resorts. by focusing on innovative ideas and initiatives we seek to fulfill the needs and exceed the expectations of our guests and, ultimately, become a leader in innovation in the european leisure hospitality market.
By using the opportunities provided by digitization to fully meet our guests' needs and to become a leader in innovation of products and services in the european leisure hospitality market.
Smart usage of digital and information technology not only boosts the company´s efficiency but also allows our employees to focus on more value-adding activities.
Valamar has invested heavily in developing best-in-class It systems and infrastructure that can drive our business performance and enable us to grow and scale our revenues and services. all our properties are operating on micros Fidelio opera pmS (property management system). our revenue management, loyalty and Crm databases are enabled for smart data management and fully integrated with our pmS, reservations and booking systems.
We have also invested considerably and successfully in our websites as a key driver of direct sales. With the implementation of our highly automatized revenue management system we are able to manage and optimize exceptional circumstances and add value. In addition, information technology tools allow our corporate functions to fully manage human resources, accounting, finance and controlling functions in all our destinations centrally.
Va r i o u s p a rt s o f t h e g u e s t j o u r n e y b e c a m e d i g i t a l d u r i n g t h e l a s t y e a r s . W e b e l i e v e w e n e e d t o c o n t i n u e d i g i t a l i z i n g o u r s e rv i c e s t o e n s u r e h i g h g u e s t s a t i s f a c t i o n . A p e rf e c t p l a n n i n g a n d b o o k i n g e x p e r i e n c e o n o u r w e b s i t e v i a d e s k t o p a n d m o b i l e i s e s s e n t i a l , b u t i t i s o n l y t h e b e g i n n i n g o f t h e g u e s t j o u r n e y.
a s w e c o n t i n u e t o u p g r a d e o u r p o r t f o l i o a n d o u r s e r v i c e s , w e a l s o p l a n t o u p g r a d e t h e g u e s t s ' d i g i t a l e x p e r i e n c e i n a h i g h l y t a i l o r e d w a y i n k e y s e r v i c e a r e a s t o e n a b l e a b e t t e r g u e s t e x p e r i e n c e a n d e n s u r e t h e r i g h t b a l a n c e b e t w e e n p e r s o n a l t o u c h a n d d i g i t a l e x c e l l e n c e . S t a n d a r d g u e s t s e r v i c e s s u c h a s c h e c k i n , c h e c k o u t , h o u s e k e e p i n g , t e c h n i c a l m a i n t e n a n c e , F & b a n d o t h e r i n p r o p e r t y s e r v i c e s c a n r e a p b e n e fi t s f r o m
d i g i t a l i z a t i o n b o t h f o r t h e g u e s t e x p e r i e n c e a n d f r o m a p r o c e s s a n d c o s t p e r s p e c t i v e h a v i n g p o s i t i v e i m p a c t o n e ff e c t i v e n e s s a n d e ffi c i e n c y . F o r e x a m p l e , w i t h o u r p i l o t o f t h e h o u s e k e e p i n g a p p w e i m m e d i a t e l y k n o w w h e n t h e r o o m i s r e a d y f o r c h e c k i n a n d c a n e n s u r e t h a t n e e d e d m a i n t e n a n c e a n d m i n i b a r r e p l e n i s h m e n t i s p e r f o r m e d .
W e s e e a v e r y h i g h p o t e n t i a l i n d i g i t i z i n g d e s t i n a t i o n s e r v i c e s t o b e t t e r m a n a g e t h e c o m p l e t e c u s t o m e r e x p e r i e n c e . m a n a g i n g t h e c u s t o m e r d e s t i n a t i o n e x p e r i e n c e w i l l b e t h e f o c u s o f f u r t h e r d i g i t a l i z a t i o n a n d i n n o v a t i o n i n i t i a t i v e s g o i n g f o r w a r d . d i g i t a l i z a t i o n s h o u l d e n a b l e a n i n d i v i d u a l , g u e s t t a i l o r e d a p p r o a c h w i t h t h e a i m o f a d d i n g v a l u e t o b o t h t h e g u e s t a s a c o n s u m e r a n d Va l a m a r a s a p r o v i d e r o f s e r v i c e s .
M I C R O F A C T S
W e s e e a v e r y h i g h
p o t e n t i a l i n d i g i t i z i n g
d e s t i n a t i o n s e r v i c e s t o
b e t t e r m a n a g e t h e
c o m p l e t e c u s t o m e r
e x p e r i e n c e
Corporate social responsibility (CSR) at Valamar Riviera has been a part of the company's six decade long tradition in tourism activities and is rooted in the belief that sustainability of business performance is a strategic goal and a key driver of growth and development of tourism as such.
Corporate and social responsibility at Valamar riviera underscores and guides all strategic initiatives at the company including the development and education of employees, destination development, investment in the local community and care for those in need, a systematic approach to preserving the environment and the quality of the adriatic sea as well as the transparency of the Company to its stakeholders with emphasis on transparent and open communication to investors and shareholders.
We have structured all our current corporate social responsibility
We are aware that success of our hotels and resorts largely depends on further development of destinations we operate in.
therefore, we take an active role in developing destinations through various strategic projects and long-term cooperation with our municipalities and public authorities, tourist boards, events and service providers, associations, sports clubs and non-profit organizations. our destinations are extremely rich in heritage and culture. We believe that by promoting and
fostering the destinations' tradition, learning and innovation we can not only actively contribute to social development but also offer heightened and more authentic experiences to our guests.
efforts across organizational units and functions into eight important umbrella programs and have committed 2.5% of our annual revenues to projects and activities in these CSr programs.
For results achieved in responsible corporate practices in 2015 Valamar riviera has won the CSr Index award for the area of responsible policies and practices in managing its environmental impact. the award is bestowed by the Croatian business Council for Sustainable development and the Croatian Chamber of Commerce.
Play a leading role in advancing Croatian tourism, developing our destinations and preserving the environment as key principles of sustainability and social responsibility at Valamar.
We will continue to be a leader and a catalyst in developing destinations, promoting local culture and protecting the environment
Promoting Knowledge to excel in Tourism
Children about
supports cultural, culinary, educational and entertainment events, projects and initiatives which enhance the attractiveness and competitiveness of a given destination. at the annual level, the company allocates over HrK 10 million on average for various events that enrich the overall tourism product and contribute to an extension of the tourist season while also nurturing the local community's cultural identity and values. thus, in 2015 we supported a series of destination projects such as giostra, the labin republic, the carnival in labin and so forth, and we also elevate the quality of the tourism product through infrastructure projects such as construction and landscaping of beaches, promenades and cycling trails, in which we plan to invest approximately HrK 12 million in 2016. For three years in a row we have organized oktoberfest in poreč which has already become a tradition.
provides continuous support to the creativity of Croatian and international artists and many cultural initiatives and projects that have generated numerous artistic works. at the annual level, Valamar directs
approximately HrK 200,000 to underwrite projects in culture and the arts. the driver of Valamar's cultural program is the "artist on Vacation" project in cooperation with art collector marinko Sudac and the Institute for research into the avant-garde. the project has created an artistic platform with global significance. In 2015, in a relaxed summertime atmosphere, poreč hosted the most prolific version of this cultural event, featuring a series of respected international names in the neo-avant-garde, such as the renowned artist ewa partum. In the past four years, the project has hosted over 50 of the best known artists in the world, and exhibitions of their works have been organized in the museum of Contemporary art in Zagreb. a part of the project included an exclusive exhibition of the best-known Croatian neo-avant-garde group, gorgona, which after poreč was presented in the renowned moma in new york. For 33 years, Valamar has organized the painters' Colony, which has produced over 200 artworks by numerous artists with the aim of promoting culture and linguistic diversity. the Street art Festival was held in poreč in august 2015 with the support and participation of Valamar riviera. the Festival gathered some notable personalities from the world of free cultural expression and truly invigorated the old urban core of poreč.
Valamar riviera directly organizes or sponsors numerous sporting events with a value of almost HrK 2 million annually. Sporting events are organized at virtually all of Valamar's destinations with the objective of developing these destinations and promoting sports and the active lifestyle. In 2015, Valamar riviera supported the organization of the Swatch beach Volleyball major international tournament. It organized the Valamar terra magica bicycle race, the Valamar trail race and the Super Surfers Challenge poreč, and sponsored the dubrovnik Half-marathon – the first international sporting event of this type which, besides the healthy lifestyle, also promotes dubrovnik as an ideal destination. We were also sponsors of the offshore World Challenge – a tuna fishing competition – which promoted poreč as a big game destination of international significance and also contributed to the popularity of this attractive and – in Croatia – still insufficiently known sport, and to education on the protection of the sea and marine resources.
focuses on continual cooperation with vocational schools and colleges and serves
as a major contribution to the development of knowledge, expertise and education and the promotion of vocations in tourism. In 2015, cooperation with educational institutions continued with the organization of open doors day, in which the company brings its operations closer to the local community, especially to pupils in vocational schools and potential employees. We support the development of various educational programs for preschool and elementary school institutions and associations in order to familiarize even the youngest generations with the fundamentals of tourism. thus, beginning this year, as part of Valamar's "teaching children about tourism" CSr program, visits were planned so that groups of children from kindergartens at the destinations where Valamar operates can learn about occupations in tourism and the hotel industry through games and entertainment.
secured support for our former employees in 2015 by assisting the work and activities of the local branch of the rivieraš retired employee association at the poreč destination, and support for their activities will continue in 2016.
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As a leading hospitality company in Croatia we assume great responsibility for environmental protection. Thus, we will pursue a systematic approach to protect the environment and the Adriatic coast by implementing the highest standards of environmental protection and sustainability in our operations and investment practices.
born from our conviction that a preserved and attractive environment is the basic resource for tourism. So Valamar continuously works to improve environmental protection and sustainable development. the company recognizes all aspects of environmental impact management, and dedicates particular attention to compliance with legal and other standards, prevention of pollution as a fundamental approach to environmental management, rational use of resources, reduction and proper management of waste and staff training to handle any potential hazards.
over the past three years, the company has invested over HrK 12 million in energy efficiency projects. In 2015, we reduced greenhouse gas emissions by almost 500 tons, which is a reduction of over 9 percent per overnight. In subsequent years, we expect even greater progress, because since the beginning of this year, we have been purchasing electricity generated exclusively using renewable sources through the green energy project conducted by Croatia's national electric utility, Hep. We will thereby reduce greenhouse emissions by as much as 60% at the annual level. We had already begun investing in green technologies back in the 1980s by installing the first solar collectors in the camps at lanterna, which today extend over 2,800 m2 with a constant growth tendency. all of our investments are geared toward sustainable operations: we install high energy efficiency machinery and appliances, light fixtures are being replaced with environmentally-acceptable lighting elements (energy-saving fluorescent and led lights), etc. Solar energy is being used to heat water in residence and camping resorts. Valamar riviera has a total of 43 electrical vehicles at its destinations worth over HrK 2.5 million, and we have also invested in two electric vehicle charging stations in poreč
In 2015 a survey of 1.700 guests was conducted at 17 Valamar properties
of electricity coming from renewable energy sources - Aim 2016
reduction of our carbon footprint per overnight in 2015 compared to 2014
enlargement of our vehicle park over the last five years (incl. 2016)
instead of clean for watering – est. 2016
Valamar riviera continually encourages its guests and employees to behave in a manner that contributes to environmental protection. an example of our approach to environmental protection is the agreement with the municipality of poreč to become the biggest buyer of recycled grey water in the area. this supported the municipality in planning the county's new water purification plant. For us it was not only a significant contribution to the environment, but also a means to reduce the watering costs of our green areas.
Valamar riviera has been supporting the work of the blue World Institute for marine research and protection. Since the beginning, the dolphin protection project has become a global best practice example successful integration of scientific research and practical preservation of an endangered species. →
of guests noticed and supported the environmentally-friendly approach in our hotels 83%
do not expect the frequent changing of towels, nor bedding
62%
the efforts which Valamar dedicates to environmental protection and sustainable operations have been acknowledged by respected professional organizations, and they have conferred important honours to us, so that our hotels proudly bear seals and certificates such as Sustainable Hotel, travelife gold award and tuI environmental Champions, and as many as 11 of our beaches hold the blue Flag
certification. this is a global symbol of quality for a preserved environment, clean water and beaches, well-managed beaches and high-quality services.
High environmental protection standards are also confirmed by numerous certifications.
thanks to their application of global trends and best management practices for sustainable operations, in may 2015 the hotels Valamar dubrovnik president 5*, Valamar Zagreb 4* and Valamar bellevue 4* were granted the Sustainable Hotel certificate. the Valamar dubrovnik president received the superior certificate, while Valamar Zagreb and Valamar bellevue received basic certificates.
all hotels must meet the rigorous criteria for "green, sustainable hotels," which include preservation of the environment and care for employees and the surrounding community. the second generation of hotels was awarded in 2015, while in 2014 the first certificates for green operations were conferred to the Hotel & Casa Valamar Sanfior 4* and Valamar Koralj 3*
In 2015, 16 of our hotels received or extended the travelife gold award certificate. travelife is an international certification system which promotes sustainability in the tourism sector. the Sustainable Hotel and travelife gold award certificates were preceded by systematic field work that encompassed the compilation of detailed reports on energy and water consumption and waste management, with specific
measures aimed at saving resources and reducing the quantity of waste and caring for the employees and local communities. the strategic objective of the certification project is to introduce green business
practices and to strike a balance between economic progress, care for the environment in the broadest sense and social inclusion in the wider community. →
| ★★★ | ||
|---|---|---|
| Allegro Hotel | rabac | |
| Hotel & Casa Valamar Sanifor | ★★★★ | rabac |
| Miramar Hotel | ★★★ | rabac |
| Valamar Argosy Hotel | ★★★★ | dubrovnik |
| Valamar Bellevue Hotel & residence Albona | ★★★★ | rabac |
| Valamar Club tamaris | ★★★★ | poreč |
| Valamar Crystal Hotel | ★★★★ | poreč |
| Valamar diamant Hotel & residence | ★★★★ | poreč |
| Valamar dubrovnik President Hotel | ★★★★★ | dubrovnik |
| Valamar Isabella Island resort | ★★★★★ | poreč |
| Valamar Koralj romantic Hotel | ★★★ | Island Krk |
| Valamar Lacroma dubrovnik Hotel | ★★★★+ | dubrovnik |
| Valamar Pinia Hotel & residence | ★★★ | poreč |
| Valamar riviera Hotel & residence | ★★★★ | poreč |
| Valamar rubin Hotel | ★★★ | poreč |
| Valamar Zagreb Hotel | ★★★★ | poreč |
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As measured by keys, 80% of our campsite resorts and 63% of our hotel & resort keys are iso 14001 certified, and 58% of hotel and resort keys also boast a travelife certificate confirming our committment to managing quality and processes to the highest international standards, as well as managing our environmental impact and preserving natural resources
the Valamar lanterna camp in poreč won the first Croatian award for development of the green economy, called greenovation, which was conferred in 2013 in the overall efficient resource use in tourism Facilities category. this award is a confirmation of Camp lanterna's many years of efforts to develop a
thrifty, green and competitive economy which the company has been implementing on the entire peninsula over the past 30 years.
