2022 Annual Report & Financial Accounts
About us
WHO WE ARE
We are an international, dynamic hospitality company which owns, co-owns, leases, operates and develops full-service upscale, upper upscale and lifestyle hotels, self-catering holiday apartment complexes and campsites in Croatia, Germany, Hungary, Serbia and Austria. We operate and develop our own brands, Arena Hotels & Apartments® and Arena Campsites®. In addition, through our majority shareholder PPHE Hotel Group Limited (PPHE Hotel Group) we have the exclusive right to operate and develop the international Park Plaza® brand in 18 countries in the Central and Eastern European region (the “CEE region” – see the definition in the Glossary section) and Germany and right to manage art’otel branded properties, allowing us to further grow our presence.
WHAT WE DO
Since 2016 the Group has transformed from a Croatian domestic and locally focused company to an international dynamic hospitality group. Our primary objective is to further grow our profile in the upscale, upper upscale and lifestyle market segments in the CEE region and Germany, whilst striving to create and realise shareholder value. Our brand portfolio, consisting of Park Plaza®, art’otel®, Arena Hotels & Apartments® and Arena Campsites® brands, situated across the CEE region, provides us with excellent growth opportunities.
HOW WE DO IT
Our portfolio includes 29 owned, co-owned, leased and managed properties in operation with over 10,000 units located in selected resort destinations in Istria (Croatia) and Nassfeld (Austria), and major cities in the CEE and Germany region such as Belgrade, Berlin, Cologne, Nuremberg and Budapest. Our revenue is generated from different market segments comprising predominantly holidaymakers in Croatia and Austria; a diversified business mix in Germany, Hungary and Serbia. where our portfolio caters for both business and leisure travellers; as well as conference and trade fair delegates.
Atractive brends
WELL-INVESTED, TRUSTED AND RECOGNISED BRANDS, UNDERPINNED BY LUXURY
We are confident in the power that trusted and recognised brands offer, delivered through a bespoke approach. Our four core brands, art’otel®, Park Plaza®, Arena Hotels & Apartments®, and Arena Campsites® are mutually complementary, vibrant, unique, and continually evolving.
Park Plaza is an upper upscale contemporary hotel brand featuring individually designed hotels in vibrant city centre locations and select resort destinations. Renowned for creating memorable moments, Park Plaza caters to both leisure and business travellers through its inspiring service, stylish guest rooms and versatile meeting facilities which are perfectly complemented by award-winning restaurants and bars. PPHE Hotel Group Limited is an international hospitality real estate company. It has an exclusive and perpetual licence from the Radisson Hotel Group, one of the world’s largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa.
parkplaza.comart’otel® is a contemporary collection of upper upscale lifestyle hotels that fuse exceptional architectural style with art-inspired interiors. Located in cosmopolitan centres across Europe, each hotel is inspired by a dedicated signature artist, and displays a collection of original works designed or acquired specifically for each art’otel®, with each property offering a unique art gallery. art’otel® has created a niche for itself in the hotel world, differentiating it from more traditional peers.
artotels.comArena Hotels & Apartments is a collection of hotels and self-catering apartment complexes offering relaxed and comfortable accommodation which features contemporary and warm design/interiors, accompanied by a welcoming and friendly service. Each location offers a holiday full of opportunities for exploration and relaxation complemented by food and drink offering with a touch of local flavor. The brand offers beachfront locations across the historic settings of Pula and Medulin in Istria (Croatia), city centre accommodation in Belgrade (Serbia), and a mountain resort in Nassfeld (Austria). Arena Hotels & Apartments is your destination host and guide, a home away from home catering for families, couples and friends.
arenahotels.comArena Campsites are located in exclusive beachfront sites across the southern coast of Istria, Croatia. Situated within close proximity of the historic towns of Pula and Medulin, each campsite provides a distinctive offering and relaxed environment from which guests can experience Istria’s areas of natural beauty and enjoy outdoor activities from April to October. Arena Campsite’s portfolio includes Arena One 99 Glamping, Croatia's fi rst all-glamping site.
