Unlocking Potential: A new investment opportunity in the Croatian hospitality sector
The only hotel in the Croatian national park – Hotel Odisej – is now for sale
Adriatic Luxury Hotels (ALH), a premier hotel group with a portfolio of luxurious hotels and villas in the Dubrovnik area of Croatia, has announced the strategic sale of Hotel Odisej, a unique property located within the beautiful natural surroundings of the Croatian National Park on Mljet Island. Mljet boasts excellent connectivity to Dubrovnik and the airport, accessible by ferry and private vessels, making this opportunity highly attractive for investors seeking such investments in Croatia’s stunning coastal areas.
What makes Hotel Odisej particularly enticing as a trophy asset is its position as the only hotel on Mljet Island, located within Mljet National Park. From an investment perspective, it presents an attractive value-add opportunity with redevelopment potential. Mljet Island is renowned as Croatia’s greenest island and a popular destination for yachting and sailing enthusiasts, attracting both domestic and international tourists.
Croatia is a popular tourist and second-home destination with strong growth expected following the country’s accession to the Eurozone and Schengen no-border EU area. Additionally, Croatia ranks as the number one nautical charter destination globally. The tourism sector has proven resilient, with record-breaking numbers in 2023 regarding tourist overnights and revenue generated. Foreign tourists account for approximately 90 percent of all tourist nights.
“The decision to sell Hotel Odisej was purely strategic. In the upcoming period, we will focus on our portfolio of hotels and villas in Dubrovnik. We have plans for new investments in our existing hotels that require our full attention, hence, we have decided to put this unique opportunity up for sale. We believe the next owner will have a truly exceptional hotel in Croatia, with no competition on this beautiful island,” says David Taylor, President of the Management Board of Adriatic Luxury Hotels Group.
Despite Croatia’s thriving tourism industry, there remains a hotel and resort supply shortage, as hotels make less than 20 percent of the total tourist accommodation stock in Croatia. The hotel investment market in Croatia remains active, with solid liquidity and demand surpassing supply. This dynamic landscape positions Hotel Odisej as an ideal investment opportunity for investors seeking to enter or expand in Croatia’s hospitality sector.
The strong growth of tourism on Mljet Island over the last decade underscores its increasing popularity among travellers. Surrounded by peaceful, clear blue waters and green forests, Mljet is Croatia’s greenest and most alluring island, offering much to explore. Its Aleppo pine trees are renowned for their benefits to the respiratory system, adding to the island’s appeal as a health-conscious destination. Additionally, Mljet has a rich history, with legends dating back millennia. According to one legend, Odysseus was shipwrecked on the island of Mljet and lured by the nymph Calypso into a cave, where he became her hostage. A beautiful cave on the island is dedicated to his name – Odysseus’ Cave. Time magazine once named Mljet one of the 10 most beautiful islands in the world, and legendary underwater explorer Jacques Cousteau was enamoured with the island.
Hotel Odisej, a 3-star hotel built in 1978 and renovated in 1996 and 2004, offers comfort to guests with 155 rooms and 2 luxury apartments, spanning a total surface area of 8,738 sqm including land and hotel infrastructure. It provides ample space for relaxation and leisure.
In addition to its comfortable accommodations, Hotel Odisej offers a range of facilities to enhance guests’ experiences, including a restaurant, bar, children’s pool and beach, wellness centre, and gym, catering to the diverse needs of visitors.
Despite challenges, the hotel has demonstrated stable growth in overnights and occupancy rates, steadily returning to pre-2019 levels, making it an attractive investment opportunity in Croatia’s thriving tourism sector.
Colliers Croatia, as the exclusive agent in this sales process, invites all potential investors to submit a Letter of Intent no later than June 18, 2024, to the following email address: ivan.laljak@colliers.com.