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continually supports associations and initiatives in the local community which care for the most threatened and needy people in the community. guests at all of Valamar's destinations actively participate in these projects, and their donations contribute to the cultivation of a culture of mutuality, while many of Valamar's employees support humanitarian initiatives on a voluntary basis. one of these projects, which has been ongoing for three years now, is called "a thousand days on the adriatic Sea," which supports the work of institutions, associations and schools that work with children who lack adequate parental care, children from low-income families or children with specific health problems who would benefit from stays on the sea and special needs children. as part of this project in 2015, over 1,400 free overnight stays in our hotels were granted free of charge, and last year alone about 380 children from 17
associations throughout Croatia experienced their first summer vacation on the sea. as part of the "Valamar's big Heart" program, we also support numerous associations, organizations, institutions and projects at all of our destinations which engage in a very broad range of activities but are characterized by recognized programs to help needy groups or unquestionably valuable and necessary work in society and the wider community.
The spirit of caring for those in need and supporting them with a big heart has always been part of Valamar's identity and role in the communities of our employees, guests and partners.
F u rt h e r m o r e , w e s t r i v e t o c o n t r i b u t e d i r e c t l y t o i n c r e a s i n g t h e t r a n s p a r e n c y o f Va l a m a r R i v i e r a a s a c o m p a n y a s w e l l a s t h e q u a l i t y o f c o m m u n i c a t i o n w i t h a n a l y s t s a n d i n v e s t o r s t h r o u g h r e g u l a r c o r p o r a t e p r e s e n t a t i o n s b o t h i n C r o a t i a a n d a b r o a d , g r o u p a n d i n d i v i d u a l m e e t i n g s , c o n f e r e n c e c a l l s a n d b y p r o v i d i n g c o m p r e h e n s i v e c o n t e n t a n d i n a l l p u b l i c a l l y a v a i l a b l e fi n a n c i a l a n d b u s i n e s s r e p o rt s .
t h e o b j e c t i v e s o f I n v e s t o r r e l a t i o n s :
aft e r i n t e g r a t i n g m a n a g e m e n t , t o u r i s m p o r t o fl i o a n d t h e s h a r e h o l d e r s t r u c t u r e o f Va l a m a r r i v i e r a i n 2 0 1 4 w e c r e a t e d a l e a d i n g a n d u n i q u e s h a r e o n t h e C r o a t i a n c a p i t a l m a r k e t s w h i c h o ff e r s a s i g n i fi c a n t e x p o s u r e t o t h e g r o w i n g s e c t o r o f t o u r i s m i n d u s t r y . I n n o v e m b e r 2 0 1 4 , Va l a m a r r i v i e r a g e n e r a l a s s e m b l y r e a c h e d a d e c i s i o n t o l i s t t h e Va l a m a r r i v i e r a s h a r e s o n t h e o ffi c i a l m a r k e t o f t h e Z a g r e b S t o c k e x c h a n g e , w i t h t h e fi r s t d a y o f t r a d i n g o n 1 7 t h d e c e m b e r 2 0 1 4 . t h e q u o t a t i o n o n t h e d e m a n d i n g o ffi c i a l l i s t i n g o f t h e Z a g r e b S t o c k e x c h a n g e a n d a n i n c r e a s e d l e v e l o f t r a n s p a r e n c y w e r e a i m e d a t a t t r a c t i n g i n s t i t u t i o n a l →
va l a m a r r i v i e r a i s c o m m i t t e d t o c o n t i n u o u s l y i m p r o v e t h e t r a n s p a r e n c y a n d q u a l i t y o f b u s i n e s s a n d fi n a n c i a l c o m m u n i c a t i o n w i t h i n v e s t o r s . i n t h i s m a n n e r w e a i m t o p r o v i d e a c t i v e s u p p o r t t o l i q u i d i t y , s h a r e v a l u e g r o w t h a n d e s p e c i a l l y i n v e s t o r i n v o l v e m e n t a s o n e o f t h e c o n t r i b u t o r s t o i n c r e a s i n g t h e v a l u e o f va l a m a r r i v i e r a s h a r e s t o a l l s t a k e h o l d e r s . t h e p u r p o s e o f a l l o u r e ff o r t s i s t o e n s u r e t h a t va l a m a r r i v i e r a s h a r e i s r e c o g n i s e d a s t h e l e a d i n g t o u r i s m s h a r e i n c r o a t i a .
investors who, until then, had limited access to the growing Croatian tourism sector. growing investor interest, especially by foreign investors, has confirmed the justifiability and the success of this approach.
during the period 1st January 2015 to 31st december 2015 the highest share price achieved on the regulated market was HrK 24.94, and the lowest HrK 18.55. during the respective period, Valamar riviera share price increased by 21.1% thereby exceeding the CrobeX and CrobeX 10 indices performance, which recorded a drop of 2.9% and 1.1%
respectively. due to the average daily trading volume of over HrK 813 thousand and the largest free-float of over 50%, Valamar riviera shares rank amongst the three most liquid Croatian shares listed on the Zagreb Stock exchange. Valamar riviera shares also rank amongs the top ten shares by market capitalisation. market capitalisation in excess of HrK 3 billion accounts for 2.5% of the total market capitalisation of shares traded on the Zagreb Stock exchange. In addition to the Zagreb Stock exchange indices, shares are also listed on the Vienna Stock exchange (CroX and SetX indices).
Valamar riviera is the most followed Croatian share by financial analysts. Financial analysts establish its target value based on their assessment of future performance of the company using various financial models (discounted cash flow, peer group and comparables approach, market valuation...). the crucial prerequisite for a high quality assessment of future business performance is the high level of transparency and open business communication provided by the management.
analyst coverage of Valamar riviera is
provided by:
1) alta invest d.d., ljubljana; 2) erSte bank d.d., Zagreb;
5) raiffeisenbank austria d.d., Zagreb;
6) uniCredit group -
Zagrebačka banka d.d., Zagreb
.
| name of the Stock exchange | Zagreb Stock exchange (ZSe) = RIVP-R-A | bloomberg = RIVPRA CZ reuters = RIVP.PAp |
|---|---|---|
| ISIn code: | HRRIVPRA0000 | |
| number of issued shares: | 126,027,542 | |
| number of votes per share: | 1 | |
| date of listing (Zagreb Stock exchange): | 15 december 2014 (126,027,542 shares) | |
| Zagreb Stock exchange indices in which Valamar riviera share is included: |
CrobeX CrobeXtr CrobeX10 CrobeXplus CrobeXturist |
|
| Vienna Stock exchange indices | SetX |
in which Valamar riviera share is included: CroX
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→ Valamar riviera was presented with the award for best Investor relations by poslovni dnevnik in co-operation with the Zagreb Stock exchange;
→ Valamar riviera was declared the best managed Hospitality Company in the Cee region by euromoney, the leading specialist financial magazine;
→ Valamar riviera Share was declared the Share of the year in 2015 by the investing public for the fourth consecutive year;
→ Valamar riviera share won the Share with the Highest Increase in trading in 2015 by the Zagreb Stock exchange;
→ marko Čižmek, best CFo in 2015 as selected by banka.hr portal and deloitte company.
MICROFACTS Valamar riviera is the most followed Croatian share by financial analysts
In 2015, Valamar Riviera received over 100 awards and certificates that were conferred to the company, its employees, and individual hotels, resorts and camping resorts in the destinations where we operate.
Valamar riviera's hotels, resorts and campsites operate at the highest quality standards for services and accommodation, which is regularly recognized by both hospitality professionals and our guests. the awards, honours and ratings that rank our properties among the best at respected global travel portals and organizations place Valamar at the very top echelon of Croatian tourism.
valamar riviera continually invests in enhancing the quality of its products, services and , and these efforts are recognized every day by the broader community, hospitality professionals, institutions, and our partners.
| luxurytravelGuide Global awards 2016 | Casa Valamar Sanfior | thomas Cook | proven Quality 2015 | albona | |
|---|---|---|---|---|---|
| World travel awards | leading summer resort in croatia | Valamar Club tamaris | Crystal | ||
| leading boutique Hotel | Hotel Valamar riviera | diamant | |||
| leading Hotel | Valamar lacroma dubrovnik | Koralj | |||
| leading business Hotel | Valamar lacroma dubrovnik | miramar | |||
| Hotels.com | Guest review score | Hotel Valamar riviera | pical | ||
| Hotel & Casa Valamar Sanfior | rubin | ||||
| HolidayCheck | 2015 award | Hotel & Casa Valamar Sanfior | riviera | ||
| travelife | travelife Gold award | Valamar diamant Hotel & residence | Sanfior | ||
| Valamar Crystal | Valamar Club tamaris | ||||
| Valamar rubin | Zagreb | ||||
| Valamar Isabella Island resort | FIt reisen | premium Quality Hotel - Wellbeing | Valamar diamant | ||
| Valamar Zagreb | Zoover | kids Holidaytip! Quality mark 2015 | Valamar Club tamaris | ||
| Valamar Club tamaris & Valamar tamaris residence | Valamar Zagreb | ||||
| Valamar riviera Hotel & Valamar Villa parentino | Zoover award Gold 2015 | Krk Camping | |||
| Hotel & Casa Valamar Sanfior | Zoover award bronze 2015 | Ježevac Camping | |||
| Valamar bellevue Hotel & residence | lanterna apartments | ||||
| allegro | Camping2be.com | camping2be 2015 award | marina Camping | ||
| miramar | adaC/anWb | best camping 2015 | lanterna Camping | ||
| Valamar Koralj romantic | Krk Camping | ||||
| Valamar dubrovnik president | the european business awards 2014/2015 | Valamar riviera d.d. | |||
| Valamar lacroma dubrovnik | leading campings of europe for 2015 | lanterna Camping | |||
| Valamar argosy | Krk Camping | ||||
| Valamar pinia Hotel&pinia residence | |||||
| tripadvisor | 2015 travellers' choice award | Valamar bellevue Hotel & residence | |||
| 2015 certificate of excellence | miramar Hotel | ||||
| tuI deutschland | tui environmental champion 2015 | Valamar Club tamaris & | |||
| Valamar tamaris residence | |||||
| Valamar dubrovnik president | |||||
| Valamar lacroma dubrovnik |
Haccp
codex alimentarius Valamar diamant Hotel and residence Valamar Crystal Valamar rubin Valamar pinia Hotel & pinia residence Valamar Club tamaris & Valamar tamaris residence pical/CK Valamar riviera Hotel & Villa parentino naturist resort Solaris Hotel&Casa Valamar Sanfior Valamar bellevue Valamar Koralj romantic Valmar lacroma dubrovnik Valamar dubrovnik president Valamar Zagreb Valamar Isabella Island resort iso 9001 Valamar diamant Hotel and residence Valamar Crystal Valamar rubin Valamar pinia Hotel & pinia residence Valamar Club tamaris & Valamar tamaris residence Valamar riviera Hotel & Villa parentino Hotel&Casa Valamar Sanfior Valamar bellevue allegro miramar Valamar Koralj romantic Valamar lacroma dubrovnik Valamar dubrovnik president Valamar Zagreb Valamar argosy
Valamar Isabella Island resort
praonica Sjever tirena
Valamar Club dubrovnik
praonica Jug
Valamar diamant Hotel and residence Valamar Crystal Valamar rubin Valamar pinia Hotel & pinia residence Valamar Club tamaris & Valamar tamaris residence Valamar riviera Hotel & Villa parentino naturist resort Solaris lanterna Camping naturist Camping Istra orsera Camping Hotel&Casa Valamar Sanfior Valamar bellevue Valamar Koralj romantic Krk Camping Ježevac Camping Valamar lacroma dubrovnik Valamar dubrovnik president Solitudo Camping Valamar Zagreb Valamar argosy Valamar Isabella Island resort praonica Sjever marina Camping tirena Valamar Club dubrovnik
praonica Jug
Q label Valamar riviera Hotel & Villa parentino
Blue Flag brulo oliva galeb Valeta Istra Vala Crnika Krk Camping Ježevac Camping Valamar dubrovnik president
| simply the best 2015 | lanterna Camping | ||
|---|---|---|---|
| association of Croatian travel agencies and Way to Croatia travel magazine | |||
| top 10 premium resort meeting Hotels | Valamar lacroma dubrovnik | ||
| Kongres magazin (Kongres magazine) | |||
| cfo of the year | marko Čižmek | ||
| portal banka.hr and company deloitte | |||
| employee of the year | dubravka brkljač, | ||
| Kvarner tourist board | Corinthia Hotel, baška | ||
| Golden Goat award | Valamar Isabella Island resort 4/5* | ||
| Istria County tourist board | |||
| sustainable Hotel | Valamar dubrovnik president | ||
| association of employers in Croatian Hospitality | Valamar Zagreb | ||
| Valamar bellevue | |||
| Croatian national tourist board | employee of the year in the category "Waiter" | Jozo Krešić | |
| employee of the year in sales and marketing in tourism | lucija erhardt | ||
| "receptionist of the year" | Smiljana lovrić | ||
| beach of the year | Cava beach, dubrovnik | ||
| csr index award for responsible environmental practice and policies | Valamar riviera d.d. | ||
| Croatian business Council for Sustainable development and Croatian Chamber of Commerce | |||
| poslodavac partner certificate | Valamar riviera d.d. | ||
| Selectio | |||
| best investor relations | Valamar riviera d.d. | ||
| poslovni dnevnik newspaper and Zagreb Stock exchange | |||
| Zagreb Stock exchange | stock of the year 2015. | Valamar riviera d.d. | |
| stock with the Highest increase in trading volume | Valamar riviera d.d. | ||
| second prize | dean gluhak | ||
| national Championship of Chefs and pastry Chefs | |||
| first and third prize | Ivan ergović & marija Franjić | ||
| 10th Competition in Confectionery – Italian minority association (novigrad) | (Valamar Club tamaris) | ||
| ambassador of croatian congress tourism | gorazd Surla, | ||
| 4th Croatian meeting Industry Forum | mICe specijalist (dubrovnik) | ||
| best 4-star Hotel of the adriatic |
association of employers in Croatian Hospitality
A well-defined and clear corporate structure is the foundation for effective strategic and operational management of the Company.