arenacampsites.comThe group benefits from a radisson collection license for grand hotel brioni pula, a radisson collection hotel that opened in may 2022. Radisson collection is a new generation of iconic properties and one-of-a-kind spaces. In a collection of exceptional hotels, no two are ever the same, and each has a unique character authentic to its locality. The modern design blends elegance in form and function, making radisson collection hotels the ultimate destination for those who value a vibrant and luxurious lifestyle.
radissonhotels.comLeadership statements
Our business at a glance
We are an international, dynamic hospitality owner-operator with a strong asset base and access to multiple brands and a global distribution network through our majority shareholder, PPHE Hotel Group. Our approach means that we fully understand the hospitality industry from both an owner and operator perspective and have the power that international brands bring.
CROATIA
Located in one of Croatia’s most prominent tourist regions, Istria, our diverse accommodation offering includes hotels, self-catering holiday apartment complexes as well as campsites, and provides guests with a wide choice of locations in Pula, Medulin and Zagreb with 118 rooms under development. Croatia has become a popular leisure destination, and with over 40 years of experience in this market, we have an unrivalled expertise in providing great value accommodation with inspirational service in areas of natural beauty.
8.468 units
GERMANY
Our hotels are located in major gateway cities, such as Berlin and Cologne, which operate on a year-round basis and have a balanced mix of business and leisure guests. The hotels are positioned in prime city-centre locations with a high footfall of conference, leisure and business guests.
956 units
HUNGARY
Located in Hungary’s capital city Budapest, which is a popular tourist destination, art’otel budapest is situated in a prime location overlooking the River Danube and the magnificent premises of the Hungarian Parliament.
165 units
SERBIA
88 Rooms is located in Takovska Street, close to the business area, with easy access to the Belgrade Fair and cultural area, near the iconic Old town of Belgrade and the Danube riverbank.
88 units
AUSTRIA
The Group’s first winter resort, FRANZ ferdinand Mountain Resort Nassfeld, is a 4-star hotel in Nassfeld, Austria which complements its existing summer leisure business. This modern mountain resort is superbly located next to the valley station of the Nassfeld Ski Resort in Carinthia, providing instant access to the area’s 110km of slopes.
144 units
Key performance indicators
RECORD EBITDA PERFORMANCE
Business recovery and EBITDA growth on 2019
FINANCIAL KPIs
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Total Revenue (HRK)
825.3 M
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EBITDA (HRK)
235.0 M
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EBITDAR (HRK)
252.2 M
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Profit before tax (HRK)
60.8 M
OPERATING KPIs
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Occupancy
45.1%
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REVPAR (HRK)
333.8
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Average Daily Rate (HRK)
739.7
Securing Long Term Growth Through Investments And Development
In recent years, the Group has diversified its business from solely operating in Croatia and has strategically expanded into Germany, Hungary, and Serbia and in Austria with its acquisition of Arena Franz Ferdinand Hotel Nassfeld. The Group continues its journey to develop and upgrade its existing assets and diversify its portfolio through exciting projects as well as strengthen its foundations for future growth. Our investments into our properties are over and above regular capital investments across the portfolio of HRK 34.3 million.
The Group continued with its strategically important investments in 2022
Property repositioning
GRAND HOTEL BRIONI PULA,
A RADISSON COLLECTION HOTEL, CROATIA
A landmark, luxury upper-scale hotel in an iconic cliff-top location providing a wide view of the Adriatic and Brijuni islands.
Rooms and facilities: 227 rooms over seven floors, restaurants and bars, conference centre, and indoor, outdoor infinity and activity pools, as well as an extensive wellness centre with saunas, relaxation rooms and gym.
Total investment: HRK 260 million
Completion: May 2022
Progress: 100% complete
The hotel relaunched as a Radisson Collection Hotel in May 2022 as an upper upscale premium hotel, with average daily rates surpassing HRK 2.500 in its first partial year of operation.
Property repositioning
ARENA FRANZ FERDINAND NASSFELD, AUSTRIA
Acquired in December 2021 for HRK 112.1 million,the Group added its fi rst resort in Austria in 2022, complementing the existing Croatian summer leisure business. This modern mountain resort is superbly located next to the valley station of the Nassfeld Ski Resort in Carinthia and provides instant access to the area’s 110km of slopes and trails.
