Croatia’s Valamar completes first stage of 43 mln kuna (5.8 mln euro) revamp of Lavanda hotel

ZAGREB (Croatia), August 11 (SeeNews) – Croatian hotel and tourism group Valamar Riviera [ZSE:RIVP-R-A] said on Tuesday it has completed the first stage of a 43 million kuna ($6.8 million/5.8 million euro) revamp of Hvar-based Lavanda hotel.

With the completion of the first investment stage, Lavanda hotel has become part of the Sunny by Valamar brand, and is now advertised as Lavanda Sunny Hotel by Valamar, offering services of higher value added and contributing to the development of tourism services on the Adriatic island of Hvar, Valamar Riviera said in an e-mailed statement.

Further investment in the 179-room hotel will continue in the autumn.

The renovation of Lavanda Sunny Hotel by Valamar marks the beginning of a larger investment cycle in the facilities of local hotel operator Helios Faros that is carried out jointly by Valamar and pension  fund manager PBZ Croatia Osiguranje.

In 2016, Hvar-based Helios Faros [ZSE:HEFA] entered into bankruptcy proceedings, which it exited successfully in July 2019 when Valamar Riviera and PBZ Croatia Osiguranje acquired stakes in the company through repaying Helios’ debt to creditors.

In November 2019, the two new owners increased Helios’ share capital to 236 million kuna from 97 million kuna and launched a five-year business plan worth 692 million kuna that envisages the reconstruction of the tourism facilities owned by Helios Faros under the management of Valamar. The plan includes the renovation of Helios’ Arkada and Lavanda hotels.

On Tuesday, Valamar said that Lavanda Sunny Hotel by Valamar has opened doors for guests on July 15 and immediately enjoyed a high occupancy rate.

Valamar also said that in June and July it gradually opened 21 of its hotels and resorts, as well as all of its 15 camps at eight destinations on the Adriatic coast. Currently, more than 30,000 guests are staying at its facilities, which it says is a great success considering the current coronavirus-related challenges that the global tourism is facing.

Valamar’s shares traded 0.79% higher at 25.40 kuna by 15:09 CET on Tuesday on the Zagreb bourse, while the shares of Helios Faros have not yer traded since their listing on May 5.

PBZ owns 77.19% of Helios Faros, while Valamar holds a 20% stake, Zagreb bourse data showed on Tuesday.

(1 euro = 7.47821 kuna)