Valamar riviera d.d. key governing bodies are the general Shareholder assembly, the Supervisory board with its corresponding delegate committees and the management
board led by the president of the management board or Ceo of Valamar riviera.
the specific governance authorities and responsibilities of these governing bodies are regulated by the applicable Croatian legislation, Company Statute and other corporate governance codes, regulations or prescribed procedures.
as a joint-stock company owned by more than 21,000 shareholders valamar riviera d.d. is committed to the highest principles of good corporate governance and regulatory compliance.
| ervisory | e mitte |
ent e mitte |
|||||
|---|---|---|---|---|---|---|---|
| Mandate until |
ervisory ard Sup o B |
Presidium Sup |
Audit m o C |
estm m Inv o C |
|||
| Gustav Wurmboeck | Chairman | 07/2017 | proprietary | n | n | n | n |
| Franz lanschuetzer | deputy Chairman | 07/2017 | proprietary | n | n | n | n |
| Mladen Markoč | deputy Chairman | 07/2017 | Independent | n | n | n | |
| Georg eltz Vukovarski | member | 07/2017 | proprietary | n | n | n | |
| Vicko Ferić | member | 07/2017 | proprietary | n | n | n | |
| Hans Turnovsky | member | 07/2017 | Independent | n | n | ||
| Mariza Jugovac | member | 07/2017 | employee representative | n | |||
Annuall meeting frequency 4x 10x 4x 4x
of the
Board
| Željko Kukurin | Ceo | n | n | n |
|---|---|---|---|---|
| Marko Čižmek | board member | n | ||
| Alen Benković | Vice president | n | n | n |
| David Poropat | Vice president | n | n | n |
| Davor Brenko | Vice president | n | n | n |
| Ivana Budin Arhanić Vice president | n | n | n | |
| Sebastian Palma | director of Strategic planning and Controlling Sector | n | ||
| Andrea Štifanić | director of asset management and general affairs | n | ||
| Marko Vusić | director of Internal audit and pm | n | ||
| Dragan Vlahović | director of purchasing Sector |
the president of the management board is primarily responsible for formulating and managing the company's strategic, operational and financial activites. In addition, the president is individually
leading the following areas: hotel operations, marketing & sales, human resources, destination management, purchasing, investment and asset development, external affairs and public relations, quality management, controlling, legal and general affairs.
member of the board marko Čižmek is primarily and individually responsible for finance, accounting, treasury, It and institutional investor relations
Strategic corporate business functions are organized in 4 divisions
the senior management team or division vice presidents are responsible for managing specific functional business areas and activities. In addition, the senior management team is tasked with cross-functional steering and leadership, implementing the corporate strategy and providing management support to the Ceo. Hence, the senior management team is working closely with the management
board and relevant corporate functions
the Supervisory board meets at least four times per year. the Supervisory board is actively engaged in key management
decisions through corresponding delegate committees which meet more often to manage key strategic initiatives and support Supervisory board
decision-making process. → presidium of the Supervisory board
→ audit Committee → Investment Committee
→
chairman
Gustav Wurmböck graduated from the Universities of Vienna and Innsbruck and is an acknowledged expert in the field of corporate finance. Mr. wurmböck has held various positions
in prestigious companies such as IfC (International finance Corporation), deG (deutsche Investitions und entwicklungsgesellschaft), and the Austrian bank Länderbank, currently known as Bank Austria. He has been a long-time member of Supervisory Boards of companies from Austria, Hungary, and Croatia. He has gained extensive experience and know-how in the areas of energetics, telecommunications, privatisation, banking, and construction and has participated in privatisation procedures in eastern europe.
He is one of the co-owners and members of the Management Board of the company ePIC, Goldscheider und wurmböck Unternehmensberatungsgesellschaft m.b.H. with headquarters in Vienna, which is involved in making different types of investments throughout europe. Mr. wurmböck was also a Member of the Management Board of Valamar poslovni razvoj d.o.o. (2005 – 2011) and the President of the Management Board of Valamar Group d.d. (2005 – 2010). He has held several positions in supervisory
boards of Valamar Adria holding d.d., Valamar Group d.d., Puntižela d.o.o., and Valamar turistički projekti d.o.o., while he continues to act as President of the Supervisory Board of Valamar riviera d.d.
deputy chairman
Mladen Markoč graduated from the faculty of Law of the University of Zagreb. He specialises in company law, securities law, and commercial law. Mr. Markoč has been a consultant in numerous
important transactions in the Croatian and foreign capital markets and has been a regular speaker at conferences organised by the Zagreb Stock exchange Academy and the Judicial Academy. He started his career in law in 1998 as a legal apprentice with attorney Zvonimir raić. He was the Corporate Secretary of pharmaceutical company PLIVA d.d. from 1990 to 1997, a partner at the law firm Bogdanović, dolički & Partners from 1997 to 2007, and was a Board Member of ICf Group d.o.o. in 2008.
He was an attorney at the law office of Mladen Markoč from 2010 to 2013 and has been working as an attorney at law for the joint law office of Mladen Markoč and Ivan-Krešimir tomić since 2013. He is the vice president of the Association of Business Lawyers of Zagreb. He was also a member of the Supervisory Board of Valamar Adria holding d.d. (2011 – 2014), and is currently a member of the Supervisory Board of Valamar riviera d.d., Proficio d.d., and Hotel Laguna d.d respectively.
Franz lanschützer earned his MBA from the Vienna University of economics and his dBA from the University of Budapest. He has gained extensive experience in the areas of corporate
finance and asset management in Central and eastern europe. He is a partner in the company ePIC Goldscheider und wurmböck
Unternehmensberatungsgesellschaft m.b.H. with headquarters in Vienna. He has been working in mergers, acquisitions and corporate finance and has provided consulting services in Poland, the Czech republic, Croatia, and countries of the former Yugoslavia and has also set up and run investment privatisation funds in the Czech republic and Croatia.
He held executive positions at large financial consulting and auditing companies such as ernst&Young and Price waterhouse before becoming an employee of ePIC. He has also held executive positions at Valamar Group since 1999, including President of the Management Board and Cfo of Valamar Group d.d. and has also been a Member of the Supervisory Board of Valamar Adria holding d.d. and riviera Adria d.d. (currently Valamar riviera d.d.) respectively. He was President of the Management Board of Valamar riviera d.d in 2014. for the past five years, Mr. Lanschützer has also been a Member of the Management Board of Valamar poslovni razvoj d.o.o. (2005 - 2011) and Vela Kluda d.o.o. (1997 - 2013) respectively.
Georg eltz Vukovarski was educated in Switzerland and Germany where he majored in economics, history, and philosophy. He graduated from the University of St. Gallen with a degree in
business administration. Before moving to Croatia in 1994, he was senior VP marketing and member of the management board of a major Swiss corporation, and Ceo of its Canadian subsidiary. He co-founded Valamar Adria holding d.d. (as PIf dom fond d.d.) in 1998 and served as president of its management board before the merger into its subsidiary Valamar riviera d.d. in 2014.
In the years between, he served as president and member of management boards and supervisory boards of a large number of affiliated companies. He is member of the management boards of both the German-Croatian Chamber of Industry & Commerce and the Croatian-Austrian Chamber of Commerce. Currently, he is managing director of SAtIS d.o.o. and its parent company eladco Invest GmbH, and a member of the supervisory board of Valamar riviera d.d.
Mariza Jugovac finished secondary vocational school in Pula in 1975. She has been an employee of Valamar riviera d.d since April 20th, 1979. She became an employee of the hotel and tourist
enterprise "riviera" in Poreč, where she spent her first two years working in the It department. She became a payroll accountant in 1981 and has been the company's Senior Payroll Accountant since 2002. As an active union member, she was elected as the employee representative to the Supervisory Board of Valamar riviera d.d.
žElJKO KuKuRIN, EMBA President and CeO
Željko Kukurin graduated from theuniversity of Zagreb's School of economics and business, where he also received his master of Science degree in marketing. In 2010 he
obtained his emba degree from milan's bocconi university.
He began his career as an intern at riviera poreč, a Valamar group company, working as assistant manager on island Sv. nikola and later in Sales & marketing. In 2004, he joined Valamar Hotels & resorts where he developed and managed direct Sales and marketing.
From 2010 to 2014 he was management board president of Istraturist d.d., one of the biggest Croatian tourism companies, which was then owned by Zaba-unicredit group and was in close partnership with meliá. mr. Kukurin worked closely with meliá Hotels International, Spain's leading hotel company and one of the largest hospitality companies in the world. He restructured and increased the value of Istraturist, and ultimately, in cooperation with unicredit group, successfully sold the company in the biggest tourism transaction in Croatia.
In 2015 he joined the executive team of the leading Croatian tourism group Valamar riviera and was appointed to the position of president of the management board in June of the same year. He holds a number of important positions in Croatian tourism and national trade associations, such as Croatian national tourist board Council member and County of Istria tourist board Council member.
Hans Dominik Turnovszky was educated in Austria and Germany and has a degree from the renowned Cornell School of Hotel Administration. He has built a long and successful career
as a manager in the hotel
industry with more than forty years of experience in the operational, development, and administrative sectors. He has gained basic professional knowledge and experience in his home country as well as Great Britain, Ireland, Africa, Asia, and the United States. He has held executive positions in various companies, such as Kempinski, regent, rafael Hotels, Mandarin oriental, Austria Hotels International, AnA Grand Hotel in Vienna, the Lodge at Vail in Colorado and the Phoenician resort in Scottsdale Arizona.
Mr. turnovszky was a member of the Management Board and several committees of the Austrian Hotel Association. He currently serves as Chairman of the Hotel Classification Commission in Vienna and is a member of the five-star Certification Committee of the Austrian federal Chamber of Commerce. He was a Member of the Supervisory Boards of the Valamar Group d.d. and Valamar Adria holding d.d. and is currently a Member of the Supervisory Board of Valamar riviera d.d.
Vicko Ferić graduated from the faculty of economics and Business of the University of Zagreb in 1974. He started his professional career working for the organic Petrochemical Company
(currently dioki d.d.), followed by becoming an employee of InA d.d. where he held executive positions in the finance department and held the position as Assistant of financial director until 1998. Since the end of 1998 he has joined company epic. from 2003 until 2005 he was appointed as the President of the Management Board of company Sn holding d.d. from 2005 until 2011 he held the position as the President of the Management Board of Valamar Adria holding d.d. (former dom holding d.d.), as well as the director of company epic Zagreb d.o.o.
from 2011 until 2014 he holds the position as the Member of the Management Board of Valamar group d.d. He has also been involved in the realisation of important investment projects in the oil and tourism industries, the gasification process in Croatia, privatisations of Croatian telecom d.d., Croatia osiguranje d.d., dresdner Bank Croatia d.d., and the restructuring and sale of several companies from the dom fond d.d portfolio. He has been involved with numerous companies, such as Petrokemija d.d., Poljoopskrba d.d., Svetice građenje d.d., Instrumentaria d.d., rabac d.d., Vrboska d.d., Koestlin d.d., Belvedere d.d., Brodospas d.d., etc., either as a Member or the President of the Supervisory Board and is also a member of the Croatian Association of Certified Members of Supervisory and Management Boards. He is currently a Member of the Supervisory Boards of Končar - elektroindustrija d.d. and Valamar riviera d.d respectively
graduated from the Faculty of economics and business in Zagreb. He passed the exams for broker and investment advisor. He began his career in 1996
at Croatian national bank. He spent few years working in corporate finance at Investmentbank austria and ICF. From the years 2001 to 2004 he was the member of the management board in euro Invest, the company for investment fund management.
Within Valamar group mr. Čižmek has held numerous managing functions in companies that have been merged to present Valamar riviera: he was management board member of rabac d.d. (2004-2011), management board member of dubrovnik babin kuk d.d. (2009-2013) and management board member of Valamar adria holding d.d. (2008-2014). He is the member of management board of Croatian association of Financial analysts and Croatian association of Corporate treasurers.