Rooms and facilities: 144 rooms, spa and leisure facilities, indoor and outdoor pool, main restaurant
Repositioning: Upscale leisure resort with extended operating opportunities during the winter and summer seasons.
Total investment: HRK 26.4 million
Completion: Winter 2022
Progress: 100% complete
The refurbishment has seen the spa and wellness facilities extended, an outdoor swimming pool created and in-bedroom climate control systems implemented, which is very well received by our guests.
Property repositioning
ART’OTEL BUDAPEST, HUNGARY
A contemporary, upper upscale lifestyle hotel with a blend of unique art-inspired design, architectural style, and original modern art by Donald Sultan, a leading American contemporary artist.
Rooms and facilities: 165 rooms, restaurant and bar, conference centre and wellness centre
Total investment: Est. HRK 49.1 million
Completion: Phase one: Summer 2022
Progress: 50% complete
Phase one of the hotel’s repositioning has focused on an extensive redesign and renovation of ground fl oor and basement public areas covering reception, the lobby, restaurant & bar, conference centre and wellness facility.
Phase two will involve the refurbishment of the hotel’s bedrooms to a more contemporary design. The project is expected to start in 2023, with an expected budget of HRK 25 million.
Property repositioning
HOTEL RIVIERA, PULA CROATIA
Acquired in april 2020 for a total consideration of hrk 36 million, works to
position this property into a luxury-branded 66-room hotel are expected to start in
2023.
Rooms and facilities: 66 rooms.
Total investment: Est. HRK 113 million
Completion: Summer 2024
Progress: 5% complete
Planning permission for this listed property was granted in february 2023 and development of the property to become for our third premium hotel in croatia is in its planning phase.
Property repositioning
ARENA STOJA CAMPSITE, PULA
Facilities: campsite, upscale mobile homes of 45 58 sqm, restaurants, coffee shop positioning: upscale campsite
Total investment: est. Hrk 50 million for its phase one and two.
Completion: june 2023
Progress: 50% complete
Phase one, which saw the creation of a dedicated upscale mobile homes zone, including 75 new upscale mobile homes, new infrastructure, and green zone, was completed in spring 2022. Phase two is a continuation of the infrastructure development and includes a new arrival and entrance area for the campsite, an extensive renovation of its main restaurant and coffee shop, further strengthening the campsites offering and customer appeal.
Property conversion
ART’OTEL, ZAGREB
An upper upscale lifestyle hotel in the prime location of zagrebs historic city centre.
Rooms and facilities: 115 rooms, destination restaurant and bar, wellness and spa centre, fitness centre, indoor swimming pool and bar, event space and parking positioning: upper upscale lifestyle hotel in prime location
Total investment: est. HRK 135.6 million completion: summer 2023
Progress: 60% complete
The development is progressing well and, following supply chain issues, remains on course to complete in mid-2023.
Sustainability responsibilities
By continually investing in operational training, innovative technology and systems, we are adopting best practices and collaborate with industry specialists to achieve our ESG goals.
SUSTAINABILITY REPORT 2022
Key performance indicators
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Experienced leadership
Supervisory board
Boris Ivesha
Chairman of the Supervisory Board
Skills and experienceBoris Ivesha
Chairman of the Supervisory Board
Boris Ivesha has been President and Chief Executive Officer of PPHE Hotel Group since 1991. Mr. Ivesha was responsible for bringing the Park Plaza Hotels & Resorts® brand to the PPHE Hotel Group in 1994 in collaboration with Eli Papouchado and the Red Sea Group, and has been a major influencer in the expansion of the PPHE Hotel Group’s international portfolio. In previous roles, Mr. Ivesha established the Yamit Hotel in Israel in 1984 and served as its President and was Director of the Carlton Hotel in Israel from 1979 until 1984 and General Manager of the Royal Horseguards Hotel in London from 1972 until 1979. Mr. Ivesha attended all of the Supervisory Board meetings in 2021.
