INVESTMENT PROSPECT FOR
HOTEL PROJECTS IN DARUVAR, CROATIA
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
CONTENT
1
REASONS TO INVEST IN DARUVAR
2
FACTS AND FIGURES
3
TOURISM AND HOTEL INDUSTRY
4
HOTEL - AQUAE BALISSAE
5
HOTEL - ROMAN FOREST
6
CONTACTS AND LINKS
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
1. REASONS TO INVEST IN DARUVAR
Croatia, Location, Multiculturalism, Tradition, Framework
•
CROATIA: Daruvar is located in Croatia, the fastest developing tourist
destination in Europe in the last decade, with strong growth plans for the future.
•
LOCATION: Daruvar is located in the center of continental Croatia, in proximity
to five major capitals (Zagreb, Ljubljana, Belgrade, Sarajevo, Budapest) and
many other urban areas, all of them located within the radius of 350 km.
•
MULTICULTURALISM: Daruvar has the most diverse population in Croatia, with
Croats, Czechs, Serbs, Hungarians, Albanians, Italians, Germans, Slovenians,
and many other ethnical groups living and working together since development
of the town more than 200 years ago. This cultural diversity has created high
levels of tolerance towards difference and positive attitudes towards change.
•
TRADITION: Daruvar is renowned in Croatia for having long business tradition:
production of wines since the Roman times, the first thermal bath in 1772, the
oldest brewery in Croatia (since 1840), and the oldest fishing pod in Croatia
•
FRAMEWORK: Daruvar has a stimulating legal framework for tourism and hotel
investments: the county plans for economic and tourism development, recently
established tourist board of the destination area Daruvar - Papuk (town and four
neighboring municipalities), the general urban (zoning) plan of the town, and
lower municipal taxes and fees than elsewhere. Daruvar will soon have its own
economic development plan and tourism development and marketing plan.
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
1. REASONS TO INVEST IN DARUVAR
Awards, Tourism, Hotels, and Terms
•
AWARDS: Daruvar has received seven yearly awards from the Croatian Tourist
Board for being the most beautiful small town in continental Croatia. The wine
producers from Daruvar have also received a number of medals at both national
and international wine exhibitions.
•
TOURISM: Daruvar has the most diverse tourism resources in continental
Croatia with thermal springs for health treatments and bathing, events, wineries,
brewery, hunting grounds, fishing areas, nature paths for walking, cycling, and
hiking, agro tourism, meeting possibilities, and many more. It provides
opportunities for the growth of tourist traffic from currently 20 thousand
overnight stays to anywhere from 250 to 300 thousand overnight stays by 2020.
•
HOTELS: Daruvar provides opportunities for new hotels that would increase the
total accommodation capacity from currently 200 rooms (400 beds) to anywhere
from 600 to 750 rooms (from 1,200 to 1,500 beds). The prospective development
includes three hotel projects with approximately 450 rooms (900 beds) to be
constructed on the sites that are fully owned by the government of Daruvar.
•
TERMS: The government of Daruvar is ready to develop subject hotels in
partnership with renowned developers based on the 99-year concession / lease
and competitive terms. The developer is required to engage the partner for
management of the subject hotel and with relevant managerial experience, either
through management contract or lease (i.e. sub-lease).