Vice President of Sales and Marketing
Davor Brenko graduated from the faculty of economics in rijeka, and he began his professional career in 2000 in Valamar Hotels and resorts in the sales and marketing
sector. In 2002 he became Project Manager for guest satisfaction research and guest relations management program, while in 2004 he assumed responsibility for direct sales, which quickly became the strongest sales channel in Valamar. In 2009, davor Brenko was promoted to the position of Valamar's director of direct Sales and Marketing, and while at this position he participated in the creation of numerous developmental projects which resulted in improved sales, marketing and operational growth. At the beginning of 2010, he joined Istraturist Umag d.d., where he implemented a series of successful projects aimed at raising the quality and competitiveness of the company and its destination. As director of Business development, he worked on projects pertaining to strategic marketing and destination management and the development of successful tourism products such as the Umag tennis Academy and Istria experience.
As from 2015 davor Brenko holds the position of Vice President of Sales and Marketing in Valamar riviera d.d., where he is working intensively on development and growth of the company within the mentioned business segment and number of projects aiming at strengthening the tourism offer, destination management and creating recognisable and attractive company's destinations.
Vice President of Development, Facilities Maintenance and Technical Services
After graduating from the faculty of economics in Pula, Alen Benković began his career in 1999 as an intern in today's
riviera, where he worked at several important positions as assistant director of the camping funtana, assistant director of the camping Lanterna and director of the Hotel neptun – today's Hotel Valamar riviera 4* in Poreč.
He continued his career as the director of the Lanterna cluster, and then in the municipal company Parentium, which handles investments for the town of Poreč. In 2011 he joined Istraturist in Umag, as director for development, facilities Maintenance and technical Services. In 2015 he came to Valamar riviera d.d. as Vice President for development, facilities Management and technical Services, where he oversees major investment projects and the planning of the company's further growth.
David Poropat, Ph.d., graduated from the University of rijeka Hotel Management faculty in opatija in 1993. In 2007 he completed his graduate study at the faculty of
tourism and Hotel Management in opatija, where he successfully completed a doctoral course in 2013. His career began in 1993 as an intern in the sales and marketing sector of the former Jadran turist d.d. in rovinj, where he continued his career first leading the western market department in Sales, and then as planner and analyst in the controlling department. from 1996 to 2002 he was director of the Hotel Sol Park in the same hotel company, then under the management of the Spanish company Sol Melia. In March 2002, he joined former company riviera Holding d.d., Poreč, to the position of director of operations and thereafter, until 2006 he obtained the job of director of operations for all Valamar facilities. from 2007 to 2011, he held a position as a Board Member of the company Valamar hoteli i ljetovališta d.o.o. and from 2012 to 2014 as a member of the Management Board of the company Valamar poslovni razvoj d.o.o.
At the end of 2014, he was appointed as the Vice President of operations of the leading Croatian tourism company, Valamar riviera d.d. except his professional career, he also held a number of positions in the professional associations. during his career, he actively participated in dozens of business projects which exceptionally enriched his business experience. Also, he is the author of several professional and scientific works.
Business Development and Corporate Affairs
Ivana Budin Arhanić graduated economics from Middleburry College in the USA in 1999. After finishing her studies, she spent three years as a
strategy management consultant in Boston and in new York. In 2003, she joined the company Lura d.d., where she was in charge of acquisition and restructuring of company Somboled d.d. into Lura group, where in 2004 she became Vice President of the Supervisory Board.
In 2007 she graduated from two-year MBA program at Harvard Business School and joined Valamar, where in January 2009 she was appointed to the position of Member of the Management Board in Valamar group d.d. and Valamar Adria holding d.d., and from 2014 to 2015 a Member of the Management Board of Valamar riviera d.d., respectively.
Since June 2015 she has assumed the position of Vice President of Business development and Corporate Affairs and is in charge of business development through acquisitions, partnerships, strategic projects and corporate responsibility programs, quality management and corporate communication.
identification of potential operating risks
oversight and monitoring of initiatives undertaken with the aim of avoiding the occurrence of risk events
defining activities and assigning responsibilities in order to facilitate an effective contribution to risk management activities
valamar riviera actively formulates and manages the risk management policy in all aspects of operations, seeing risk as any potential event which may have a negative impact on the achievement of objectives and the strategy defined by valamar riviera.
exchange of information/com munication on the results of risk management conducted by the management board →
DefininG
Bearing in mind the fact that almost 95% of Valamar Riviera's guests are foreign guests who carefully choose their vacation destination in the competitive Mediterranean environment, the stability of a country's macro-economic indicators is very important, with special emphasis being given to the exchange rate and prices of goods and services with a direct impact on guests' purchasing power.
although smaller in share, the number of arrivals of domestic guests to Valamar riviera's facilities is important as well, and also impacted
by a number of other national macro-economic indicators, such as employment/unemployment, domestic gross product increase/decrease, industrial product increase/decrease, as well as other indicators having a direct impact on the purchasing power of the Croatian citizens and, consequently, on their decision at which of the adriatic destinations to spend their summer
vacation.
The risk related to the change of tax and other regulations is another significant risk for Valamar Riviera and one of the more demanding segments of risk management with only limited possibilities for Valamar Riviera.
during previous years, frequent changes of tax regulations had a negative impact on the profitability of Valamar riviera, the most significant being:
Such frequent changes of regulations related to tax levies imposed on the economy, which often take place after Valamar riviera has already adopted its business policy and the budget for the following year and agreed on commercial terms and conditions with their business partners, materially distort the financial position of the Valamar riviera and jeopardise further investment plans, and thus the trust of investors.
Valamar riviera is also exposed to the risks of potential change of regulations concerning concessions and concession approvals, i.e. concession fees for the use of maritime domain, but also concession fees for the use of touristic land, the area which has not been regulated until the present day. namely, in view of the core business of the Valamar riviera, the right of use of maritime domain and touristic land is one of the significant conditions of further business operations, particularly in campsites.
In their day-to-day operations and activities undertaken, Valamar Riviera is exposed to a number of financial risks, in particular to the following ones:
Valamar riviera operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the euro and Swiss franc. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities. the majority of international sale revenues are denominated in euro, with long-term debt being denominated in euro and Swiss franc. accordingly, movements in exchange rates between the euro, Swiss franc and Croatian kuna may have an impact on the results of future operations and future cash flow. Valamar riviera makes use of derivative instruments in accordance with operating estimates and expected market developments. given that the inflow is to a large extent denominated in euro, as well as the majority of credit liabilities, Valamar riviera is to the largest extent naturally hedged.
as for the part of credit liabilities committed in Swiss franc, Valamar riviera contracts available instruments to hedge against cash flow interest rate and foreign exchange risks. In view of exceptional volatility and unpredictability of Swiss franc exchange rate developments, Valamar riviera is actively continuing activities related to further debt conversion from Swiss franc to euro (in significant part already converted), where it is naturally hedged.
bank debentures committed at variable rates exposes Valamar riviera to cash flow interest rate risk. Valamar riviera periodically uses derivative instruments to actively hedge cash flow and fair value interest rate risk exposure by applying interest rate swap from a variable rate to a fixed one. the economic effect of such interest rate swap is the conversion of credits at a variable rate into credits at a fixed rate for pre-committed part of the loan principal protected in this way.
Valamar riviera has interest-bearing assets (cash assets and deposits), resulting in the income and operating cash flows being influenced by changes in market interest rates. this becomes particularly evident during the season when Valamar riviera has significant excess funds at its disposal.
Credit risk arises from cash, time deposits and trade receivables, where Valamar riviera has no significant concentration of credit risk. Following the sales policies, Valamar riviera commits to collaboration with customers with an appropriate credit history, i.e. its commitment is made conditional upon advance payments, payment of bank securities or by major credit cards (individual customers). With a view to reducing its credit risk, Valamar riviera continuously monitors its exposure to parties it operates with and
its credit standing, obtains security instruments (bills of exchange, promissory notes) and thus lowering bad debt risk with regard to services provided.
Valamar riviera is a holder of equity and debt securities and are exposed to price risk of listed equity securities. Valamar riviera does not actively participate in the capital market in terms of investments in equity and debt securities, so that the price risk of equity securities in their possession is not significant.
prudent liquidity risk management exercised by Valamar riviera implies maintaining at all times sufficient cash to settle all its liabilities by developing cash flow projections at a monthly, annual and long-term basis. on top of currently available cash, Valamar riviera aims to maintain flexibility in funding by keeping committed credit lines available.
excess funds above the amount required for working capital management are invested in interest-bearing deposits, time deposits, money market deposits and marketable securities, thereby choosing instruments with appropriate maturities or sufficient liquidity in accordance with the projected needs for liquid funds.
as an asset class with the highest risk, the market value of shares can be exceptionally volatile, as it is affected by the volatility of the whole capital market, macro-economic movements on the markets in which Valamar riviera operates, discrepancies with regard to financial analysts' expectations in relation to the performance, changes in dividend policy, activities concerning mergers, acquisitions and entering into strategic partnerships, instability of the Valamar riviera's business model, as well as fluctuations in the financial results of the Valamar riviera's business operations. If the given factors have a negative connotation, there is a significant risk of share market value drop. Furthermore, there is a significant risk of investors not being able to sell their shares at any time at a fair market value.
Valamar riviera hedges interest rate and foreign exchange risks by applying instruments available in the market in order to mitigate these risks. Internal risk management objectives and policies refer to the protection of foreign exchange inflows during seasonal activity and to the partial interest hedge of loan principal.
On a daily basis, Valamar Riviera faces business risks potentially leading the weakening of competitive strength, and thus jeopardising its further stability.
In the previous period, Valamar riviera made business decisions contributing to the increase of its competitive strength on the demanding mediterranean market and thus improved the performance and the efficiency of its business operations, which gave rise to the expectation of continued positive trends in the future as well, subject to prudent long-term strategic management.
In the Republic of Croatia, tourism has been one of few growing branches of the economy during the last several years marked by the global financial crisis and economic downturn, which have had a significant impact on the Croatian economy as well.
upon joining the european union, the republic of Croatia's market has become a part of the large european market, while the membership of the republic of Croatia in nato has reduced safety risks. the tourism development Strategy of the republic of Croatia until 2020 (official gazette no. 55/13) provides answers to the question what kind of tourism the republic of Croatia wants and needs to develop by using its comparative advantages as well as knowledge and skills with a view to strengthening the competitive capacity of the Croatian tourism. It is important that the achieved growth rates of the Croatian tourism are maintained over the following years, an objective to be accomplished only through further strategic considerations in developing tourism products and by investing in the creation of additional values, which will differentiate Croatian tourism from its competitive environment by pointing out its uniqueness, attractiveness and quality.
despite the improved security and political circumstance, which gave rise to the launching of investment cycles in tourism, the Croatian tourism, as one of the strategic branches of the Croatian economy, is still faced with a number of challenges and risks, such as:
→ Failing competitiveness in relation the environment as a result of frequent fiscal and parafiscal regulations over which Valamar riviera exercises no
influence; → global financial crises affecting adversely the purchase power of the population prone to travelling; → Security and political risks related to
increasing terrorism threats in the world
and in the country; → Security and political instability in the immediate environment of the neighbouring countries; → Strong seasonality of tourism as a
branch of the economy causing an insufficient utilisation of available capacities and resources of Valamar
riviera.
Cognizant of the risks pertaining to the reliability of IT operating solutions and the cyber-security of operations, Valamar Riviera continually works toward further development and implementation of new technologies in everyday operations.
particular emphasis has been placed on securing sufficient funding for the development and implementation of new information technologies, new technologies in the field of energy efficiency projects and data security projects, and the development and implementation of cutting-edge operating systems.
The development of Valamar Riviera would not be possible without effective human resource management, and the opening of the labour market increases the risk of human capital flight.
Valamar riviera is one of the largest employers in the tourism branch in Croatia, and also one of the most
desirable employers. Valamar riviera actively manages potential human capital risks by means of offering competitive working conditions, clear career development opportunities, compensation and awards systems, and active focus on employee development and investment in education and ongoing vocational training.
The performance of Valamar Riviera's business operations can also be affected by environmental risks, primarily with regard to customer satisfaction with the whole experience of staying in Valamar's facilities, reflecting as a result in a reduced number of arrivals.
Such risks include, for example, sea water pollution (e.g. as a result of tanker breakage or discharge of chemicals into the sea), but also less intense deterioration of sea quality and shoreline pollution arising from insufficient quality
of waste water management and sewage along the Croatian coast of the adriatic Sea.
likewise, climate changes, such as long drought periods or, on the other hand, long rain periods, can also have a direct impact on how long guests stay in hotels and campsites of Valamar riviera, or can also lead to increased operating costs. this also includes various other natural disasters and adverse climatic events (such as earthquakes, fires, floods), air pollution caused by toxic gas emissions from e.g. industrial plants, etc.
B U S I n e S S r e S U Lt S & K e Y I n d I C At o r S 2 0 1 5
P r e s e n t e d h e r e i s a s t r u c t u r e d s u m m a ry o f k e y i n d i c a t o r s a n d i n i t i a t i v e s t h a t w e h a v e e l a b o r a t e d t h r o u g h o u t t h e r e p o rt a s r e l a t e d t o o u r k e y s t a k e h o l d e r s , a r e a s o f f o c u s a n d s t r a t e g i c i n i t i a t i v e s , a s w e l l a s a s u m m a ry o f o u r c o n s o l i d a t e d Va l a m a r R i v i e r a g r o u p l e v e l fi n a n c i a l r e s u l t s i n 2 0 1 5 , a s r e p o rt e d i n o u r c o n s o l i d a t e d a u d i t e d A n n u a l R e p o rt f o r 2 0 1 5 p u b l i s h e d i n M a r c h o f t h i s y e a r.
K e y p e r f o r m a n c e i n d i c a t o r s a r e a l s o r e p o r t e d h e r e o n t h e b a s i s o f t h e n e w p o r t f o l i o s e g m e n t a t i o n p r e s e n t e d f o r t h e fi r s t t i m e i n t h i s r e p o r t , s t r u c t u r i n g o u r a s s e t p o r t f o l i o i n p r e m i u m , u p s c a l e , m i d s c a l e a n d e c o n o m y s e g m e n t .
