EY: We expect record investments in hotel accommodation, 2022 billion euros will be invested in the hotel industry in Croatia by 1,2

first_imgIn addition to domestic, the main word will be given by investors from AsiaThe research also showed significant changes in the country of origin of investors in hotel facilities in Croatia.So far, European investors have traditionally predominated, and by 2022, as many as 42 percent of investments will be made by Asian hoteliers and investors. Thus, Asian investors will be as represented as domestic ones, while only 13 percent of investments will be made by those from European countries. Investors expect their projects to pay for themselves within 4 to 15 years, depending on the investment, while the projected return on average is 10 years.Source: EY”The hotel industry in Croatia will develop rapidly thanks to the millions invested by the largest players in the market, but also by strategic takeovers and mergers. In addition to traditional hotel brands on the Croatian market, the arrival of the world’s strongest hotel companies awaits us. Given that investments will be focused on top service capacities, half of the investments in this cycle will be projects up to 200 rooms, with the average investment per room for four-star hotels 140.000 euros, and for five-star hotels around 370.000 euros”, Concludes Marija Noršić from EY.Most investors will participate with 25 to 40 percent of their own funds, and for the rest they will look for the hinterland of commercial banks, while investors who decide to withdraw funds from EU funds will have to participate with 70 to 75 percent of their own capital. hotel industry in the Republic of Croatia. U narednih pet godina Hrvatsku očekuju rekordna ulaganja u  hotelijerstvo, ističe se u novom istraživanju koje je provela revizorsko-konzultantska tvrtka EY, a u kojemu stoji kako se u navedenom razdoblju, a prema trenutačno dostupnim informacijama, očekuju ulaganja od čak 1,2 milijarde eura samo u ovaj vid turističke ponude.A survey of Investments in Hotel Development 2018-2022, conducted by experts from the Croatian office of EY, detected a total of 83 hotel projects in the advanced stage of planning, development and construction or placing on the market in the period from 2018 to 2022. Of the total number, as much as 50 percent of the project relates to newly built greenfield investments, while all investments will be implemented in a total of 12 Croatian counties.Istria and Split-Dalmatia counties are the most attractive to investorsOf the total number of projects covered by the research, as much as 90 percent of them are focused on the coast and coastal area, but still in terms of number and value of projects, two counties stand out – Split-Dalmatia and Istria – followed by Opatija, Zagreb and Dubrovnik.”It should be noted that 60 percent of the total number of investments will be completely new projects and hotels, while 40 percent refers to comprehensive renovations of existing accommodation capacities. In the mentioned period, the investments will cover a total of 9.700 hotel rooms, of which almost 6.000 rooms refer to completely new or expanded capacities, primarily in high-categorized hotels, those with four and five stars.“, Analyzing the results of the research, points out Marija Noršić, manager in the Consulting Department for Tourism and Hospitality at EY.Source: EYlast_img