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
2. FACTS AND FIGURES
Croatia
•
LOCATION: meeting point of Central Europe,
Mediterranean (Adriatic), and Balkans
•
SURFACE AREA: 56,542 square kilometers
•
TERRITORIAL ORGANIZATION: City of Zagreb
(Capital) and 20 counties (provinces)
•
POPULATION: 4,437,460 inhabitants, of which
47.8% in Zagreb and Central Croatia
•
DENSITY: 78.5 inhabitants per square kilometer
•
MAJOR CITIES: Zagreb, Split, Rijeka, Osijek
•
MAJOR AIRPORTS: Zagreb, Split, and
Dubrovnik, with direct scheduled flights to
most major cities in Europe
•
ROAD CONNECTIONS: extensive national
highway system connected with those of
Slovenia, Austria, Hungary, and Serbia
•
MAJOR ATTRACTIONS: long coastline with
historic towns and numerous islands, eight
national parks, eleven nature parks, and six
cultural sites under protection by UNESCO
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
2. FACTS AND FIGURES
Daruvar
•
LOCATION: center of continental (Pannonian)
Croatia, in the County of Bjelovar-Bilogora
•
SURFACE AREA: 581 square kilometers (Town
of Daruvar and four neighboring municipalities)
•
POPULATION: 25,608 inhabitants, of which
51.7% in the Town of Daruvar and 48.3% in four
neighboring municipalities, with high cultural
diversity (Croats, Czechs, Serbs, Hungarians,
Albanians, Italians, Germans, Slovenians, etc.)
•
DENSITY: 44.1 inhabitants per square kilometer
•
MAJOR AIRPORT: Zagreb (19 airlines servicing
direct flights to / from 42 airports in Europe and
world in summer 2010 timetable)
•
ROAD DISTANCES: Zagreb (Croatia) - 135 km,
Ljubljana (Slovenia) - 270 km, Belgrade (Serbia)
- 324 km, Sarajevo (Bosnia & Herz.) - 337 km,
Budapest (Hungary) - 339 km
•
ATTRACTIONS: thermal springs, Julijev Park town park with Austro-Hungarian buildings,
Castle Janković, Nature Park Papuk (in vicinity)
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Trends in Croatia
45
51
48
47
The main comparative advantages of Croatia
are its geographical position (proximity to
major demand generating markets) and well
preserved coast with crystal clean sea water,
picturesque towns, and numerous islands
•
The main tourist products are sun and sea
holidays, touring, and nautical vacations, while
the fastest developing products are incentive
travel, short breaks, and spa holidays
•
Most overnight stays are generated by tourists
from Germany, Croatia, Slovenia, Italy, Austria,
Czech Republic, Poland, Holland, and Hungary
•
Most tourism business takes place in the
coastal destinations of Istria, Kvarner, and
Dalmatia, while only 2.5 mil. overnight stays are
generated in the continental Croatia, of which
1.2 mil. in Zagreb and 1.3 mil. in other areas
•
The tourism in continental Croatia has been
experiencing strong development with health,
spa, meetings, events, and activities in nature
as the main tourist products
57
56
53
•
8
9
9
10
10
11
11
2002
2003
2004
2005
2006
2007
2008
Tourist arrivals (in million) > CAGR of 5,2%
Tourist overnight stays (in million) > CAGR of 4,2%
Source: Central Bureau of Statistics of Croatia
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Trends in Daruvar
22
13
5
2002
5
2003
2004
•
The main tourist products are health treatments
in the medical complex Daruvarske toplice,
while the fastest developing products are
bathing at thermal water park Aquae Balissae,
various events, and wine related products
•
Most overnight stays are generated by
domestic tourists and the tourism business is
evenly distributed throughout the year
•
Daruvar has received seven yearly awards from
the Croatian Tourist Board for being the most
beautiful small town in continental Croatia
•
Based on the county tourism master plan, the
Tourist Board of Daruvar - Papuk will soon
create its own tourism master plan for the area
16
16
6
The main comparative advantages of Daruvar
are its proximity to major capital cities in the
area and the most diverse tourism resources
base in continental Croatia with high-capacity
thermal springs, events, wineries, brewery,
hunting grounds, fishing areas, and nature
paths for walking, cycling, and hiking
20
19
14
•
6
2005
7
2006
8
2007
8
2008
Tourist arrivals (in thousand) > CAGR of 7,7%
Tourist overnight stays (in thousand) > CAGR of 9,2%
Source: Central Bureau of Statistics of Croatia
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Products in Daruvar (I)
The Multicultural Oasis of Health and Hedonism in the Heart of Pannonian Croatia
HEALTH
•
•
Tradition in health tourism since opening of the first bath in 1772
Medical complex Daruvarske toplice with Hotel Termal is the major
provider of physical medicine and rehabilitation treatments
•
Thermal water park Aquae Balissae - brand new complex of indoor
and outdoor swimming pools with the total pool area of 1,728 sqm,
spa, restaurant, bars, and other facilities
•
Several events throughout the year including international events
such as Vinodar (exhibition of wines), Flig (festival of brass bands),
and Dožinky (festival of Czech culture)
•
One of the oldest wine regions in continental Croatia, famous for
white wines grasevina, riesling, sauvignon, chardonnay, pinot, etc.