W e a r e e m p h a s i z i n g t h a t t h e c o n s o l i d a t e d i n c o m e s t a t e m e n t o f Va l a m a r r i v i e r a g r o u p f o r t h e p e r i o d f r o m 1 J a n u a r y 2 0 1 5 t o 3 1 d e c e m b e r 2 0 1 5 c o m p r i s e s t h e d a t a f o r t h e f o l l o w i n g c o m p a n i e s : Va l a m a r h o t e l i i l j e t o v a l i š t a d . o . o . , Va l a m a r H o t e l s a n d r e s o r t s g m b H , p u n t i ž e l a d . o . o . , b a s t i o n u p r a v l j a n j e d . o . o . , C i t a t i s d . o . o . , e l a fi t i b a b i n k u k d . o . o , m a g i č n e s t i j e n e d . o . o . , p a l m e t u r i z a m d . o . o . , b u g e n v i l i a d . o . o . , a n d p o g a č a b a b i n k u k d . o . o . , w h i l e t h e d a t a f o r t h e n e w l y a c q u i r e d c o m p a n i e s i n d e s t i n a t i o n b a š k a a r e i n c l u d e d a s o f 1 J u l y 2 0 1 5 . F u r t h e r m o r e , t h e d a t a f o r 2 0 1 5 a r e n o t f u l l y c o m p a r a b l e t o t h e d a t a f o r t h e p r e v i o u s p e r i o d , a s t h e l a t t e r d o n o t c o m p r i s e t h e d a t a f o r t h e n e w l y a c q u i r e d c o m p a n i e s i n d e s t i n a t i o n b a š k a .
| 2012 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|
| Number of accommodation units |
14.763 | 15.342 | 16.056 | 17.783 |
| Number of Premium and Upscale accommodation units 4,324 |
4.997 | 6.317 | 7.383 | |
| Share of Premium and Upscale accommodation units |
29% | 33% | 39% | 41% |
| ቁቁቁቁቁ THE THE THE THEFT THATH THTTT |
ቁቁቁቁቁቁ OR ROOM OF STREET $\hat{\bm{\Phi}}$ |
THURS $\mathbf{\hat{n}}$ $\mathbf{\hat{n}}$ |
ORDOR ήÀ |
THEFT | THATT | AAAA | iti TTT TTT THT TT |
|---|---|---|---|---|---|---|---|
| Germany | Austria | Italy | Slovenia | Netherlands | Croatia | Great Britain | Other |
| 29% 1,361,182 |
14% 642,344 |
9% 405,093 |
8% 385,021 |
6% 287,369 |
5% 231,947 |
4% 200,067 |
26% 1,237. |
note: Financial information until 2014 relates to the consolidated financial reports of Valamar grupa d.d., and as of 2014 to the consolidated financial reports of Valamar riviera d.d.
| 2014 | 2015 Increase | 2014 | 4.1 | |||||
|---|---|---|---|---|---|---|---|---|
| emissions of greenhouse gases (t) 17,620 | 18,511 | 5% | ||||||
| overnights | 4,284,979 4,750,823 | 8% | 2015 | 3.9 | -2% | |||
| emissions of greenhouse gases per overnight (kg) |
4.1 | 3.9 | -2% | 3.8 | 3.9 | 4.0 | 4.1 |
| Hotels and resorts | campings | overall valamar | |||
|---|---|---|---|---|---|
| & upscale | premium midscale & economy |
& upscale | premium midscale & economy |
||
| Guest satisfaction index | 88% | 81% | 84% | 83% | 84% |
| Uplifted Guests (Staff) | 95% | 93% | 90% | 90% | 93% |
| recommendation rate | 98% | 97% | 96% | 96% | 97% |
| online reputation index | 89% | 79% | 85% | 77% | 83% |
| tripAdvisor (average) | 4.3 | 3.8 | 4.2 | 4.0 | 4.1 |
| Booking.com (average) | 9.0 | 8.0 | 8.5 | 8.3 | 8.5 |
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| number of loyalty program members* | / | / | 32,637 |
| number of guests in marketing database | 705,000 | 770,000 | 850,000 |
| number of website unique sessions | 4,648,000 | 5,635,000 | 6,230,268 |
| number of website unique users | 2,560,000 | 3,400,000 | 3,495,241 |
| number of phone & email requests | 220,000 | 240,000 | 246,564 |
| number of reservations** | / | 48,903 | 58,100 |
| Guests return rate; Valamar overall*** | 22.3% | 23.5% | 24.9% |
* loyality program was launched in may 2015
** not available for 2013
*** definition: guest with stay in 2015 and at least one stay within last 5 years (2010 – 2014)
Hrvatska Valamar
riviera
Industry
8,055 7,887 6,991
+13%
-2%
1 gross I salary as reported by State bureau of Statistics in 2016, republic of Croatia 2 139 as of 2015
2015 employee Satisfaction Survey Results
| 2014 | 2015 | |
|---|---|---|
| no. of participants | 2,909 | 3,099 |
| return rate % | 87% | 85% |
| Areas & critera | ||
| education | 4.2 | 4.3 |
| Leadership | 4.3 | 4.2 |
| organization of work | 4.2 | 4.2 |
| Attitude towards employer | 4,0 | 4,0 |
| Life- work balance | 3.8 | 3.8 |
| Career opportunities | 3.7 | 3.6 |
| Salary | 3.2 | 3.3 |
| total | 3.9 | 3.9 |
| no. of participants | Graduated | Promoted | Still in program |
|---|---|---|---|
| 40 | 36 | 28 | 3 |
| 90% | 78% |
| no. of participants | Graduated | Promoted | Still in program |
|---|---|---|---|
| 108 | 100 | 81 | 27 |
| 93% | 81% |
| no. of participants | Graduated | Promoted | Still in program |
|---|---|---|---|
| 6 | 6 | 6 | 5 |
| 100% | 100% |
| no. of participants | Graduated2 | Promoted | Still in program |
|---|---|---|---|
| 154 | 142 | 115 | 36 |
| 92% | 81% |
In 2015 Valamar Riviera posted a high 18% operating income growth rate and a 49.1% eBITDA growth rate, resulting in a 32.7% eBITDA margin.
Such growth rates are attributed to goodquality management, successful performance in the key markets and distribution channels, favourable weather conditions and the effects of four key strategy drivers:
despite an increase in operating volume, wider consolidation scope, and acquisition of the baška companies, operating expenses3 grew by nearly half as much as the sales revenues, recording a 9.2% growth. excluding the business operations of the baška companies, operating expenses were up by modest 3.7%, building on a positive cost efficiency trend after the consolidation of management and organizational and shareholding structure, as well as the restructuring of Valamar riviera.
revenue volume increase and streamlined cost management have resulted in an increase of ebItda of HrK 139.5 million, i.e. of adjusted ebItda by 38.2% to HrK 438.5 million5. profit before tax and net profit follow the exceptional growth rates with an increase of 125.1%, respectively 105.2% to HrK 132.9 million, respectively HrK 105.5 million, with a 10.3% ebt margin (5.4% in 2014).
Compared to 2014, there is a strong 17.7% increase in sales revenues to HrK 1,268.7 million, resulting mainly from the increased volume of physical indicators and average daily rate, as well as the increased sale of à la carte food and beverages by 35%. national sales revenues amount to HrK 106.0 million, and are 16.7% above the previous comparable period.
Sales revenues generated on international markets are 17.8% up and amount to HrK Adjustments have been made for: (i) the effect of extraordinary result (net income to the amount of HrK 7.8 million in 2015, i.e. expenses for termination benefits in 2015 (income from the reversal of provisions for termination benefits paid to the amount of HrK 8.5 million and termination benefit costs to the amount of HrK 15.3 million); (iii) the effect of one-off termination benefit
7 net debt: non-current and current liabilities to banks and other financial institutions + liabilities for loans, deposits and other–
period + non-current and current liabilities to banks and other financial institutions - cash and cash equivalents - long-term and
10 the number of shares as at 31 december 2015 net of treasury shares (includes 432,942 treasury shares of the subsidiary
12 ePS refers to earnings per share calculated on the basis of net profit. weighted average number of shares as at 31 december
1,162.7 million. other operating income of Valamar riviera, amounting to HrK 25.3 million, accounts for 1.9% (1.8% in 2014) of total revenues, indicating a 28.6% growth and resulting mainly from the one-off income from the reversal of provisions for termination benefits paid and, to a lesser extent, from the consolidation of other income generated by the companies in destination baška. Financial income in the reporting period went up by HrK 19.3 million, primarily because of foreign exchange gains. the result is a 19.3% increase in total revenues to HrK 1,333.5 million. →
| 2014 | 2015 2015/2014 | ||
|---|---|---|---|
| Total revenues | 1,117.6 | 1,333.5 | 19.3% |
| Sales revenues | 1,077.7 | 1,268.7 | 17.7% |
| Board revenues (accommodation 2 and board revenues) |
895.9 | 1,043.3 | 16.5% |
| Operating expenses3 | 767.9 | 838.4 | 9.2% |
| EBITDA4 | 283.9 | 423.4 | 49.1% |
| EBITDA margin | 25.9% | 32.7% | 680 bp |
| Extraordinary operations result and one-off items5 |
33.5 | 15.1 | -54.8% |
| Adjusted EBITDA6 | 317.4 | 438.5 | 38.2% |
| Adjusted EBITDA margin6 | 28.9% | 33.9% | 500 bp |
| EBIT | 79.5 | 171.8 | 116.0% |
| Adjusted EBIT6 | 113.0 | 186.9 | 65.4% |
| EBT | 59.1 | 132.9 | 125.1% |
| EBT margin | 5.4% | 10.3% | 490 bp |
| Net profit | 51.4 | 105.5 | 105.2% |
| Net debt 7 [m HRK] |
687.6 | 1.082,5 | 57.4% |
|---|---|---|---|
| Net debt / EBITDA | 2.4 | 2.6 | 5.6% |
| Net debt / Adjusted EBITDA | 2.2 | 2.5 | 14.0% |
| Cash and cash equivalents [m HRK] | 195.2 | 318.8 | 63.3% |
| Capital investments [m HRK] | 381.7 | 310.5 | -18.7% |
| ROE8 | 2.7% | 5.5% | 280 bp |
| Adjusted ROCE9 | 4.4% | 6.3% | 190 bp |
| 2014 | 2015 2015/2014 | ||
|---|---|---|---|
| EBITDA margin | 25.9% | 32.7% | 680 bp |
| Adjusted EBITDA margin | 28.9% | 33.9% | 500 bp |
| EBIT margin | 7.2% | 13.3% | 610 bp |
| Adjusted EBIT margin | 10.3% | 14.4% | 410 bp |
| EBT margin | 5.4% | 10.3% | 490 bp |
| Net profit margin | 4.7% | 8.1% | 340 bp |
| ROA | 1.7% | 3.0% | 130 bp |
| ROE | 2.7% | 5.5% | 280 bp |
| Adjusted ROCE | 4.4% | 6.3% | 190 bp |
| 31/12/2014 31/12/2015 2015/2014 | |||
|---|---|---|---|
| Average share price per 31 December [HRK] | 19.82 | 23.92 | 20.7% |
| Market capitalization10 [m HRK] | 2,480 | 2,971 | 19.8% |
| EV11 [m HRK] | 3,167 | 4,053 | 28.0% |
| EPS12 [HRK] | 0.47 | 0.84 | 78.7% |
| DPS13 [HRK] | 0.50 | 0.55 | 10.0% |
| EV / Sales revenues | 2.9x | 3.2x | 10.3% |
| EV / EBITDA | 11.2x | 9.6x | -14.3% |
| EV / Adjusted EBITDA | 10.0x | 9.2x | -8.0% |
| EV / EBIT | 39.8x | 23.6x | -40.7% |
| EV / Adjusted EBIT | 28.0x | 21.7x | -22.5% |
higher, whereby we point to the amended policy for accounting for unrealised foreign exchange differences and their recording in the quarterly dynamics. revenues from interest income on deposits are HrK 4.7 million lower due to the lower amount of available cash funds (as a consequence of dividend distribution to shareholders of Valamar riviera and the acquisition of Hoteli baška d.d. carried out in the second half of the year to the amount of HrK 188.2 million) and the general decrease in market interest rates. other financial income is HrK 2.7 million higher, resulting mainly (to the amount of HrK 2.3 million) from the valuation and reversal of unrealised derivatives positions during their realisation in the current year (forward transactions contracted for 2015 and interest swap).
Financial costs in the reporting period amount to HrK 78.3 million, accounting for 6.5% of total expenses (3.6% in 2014), and are HrK 37.6 million higher compared to the same period last year. Interest expenses and foreign exchange differences record a HrK 35.1 million increase, while the valuation of contracted IrSs and forwards during the year, including the reversal of their positions during realisation, has resulted in HrK 2.7 million additional expenses. Foreign exchange rate losses on existing loan portfolio, which recorded a HrK 29.2 million increase (resulting mainly from the appreciation of the Swiss franc exchange rate in the first quarter), are the biggest single item of financial costs. please note the changed (quarterly) dynamics in recoding unrealised foreign exchange differences. the increase in interest expenses in the amount of HrK 6.0 million is a result of an increase in non-current liabilities driven by drawing funds from granted credit lines for financing the 2014/15 investment cycle and the consolidation of the baška companies since July 2015.
Compared to the last year, in 2015, total operating expenses were up by 10.3%, mainly from increased operating volume and the acquisition of the baška companies. excluding the effects of consolidation of the baška companies, operating expenses are up by modest 5.1%. the modest growth is a continuation of the positive trend of management consolidation and restructuring at all company levels.
accounting for 35.5% (36.7% in 2014) of total operating expenses, material costs have increased by 6.4% to HrK 398.2 million; 4.1% of the respective growth is a result of baška companies consolidation and the rest primarily of higher raw materials and materials costs, the most significant being the increase of direct food and beverage costs (increased operating volume and higher à la carte spending) and, to a lesser extent, the increase of water and electricity consumption (increased operating volume, new investments, and replacement of fuel oil with environmentally friendlier energy products).
