Sunce Hotels invests 44.2 million euros in the renovation of its facilities
December 20, 2021 – Dalmatian hotel brand Sunce plans to invest a huge amount of money in the general ‘redevelopment’ of their many facilities with the hope that 2022 will be the year that tourism and travel return to pre-pandemic standards.
As Jozo Vrdoljak / Novac / Jutarnji writes, Sunce Hotels have informed the Zagreb Stock Exchange that their supervisory board has approved investments to further improve the quality and services at the company’s facilities for the year. 2022 for a significant amount of 44.2 million euros.
The largest amount, up to 13.6 million euros, is expected to be invested in the Elaphusa hotel in Bol sur Brac, followed by the Soline hotel in Brela, for which 9.7 million euros have been invested. reserved. The third largest investment concerns the Borak hotel in Bol for 7.9 million euros, and 6.7 million euros will be invested in the Maestral hotel in Brela. Around 2.5 million euros will be invested in the Kastelet hotel, and 150,000 euros in Neptune. 2.9 million euros will be invested in employee housing, and around 800,000 euros will be injected into other support investments.
They explained from Sunce hotels that these investments confirm the intentions of their majority shareholders to develop the future activities of the company by strengthening their position in the market by the establishment of new and existing capacities and services, as well as of continue to invest in improving the quality of accommodation for their employees.
Out of a total investment of 44 million euros, it is planned to raise around 29 million by capital increase through the issue of new shares, on the occasion of which an extraordinary general meeting of the joint stock company has been convened. As for the rest of the funds, Sunce Hotels plan to raise funds by borrowing from commercial banks, using the option to withdraw funds for this purpose as agreed upon when refinancing the company’s financial obligations on November 2, 2021.
Hrvoje Veselko, member of the board of directors of Sunce hotels, explained that all these investments will be mainly focused on the refreshing of the existing accommodation units of the company, that is, on what leaves a real impression on customers.
These are not investments in additional capacity, that is to say investments that require obtaining possible permits. All this concerns mainly the furnishing of the rooms with new furniture, the refreshing of our hotel rooms, the reconstruction of the bathrooms, the decoration and refreshing of the common and public spaces, the horticultural planning and similar investments. We have chosen the least invasive path because it is important for us to complete most of these investments by the start of the summer season next year, i.e. May 15, 2022 ”, Hrvoje Veselko explained.
Under the Bluesun Hotels & Resorts brand, Sunce Hotels operates 11 hotels along the Croatian Adriatic coast, one campsite and one leased establishment, for a total of 2,973 accommodation units, making it one of the largest hotel companies from all over the Republic of Croatia. They also own 50.2% of Brac airport. In addition to the tourist facilities in Tucepi, Brela, Starigrad Paklenica and Bol on the island of Brac, they are in joint venture with the tour operator TUI AG and have a high-end hotel, TUI Blue Jadran, with 161 units in ‘accommodation to brag about.
Since March of this year, the majority owner of Sunce Hotels has changed to Eagle Hills Real Estate, which has taken over the stake from Jako Andabak’s family for around 101 million euros. Eagle Hills Real Estate is engaged in real estate investment and property development with a focus on the European, Middle Eastern and African markets, and is led by Mohamed Ali Rashed Alabbar, who currently manages development in the United Arab Emirates, Egypt, Serbia and a few other destinations. These are mixed installations worth 50 billion euros. The company intended to build Zagreb’s so-called ‘Manhattan’, and is also known for the Belgrade on Water project, which it developed.
In the first nine months of 2021, Sunce Hotels generated an impressive operating revenue of 333.8 million kuna, an increase of 107.1 compared to the same period in 2020, dominated by the global coronavirus pandemic. The Group achieved a positive EBITDA of 116,405 million kuna, which is a better result than 102,650 million kuna, the amount recorded during the same period last year. The main reason for the strong EBITDA growth is the growth in operating income from the sale of accommodation services and non-pension income.
Most of Sunce’s hotel operating expenses are personnel costs amounting to 98.5 million Kuna, which is 23.5 million Kuna more in the first nine months of 2021 compared to the same period last year, and the material costs amount to 85 million kuna. and are higher by 58.7% compared to the same period in 2020, mainly due to the increase in activities and operating revenues generated by the sale of hosting services.
The finance costs of Sunce hotels have fallen significantly in the first nine months of 2021, mainly because there have been no net negative exchange rate differences. The total finance charge amounts to Kuna 9.7 million, which is a decrease of Kuna 8196 million compared to the first nine months of 2020, when the total finance charge amounted to Kuna 17.9 million. The net profit during the observed period amounted to 68.8 million Kuna, and during the same period last year, the loss amounted to 45.6 million Kuna, again in due to the pandemic crisis.
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