Wine trail and wineries Daruvar (by Badel) and Lotada
BATHS
EVENTS
WINES
•
BEER
•
Daruvarska pivovara - the oldest brewery in Croatia (since 1840),
famous for production of pilsner Old Czech Beer (Staročeško pivo)
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Products in Daruvar (II)
The Multicultural Oasis of Health and Hedonism in the Heart of Pannonian Croatia
HUNTING
•
Eleven hunting clubs and nine hunting grounds that abound with
animals such as deer, fallow deer, wild boar, rabbit, and pheasant
•
Numerous fish ponds, rivers, and streams that abound with a
variety of fish species such as carp, catfish, pike fish, and trout
Sports and recreation lake in Daruvar and fish pond Končanica
FISHING
•
ACTIVITIES
IN NATURE
RURAL
TOURISM
MICE
•
•
Numerous possibilities for walking, cycling, horse riding, hiking,
team building, and other activities (in winter even for skiing)
Nature Park Papuk and several excursion sites such as Petrov vrh
•
•
Tradition in agriculture and production of fruits, honey, and liquors
Several agro tourism households (e.g. Kovačević and Konjovoda)
•
Possibilities for meetings, seminars, small conferences, and other
events at Hotel Termal and in future hotels due to central location of
Daruvar in continental Croatia
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Supply in Croatia
Hotel Rooms in Croatia in 2008
17%
•
Hotels make up only 16.2% of units and 11.6%
of beds of total accommodation capacities in
Croatia (private households and campsites
have more units and beds than hotels)
•
Most hotels are owned and managed by
Croatian firms such as Maistra and Valamar
•
The most renowned international brands are
Hilton, Kempinski, Le Meridien, Radisson Blu,
Regent, Sheraton, and Westin, most of them
located in Zagreb, Split, and Dubrovnik
•
Most hotels are located in the coastal
destinations of Istria, Kvarner, and Dalmatia,
while continental Croatia has 106 hotels and
similar establishments with 4,259 rooms and
8,025 beds (without Zagreb, as of May 2010)
•
Most hotels in continental Croatia (without
Zagreb) are of lower quality than on the coast
(66.9% of rooms with 3* or 2*), with no 5* hotels
and only 16.6% of rooms in the 4* category
•
There are 13 thermal hotels with 1.484 rooms,
of which six are not even categorized
6%
Hotels 5*
26%
Hotels 4*
Hotels 3*
50%
Hotels 2*
Remarks:
• 571 hotels with 53,826 rooms and 104,159 permanent beds
• Figures do not include villas, aparthotels, and other similar
Source: Central Bureau of Statistics of Croatia
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Performance in Croatia
Horwath Hotel Survey 2009: Performance in 2008
5 stars
4 stars
3 stars
Average Yearly Room Occupancy Rate
50.5%
43.9%
44.1%
Average Net Achieved Daily Room Rate (in euros)
121.11
73.53
51.83