Yoav Papouchado
Vice Chairman of the Supervisory Board
Skills and experienceYoav Papouchado
Vice Chairman of the Supervisory Board
Yoav Papouchado is Chairman of the Board of Red Sea Hotels Limited and has been since 1998. Red Sea Hotels Limited is a group of real-estate companies operating worldwide. Mr. Papouchado holds an MBA as well as a BA in Economics from the Tel-Aviv University. Mr Papouchado attended all of the Supervisory Board meetings in 2021.
Kevin McAuliffe
Board member
Skills and experienceKevin McAuliffe
Board member
Kevin Michael McAuliffe, is the Non-Executive Deputy Chairman of the PPHE Hotel Group Limited. He was a member of the Society of Trust and Estate Practitioners. Retired Chairman of Carey Group (after joining as Chief Executive in 1999), he was also Head of Advisory Services for Paribas International Private Banking and Managing Director of Paribas Suisse in Guernsey (1992-1999). He served as Finance Director of Ansbacher offshore banking group and was appointed as Chief Executive of Ansbacher’s Guernsey bank and trust company business in 1994. Mr McAuliffe attended all of the Supervisory Board and Committee meetings in 2021.
Amra Pende
Board member
Skills and experienceAmra Pende
Board member
Mrs. Pende was a long-standing legal counsel at Uljanik, d.d., one of the biggest Croatian shipyards, where she worked for over 30 years. Ms. Pende acts as the Chairwoman of the Supervisory Board of Alpha Adriatic d.d.. Ms. Pende holds a law degree from the University of Zagreb. Mrs Pende attended all of the Supervisory Board and Committee meetings in 2021.
Lorena Škuflić Ivana Matovina
Board member
Skills and experienceLorena Škuflić Ivana Matovina
Board member
Lorena Škuflić is a professor at the Faculty of Economics and Business, University of Zagreb and since 2010 has been the Head of the Department of Economic Theory. Prior to this, Mrs. Škuflić was employed at the Croatian Chamber of Economy – County Chamber Pula and also with the Institute of Economics, Zagreb. Ms. Škuflić obtained her PhD in economics at the University of Rijeka in 1999. Mrs Škuflić attended all of the Supervisory Board and Committee meetings in 2021.
Ivana Matovina
Board member
Skills and experienceIvana Matovina
Board member
Mrs. Matovina is an expert in the field of audit and accounting and has extensive knowledge in audit and application of International Financial Reporting Standards (IFRS). She is a Croatian certified auditor and Certified auditor of Great Britain. Ms. Matovina was a perennial member of the Board of the Croatian Financial Services Supervisory Agency and of the Croatian Financial Reporting Standards Board. She is a founder and a director of the several smaller local companies, among others Antares savjetovanje d.o.o. and Antares revizija d.o.o. She serves as a member and the deputy chairman of the Supervisory Board of Professio energija d.d. Mrs Matovina is the Chairman of the Company’s Audit Committee. She attended all of the Supervisory Board and Committee meetings after her appointment as the Board member in May 2022.
Goran Nikolić
Board member (Appointed by workers' council)
Skills and experienceGoran Nikolić
Board member (Appointed by workers' council)
Goran Nikolić was born in 1977 in Pula, Croatia. He completed his primary and secondary education in Pula in 1995. In 2010, he completed the course for “System and Network Administrator” at the University College Algebra. After employment at Pula Airport and Uljanik, since 1998 he has been employed by Arenaturist (today Arena Hospitality Group) where he has already worked for 23 years. Mr. Nikolić also holds the position of President of the Workers’ Council of the Company. He currently works in the Company as head of customer support in the Company’s IT department. Mr Nikolić has been appointed as the Supervisory Board member as of 1 January 2021. Mr Nikolić attended all of the Supervisory Board meetings in 2021.
