2023 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. Since 2016 the Group has transformed from a Croatian domestic and locally focused company to an international dynamic hospitality group.
WHAT WE DO
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. 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” or “PPHE”) 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 the right to manage art’otel branded properties, allowing us to further grow our presence. In 2022, through PPHE, we secured a license to operate Grand Hotel Brioni Pula as a Radisson Collection Hotel and this strategic cooperation is being further extended in 2024, with two Radisson RED branded hotels, in Belgrade and Berlin. Brands currently used by the Group include Park Plaza, art’otel, Radisson Collection, Radisson RED, Arena Hotels & Apartments and Arena Campsites.
HOW WE DO IT
Our portfolio comprises 29 owned, co-owned, leased and managed properties with around 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, Budapest, Cologne, Nuremberg and Zagreb. Our revenue is generated from different market segments comprising predominantly holidaymakers in Croatia and Austria with a more 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. In addition, we secured an agreement to operate Grand Hotel Brioni Pula as a Radisson Collection property in 2022 and in 2024 we are further expanding our brand portfolio with two Radisson RED hotels.
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 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 a touch of local flavour. The brand offers beachfront locations across the historic settings of Pula and Medulin in Istria (Croatia) and a mountain resort in Nassfeld (Austria). Arena Hotels & Apartments is 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 first all-glamping site.
arenacampsites.comThe Group benefits from a Radisson Collection license for Grand Hotel Brioni Pula, a Radisson Collection Hotel. Radisson Collection is a new generation of iconic properties and one-of-a-kind spaces. In the collection of exceptional hotels, no two are 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 luxury lifestyle.
radissonhotels.comPlunge into culture. Our hotels are different. We put a twist on the normal to make it unforgettable. Our relaxed service style gives you permission to be yourself. Everyone is welcome here. Our statement design kickstarts the day or night with attitude. Business or pleasure, RED guests can dive into the vibe as easily as they can relax out of it. Get to the heart of the action.
radissonhotels.com/redLeadership 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.
8.525 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 Revenue and EBITDA recovery underway
FINANCIAL KPIs
-
Total Revenue (EUR)
126.5 M
-
EBITDA (EUR)
28.0 M
-
EBITDAR (EUR)
30.4 M
-
Profit before tax (EUR)
5.8 M
OPERATING KPIs
-
Occupancy
46.2%
-
REVPAR (EUR)
50.7
-
Average Daily Rate (EUR)
109.7
Securing Long-Term Growth Through Investment and Development
Since 2018, we have invested more than EUR 193 million in the business, expanding from a largely seasonal Croatian operation into a year-round diversified portfolio that includes hotel properties in Austria, Germany, Hungary, and Serbia. In parallel, the Group has focused on raising standards and has extended its higher-end and upper-upscale product offering, driving operational performance and meeting guest expectations. Following a period of intensive activity, the Board has taken the strategic decision to pause larger repositioning projects in favour of smaller investments whilst focussing on optimising the operational performance of recently completed projects. We are taking a more cautious approach to new developments and postponing larger projects, such as the conversion of the Hotel Riviera, Pula into a premium destination, until such time that we can be sure that new investments meet our targeted return hurdle rate. The Group will continue with its regular capital investments across the portfolio.
The Group will continue with its regular capital investments across the portfolio.
Properties completing first full year of operations in 2023
GRAND HOTEL BRIONI PULA,
A RADISSON COLLECTION HOTEL, CROATIA
A landmark, luxury upper-upscale hotel in an iconic cliff-top location provides panoramic views of the Adriatic and Brijuni islands.
The hotel was relaunched in May 2022 following a EUR 35 million investment to reposition the property as a Radisson Collection Hotel. The hotel was declared the ‘Best Hotel in Croatia’ at the prestigious Croatian Tourism Days 2023, organised by the Ministry of Tourism and Sports, the Croatian Tourist Board and the Croatian Chamber of Economy.
Rooms and facilities: 227 rooms over seven floors, restaurants and bars, conference centre, indoor pool, as well as an extensive wellness centre with saunas, relaxation rooms and gym.