Daily Room Revenue per Available Room (in euros)
61.16
32.28
22.86
Total Revenue per Available Room (in euros)
32,746
19,553
14,941
Room Revenues (% of revenue)
62.9%
64.4%
58.7%
Food and Beverage Revenues (% of revenue)
31.5%
30.5%
35.2%
Other Revenues (% of revenue)
5.5%
5.1%
6.1%
EBITDA (% of revenue)
18.1%
21.2%
16.4%
0.67
0.37
0.28
35.2%
29.4%
29.3%
Number of Employees per Room
Payroll and Related Costs (% of revenue)
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Supply in Daruvar
Only Five Hotels and Similar Establishments with 203 Rooms and 383 Beds
•
TERMAL
•
•
ARCADIA
•
157 rooms (283 beds), mostly used by guests using benefits of
Croatian Institute for Health Insurance (non-registered tourism)
2 restaurants, 2 bars, meeting room, spa, gym, sports hall, 3 pools
Old style villa with 10 rooms (16 beds), used as additional
accommodation for guests of Daruvarske toplice and Hotel Termal
Terasa - fine dining restaurant with an outdoor terrace
•
•
Hotel 3* with 10 rooms (20 beds), temporarily closed
Restaurant, bar, treatment room for massages, sauna,
hydromassage, souvenir shop
BALISE
•
•
Hotel with 19 rooms (39 beds)
Restaurant, bar, TV salon
SLAVONIJA
•
•
Newly renovated pension with 7 suites and apartments (25 beds)
Slavonija - fine dining restaurant
MLADIMIR
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Selected Competitors in Croatia and Slovenia
Only Two Strong Competitors in Croatia and Several Strong Competitors in Slovenia
SPA
GOLFER
Croatia
•
•
•
New hotel 4* located within the complex Terme Sveti Martin
157 rooms, restaurants, bars, meeting space, spa, pool
Thermal complex with total pool area of 3,650 sqm
TERME
Croatia
•
•
•
Hotel 3* located within the complex Terme Tuhelj
138 rooms, restaurants, bars, meeting space in Castle Mihanović
Thermal complex with total pool area of 5,000 sqm
SOTELIA
Slovenia
•
•
•
New hotel 4* located with the complex Terme Olimia
145 rooms, restaurants, bars, meeting space, spa, health center
Spa complex and thermal complex with total pool area of 3,000 sqm
TERME
Slovenia
•
•
•
Hotel 4* located within the complex Terme Čatež
149 rooms, restaurants, bars, meeting space, beauty center, 2 pools
Thermal complex with total pool area of 12,200 sqm
•
•
Castle hotel 4* located between Terme Čatež and Croatian border
48 rooms (29 in castle, 11 in new annex, 8 in golf club house),
restaurant, bar, golf course
GOLF GRAD
MOKRICE
Slovenia
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Site Location
6
4 3
5
2
1
10
9
7
1.
Kralj Tomislav Square
(the main town square)
2.
Julijev Park
3.
Hotel Termal & Thermal
Medical Complex
Daruvarske toplice
4.
Thermal Water Park
Aquae Balissae
5.
Hotel - Castle Janković
6.
Hotel - Aquae Balissae
7.
Hotel - Roman Forest
8.
Roman Forest Park
9.
Hippodrome
10.
