Sunčani Hvar invests 50 million Croatian Kuna in Hotel Pharos restoration
Along the side of Mariott and Starwood, Hotel Pharos becomes the first hotel with Millennial appeal in the area
Hvar, 22 December 2015 - Successful ending of the pre-bankruptcy procedure marked the last and final phase of the complete restructuring of the Company Sunčani Hvar d.d. which ensured a long-term financial stability of the Company. The achieved gross operating profit of 68 million Croatian Kuna at the end of 2015 confirms the reinforced market position and entrance of the Company in the phase of profitable business, as well as a new investment cycle after almost 10 years.
At the beginning of this year, The Company has started performing extensive feasibility studies which have demonstrated that, due to the existing market interest and defined resources for the realization and profitability of projects, the Hotel Pharos represents the most important potential within the existing Company potofolio. Besides the significant number of accommodation capacities, the Hotel Pharos is suitable due to its excellent position on a hill at approximately 5 minutes walking distance from the Hvar centre and beach, and beautiful panoramic views on the bay of Hvar and Paklinski Islands.
Pursuant to the feasibility studies and project task, the investment cycle plan was drafted in the total value of almost HRK 50,000,000.00, an amount which will allow for a complete restoration into a luxurious building by restoring the fully built infrastructure of the hotel Pharos, i.e. main building, outdoor pool and 202 rooms. The newly renovated hotel will have all the contents appropriate for a four-star hotel, but shall be categorized as a three-star hotel namely due to room size which shall not modified, as it is not envisaged by renovation.
Considering the market interest and destination positioning, and following the tourist trend indicators on the global scale, the concept of the new Pharos Hotel is based on the preferences of service standards and travel habits of young travelers, the so-called Millenials - the generation born between 1980 and mid-2000. Until 2025, this generation shall generate more than 50% of the entire tourist consumption and dominate all tourist trends, and we at Sunčani Hvar have recognized its share in almost 60% of all realized overnight stays.
The leaders of the hotel tourist industry have recognized their significance as well, for example, the Corporations Marriott and Hyatt which, in the recent years have added to their portfolio of luxurious and lifestyle hotels structures brands created for Millenials, whilst the Pharos hotel shall be the first of a kind in this area, which will additionally effect the image of the destination itself.
The main building will connect the reception, restaurant, Lobby bar and a spacious terrace, and create an open space inviting the guests to interact and socialize. The approach to guest is relaxed, informal and friendly, additionally contributed by several “hosts”, representing "local island friends“ on which a guest can count in every moment. In the very centre of the space a big social media wall connected with the Hotel Instagram account shall be placed, via which the guests will be able to share impressions and experiences of Hvar in real time.
The accent is put on intensive implementation of technology and reduction of service provision time, as well as and on the interactive communication via social networks in real time.
The interior of the hotel room offers a simple design, straight lines and open spaces – open closets, open boards instead of worktables with drawers and showers in glass instead of traditional showers, in order to additionally create the feeling of "open space“.
All the restorations are performed in synergy with the environment considering that Pharos Hotel is surrounded by rich authentic island fauna and vegetation, olive groves, pines, myrtle, bay leaf and oleander. Considering the intense development of bicycle tourism on Hvar, Pharos Hotel will be the first hotel in the portfolio of the Company Sunčani Hvar classified as „Bicycle friendly“, i.e. will include storage and service for bicycles, free bicycle maps, outdoor gym and broad offer of local organic products in its offer.
As such, the new product is appealing to interest groups in the off-season period, which is why immediately after the first announcements it has recorded high interest on the key emissive markets,. The commissioning of the hotel in commercial function is estimated to take place at the beginning of June 2016.
“The challenge is to create a new product which is surely outside the box of standard hotel services, including the interior design and surrounding spaces of the hotel. I am very pleased that the feasibility study and project task were carried out in total by the Sunčani Hvar management, and that the new hotel will be fully managed by the local management. The author of the preliminary design of Pharos Hotel is Mr. Filip Kožarić, a well renowned architect in the national tourist community. I would like to point out that we have a strong support from the local community which is crucial for a successful realization of this project and investments whose direct positive effects will be visible as soon as next season ” - stated Mrs. Gordana Tomičić, the CEO of the Company Sunčani Hvar.
Over the period of 5 years from the commissioning of the new product, considering its initial state, the average rate and planned occupancy will grow significantly resulting in a total profit of almost 12 million Croatian Kuna a year more compared to the Hotel’s profit in the current state.
Given the market interest and estimated profit growth, the expected return on investment is expected in 5 or 6 business years, which is twice faster than the average return on investment according to the standards of international hotel industry.
Sunčani Hvar d.d.