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 and Serbia. In addition to operating and developing our own brands, Arena Hotels & Apartments® and Arena Campsites®, 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’) and to manage art’otel branded properties, allowing us to further grow our presence.

Boris Ivesha

Chairman of the supervisory board

Chairman of the supervisory board

“Our response to the pandemic in 2020 is a testament to the strong management team and the financial resilience of the Group“

RESILIENCE OF OUR BUSINESS MODEL

 

Dear Shareholders,
In an unprecedented year, Arena Hospitality Group d.d. (“the Company”) and its consolidated subsidiaries (“the Group”) delivered a resilient performance. The impact of COVID-19 severely delayed our seasonal opening in Croatia and disrupted operations across all our regions for sustained periods of time, nevertheless the Group was pleased to progress its committed repositioning programmes and extend its longer term pipeline through new acquisitions.
Our response to the pandemic in 2020 is a testament to the strong management team and the financial resilience of the Company. The management team acted swiftly to implement the actions needed in response to lockdowns, including managing cash flow, utilising the available work retention schemes in order to support team members who were unable to work, and taking advantage of the business support schemes that were available. For those properties in operation and re-opening for the season in Croatia, we developed and implemented rigorous new health, hygiene and safety protocols, to allow our properties to operate within the prevailing and frequently changing guidelines and in line with guest expectations.
We continued to lay the foundations for future growth where possible, investing HRK 274.3 million during the year. We completed strategically important redevelopments and refurbishments and secured funding to further drive the repositioning programme of Hotel Brioni Pula, soon to be our flagship property in Istria.
We are pleased to have the continued support of our banks, securing a total of HRK 286.5 million in loans in 2020, which allowed us, amongst other investments, to complete the acquisition of a property in Belgrade and in Pula. We also entered into a long-term lease agreement for a property in Zagreb. These transactions further diversify our portfolio and support our growth strategy.

Boris Ivesha

CHAIRMAN OF THE SUPERVISORY BOARD

What we do

Since our transformation at the end of 2016 from a Croatian domestic and locally focussed company to an international dynamic hospitality group, our primary objectives have become to further grow our profile in the upscale, upper upscale and lifestyle market segments in the CEE region, whilst striving to create and realise shareholder value. Our brand portfolio consisting of Park Plaza®, art’otel®, Arena Hotels & Apartments® and Arena Campsites®, across the CEE region, provides us with excellent growth opportunities.

How we do it

Our portfolio includes 27 owned, co-owned, leased and managed properties in operation with over 10,000 units located in select resort destinations in Istria, Croatia and major cities in the CEE region such as Belgrade, Berlin, Cologne, Nuremberg and Budapest. Our revenue is generated from different market segments which is made up of predominantly holidaymakers in Croatia as well as 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.

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Key Higlights of the Group

  • Total Revenue (HRK)

    238.3M

  • Ebitda (HRK)

    (18.3)M

  • EBITDAR (HRK)

    (11.9)M

  • Loss befor tax

    (232.3)M

  • Occupancy

    25.4%

  • RevPar

    136.4

  • Average Daily Rate (HRK)

    536.1

OUR BUSINESS AT A GLANCE

A challenging year, yet full of milestones

We are an international, dynamic hospitality owner, operator company 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 and Medulin. Over the years, Croatia has become a popular leisure destination, showing year-on-year growth in overnight stays. 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.

GERMANY

Our hotels in Germany 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 located in prime city-centre locations with a high footfall of conference, leisure and business guests.

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.

