Suncani Hvar Hotels

Thursday, October 22 2015

Record-breaking tourist season at Suncani Hvar JSC

A significant growth in overnight stays (+ 4.200) during shoulder season proves that Sunčani Hvar adopted a successful business strategy.

READ ALSO: Congratulations to Sunčani Hvar Hotels on record business results that confirm a leading role in Croatian hotel industry

Hvar, October 21, 2015 - Published financial statements and operating results for the third quarter of 2015, prove that the conclusion of the pre-bankruptcy settlement was not just a temporary but rather a long-term solution which ensured the Company’s financial stability, strengthened the market position and fueled further growth and development of competitive tourism products.

Actual total revenues in the third quarter of 2015 amounted to 223.3 million HRK which is by 34% higher than the same period last year. For the fifth consecutive year the Company realizes growth in profitability, correspondingly the Company recorded an operating profit in the amount of 107.2 million HRK, which is by 70 million HRK or 180% higher than the same observed period in 2014. Actual profit confirms the entry of the Company into a phase of profitable operations and successful implementation of the ambitious targets as well as its positioning at the top of the Croatian tourist offer.

The largest increase in revenue stems from the increase in accommodation revenue which was generated by a successful development strategy of inbound sales channels as well as group segments, which created an additional motive for arrivals in off season.

A major role in guest structure is played by developed markets of Western Europe, the Scandinavian Countries and overseas Countries, while the most numerous guests are from Great Britain and the United States which generated 33% of total overnight stays. The achieved total increase in overnight stays of 8% is higher than the local and the national average, in addition the highest growth this year has been registered in the US market by nearly 25% compared to last year.

With continuous marketing investments and development of products of interest, Hvar has been successfully positioned and recognized worldwide as a unique destination for incentives business trips and team buildings, as well as an ideal location for destination weddings. The aforementioned segments have achieved a growth of 2.500 overnight stays solely in May and September which is by 87% more than in 2014.

The importance of the development of these segments is also confirmed by their contribution to the Company’s total revenues through revenue growth in the food and beverage banquet segment by 1.7 million HRK, and other destination activities for almost 1 million HRK.

Further development of the strategy of intensifying the tourist movement in the periods out of high season, and advanced management of sales channels and revenue management in the period of high season, with the implementation of efficiency measures and cost management are the basis of the gross profit margin of nearly 50%, which is a key indicator of the success of the Company in accordance with international industry standards.

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