Staff costs amount to HrK 327.9 million, accounting for 29.2% of total operating expenses (29.7% in 2014). an 8.5% increase in staff costs in 2015 comes from the takeover of employees from the newly acquired baška companies and partially from an increase in employees' salaries on two occasions (1.5% in november 2014 and 1.5% in June 2015).
accounting for 20.8% (19.9% in 2014) of operating expenses, depreciation amounts to HrK 232.9 million (HrK 203.0 million in 2014). Its 14.8% increase being a result of an intensive 2014/15 investment cycle and, to a lesser extent, the wider consolidation scope.
other operating expenses amount to HrK 14.5 million, indicating a 32.3% decrease, mainly as a result of lower compensations for damages coming from disputes and lower carrying value of disposals. Value adjustments are up by HrK 17.2 million over a write-off of receivable for given advance to glavice d.o.o. Costs provisions, amounting to HrK 5.4 million, are down HrK 5.1 million and mostly refer to provisions related to initiated disputes. other expenditures are up 18.3%, i.e. HrK 19.3 million, as a result of the baška companies consolidation and termination benefits paid.
Valamar riviera's financial income in the reporting period amounts to HrK 39.5 million and is HrK 19.3 million, i.e. 95.4% higher compared to the same period last year. total foreign exchange gains are HrK 21.3 million
| as at 31 december 2015, compared to 31 | assets anD liabilities | ||
|---|---|---|---|
| december 2014, the total value of Valamar riviera's assets is 18.3% higher. the reason for such an increase in assets value and other balance sheet items is to be |
Amount ('000 HRK) |
||
| considered in the context of disclosing the fair value of assets and liabilities of the newly acquired baška companies in |
4,000,000 | ||
| compliance with the provisions of IFrS 3 on the day of acquisition. the total share capital and reserves have increased from |
3,500,000 | ||
| HrK 1,884 million to HrK 1,902 million, mostly as a result of the generated profit adjusted for distributed dividend and the |
3,000,000 | 25,415 238,601 |
|
| purchase of treasury shares. total long term liabilities are 60.8% higher, amounting to HrK 1,331.9 million as at 31 december |
2,500,000 | ||
| 2015, primarily driven by i) inflow of loans of the newly acquired baška companies amounting to HrK 138.6 million, ii) |
2,000,000 | 2,751,488 | |
| utilisation of credit lines for financing the 2014/15 investment cycle (a total of HrK |
1,500,000 | ||
| 265.8 million was drawn in 2015, and HrK 190,2 million for refinancing the acquisition of Hoteli baška d.d.), iii) deferred tax |
1,000,000 | ||
| liabilities disclosed for the difference in fair value of material assets of the acquired baška companies as established on the |
500,000 | ||
| acquisition date to the amount of HrK 20.4 million, and iv) foreign exchange rate |
0 | ||
| differences on existing loan portfolio (HrK 19.9 million). total short-term liabilities |
|||
| amount to HrK 229.6 million and are 4.6% higher compared to 31 december 2014, primarily due to higher short-term liabilities |
|||
| to banks (increase of 34.7% to HrK 139.8 million coming from the payment of the |
|||
| current instalment of the long-term debt). |
Cash and cash equivalents as at 31 december 2015 amount to HrK 318.8 million, where this year's impact of the consolidation of the baška companies amounts to HrK 12.5 million, indicating an exceptionally strong cash potential from operating activities, which, together with external debt, provides for a smooth continuation of future investing activities. →
Accrued expenses and deferred income
| total operatinG expenses14 [m Hrk] | |||
|---|---|---|---|
| 2014 | 2015 | 2015/2014 | |
| Operating expenses | 767.9 | 838.4 | 9.2% |
| Total operating expenses | 1,017.8 | 1,122.2 | 10.3% |
| Material costs | 374.0 | 398.2 | 6.4% |
| Staff costs | 302.1 | 327.9 | 8.5% |
| Depreciation and amortisation | 203.0 | 232.9 | 14.8% |
| Other expenditures | 105.5 | 124.8 | 18.3% |
| Provisions | 10.4 | 5.4 | -48.7% |
| Value adjustments | 1.4 | 18.7 | 1,229.3% |
| Other operating expenses | 21.4 | 14.5 | -32.3% |
t h e a c q u i s i t i o n o f t h e b a š k a c o m p a n i e s ,
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a g o o d u r i n g t h e s e a s o n . C r e a t i n g a h i g h q u a l i t y c o n t r a c t u a l b a s i s w i t h p a r t n e r s h a s a l s o i n c r e a s e d t h e q u a l i t y i n m a n a g i n g d i s t r i b u t i o n , s a l e s c h a n n e l s , o p t i m u m p r i c e s , a n d m a r k e t i n g a n d s a l e s a c t i v i t i e s i n h i g h s e a s o n .
H o t e l s a n d r e s o r t s 1 5 t o g e t h e r h a v e p o s t e d b o a r d r e v e n u e s o f H r K 8 2 6 . 8 m i l l i o n , u p b y H r K 1 1 8 . 1 m i l l i o n y e a r o v e ry e a r . t h e 1 0 . 7 % i n c r e a s e i n o v e r n i g h t s a n d t h e 7 . 5 % i n c r e a s e i n t h e a v e r a g e d a i l y r a t e h a v e p r i m a r i l y b e e n c o n t r i b u t e d t o b y t h e n e w l y i n v e s t e d a n d u p s c a l e f a c i l i t i e s . t h e i n c r e a s e d b o a r d r e v e n u e s h a v e p a r t l y b e e n a ff e c t e d b y t h e c o n s o l i d a t i o n o f H o t e l i b a š k a d . d . ; e x c l u d i n g t h e e ff e c t o f t h e r e s p e c t i v e c o n s o l i d a t i o n , h o t e l s a n d r e s o r t s h a v e p o s t e d a 1 0 . 3 % i n c r e a s e i n b o a r d r e v e n u e s .
H r K 2 9 . 5 m i l l i o n h i g h e r b o a r d r e v e n u e s g e n e r a t e d b y c a m p s i t e s 1 5 a r e a r e s u l t o f a n i n c r e a s e i n t h e n u m b e r o f o v e r n i g h t s b y 2 2 5 t h o u s a n d a n d a H r K 1 2 h i g h e r a v e r a g e d a i l y r a t e . H i g h e r b o a r d r e v e n u e s a r e m o s t l y d r i v e n b y t h e c o n s o l i d a t i o n o f H o t e l i b a š k a d . d . ; e x c l u d i n g t h e e ff e c t o f t h e s a i d c o n s o l i d a t i o n , t h e c a m p s i t e s h a v e g e n e r a t e d 6 . 3 % h i g h e r b o a r d r e v e n u e s , m a i n l y c o m i n g f r o m t h e i n c r e a s e o f t h e a v e r a g e d a i l y r a t e . a s t o c a m p s i t e s , n o t e w o r t h y a r e p a r t i c u l a r l y i n v e s t e d c a m p s i t e s , i . e . K r k c a m p s i t e a n d w h i l e p o r e č c a m p s i t e s i n d i c a t e a s t a b l e i n c r e a s e i n b o a r d r e v e n u e s , w i t h t h e l a n t e r n a c a m p s i t e h a v i n g t h e l a r g e s t i m p a c t o n b o a r d r e v e n u e s g r o w t h .
b o a r d r e v e n u e s f o r p r e m i u m s e g m e n t h o t e l s a n d r e s o r t s a r e a t H r K 1 8 4 . 8 m i l l i o n w i t h a H r K 6 6 m i l l i o n , a n d a r e t h e b i g g e s t c o n t r i b u t o r t o t o t a l b o a r d r e v e n u e g r o w t h . a 5 5 . 7 % i n c r e a s e i n o v e r n i g h t s a n d a 1 2 . 3 % i n c r e a s e i n a v e r a g e d a i l y r a t e s a r e a r e s u l t o f e x c e l l e n t b u s i n e s s o f Va l a m a r I s a b e l l a I s l a n d r e s o r t 4 * a n d Va l a m a r d u b r o v n i k p r e s i d e n t H o t e l 5 * . I t i s i n t h e s e i n v e s t e d p r o d u c t s a n d h i g h e n d f a c i l i t i e s t h a t a p o s i t i v e c o n t r i b u t i o n i s e x p e c t e d i n t h e c o m i n g y e a r s , b e c a u s e t h e y a l l o w f o r b e t t e r m a r k e t i n g a n d s a l e s c h a n n e l m a n a g e m e n t d u e t o i n c r e a s e d d e m a n d .
| 2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|
| 1 6 , 0 5 6 |
1 7 , 7 8 3 |
1 0 8 % |
| 4 2 , 9 5 7 |
4 8 , 0 1 9 |
1 1 8 % |
| 4 , 2 8 5 |
4 , 7 5 1 |
1 0 9 % |
| 1 9 3 |
1 8 3 |
- 5 2 % |
| 1 2 1 |
1 1 9 |
- 1 7 % |
| 4 6 1 |
4 9 3 |
6 9 % |
| 5 5 8 |
5 8 7 |
5 2 % |
| 8 9 5 9 |
1 , 0 4 3 3 |
1 6 5 % |
| 5 0 4 5 |
6 2 8 4 |
2 4 6 % |
s e g m e n t : N u m b e r o f a N u m b e r o f b O v e r n i g h t s [ O p e r a t i n g d a F u l l o c c u p a
| : p r e m i u m |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
6 9 3 |
1 , 0 3 7 |
4 9 6 % |
| e d s |
1 , 3 8 6 |
2 , 1 5 3 |
5 5 3 % |
| [ ' 0 0 0 ] |
2 2 1 |
3 4 4 |
5 5 7 % |
| a y s |
2 6 7 |
2 2 7 |
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| n c y d a y s |
1 8 0 |
1 6 6 |
- 7 8 % |
| 6 | 9 5 3 |
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| 1 7 0 H R K] |
1 7 1 4 |
1 7 8 2 |
4 0 % |
| u e s [ m H R K] |
1 1 8 8 |
1 8 4 8 |
5 5 6 % |
| I T D A [ m H R K] 1 8 |
5 9 0 |
1 0 7 8 |
8 2 7 % |
A D R [ H R K] 1 6 R e v PA R [ 0 0
B o a r d r e v e n A d j u s t e d E B I
S e g m e n t : U N u m b e r o f a N u m b e r o f b O v e r n i g h t s [ O p e r a t i n g d F u l l o c c u p a A D R [ H R K] 1 6 R e v PA R [ 0 0 B o a r d r e v e n
| p s c a l e |
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|---|---|---|---|
| c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
1 , 4 2 2 |
1 , 4 2 2 |
0 0 % |
| e d s |
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3 , 2 4 3 |
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| [ ' 0 0 0 ] |
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4 8 8 |
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| n c y d a y s |
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1 5 7 |
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| 6 | 9 1 3 |
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| 0 H R K] 1 7 |
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| u e s [ m H R K] |
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| 1 8 I T D A [ m H R K] |
1 0 9 2 |
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A d j u s t e d E B
t h e m i d s c a l e s e g m e n t o f h o t e l s a n d r e s o r t s 1 5 r e c o r d e d H r K 3 0 5 . 1 m i l l i o n i n b o a r d r e v e n u e s . t h e 2 0 . 1 % i n c r e a s e i n b o a r d r e v e n u e s w a s m o s t l y d r i v e n b y t h e c o n s o l i d a t i o n o f H o t e l i b a š k a d . d . , a n d t h e r e s t i s a s c r i b e d t o t h e s t a b l e g r o w t h a t Va l a m a r p i n i a H o t e l & r e s i d e n c e 3 * , Va l a m a r b e l l e v u e H o t e l 4 * & r e s i d e n c e a l b o n a 3 * a n d t h e h o t e l a l l e g r o 3 * .
S e g m e n t : N u m b e r o f a N u m b e r o f b O v e r n i g h t s [ O p e r a t i n g d F u l l o c c u p a n A D R [ H R K] 1 6 R e v PA R [ 0 0 B o a r d r e v e
| M i d s c a l e |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
2 , 4 3 8 |
3 , 0 4 7 |
2 5 0 % |
| b e d s |
5 , 1 3 5 |
6 , 4 9 6 |
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| [ ' 0 0 0 ] |
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| a y s |
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| n c y d a y s |
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| 6 | 6 4 6 |
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| 1 7 0 0 H R K] |
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- 3 9 % |
| n u e s [ m H R K] |
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3 0 5 1 |
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| 1 8 B I T D A [ m H R K] |
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|---|---|---|---|
| c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
2 , 5 2 5 |
2 , 3 4 9 |
- 7 0 % |
| e d s |
6 , 7 4 3 |
6 , 3 5 9 |
- 5 7 % |
| ' 0 0 0 ] |
7 3 6 |
7 0 1 |
- 4 8 % |
| a y s |
1 6 6 |
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- 0 5 % |
| u e s [ m H R K] |
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| 1 8 I T D A [ m H R K] |
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t
| 2 0 1 4 |
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|
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
7 , 0 7 8 |
7 , 8 5 5 |
1 1 0 % |
| N u m b e r o f b e d s |
1 6 , 4 9 9 |
1 8 , 2 5 1 |
1 0 6 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
2 , 2 6 2 |
2 , 5 0 3 |
1 0 7 % |
| O p e r a t i n g d a y s |
1 9 4 |
1 8 9 |
- 2 6 % |
| F u l l o c c u p a n c y d a y s |
1 5 0 |
1 4 7 |
- 2 0 % |
| 1 6 A D R [ H R K] |
6 6 8 |
7 1 8 |
7 5 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
1 0 0 1 |
1 0 5 3 |
5 2 % |
| B o a r d r e v e n u e s [ m H R K] |
7 0 8 7 |
8 2 6 8 |
1 6 7 % |
| 1 8 A d j u s t e d E B I T D A [ m H R K] |
3 8 0 6 |
4 7 6 5 |
2 5 2 % |
| 2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
8 , 9 7 7 |
9 , 9 2 9 |
1 0 6 % |
| N u m b e r o f b e d s |
2 6 , 4 5 8 |
2 9 , 7 6 8 |
1 2 5 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
2 , 0 2 3 |
2 , 2 4 8 |
1 1 1 % |
| O p e r a t i n g d a y s |
1 9 2 |
1 7 7 |
- 7 8 % |
| F u l l o c c u p a n c y d a y s |
9 8 |
9 7 |
- 1 0 % |
| 1 6 A D R [ H R K] |
2 1 3 |
2 2 5 |
5 6 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
2 0 8 |
2 1 8 |
4 8 % |
| B o a r d r e v e n u e s [ m H R K] |
1 8 7 1 |
2 1 6 5 |
1 5 7 % |
| A d j u s t e d E B I T D A [ m H R K] 1 8 |
1 2 3 9 |
1 5 1 8 |
2 2 5 % |
| 2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|
|---|---|---|---|
| A d j u s t e d E B I T D A [ m H R K] |
- 1 8 7 1 |
- 1 8 9 9 |
2 8 6 % |
1 5 I n t h e 2 0 1 5 , t h e c o n s o l i d a t i o n o f t h e b u s i n e s s o p e r a t i o n s o f B a š k a c o m p a n i e s f o r t h e p e r i o d J u l y – d e c e m b e r 2 0 1 5 i s i n c l u d e d , w h i l e t h e B a š k a c o m p a n i e s a r e n o t i n c l u d e d i n t h e o v e r v i e w o f 2 0 1 4 . n o t e : t h i s h a s l e d t o l o w e r r e v PA r a n d o c c u p a n c y d a y s v a l u e s .