SERBIA

Hotel 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.

our brands

Trusted, recognised brands with real power

We are confident in the power that trusted and recognised brands offer, delivered through a bespoke approach. Our four core brands, Park Plaza®, art’otel ®, Arena Hotels & Apartments®, and Arena Campsites® are mutually complementary, vibrant, unique and continually evolving.

art’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 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 traditional hotels.

artotels.com

644

units

Park Plaza is an upper upscale contemporary hotel brand featuring individually designed hotels in vibrant city centre locations and select resort destinations. The Park Plaza brand is renowned for creating memorable moments 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.com

1,841

units

Arena Hotels & Apartments is a collection of hotels and self-catering apartment complexes offering relaxed and comfortable accommodation within beachfront locations across the historic settings of Pula and Medulin in Istria, Croatia. Arena Hotels & Apartments features contemporary and warm design/interiors accompanied by a welcoming and friendly service offering a holiday full of opportunities for exploration and relaxation complemented by food and drink offering with a touch of local flavor. Arena Hotels & Apartments is your destination host and guide, a home away from home catering for families, couples and friends.

arenahotels.com

1,493

units

Arena 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. In 2018 Arena Campsite’s portfolio was enriched with Croatia's first all-glamping site, a luxury glamping campsite, Arena One 99 Glamping. In 2019 the Company completed the first phase of the repositioning of the Arena Kažela campsite, with phase two completed in 2020 leading to the launch of Arena Grand Kažela.

arenacampsites.com

5,779

units

art’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 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 traditional hotels.

artotels.com

644

units

Park Plaza is an upper upscale contemporary hotel brand featuring individually designed hotels in vibrant city centre locations and select resort destinations. The Park Plaza brand is renowned for creating memorable moments 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.com

1,841

units

Arena Hotels & Apartments is a collection of hotels and self-catering apartment complexes offering relaxed and comfortable accommodation within beachfront locations across the historic settings of Pula and Medulin in Istria, Croatia. Arena Hotels & Apartments features contemporary and warm design/interiors accompanied by a welcoming and friendly service offering a holiday full of opportunities for exploration and relaxation complemented by food and drink offering with a touch of local flavor. Arena Hotels & Apartments is your destination host and guide, a home away from home catering for families, couples and friends.

arenahotels.com

1,493

units

Arena 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. In 2018 Arena Campsite’s portfolio was enriched with Croatia's first all-glamping site, a luxury glamping campsite, Arena One 99 Glamping. In 2019 the Company completed the first phase of the repositioning of the Arena Kažela campsite, with phase two completed in 2020 leading to the launch of Arena Grand Kažela.

arenacampsites.com

5,779

units

  • Total Revenue

    238.3M

  • EBITDA

    (18.3)M

  • RevPar

    136.4M

Reli Slonim

President of the management board

President of the management board's statement

“New health and safety and hygiene measures were introduced across the business.“

CONTINUATION OF STRATEGIC INVESTMENTS

Welcome,
The Group started 2020 with a clear investment plan, property relaunches and new hotels in Zagreb and Belgrade added to its pipeline, along with a strong existing asset-base on which to build on its performance of 2019.
The unprecedented impact of the COVID-19 outbreak on the hospitality industry has been well-reported, and Arena’s operational performance in 2020 shows no exception to the adverse market-wide conditions.
Although the Group experienced an extremely challenging year in 2020 on an operational level, considerable progress was made with our investment plans.

2020 in review
Croatia
The first two months of 2020 were promising, with performance in line with management expectations, and bookings building positively for the mid and peak seasons. Bookings however soon fell away with the outset of travel restrictions in March as governments responded to the threats posed by the pandemic. This resulted in our Easter season effectively being closed to business in Croatia.
As travel and social restrictions were eased toward the second half of May, the Company started to reopen its Croatian properties in line with World Health Organisation, industry and local health and safety guidelines. Capacity at our properties was restricted to reflect the slow return of demand, as well as a safety measure to provide customers with additional space as they moved around our properties.
Bookings started to rebuild in June and July. However, the re-introduction of new travel restrictions into Croatia in late summer from key feeder countries meant that our normal peak month of August, and the remaining months of the year were severely affected. As a result, some campsites remained open longer into the late shoulder months.

