Hoteli Živogošće d.d., Živogošće, Craotia | Public Invitation to Tender for Shares in the joint-stock Company
The Croatian Privatization Fund on behalf of the Government of Croatia has announced the sale of shares of Hoteli Živogošće. Hoteli Živogošće d.d. is located on the Makarska Riviera, by the main coastal highway heading south towards Dubrovnik. The Company owns two hotels and has utilization right over a camping ground.
The Croatian Privatization Fund on behalf of the Government of Croatia has announced the sale of shares of Hoteli Živogošće. Hoteli Živogošće d.d. is located on the Makarska Riviera, by the main coastal highway heading south towards Dubrovnik. The Company owns two hotels and has utilization right over a camping ground.
The business is organized into three business units:
- Three star Hotel “Nimfa” with four annexes,
- Two star Hotel "Punta” and
- Camping ground "Dole".
Company’s hotels were built in 1970s and since then there have been various extensions involving the addition of new structures and renovations.
The Company’s capacity is 459 rooms, with 1,053 beds and 58 suites. Catering and entertainment services include various restaurants, bars and tennis courts. In front of both hotels is a long pebbles beach with snack bars.
Both hotels are equipped with central heating and air-conditioning and are opened from April to November. The facilities are located on three different locations over five kilometres. Further information is provided on the web page
According to the excerpt from the Commercial Court of Split as of April 11, 1996, the Company’s equity totals to DEM 30,276,000 with each share having a par value of DEM 100. The share capital is still expressed in DEM as it has not been converted into either Euro or Croatian Kuna.
Investment Opportunities and Considerations
The principal strengths of Živogošće Hoteli d.d. are the following:
- Good position of the facilities next to the sea; 90% of rooms have a spectacular view of the Adriatic Sea and nearby islands;
- Hotel Nimfa and its annexes are completely renovated to three stars standard;
- Strong business relations with foreign tour operators: Neckermann (Germany), Proditour (France), Victoria, ABC(Czech Republic) that enables the possibility to extend the season;
- Well-educated, highly experienced and quality oriented management and staff;
- Makarska Riviera has a strong brand recognition as tourist resort on the Adriatic coast;
- Excellent climatic conditions, unspoiled nature, and beautiful pebbles beaches;
- Close proximity to several attractive tourist attractions (such as islands of Hvar, Brač, Pelješac, Korčula and the towns of Dubrovnik, Makarska and Medjugorje);
- Possibility of developing health tourism;
- Tourist season extension into the spring and autumn months;
- Continuing strong expansion of Croatia as a tourist destination.
Investors should also consider the following issues while conducting due diligence:
- Hotel "Nimfa" lacks a fully operational connection to a sewage system;
- Camping area used by the Company covers approx. 110,000 m2. The land is not owned by the Company nor is it included into its share capital;
- 0.93% or DEM 281,000 (approx. EUR 140,500) of the shares capital have been reserved for former owners;
- High level of long term debt (HRK 112m; EUR 15m). All buildings are under mortgage.
The deadline for submission of bids: November 29, 2004 by 14,00 Hours.
For any further information, please contact us at the numbers below:
Hrvojka Skokovic and Koraljka Voloder
Croatian Privatization Project / Croatian Privatization Fund
Tel: + 385 (1) 60 60 770
Or + 385 (1) 45 96 356
E-mail:
For any further information on tender procedure please visit: www.hfp.hr