Valamar Riviera Achieved Full Business Recovery and Strong Revenue Growth in 2022

According to the Published Annual Report

According to the audited annual financial report published today, Valamar Riviera generated operating revenues of EUR 325 million in 2022, an 11 percent increase compared to the benchmark year of 2019. Operating profit (adjusted EBITDA) amounted to EUR 103 million, resulting in a complete business recovery to pre-crisis levels.

In 2022, the company invested EUR 66 million in managed properties. In 2023, Valamar Riviera plans to invest EUR 58 million in property development, of which EUR 32 million will be invested in properties in destination Dubrovnik in partnership with AZ pension funds. Investments include the complete reconstruction and rebranding of hotel Tirena, investments in hotels Valamar Lacroma and Valamar Club Dubrovnik, and the construction of Maro World, which will be the largest family entertainment center on the Adriatic coast with numerous educational and entertainment facilities for children of all ages. In addition, significant resources will be invested in sustainable business and destination development projects in 2023, including beaches, promenades, bicycle paths and other publicly available amenities that improve the quality of life in local communities throughout the year.

With the aim of improving working conditions in tourism, Valamar has announced an additional EUR 20 million to increase workers’ compensation in 2023. Salaries paid in peak season i.e. in June, July and August for professional occupations – including chefs, waiters and receptionists will range from EUR 1,200 up to 1,800 net, and for housekeepers, assistant chefs, assistant waiters, kitchen workers, servers and a number of other positions from EUR 1,000 to 1,200 net. In addition, as of May 1st, the coefficients for as many as 129 positions or 2,800 employees will also increase.

‘Valamar Riviera has made a full business recovery and is ready to continue investing in sustainable growth and business development. This year, we will invest EUR 58 million in product development in our hotels and resorts, EUR 20 million in increasing workers’ income, and we will complete a number of destination development and sustainability projects. Despite the continued inflationary and geopolitical tensions, we can already see the positive effects that the Euro and Croatia entering the Schengen area has on Croatian tourism. We look optimistically to the coming tourist season’, said Željko Kukurin, CEO of Valamar Riviera.

In 2022, Valamar Riviera announced its sustainability strategy and ESG targets for 2025, which include achieving carbon neutrality in the first and second scope, employing and retaining more domestic workers than ever, investing in destination development, and a high share of domestic production and local products in the food and beverage segment. Valamar will invest EUR 50 million in destinations and social impact by 2025.