Sports Airport
8
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Site Description
•
LOCATION: Podkućnice Street No. 8, adjacent to the thermal water park Aquae
Balissae, approximately 350 meters north from the main town square, in the
vicinity of major points of interest
•
SURROUNDINGS: Green areas, lake, and recreation center (north), municipal
promenade, Toplica River, and medical complex Daruvarske toplice (east),
thermal water park Aquae Balissae (south), houses (west)
•
ACCESS: By road from Matije Gupca Street
•
VIEWS: Attractive views to the green areas, lake, and river to the north and east,
as well as to the thermal water park Aquae Balissae to the south
•
VISIBILITY: High from all directions, especially from north, east, and south
•
AREA: 9,814 sqm - five adjacent plots with areas of 954 sqm, 3,592 sqm, 2,098
sqm, 2,208 sqm, and 962 sqm
•
FACILITIES: Parking area with 96 parking spaces, parking road, and sidewalks
(total area of 2,641 sqm, leaving the green area of 7,173 sqm for development)
•
INFRASTRUCTURE: Electricity, water supply, sewage system, and phone cables
on site, good coverage by mobile phone networks
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Ownership, Zoning, and Development
•
OWNERSHIP: 100% owned by the Town of Daruvar
•
ZONING: General Urban Plan (GUP) of the Town of Daruvar qualifies the site as a
tourist zone for hotel development (zone T1 - hotel) and requires the need to
make the Detailed Urban Plan (DPU) with specific zoning issues for the site
•
LOT COVERAGE RATIO: 0.50 > the maximum footprint area for construction of
indoor spaces is 4,907 sqm (since the site is occupied by the parking area of
2,641 sqm and the lot coverage ratio allows construction of indoor spaces on the
maximum area of 4,907 sqm, it follows that the area for construction of outdoor
spaces and landscaping is at least 2,266 sqm)
•
USE COEFFICIENT: 1.20 > the maximum gross developed area (GDA) of indoor
spaces above ground is 11,777 sqm
•
DEVELOPMENT: It is recommended to connect the hotel with thermal water park
Aquae Balissae, thus creating a more competitive hotel product. If interested, the
developer should make agreement with the Town of Daruvar, which is owner and
operator of the subject water park.
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Development Concept Guidelines and Business Potential
MARKET
CONCEPT
•
•
•
Family thermal hotel with international 3* / 4* (midscale / upscale) / Croatian 4*
The best thermal hotel in Croatia for families with children
Connection with thermal water park Aquae Balissae
FACILITIES
PROGRAM
•
•
•
•
•
•
At least 150 rooms (of which 30% family rooms) with 300 beds
Three-meal restaurant, lobby bar with an outdoor terrace, and children bar
One multi-purpose hall with an area of approximately 100 sqm
Possible pool in the area near thermal water park Aquae Balissae
Covered walkway connection with thermal water park Aquae Balissae
Children club and souvenir shop
•
From 9.0 to 12.0 mil. euros (from 60 to 80 thou. euros per room), including
construction, furniture, fixtures, and equipment (FFE), landscaping,
development costs, pre-opening costs, working capital, and contingency
•
•
•
•
•
•
At least 60 employees (0.4 employees per room)
Average yearly room occupancy rate from 60% to 65%
Average net achieved daily room rate from 60 to 70 euros
Total revenue from 3.0 to 4.2 mil. euros (20 to 28 thou. euros per room)
EBITDA of 25% of total revenue (from 0.8 to 1.0 mil. euros)
Tourist traffic from 65 to 70 thou. overnight stays
INVESTMENTS
BUSINESS
POTENTIAL
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Business Model Terms (I)
MODEL
PARTNERS
•
Long-term concession / lease with management contract (sub-lease)
•
The concession will be given to the developer (concessionaire) with
development experience in the sector of high-quality family thermal hotels.
The concessionaire is required to have the partner for future management of
the subject hotel and with managerial experience in the sector of high-quality
family thermal hotels. The concessionaire should engage his management
partner either through management contract or lease (actually sub-lease).
•
•
The length of term is 50 years with option of renewal for additional 50 years.
The term includes the periods of both development (from the date of signature
to the date of opening) and operations (after the date of opening).
•
The concessionaire is required to develop the hotel within two years (24
months) from the date of signature.
The concessionaire is required to register the firm in the town of Daruvar,
which will be responsible for subject hotel development.
TERM
DEVELOPMENT
•
•
MANAGEMENT
•
The management partner is required to manage the hotel for the period of at
least 10 years (120 months) from the date of opening.
The management partner is required to register the firm in the town of Daruvar,
which will be responsible for subject hotel operations.