Properties completing first full year of operations in 2023
ARENA FRANZ FERDINAND NASSFELD, AUSTRIA
Since it was acquired in December 2021, the resort has benefited from a EUR 4 million investment programme completed in winter 2022 to reposition it as an all-year-round destination. This modern upscale 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 now offers enhanced facilities which offer operating opportunities in summer season.
Rooms and facilities: 144 rooms, restaurant, leisure facilities, wellness area with a spa, indoor and outdoor pool.
Properties repositioned during 2023
ART’OTEL BUDAPEST, HUNGARY
After completing the first phase of a repositioning project in 2022, which saw an extensive redesign and renovation of public areas, the property was rebranded to Park Plaza in March 2023. The property is positioned as a contemporary, upper upscale hotel with a blend of unique design and architectural style. The second phase of the project is currently under review.
Rooms and facilities: 165 rooms, restaurant and bar, conference centre and wellness centre.
Properties repositioned during 2023
ARENA STOJA CAMPSITE, PULA
Recognised as one of ‘Croatia’s Best Campsites’ by the Croatian Camping Union, Arena Stoja campsite has undergone a two-year phased redevelopment of the communal areas, and infrastructure as well as the introduction of 75 new upscale mobile homes to upscale the property. Overall EUR 8.3 million was invested in total and the campsite opened in time for the 2023 summer season.
Facilities: Campsite, upscale mobile homes of 45 – 58 sqm, restaurants, and coffee shop
Properties repositioned during 2023
ART’OTEL, ZAGREB
The premium lifestyle art’otel Zagreb, was launched in October 2023 following a EUR 18 million investment to convert this iconic Art Déco building located in the heart of Zagreb’s city centre into a hotel. The property is dedicated to one of Croatia’s most renowned artists, the late Boris Bućan, and features a number of his later works throughout for guests to enjoy.
Rooms and facilities: 110 rooms, a pan-Asian destination restaurant and bar, four meeting rooms, a spa, an indoor pool, and a rooftop bar (set to open in 2024).
Properties repositioned during 2023
RADISSON RED BELGRADE (FORMERLY ARENA 88 ROOMS)
In 2023, a ten-month refurbishment was undertaken and completed for a total of EUR 3 million to reposition the former Arena 88 Rooms hotel in Belgrade. The property was relaunched in February 2024 under the Radisson RED brand, and offers an exciting and vibrant design.
Rooms and facilities: 88 bedrooms and public areas, consisting of a communal lounge and workspace, flexible meeting and event spaces, a gym and food and beverage options, including a rooftop bar with views of the historic city centre.
Development pipeline
RADISSON RED BERLIN KUDAMM (FORMERLY PARK PLAZA, BERLIN KUDAMM)
The 133-room former Park Plaza Berlin Kudamm is within close proximity to the Kaiser Wilhelm Memorial Church and boulevard ‘‘Kudamm”. The property closed in November 2023 for a six-month repositioning and rebranding redevelopment programme. The hotel is expected to reopen as Radisson RED Berlin Kudamm in the second quarter of 2024.
Rooms and facilities: 133 rooms, breakfast restaurant, lounge and two meeting rooms.
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 2023
Key performance indicators
Total Revenue
(EUR Million)
Ebitda
(EUR Million)
Profit Before Tax
(EUR Million)
Earning per share
(EUR Million)
Occupancy
(%)
AVERAGE DAILY RATE
(EUR)
RevPar
(EUR)
Total Revenue
(EUR Million)
Ebitda
(EUR Million)
Profit Before Tax
(EUR Million)
Occupancy
(%)
Average daily rate
(EUR)
RevPar
(EUR)
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 the Red Sea Group, and has been a major influencer in the expansion of the PPHE Hotel Group’s portfolio. Mr Ivesha has over 50 years of experience in the hotel industry. Mr. Ivesha attended all of the Supervisory Board meetings in 2023.