1 6 Av e r a g e d a i l y r a t e o f a c c o m m o d a t i o n u n i t s o l d i s r e c o r d e d o n t h e b a s i s o f c u m u l a t i v e b o a r d r e v e n u e s ( a c c o m m o d a t i o n a n d b o a r d ' s f o o d a n d b e v e r a g e r e v e n u e s ) .
1 7 r e v e n u e p e r a c c o m m o d a t i o n u n i t i s r e c o r d e d o n t h e b a s i s o f c u m u l a t i v e b o a r d r e v e n u e s ( a c c o m m o d a t i o n a n d b o a r d ' s f o o d a n d b e v e r a g e r e v e n u e s ) . n o t e : I n 2 0 1 5 , r e v PA r w a s i m p a c t e d b y t h e c o n s o l i d a t i o n o f B a š k a c o m p a n i e s ' b u s i n e s s o p e r a t i o n s s o l e l y f o r t h e p e r i o d J u l y – d e c e m b e r 2 0 1 5 , w h i c h , i n c o m b i n a t i o n w i t h t h e i n c r e a s e d n u m b e r o f a c c o m m o d a t i o n u n i t s l e d t o s o m e w h a t l o w e r r e v PA r v a l u e .
1 8 w h e n c a l c u l a t i n g a d j u s t e d e B I t d A , i n t e r n a l a l l o c a t i o n o f r e v e n u e s a n d e x p e n s e s a s w e l l a s i n t e rs e g m e n t r e v e n u e s a n d e x p e n s e s a r e e x c l u d e d f r o m t h e c a l c u l a t i o n .
1 9 o t h e r s e g m e n t s i n c l u d e b u s i n e s s o f c e n t r a l o p e r a t i o n s , l a u n d r y , s p o r t , c e n t r a l k i t c h e n , s t r a t e g i c r e n t a l s , e t c .
t h e c a m p s i t e p r e m i u m s e g m e n t n u m b e r s a s i n g l e c a m p s i t e , K r k 4 * , w i t h i t s b u s i n e s s a ff e c t e d i n 2 0 1 5 b y i n c r e a s e d m a r k e t i n g a c t i v i t y a n d i m p r o v e d p r i c i n g p o l i c y . t h i s y i e l d e d h i g h b o a r d r e v e n u e g r o w t h r a t e s o f 2 1 . 4 % t o t h e l e v e l o f H r K 1 8 . 7 m i l l i o n , a r e s u l t o f a 1 4 . 3 % a v e r a g e p r i c e i n c r e a s e a n d a 9 . 4 % o v e r n i g h t i n c r e a s e .
| s e g m e n t : p r e m i u m |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
4 5 2 |
4 7 5 |
5 1 % |
| N u m b e r o f b e d s |
1 , 2 7 5 |
1 , 5 3 3 |
2 0 2 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
1 7 0 |
1 8 6 |
9 4 % |
| O p e r a t i n g d a y s |
5 0 0 |
1 6 9 |
- 6 6 2 % |
| F u l l o c c u p a n c y d a y s |
1 3 6 |
1 3 7 |
0 7 % |
| 1 6 A D R [ H R K] |
2 5 2 |
2 8 8 |
1 4 3 % |
| R e v PA R [ ' 0 0 0 H R K] 1 7 |
3 4 2 |
3 9 4 |
1 5 2 % |
| B o a r d r e v e n u e s [ m H R K] |
1 5 4 |
1 8 7 |
2 1 4 % |
| 1 8 A d j u s t e d E B I T D A [ m H R K] |
1 0 5 |
1 3 7 |
3 0 5 % |
t h e c a m p s i t e u p s c a l e s e g m e n t 1 5 r e c o r d e d a 5 . 2 % i n c r e a s e i n a v e r a g e d a i l y r a t e s a n d a 1 6 . 3 % i n c r e a s e i n o v e r n i g h t s . t h e i n c r e a s e r e s u l t e d i n H r K 2 0 . 2 m i l l i o n m o r e i n b o a r d r e v e n u e s i n 2 0 1 5 . t h e c o n s o l i d a t i o n o f H o t e l b a š k a d . d . c o n t r i b u t e d w i t h 8 . 7 % i n g r o w t h , w h i l e t h e i n v e s t m e n t i n m a r i n a 3 * c a m p s i t e a n d i t s u p g r a d e t o t h e u p s c a l e s e g m e n t b o o s t e d a 1 0 . 3 % g r o w t h . t h e r e s t o f t h e g r o w t h i s t h e e ff e c t o f t h e s t a b l e o p e r a t i o n a t l a n t e r n a 3 * c a m p s i t e .
| S e g m e n t : U p s c a l e |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
3 , 7 5 0 |
4 , 4 4 9 |
1 8 6 % |
| N u m b e r o f b e d s |
1 1 , 3 2 2 |
1 3 , 5 6 2 |
1 9 8 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
9 2 2 |
1 , 0 7 2 |
1 6 3 % |
| O p e r a t i n g d a y s |
2 1 8 |
1 5 9 |
- 2 7 1 % |
| F u l l o c c u p a n c y d a y s |
1 0 2 |
1 0 1 |
- 1 0 % |
| 1 6 A D R [ H R K] |
2 3 1 |
2 4 3 |
5 2 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
2 3 6 |
2 4 5 |
3 8 % |
| B o a r d r e v e n u e s [ m H R K] |
8 8 7 |
1 0 8 9 |
2 2 8 % |
| A d j u s t e d E B I T D A [ m H R K] 1 8 |
6 0 8 |
8 0 9 |
3 3 1 % |
C a m p s i t e s i n t h e m i d s c a l e s e g m e n t 1 5 r e c o r d e d H r K 6 2 . 7 m i l l i o n i n b o a r d r e v e n u e s , w h i c h i s a H r K 4 . 6 m i l l i o n i n c r e a s e . I f , f o r l i k e t o l i k e c o m p a r i s o n , w e e x c l u d e d t h e b u s i n e s s o f m a r i n a c a m p s i t e i n 2 0 1 4 ( i t w a s u p g r a d e d t o t h e u p s c a l e s e g m e n t i n 2 0 1 5 ) , a n d t h e c o n s o l i d a t i o n o f t h e H o t e l b a š k a d . d . i n 2 0 1 5 , m i d s c a l e s e g m e n t c a m p s i t e s r e c o r d e d a s t a b l e g r o w t h o f 4 . 3 % .
| 1 5 c a m p i n G s |
|||
|---|---|---|---|
| S e g m e n t : M i d s c a l e |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
3 , 1 5 2 |
3 , 3 7 8 |
7 2 % |
| N u m b e r o f b e d s |
8 , 8 7 5 |
9 , 5 3 7 |
7 5 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
6 0 5 |
6 6 9 |
1 0 6 % |
| O p e r a t i n g d a y s |
1 8 2 |
1 9 7 |
8 2 % |
| F u l l o c c u p a n c y d a y s |
9 4 |
9 1 |
- 3 2 % |
| 1 6 A D R [ H R K] |
1 9 7 |
2 0 3 |
3 0 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
1 8 4 |
1 8 5 |
0 5 % |
| B o a r d r e v e n u e s [ m H R K] |
5 8 1 |
6 2 7 |
7 9 % |
| A d j u s t e d E B I T D A [ m H R K] 1 8 |
3 4 9 |
3 8 7 |
1 0 9 % |
t h e c a m p s i t e e c o n o m y s e g m e n t r e c o r d e d a s t a b l e i n c r e a s e i n b o a r d r e v e n u e s o f 4 . 8 % , p r i m a r i l y t h e r e s u l t o f a 4 . 0 % h i g h e r a v e r a g e r a t e p e r u n i t . t h i s y i e l d e d b o a r d r e v e n u e s o f H r K 2 6 . 2 m i l l i o n . t h e g r o w t h w a s f o r t h e m o s t p a r t t h e r e s u l t o f o p e r a t i o n a t b r i o n i 2 * c a m p s i t e i n p u n t i ž e l a .
| c a m p i n G s |
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|---|---|---|---|
| S e g m e n t : E c o n o m y |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
1 , 6 2 3 |
1 , 6 2 6 |
0 2 % |
| N u m b e r o f b e d s |
4 , 9 8 6 |
5 , 1 3 6 |
3 0 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
3 2 6 |
3 2 1 |
- 1 5 % |
| O p e r a t i n g d a y s |
2 0 3 |
1 8 9 |
- 6 9 % |
| F u l l o c c u p a n c y d a y s |
8 7 |
8 7 |
0 0 % |
| 1 6 A D R [ H R K] |
1 7 7 |
1 8 4 |
4 0 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
1 5 4 |
1 6 1 |
4 5 % |
| B o a r d r e v e n u e s [ m H R K] |
2 5 0 |
2 6 2 |
4 8 % |
| A d j u s t e d E B I T D A [ m H R K] 1 8 |
1 7 6 |
1 8 6 |
5 7 % |
b o a r d r e v e n u e s i n p o r e č a n d p u n t i ž e l a d e s t i n a t i o n a r e u p b y H r K 4 5 . 1 m i l l i o n , a s a r e s u l t o f a 1 . 8 % i n c r e a s e o f o v e r n i g h t s a n d a n 8 . 3 % g r o w t h o f t h e a v e r a g e d a i l y r a t e p e r a c c o m m o d a t i o n u n i t . n e w l y i n v e s t e d h o t e l s (Va l a m a r I s a b e l l a I s l a n d r e s o r t 4 * a n d Va l a m a r Z a g r e b 4 * ) h a v e a s i g n i fi c a n t i m p a c t o n h o t e l o p e r a t i o n s g r o w t h . I n d i v i d u a l s a l e s c h a n n e l s h a v e r e c o r d e d t h e h i g h e s t r e v e n u e g r o w t h p e r s a l e s c h a n n e l s i n p o r e č h o t e l s , f o l l o w e d b y g r o u p s a n d a l l o t m e n t . C e r t a i n l o w e r c a t e g o r y f a c i l i t i e s h a v e r e c o r d e d l o w e r g r o w t h , r e s u l t i n g i n m o r e a t t e n t i o n b e i n g p a i d t o h i g h q u a l i t y d i s t r i b u t i o n t h r o u g h fi x e d a l l o t m e n t a n d g r o u p s e g m e n t , a s w e l l a s t o h i g h q u a l i t y s c h e d u l i n g o f e v e n t s a n d p l a c e m e n t o f p r e s e a s o n a l a c t i v i t i e s p r o m o t i n g l o n g e r s t a y s i n s t e a d o f i n c r e a s i n g p r i c e s , w i t h a v i e w t o m a i n t a i n i n g b o a r d r e v e n u e s . a p a r t f r o m t h e u s u a l l y g o o d p l a c e m e n t o f g r o u p s i n o c t o b e r , i n p o s t s e a s o n , p o r e č s a w a n e x c e l l e n t r e s p o n s e o f s p o r t s g r o u p s a s p a r t o f t h e C h r i s t m a s t o u r n a m e n t , a s w e l l a s o f i n d i v i d u a l s d u r i n g t h e n e w ye a r h o l i d a y s , r e s u l t i n g i n f o u r o p e n a n d e x c e l l e n t l y b o o k e d h o t e l s (Va l a m a r d i a m a n t 4 * , Va l a m a r C r y s t a l 4 * ,
Va l a m a r Z a g r e b 4 * , a n d Va l a m a r r i v i e r a 4 * . D
| p o r e č a n d p u n t i ž e l a |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
1 0 , 3 9 0 |
1 0 , 5 9 2 |
1 9 % |
| N u m b e r o f b e d s |
2 9 , 3 3 2 |
3 0 , 0 5 4 |
2 5 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
2 , 6 6 9 |
2 , 7 1 7 |
1 8 % |
| O p e r a t i n g d a y s |
1 9 1 |
1 8 4 |
- 3 7 % |
| F u l l o c c u p a n c y d a y s |
1 1 4 |
1 1 3 |
- 0 9 % |
| A D R [ H R K] 1 6 |
3 9 7 |
4 3 0 |
8 3 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
4 5 1 |
4 8 5 |
7 5 % |
| B o a r d r e v e n u e s [ m H R K] |
4 6 9 0 |
5 1 4 1 |
9 6 % |
| 1 8 A d j u s t e d E B I T D A [ m H R K] |
2 7 1 2 |
3 0 3 8 |
1 2 0 % |
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| 2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|
| 1 , 9 1 3 |
1 , 9 1 3 |
0 0 % |
| 4 , 4 8 5 |
4 , 5 5 2 |
1 5 % |
| 5 5 2 |
5 9 8 |
8 3 % |
| 1 7 5 |
1 8 3 |
4 6 % |
| 1 2 7 |
1 3 8 |
8 7 % |
| 5 3 9 |
5 4 6 |
1 3 % |
| 6 8 6 |
7 5 1 |
9 5 % |
| 1 3 1 2 |
1 4 3 6 |
9 5 % |
| 7 1 9 |
7 9 8 |
1 1 0 % |
A
1 0 6 a 3 7 0 t h o u s a n d , i . e . 7 5 . 1 % i n c r e a s e i n t h e n u m b e r o f o v e r n i g h t s a t t h e K r k 1 5 d e s t i n a t i o n a n d a 2 7 . 0 % g r o w t h o f t h e a v e r a g e d a i l y r a t e t o H r K 3 7 6 h a v e r e s u l t e d i n a 1 0 7 . 1 % i n c r e a s e i n b o a r d r e v e n u e s . S u c h h i g h g r o w t h r a t e s a r e d r i v e n b y t h e c o n s o l i d a t i o n o f t h e H o t e l i b a š k a d . d . c o m p a n y . e x c l u d i n g t h e i m p a c t o f t h e c o n s o l i d a t i o n o f H o t e l i b a š k a d . d . , t h e K r k d e s t i n a t i o n h a s a c h i e v e d a h i g h 9 . 6 % g r o w t h i n b o a r d r e v e n u e s . I n t h e K o r a l j 3 * h o t e l , t h e i n d i v i d u a l s s e g m e n t h a s r e c o r d e d t h e h i g h e s t b o a r d r e v e n u e g r o w t h . I n t e n s i fi e d m a r k e t i n g a c t i v i t i e s a n d a n i m p r o v e d p r i c i n g p o l i c y i n e a r l i e r i n v e s t e d f a c i l i t i e s o n t h e i s l a n d o f K r k , K r k c a m p s i t e a n d S t a r a b a š k a c a m p s i t e , h a v e l e d t o h i g h g r o w t h r a t e s o f a v e r a g e d a i l y r a t e s a n d b o a r d r e v e n u e s .