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Business Model Terms (II)
CONCESSION
(RENT) FEES
•
•
The concession fee (net of value added tax) is composed of two portions:
Fixed portion - initial amount of 98.140 euros, which equals to 654 euros per
room for 150-room hotel (10 euros per sqm of total land area of 9,814 sqm)
Variable portion - yearly amount of 0.5% of total revenue (approximately from
15 to 21 thou. euros, i.e. from 100 to 140 euros per room for 150-room hotel)
PAYMENTS
•
•
Fixed portion payable as a lump sum within 90 days after signing the contract
Variable portion payable after hotel opening, in four quarterly installments per
year and in every year of hotel operations
GUARANTEES
•
Concessionaire’s bank guarantee for promptly payments of concession fees
REPAIRS &
MAINTENANCE
•
Concessionaire’s responsibility for both structural repairs and maintenance
•
Possible assignability and trade of the concession contract, but only with prior
approval from the Town of Daruvar in selection of the new concessionaire
•
Possible but with the penalty fee equal to 50% of remaining concession fees
ASSIGNABILITY
TERMINATION
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Site Location
6
4 3
5
2
1
10
9
7
1.
Kralj Tomislav Square
(the main town square)
2.
Julijev Park
3.
Hotel Termal & Thermal
Medical Complex
Daruvarske toplice
4.
Thermal Water Park
Aquae Balissae
5.
Hotel - Castle Janković
6.
Hotel - Aquae Balissae
7.
Hotel - Roman Forest
8.
Roman Forest Park
9.
Hippodrome
10.
Sports Airport
8
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Site Description
•
LOCATION: Stari Slavik Street No. 7, adjacent to the park forest Rimska šuma
(Roman Forest), approximately 600 meters northeast from the main town square,
in the vicinity of major points of interest
•
SURROUNDINGS: Strma Street and houses (north), park forest Rimska šuma
(east and south), Podborje Street, green areas, and football playground (west)
•
ACCESS: By road from both Strma Street and Podborje Street
•
VIEWS: Attractive views to the park forest Rimska šuma to the east and south, as
well as to the green areas to the west
•
VISIBILITY: High from north and west
•
AREA: Entirely green field area of 17.949 sqm
•
INFRASTRUCTURE: Electricity, water supply, sewage system, and phone cables
on site, good coverage by mobile phone networks, newly discovered thermal
spring nearby (located south from the site)
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Ownership, Zoning, and Development
•
OWNERSHIP: 100% owned by the Town of Daruvar
•
ZONING: General Urban Plan (GUP) of the Town of Daruvar qualifies the site as a
tourist zone for hotel development (zone T1 - hotel) and requires the need to
make the Detailed Urban Plan (DPU) with specific zoning issues for the site
•
LOT COVERAGE RATIO: 0.50 > the maximum footprint area for construction of
indoor spaces is 8.975 sqm
•
USE COEFFICIENT: 1.20 > the maximum gross developed area (GDA) of indoor
spaces above ground is 21.539 sqm
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Development Concept Guidelines and Business Potential
MARKET
CONCEPT
•
•
•
Congress, spa & health hotel with international 4* (upscale) / high Croatian 4*
The best congress & spa hotel in coninental Croatia
The most innovative 4* design hotel in Croatia, integrated with environment
FACILITIES
PROGRAM
•
•
•
•
•
•
At least 250 rooms (of which 10% suites) with 500 beds
Three-meal restaurant and fine dining restaurant
Lobby bar with an outdoor terrace, night lounge bar, spa bar, and pool bar
Congress center with the total rentable area of approximately 500 to 600 sqm
Big spa with a variety of treatments, two outdoor thermal pools, gym, tennis
Specialized health clinic, shops, and other facilities of interest to developer
•
20.0 mil. euros (80 thou. euros per room), including construction, furniture,
fixtures, and equipment (FFE), landscaping, development costs, pre-opening
costs, working capital, and contingency
•
•
•
•
•
•
At least 100 employees (0.4 employees per room)
Average yearly room occupancy rate from 60% to 65%
Average net achieved daily room rate from 80 to 90 euros
Total revenue from 6.7 to 8.9 mil. euros (30 to 40 thou. euros per room)
EBITDA of 25% of total revenue (from 1.7 to 2.2 mil. euros)
Tourist traffic from 100 to 120 thou. overnight stays
INVESTMENTS
BUSINESS
POTENTIAL
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Business Model Terms (I)
MODEL
PARTNERS
•
Long-term concession / lease with management contract (sub-lease)
•
The concession will be given to the developer (concessionaire) with
development experience in the sector of high-quality congreess & spa hotels.