Germany and Hungary
Operations in Germany and Hungary came to a near stop from March into May. Although most of our hotels continued to operate, capacity was significantly reduced reflecting the lack of demand from both domestic and international guests. When restrictions were eased, trading in Germany remained subdued over the summer months into the autumn, whilst Budapest continued to be affected by a lack of flights into the City due to a ban on leisure travel.

Boris Ivesha

CHAIRMAN OF THE SUPERVISORY BOARD

The Group’s Capital Investments in 2020

In 2020, the Group invested a total of HRK 274.3 million in upgrading campsites, self-catering holiday apartment complexes and rooms, public areas and facilities of certain hotels, as well as to purchase new properties.

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The Group’s Capital Investments Plan

The Group expects to complete the repositioning of Hotel Brioni Pula, which started at the beginning of 2020 in time for the 2021 summer season. The hotel, which was built in early 1970’, was the most prominent hotel in former Yugoslavia and many well-known personalities (politicians, artist, actors. etc) stayed at the hotel.

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Experienced leadership

Supervisory board

Boris Ivesha

Chairman of the Supervisory Board

Skills and experience

Boris 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 but one of the Supervisory Board meetings in 2020.

Yoav Papouchado

Vice Chairman of the Supervisory Board

Skills and experience

Yoav 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 but one of the Supervisory Board meetings in 2020.

Kevin McAuliffe

Supervisory Board member

Skills and experience

Kevin McAuliffe

Supervisory Board member

Kevin Michael McAuliffe, is the Non-Executive Deputy Chairman of the Group. He was a member of the Society of Trust and Estate Practitioners for 20 years. 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 2020.

Amra Pende

Supervisory Board member

Skills and experience

Amra Pende

Supervisory 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 2020.

Lorena Škuflić

Supervisory Board member

Skills and experience

Lorena Škuflić

Supervisory 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 2020.

Marino Derossi

Supervisory Board member

Skills and experience

Marino Derossi

Supervisory Board member

Marino Derossi, MD, is a doctor of medicine with many years of experience in internal medicine, the owner of a private practice for internal medicine focused on gastroenterology. He is a member of the Court of Honor in the Croatian Medical Chamber and other Croatian and international societies and organisations. He was the President of the Istrian County Commission of the Croatian Medical Chamber for three terms. He is the winner of the Charter for Care for the Reputation of the Medical Staff and the Diploma for Outstanding Achievements in the Work awarded by the Croatian Medical Chamber. Mr Derossi attended all off the Supervisory Board meetings in 2020 since his appointment.

Goran Nikolić

Supervisory Board member (Appointed by workers' council)

Skills and experience

Goran Nikolić

Supervisory 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 22 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.

management board

Reuel ('Reli') Slonim

President of the management board

Skills and experience

Reuel ('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 and Serbian 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 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 experience

Manuela 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.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.

Devansh Bakshi

Member of the management board & Chief financial officer

Skills and experience

Devansh Bakshi

Member of the management board & Chief financial officer

Devansh Bakshi joined Arena Hospitality Group in 2019 as Board member and CFO. Until end 2018, Mr. Bakshi was the 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 Mr. Bakshi joined PPHE Hotel Group and worked for over five years as a Regional Financial Controller for the UK region leading a portfolio of owned, managed and franchised hotel finance operations. Prior to that he worked for Hilton in London UK for over 10 years, latterly as the Cluster Finance Director. Mr Bakshi obtained a Hotel Management degree and started his hospitality career in hotel operations working for Taj Group of Hotels for four years. He completed his Master of Business Administration in International Business,and is a qualified Chartered Global Management Accountant and Fellow Member of the UK Chartered Institute of Management Accountants. He is also a Financial Management Certified Associate Member of Hospitality Professionals Association in the UK. With over 23 years of experience in the hotel industry covering multiple finance disciplines he brings a wealth of industry experience.

Edmond ('Edi') Pinto

Member of the management board & chef operation officer

Skills and experience

Edmond ('Edi') Pinto

Member of the management board & chef 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 Board and Chief Operating Officer.