management board
Reuel ('Reli') Slonim
President of the Management Board
Skills and experienceReuel ('Reli') Slonim
President of the Management Board
Reuel Slonim joined Arena Hospitality Group as Executive Director in 2008. His previous role was as Vice President of Operations & Development and board member of Isrotel Hotels and Resorts, one of Israel’s leading hospitality companies. Before that, Mr Slonim was Vice President of Marketing & Sales after having served for ten years as General Manager of 5-Star resort hotel. Since joining Arena Hospitality Group in 2008, he has introduced significant transformations, including the renovation, upgrade and rebranding properties, and acquisition and successful integration of the German, Hungarian, Serbian and Austrian operations, creating the first Croatian international hospitality Group. Also, Mr Slonim led the Group’s 2017 IPO, which raised EUR 100 million in equity proceeds. The proceeds are designated for Group’s further development and growth. Moreover, the Group continues to expand in the CEE region through the addition of new properties in Zagreb, Nassfeld and Belgrade. Under his tenure, Arena grew from a local company to a truly international player with a significant EBITDA growth. During these years the Group introduced highly professional management procedures, continuously grew in terms of digitalization and IT innovations, and refined the training and development culture, which has solidified recognition of Arena Hospitality Group as a leading hospitality company in Croatia. In addition, Mr Slonim is a member of the Croatian Tourism Association (HUT) and is active in the communities of Pula and Medulin, member of the local Tourist Boards, and a committed supporter of local culture and sports.
Manuela Kraljević
Member of the Management Board and Marketing and Sales Director
Skills and experienceManuela Kraljević
Member of the Management Board and Marketing and Sales Director
Manuela Kraljević joined Arena Hospitality Group as Sales and Marketing Director in January 2009. During her previous appointment, Mrs Kraljević was covering for six years, the Sales and Marketing Director position in Croatia for the renowned hotel chain Sol Melia. Since joining Arena Hospitality Group in 2009, she has repositioned upgraded properties, directed the development of a modern sales and marketing department, introduced revenue and yield management, and was vital for online business growth. Mrs Kraljević has been an early adopter of technologically innovative solutions and has facilitated the Group’s transition to a modern and agile company. Under her leadership, development and implementation of marketing and sales strategies, Arena Hospitality Group has gained market share in Croatia, Germany, Hungary and Serbia. Additionally, she is in charge of Group’s Responsible Business activities. Mrs Kraljević is a member of Pula and Medulin Tourist Boards and the Economic Council of the Croatian Chamber of Commerce for the Istrian Region. Her marketing achievements were awarded several times with the Golden Goat Award.
Devansh Bakshi
Member of the Management Board & Chief Financial Officer
Skills and experienceDevansh Bakshi
Member of the Management Board & Chief Financial Officer
Devansh Bakshi joined Arena Hospitality Group in 2019 as Board member and Chief Financial Officer. Prior to that he worked as Group Finance Director for Arora Group, which is a diverse real estate business managing hotels, construction and commercial property portfolio in the United Kingdom. In 2011 he joined PPHE Hotel Group and worked for over five years as a Regional Financial Controller for the UK region. He has over 25 years of hospitality experience covering various disciplines of finance, real estate & construction. He is instrumental in ongoing group’s financing activities for redevelopment and new acquisitions. Consolidating of support functions and technology upgrade for group wide optimisation of resources and organisational efficiency. Leads group compliance, governance and enterprise risk management. Particular focus on investor relations and capital market activities. Mr. Bakshi holds a Hotel Management degree, an MBA in International Business and is a qualified Fellow Chartered Management Accountant from United Kingdom.
Edmond ('Edi') Pinto
Member of the Management Board & Chief Operation Officer
Skills and experienceEdmond ('Edi') Pinto
Member of the Management Board & Chief Operation Officer
Edmond Pinto started his hospitality career as F&B Manager by primarily launching the all-inclusive concept in Israel, after which he served as General Manager in hotel operations working for ‘’Isrotel’’ hotel chain for more than 20 years. During that time he was successfully operating various 5* resorts, luxury and city hotels. Mr Pinto holds a Bachelor’s degree in Hospitality Management and has rich experience in the hotel industry with extensive knowledge in establishing cooperation with large businesses and corporate bodies and fostering community ties at the municipal level. His previous role as Resort Consultant & Owner Representative included managing all required opening procedures for a new holiday resort, providing support to the owner regarding financial issues, establishing budgets, developing, regulations, standards, terms, documentation, processes, handling requirements and inventories. Mr Pinto joined Arena Hospitality Group in March 2020 as Member of the Management Board and Chief Operating Officer.