The Croatian hotel market is stagnating in the development of the offer, shows the global report of Horwath HTL

first_imgMost of the leading domestic chains have become involved in the portfolio branding process by increasing the total number of domestic brands in the market. This trend is in line with developments in the European market, but the motives for these processes are not yet entirely clear (for example, portfolio sales or regional expansion). The report showed that the Croatian hotel market is stagnating in the development of the offer mainly because the current market is favorable for the development of private accommodation (low taxes, regulatory environment), but also because of low incentives for hotel development, which is the key reason for dominance of domestic hotel chains – 9 percent of hotel companies generate 85 percent of total industry revenue. The annual global report of the consulting company Horwath HTL on hotel chains “European Chains & Hotels Report 2019” covers 22 European countries, including Croatia. Domestic chains as the main drivers of growth The hotel market still relies on the summer season Although Zagreb is on the rise (with three new internationally branded projects planned), the majority of projects are based on coastal areas (as much as 75 percent) and well-known destinations (Hvar, Dubrovnik, Rovinj, Porec). Key statistics for Croatia / Horwath HTL Domestic chains were active in the investment market where the largest hotel chains opened at least one new property in 2018. The top five hotel chains have opened eleven properties, or 2,5 new rooms on the market. Others were primarily based on the development of small hotels. In 2018, growth was recorded, however, with the risk of slowdown that occurs due to the recovery of the Mediterranean region, but also development strategies aimed at earning money without a significant increase in value-added supply, competitiveness begins to lose. On the other hand, pre- and postseason offers significant growth potential that can be captured by smart initiatives and management. In Zagreb, as the only continental destination on the rise, three new hotel chains were opened in 2018, and three are planned. Ranking by degrees and size / Horwath HTL High seasonality and the current level of business in Croatia (ranked 58th and 159th in terms of issuing building permits) remains a major obstacle for international investors, especially in terms of taking development and ownership risks. But there are still positive examples in the market that can boost investor confidence. Horwath’s report to 22 countries cites information that in 2018, there were a total of 146.600 hotels on the market, or over six million rooms. France had the most hotels within the hotel chain, as many as 3885, while Albania had the least branded hotels. Attachment: HORWATH HTL / European Chains & Hotels Report 2019 The report showed that the main potential is off-season offers. In Montenegro, great potential has been recognized due to the favorable conditions it offers to investors and the encouragement of a luxury tourist product. Greece is back in the top 15 world tourist destinations. In 2018, they opened 150 new luxury hotels, which contributed to the fact that one in five Greek hotels falls into the category of four or five stars. And, although on shaky ground over Brexit, the United Kingdom has invested almost € 4 billion in its hotel sector. Ratio of international and domestic brands / Horwath HTL New brands of domestic chains Ranking by destinations / Horwath HTLlast_img

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