| k r k |
2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|---|
| N u m b e r o f a c c o m m o d a t i o n u n i t s ( c a p a c i t y ) |
1 , 8 0 0 |
3 , 3 1 8 |
8 4 3 % |
| N u m b e r o f b e d s |
5 , 1 5 4 |
9 , 4 1 1 |
8 2 6 % |
| O v e r n i g h t s [ ' 0 0 0 ] |
4 9 3 |
8 6 3 |
7 5 1 % |
| O p e r a t i n g d a y s |
1 8 5 |
1 5 0 |
- 1 8 9 % |
| F u l l o c c u p a n c y d a y s |
1 2 2 |
1 0 7 |
- 1 2 3 % |
| 1 6 A D R [ H R K] |
2 9 6 |
3 7 6 |
2 7 0 % |
| 1 7 R e v PA R [ ' 0 0 0 H R K] |
3 6 0 |
4 0 4 |
1 2 2 % |
| B o a r d r e v e n u e s [ m H R K] |
6 4 7 |
1 3 4 0 |
1 0 7 1 % |
| A d j u s t e d E B I T D A [ m H R K] 1 8 |
4 0 3 |
8 9 0 |
1 2 0 8 % |
r e c e n t i n v e s t m e n t s i n h i g h e r c a t e g o r y f a c i l i t i e s a t t h e d u b r o v n i k d e s t i n a t i o n (Va l a m a r d u b r o v n i k p r e s i d e n t 5 * , Va l a m a r a r g o s y 4 * ) h a v e r e s u l t e d i n H r K 2 5 1 . 5 m i l l i o n b o a r d r e v e n u e s , i . e . a 8 . 9 % i n c r e a s e c o m p a r e d t o t h e s a m e p e r i o d l a s t y e a r , p a r t i c u l a r l y d r i v e n b y a 8 . 4 % i n c r e a s e o f t h e a v e r a g e d a i l y r a t e . p a r t i c u l a r l y n o t e w o r t h y a r e t h e Va l a m a r a r g o s y
4 * h o t e l , a c c o u n t i n g f o r h i g h b o a r d r e v e n u e s g r o w t h r a t e s , a n d t h e Va l a m a r d u b r o v n i k p r e s i d e n t 5 * h o t e l , g e n e r a t i n g a n e x c e p t i o n a l g r o w t h i n b o a r d r e v e n u e s c o m i n g f r o m i t s f u r t h e r f o c u s i n g o n h i g h e n d s e g m e n t ( i n d i v i d u a l s e g m e n t ) a n d m . I . C . e . a n d f r o m a n i n c r e a s e i n t h e n u m b e r o f d a y s d u r i n g w h i c h i t i s o p e n ( 4 6 i n r e l a t i o n t o t h e p r e v i o u s y e a r a s a r e s u l t o f i n v e s t m e n t i n r a i s i n g t h e q u a l i t y t o 5 * ) . C o m p a r i n g m a r k e t i n g a n d s a l e s c h a n n e l s , t h e b o a r d r e v e n u e s g r o w t h a t t h e d u b r o v n i k d e s t i n a t i o n h a s b e e n d r i v e n b y t h e r e p l a c e m e n t o f a l l o t m e n t a n d g r o u p s w i t h t h e i n d i v i d u a l s c h a n n e l . I n t h e p o s t s e a s o n , Va l a m a r l a c r o m a 4 * r e c o r d e d a g o o d r e s p o n s e i n t h e m . I . C . e . a n d g r o u p s e g m e n t f r o m t h e a m e r i c a n a n d F a r e a s t m a r k e t s .
| 2 0 1 4 |
2 0 1 5 |
2 0 1 5 / 2 0 1 4 |
|---|---|---|
| 1 , 9 5 3 |
1 , 9 6 1 |
0 4 % |
| 3 , 9 8 6 |
4 , 0 0 2 |
0 4 % |
| 5 7 1 |
5 7 2 |
0 2 % |
| 2 3 0 |
2 2 9 |
- 0 4 % |
| 1 5 3 |
1 5 3 |
0 0 % |
| 7 7 3 |
8 3 8 |
8 4 % |
| 1 1 8 2 |
1 2 8 3 |
8 5 % |
| 2 3 0 9 |
2 5 1 5 |
8 9 % |
| 1 2 1 1 |
1 5 5 8 |
2 8 7 % |
t h e r e p o r t i n f r o n t o f u s i s a v e r y t h o r o u g h c o m p a n y r e p o r t o f Va l a m a r f o r t h e y e a r 2 0 1 5 . I t p r e s e n t s a d e t a i l e d o v e r v i e w o f t h e h i s t o r i c a l d e v e l o p m e n t , b u s i n e s s r e s u l t s , a n d fi g u r e s f o r Va l a m a r , a s w e l l a s s t r a t e g i c g o a l s , v i s i o n a n d m i s s i o n , i n i t i a t i v e s , c o r p o r a t e c u l t u r e a n d , m o s t i m p o r t a n t l y , c o r p o r a t e r e s p o n s i b i l i t y .
I n t h e r e p o r t f o r 2 0 1 5 , Va l a m a r h a s f o r t h e fi r s t t i m e i n c l u d e d s o m e o f t h e i n d i c a t o r s f r o m t h e g 4 r e p o r t i n g g u i d e l i n e s b y t h e g l o b a l r e p o r t i n g I n i t i a t i v e , a s a r e p r e s e n t a t i o n o f i t s w i l l i n g n e s s t o a l i g n i t s r e p o r t i n g o v e r t h e c o m i n g y e a r s w i t h t h e r e q u i r e m e n t s o f t h e e u r o p e a n d i r e c t i v e o n n o n - F i n a n c i a l r e p o r t i n g , w h i c h p r e s c r i b e s r e p o r t i n g i n f o r m a t i o n o n k e y n o n fi n a n c i a l i m p a c t s a s w e l l a s t h e m a n a g e m e n t a p p r o a c h c o m p a n y u s e s t o m a n a g e t h e s e i m p a c t s .
t h e r e p o r t p r e s e n t s i n f o r m a t i o n o n i n i t i a t i v e s t o i m p r o v e t h e i m p a c t o n t h e e n v i r o n m e n t a n d a c t i v i t i e s r e l a t e d t o t h e l o c a l c o m m u n i t y , c o o p e r a t i o n a n d s u p p o r t t o t h e d e v e l o p m e n t o f t h e c o m m u n i t y w h e r e Va l a m a r i s e s p e c i a l l y a c t i v e . t h e r e i s a s t r o n g e m p h a s i s o n s u p p o r t p r o j e c t s f o r t h e d e v e l o p m e n t a n d p r e s e r v a t i o n o f c u l t u r a l a n d n a t u r a l r e s o u r c e s i n d e s t i n a t i o n s w h e r e Va l a m a r o p e r a t e s . t h i s i s a n i n d i c a t i o n o f Va l a m a r ' s a w a r e n e s s o f t h e n e e d t o p r e s e r v e t h e e n v i r o n m e n t a n d c u l t u r e o f l o c a l c o m m u n i t i e s t h a t a r e a t t h e s a m e t i m e a v a l u a b l e r e s o u r c e i n t h e f o u n d a t i o n o f Va l a m a r ' s o ff e r . C o n s e q u e n t l y , b y 2 0 2 0 Va l a m a r p l a n s t o
i
n v e s t 2 . 5 % o f i t s r e v e n u e s i n t o s o c i a l c o r p o r a t e r e s p o n s i b i l i t y p r o g r a m s , i n c l u d i n g d e s t i n a t i o n d e v e l o p m e n t , i n v e s t m e n t s n t o e n v i r o n m e n t a l p r o t e c t i o n , i n v e s t m e n t s n t o e m p l o y e e s a n d p h i l a n t h r o p y .
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h i n v e s t m e n t s i n l o c a l p r o g r a m s , m e a s u r i n g r e s o u r c e c o n s u m p t i o n n t e d : e n e r g y a n d w a t e r , a s t h e o r t a n t n a t u r a l r e s o u r c e s u s e d b y a n d fi g u r e s o n e m p l o y m e n t a n d n v i r o n m e n t t h a t p o r t r a y t h e t o e m p l o y e e m a n a g e m e n t a s m p o r t a n t r e s o u r c e a n d a k e y a c t o r f o r Va l a m a r . I n t h i s a r e a t r e s s e s i t s g o a l t o b e c o m e t h e e r r e d e m p l o y e r i n C r o a t i a ' s e c t o r b y t h e y e a r 2 0 2 0 .
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t h e r e p o r t i n c l u d e s a n u m b e r o f i n e i n d i c a t o r s , i t i s s t i l l n o t i n c e w i t h t h e g 4 c o r e o p t i o n . I n n c r e a s e q u a l i t y i n t h a t r e g a r d , r e p o r t s h o u l d i n c l u d e a n a n a l y s i s a n c i a l e ff e c t s t h a t Va l a m a r a s k e y , a s w e l l a s a s s o c i a t e d r i s k s . a n a l y s i s , i n f o r m a t i o n s h o u l d b e o n Va l a m a r ' s a p p r o a c h t o t h e s e n o n fi n a n c i a l i m p a c t s , i n e d u c e r i s k s t o t h e e n v i r o n m e n t t y a s m u c h a s p o s s i b l e . a l s o , u l d b e a m o r e d e t a i l e d e x p l a n a t i o n n a g e m e n t a p p r o a c h a n d t h e m a k i n g p r o c e s s o n e c o n o m i c , e n t a l a n d s o c i a l i m p a c t s .
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e r y p l e a s e d w i t h t h e f a c t t h a t r i v i e r a , m e m b e r o f t h e C r o a t i a n C o u n c i l o n S u s t a i n a b l e m e n t ( H r p S o r ) s i n c e 2 0 1 6 , a n d t h e C S r I n d e x aw a r d f o r b e s t n e n v i r o n m e n t a l p r o t e c t i o n , h a s r e s p o n s i b l e a n d s y s t e m a t i c c a t i o n o f i t s g o a l s a n d a c t i v i t i e s n a b i l i t y a n d s o c i a l c o r p o r a t e b i l i t y , t h u s a ffi r m i n g i t s a m b i t i o n t o a l e a d i n g e x a m p l e o f s u s t a i n a b i l i t y o n s i b l e d e v e l o p m e n t i n t h e e c t o r .
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S i n c e r e l y M i rj a n a d i r e c t o r
Strategic goals presented in this report represent the intention of the management board and are based on currently available information, current assumptions, and forward-looking expectations and projections. Strategic goals are not a guarantee of future results and are subject to future events, risks, and uncertainties, many of which are beyond the control of or currently unknown to Valamar riviera, as well as to potentially incorrect assumptions that could cause the actual results to materially differ from strategic goals. also, the level of capital investments in any given year is subject to specific proposals of the management board to the Supervisory board, each board may elect to deviate from this policy if appropriate under the then prevailing circumstances.
risks and uncertainties include, without being limited to the ones described in the chapter "risks and risk management". materially significant deviations from the strategic goals may arise from changes in circumstances, assumptions not being realized, as well as other risks, uncertainties, and factors, including:
→ Spending level and disposable income of guests, as well as guests' preferences, trust in and satisfaction with Valamar riviera's products and services;
→ development of the number of overnights, booking trend, and development of average daily rates of accommodations units in Valamar riviera's facilities;
Strategic goals presented herein are not an outright recommendation to buy, hold or sell Valamar riviera's shares.
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