The major tourist town of Korcula lies only 6 km from Lumbarda. Korcula town is connected to Orebic with a ferry that departs 12 times daily and Drvenik (Makarska) four times daily (during the season).
The Hotel Borik was developed in 1971 after the reconstruction of the Mirosevic Manor and the additional construction of the building’s southern section. Since that time, it has been renovated several times (1998 and 2001 when the bathrooms were renovated).
The Annex Lovor was constructed in 1972 as an extension of the Hotel Borik, and it is connected to it by a covered passage. A certain number of bathrooms in Lovor were also renovated in 2001. In terms of categorizations, both facilities have a two-star rating.
In 1995 a roadside restaurant and reception area were constructed though not directly connected to the hotel. In 1997, the renovation of rooms and hotel installations (water, drainage, electricity) was completed, as well as the complete renewal of bathrooms and shower stalls.
The company also owns and operates a retail shopping centre and other facilities which contribute approximately 50% of Operating Revenues.
Summary of financial results (in HRK)
Source: Audited Financial Reports of the Company
Share Capital
According to the court extract No Tt-2/297-4 of October 03, 2002, the company equity amounts 8,778,000 HRK divided into 43,890 ordinary shares with a value of 200 HRK each. Number of shares offered for sale is 39,244 or 89.42%.
Investment Opportunities and Considerations
Major advantages that this investment offers include the following:
- Good position of the hotel near the popular town and island beaches, in the very center of Lumbarda, only 6 km from the town of Korcula;
- Established retail facilities;
- Most of the rooms have a sea view;
- A part of the hotel has already been renovated;
- The Lumbarda marina with 160 berths (municipality ownership) is very near the Lovor hotels;
- The Croatian tourism industry is recovering and expected to expand beyond historical statistics in view of the economic recovery and development of the country;
- Zero Vat Rate for organized visits from abroad; in force in 2001.
Investors should also consider the following issues while conducting due diligence:
- Weak financial situation due to high levels of loans outstanding;
- The Annex Lovor still needs renovation, and there is a need to make a covered passage from reception to Borik hotel;
- Seasonality of the business;
- Limited entertainment offer.
Please find attached formal public tender announcement with more details regarding starting bidding price and tender procedure.
The deadline for submission of bids: November 29, 2004 by 14,00 Hours.