Yoav Papouchado
Vice Chairman of the Supervisory Board
Skills and experienceYoav Papouchado
Vice Chairman of the Supervisory Board
Yoav Papouchado, Chairman of Red Sea Hotels Limited (“Red Sea”), PPHE Hotel Group’s controlling shareholder, has over 30 years of experience of real estate developments and data centres worldwide, developed through his long tenure at Red Sea. Mr Papouchado attended all of the Supervisory Board meetings in 2023.
Kevin McAuliffe
Board member
Skills and experienceKevin McAuliffe
Board member
Kevin Michael McAuliffe acted as the Non-Executive Deputy Chairman of the PPHE Hotel Group Limited until his retirement in May 2023. He was a member of the Society of Trust and Estate Practitioners for 20 years and has held directorships in various regulated investment companies, remaining a director of two regulating entities until his retirement in 2023. 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. He attended all of the Supervisory Board and Committee meetings in 2023.
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. Mrs. Pende acted as the Chairwoman of the Supervisory Board of Alpha Adriatic d.d.. Mrs. Pende holds a law degree from the University of Zagreb. Mrs. Pende attended all of the Supervisory Board and Committee meetings in 2023.
Lorena Škuflić
Board member
Skills and experienceLorena Škuflić
Board member
Lorena Škuflić is a full-time professor with a permanent title at the Faculty of Economics of the University of Zagreb at the Department of Economic Theory, where she has been employed since 2002. Prior to this post, she worked at the Croatian Chamber of Economy – County Chamber Pula and also with the Faculty of Economics, Zagreb, and held the position of Head of the Polytechnic in Rijeka. During her work at the faculty, she was the head of the department for several terms, and in the period from 2018 to 2020, vice dean for finance and business at the faculty. In her work, she participated or currently participates in numerous committees at the Faculty, University, and the Ministry of Science and Education, as well as the Agency for Higher Education. She is a member of the International Association for Sustainable Economy and an advisor for international sustainable Business Affairs. Ms. Škuflić chairs the Sustainability Committee. She attended all of the Supervisory Board and Committee meetings in 2023.
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 but one of the Supervisory Board meetings and all of the Committee meetings in 2023.
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 and Committee meetings in 2023.
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. Prior to that, Mr Slonim was Vice President 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 led a programme of major transformations which include the renovation, upgrading and rebranding of nine properties, acquired and successfully integrated the German and Hungarian operations, thus creating the first Croatian international hospitality Group, and led the Group’s 2017 IPO which raised EUR 100 million in equity proceeds. The proceeds are designated for 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 an EBITDA growth. During these years the Group introduced highly professional management procedures, updated IT systems and refined a 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 the Arena Hospitality Group as Sales and Marketing Director in 2009, after six years as Sales and Marketing Director for Croatia for the renowned Sol Meliá hotel chain. Many years of business experience in the hotel industry with international companies (previously Sol Meliá, now PPHE) leads her to develop creative solutions for challenges in tourism. Since joining the Arena Hospitality Group, Mrs Kraljević has positioned the company at the very top of the Croatian tourism market through the repositioning of renovated facilities, the modernization and development of the Sales and Marketing Department, and the introduction of revenue management business functions. Her contribution in the segment of internet business modernization was of vital importance for the development of the company. She adopts and supports innovative technological solutions, which facilitates the transition of the Group into a modern and agile company.She leads the team that develops special business segments, from the leasure to the business segment. Under her leadership, development and implementation of marketing and sales strategies, the company gains market share in Croatia, Germany, Austria, Hungary and Serbia. Mrs Kraljević also manages the Group's responsible business segment (ESG). She is a member of Pula and Medulin Tourist and the Economic Council of the Croatian Chamber of Commerce for the County of Istria. The company's marketing achievements have been awarded the Golden Goat award several times. Mrs Kraljević received a prestigious award for successful work in 2022 and the title of Manager of the Year from the Croatian Association of Business Women Krug.
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 UK. 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 financial 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 (including ESG), governance and enterprise risk management. He has a 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 5 star holiday resort in Vietnam, 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.