The concessionaire is required to have the partner for future management of
the subject hotel and with managerial experience in the sector of high-quality
congress & spa hotels. The concessionaire should engage his management
partner either through management contract or lease (actually sub-lease).
•
•
The length of term is 50 years with option of renewal for additional 50 years.
The term includes the periods of both development (from the date of signature
to the date of opening) and operations (after the date of opening).
•
The concessionaire is required to develop the hotel within two years (24
months) from the date of signature.
The concessionaire is required to register the firm in the town of Daruvar,
which will be responsible for subject hotel development.
TERM
DEVELOPMENT
•
•
MANAGEMENT
•
The management partner is required to manage the hotel for the period of at
least 10 years (120 months) from the date of opening.
The management partner is required to register the firm in the town of Daruvar,
which will be responsible for subject hotel operations.
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Business Model Terms (II)
CONCESSION
(RENT) FEES
•
•
The concession fee (net of value added tax) is composed of two portions:
Fixed portion - initial amount of 277.510 euros, which equals to 1,110 euros per
room for 250-room hotel (15 euros per sqm of total land area of 17949 sqm)
Variable portion - yearly amount of 0.5% of total revenue (approximately from
35 to 45 thou. euros, i.e. from 140 to 180 euros per room for 250-room hotel)
PAYMENTS
•
•
Fixed portion payable as a lump sum within 90 days after signing the contract
Variable portion payable after hotel opening, in four quarterly installments per
year and in every year of hotel operations
GUARANTEES
•
Concessionaire’s bank guarantee for promptly payments of concession fees
REPAIRS &
MAINTENANCE
•
Concessionaire’s responsibility for both structural repairs and maintenance
•
Possible assignability and trade of the concession contract, but only with prior
approval from the Town of Daruvar in selection of the new concessionaire
•
Possible but with the penalty fee equal to 50% of remaining concession fees
ASSIGNABILITY
TERMINATION
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
6. CONTACTS AND LINKS
TOWN OF
DARUVAR
•
•
•
Mr. Ratko Vuković, Head of Department for Economy
Trg Kralja Tomislava 14, 43500 Daruvar, Croatia
+385 (0)43 331 408; grad-gospodarstvo@daruvar.hr
MARCON
•
•
•
Mr. Mario Šerić, Senior Consultant & Managing Director
Radunica 26, 21000 Split, Croatia
+385 (0)91 1976 901; mario@marcon.st
ECONOMY
AND LEGAL
ENVIRONMENT
•
•
•
•
•
•
Ministry of Economy of Croatia (www.mingorp.hr)
Ministry of Finance of Croatia (www.mfin.hr)
Croatian Chamber of Economy (www.hgk.hr)
Croatian National Bank (www.hnb.hr)
Trade and Investment Promotion Agency (www.apiu.hr)
Central Bureau of Statistics of Croatia (www.dzs.hr)
TOURISM
AND HOTEL
INDUSTRY
•
•
•
•
•
•
Ministry of Tourism of Croatia (www.mint.hr)
Croatian National Tourist Board (www.croatia.hr)
Central Bureau of Statistics of Croatia (www.dzs.hr)
Terme Sveti Martin (www.toplicesvetimartin.hr)
Terme Olimia (www.terme-olimia.com)
Terme Čatež (www.terme-catez.si)
CONTACTS
LINKS