investment prospect for hotel projects in daruvar, croatia
TRANSCRIPT
INVESTMENT PROSPECT FOR
HOTEL PROJECTS IN DARUVAR, CROATIA
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
CONTENT
1 REASONS TO INVEST IN DARUVAR
TOURISM AND HOTEL INDUSTRY
HOTEL - AQUAE BALISSAE
HOTEL - ROMAN FOREST
CONTACTS AND LINKS
FACTS AND FIGURES2
3
4
5
6
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
Tourist arrivals (in million) > CAGR of 5,2%
Tourist overnight stays (in million) > CAGR of 4,2%
565351
48
57
47
11101099 11
2003 2004 2005 2006 2007 2008
45
8
2002
Source: Central Bureau of Statistics of Croatia
• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Trends in Daruvar
Tourist arrivals (in thousand) > CAGR of 7,7%
Tourist overnight stays (in thousand) > CAGR of 9,2%
2019
1616
22
14
87665
8
2003 2004 2005 2006 2007 2008
13
5
2002
Source: Central Bureau of Statistics of Croatia
• 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
• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Products in Daruvar (I)
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
The Multicultural Oasis of Health and Hedonism in the Heart of Pannonian Croatia
BATHS• 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
EVENTS• 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)
BEER• Daruvarska pivovara - the oldest brewery in Croatia (since 1840),
famous for production of pilsner Old Czech Beer (Staročeško pivo)
WINES• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Tourism Products in Daruvar (II)
HUNTING• Eleven hunting clubs and nine hunting grounds that abound with
animals such as deer, fallow deer, wild boar, rabbit, and pheasant
The Multicultural Oasis of Health and Hedonism in the Heart of Pannonian Croatia
ACTIVITIESIN NATURE
• 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
RURALTOURISM
• Tradition in agriculture and production of fruits, honey, and liquors• Several agro tourism households (e.g. Kovačević and Konjovoda)
MICE• 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
FISHING• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Supply in Croatia
• 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 categorizedSource: Central Bureau of Statistics of Croatia
• 571 hotels with 53,826 rooms and 104,159 permanent beds
Hotel Rooms in Croatia in 2008
6%
26%
50%
17%
Hotels 5*
Hotels 4*
Hotels 3*
Hotels 2*
Remarks:
• Figures do not include villas, aparthotels, and other similar
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Performance in Croatia
5 stars
Average Yearly Room Occupancy Rate
4 stars 3 stars
Average Net Achieved Daily Room Rate (in euros)
Daily Room Revenue per Available Room (in euros)
Total Revenue per Available Room (in euros)
Room Revenues (% of revenue)
Food and Beverage Revenues (% of revenue)
Other Revenues (% of revenue)
EBITDA (% of revenue)
Number of Employees per Room
Payroll and Related Costs (% of revenue)
Horwath Hotel Survey 2009: Performance in 2008
50.5% 43.9% 44.1%
121.11 73.53 51.83
61.16 32.28 22.86
32,746 19,553 14,941
62.9% 64.4% 58.7%
31.5% 30.5% 35.2%
5.5% 5.1% 6.1%
18.1% 21.2% 16.4%
0.67 0.37 0.28
35.2% 29.4% 29.3%
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Hotel Supply in Daruvar
TERMAL• 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
Only Five Hotels and Similar Establishments with 203 Rooms and 383 Beds
MLADIMIR• 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
ARCADIA• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
3. TOURISM AND HOTEL INDUSTRY
Selected Competitors in Croatia and Slovenia
SPAGOLFERCroatia
• 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
Only Two Strong Competitors in Croatia and Several Strong Competitors in Slovenia
SOTELIASlovenia
• 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
TERMESlovenia
• 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
GOLF GRADMOKRICESlovenia
• 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
TERMECroatia
• 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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
4. HOTEL - AQUAE BALISSAE
Site Location
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
12
345
67
8
910
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
MARKETCONCEPT
FACILITIESPROGRAM
• 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
• 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
INVESTMENTS• 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
BUSINESSPOTENTIAL
• 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
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).
TERM• 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).
DEVELOPMENT
• 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.
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)
GUARANTEES • Concessionaire’s bank guarantee for promptly payments of concession fees
REPAIRS &MAINTENANCE
• Concessionaire’s responsibility for both structural repairs and maintenance
ASSIGNABILITY• Possible assignability and trade of the concession contract, but only with
prior approval from the Town of Daruvar in selection of the new concessionaire
TERMINATION • Possible but with the penalty fee equal to 50% of remaining concession fees
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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
5. HOTEL - ROMAN FOREST
Site Location
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
12
345
67
8
910
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
MARKETCONCEPT
FACILITIESPROGRAM
• 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
• 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
INVESTMENTS• 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
BUSINESSPOTENTIAL
• 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
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).
TERM• 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).
DEVELOPMENT
• 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.
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)
GUARANTEES • Concessionaire’s bank guarantee for promptly payments of concession fees
REPAIRS &MAINTENANCE
• Concessionaire’s responsibility for both structural repairs and maintenance
ASSIGNABILITY• Possible assignability and trade of the concession contract, but only with
prior approval from the Town of Daruvar in selection of the new concessionaire
TERMINATION • Possible but with the penalty fee equal to 50% of remaining concession fees
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
INVESTMENT PROSPECT FOR HOTEL PROJECTS IN DARUVAR
6. CONTACTS AND LINKS
CONTACTS
• Mr. Ratko Vuković, Head of Department for Economy• Trg Kralja Tomislava 14, 43500 Daruvar, Croatia• +385 (0)43 331 408; [email protected]
• Mr. Mario Šerić, Senior Consultant & Managing Director• Radunica 26, 21000 Split, Croatia• +385 (0)91 1976 901; [email protected]
• 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)
• 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)
TOWN OFDARUVAR
MARCON
LINKS
ECONOMYAND LEGAL
ENVIRONMENT
TOURISMAND HOTELINDUSTRY