GS Hotels and Resort - Debt



Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

06 Mar 2007



PSD disclosed:

02 Feb 2007

Project Description

The proposed project is a financial package consisting of equity investment and senior debt to be provided to GS Hotels and Resorts, a leading Croatian hospitality group known also as Adriatic Luxury Hotels.

The proceeds of EBRD financing aim to help develop:

(i) high quality, environment-friendly tourism facilities in Croatia, by assisting the restructuring and development of GS Hotels and Resorts; and

(ii) similar tourism facilities in neighbouring countries, e.g. FYR Macedonia, Bosnia & Herzegovina and Montenegro, by providing GS Hotels and Resorts with sufficient financial depth to export its experience of hotel development and operations in these countries.

Transition Impact

The transition impact of this project stems from:

(i) a thorough restructuring of the company, including introduction of best international practice corporate governance features, e.g., division of hotel management and real estate into different corporate structures, establishment of a supervisory board, improved management information system; and

(ii) the sustainable expansion of the company, allowing the company’s management to apply their experience on the Croatian market to neighbouring countries.

The Client

GS Hotels and Resorts Ltd., a limited liability company incorporated in the British Virgin Islands, to be restructured to consolidate control over property and management interests in 5 hotels located in Croatia.

EBRD Finance

EUR 25.1 million equity investment into GS Hotels and Resorts.

EUR 27.5 million senior loan to property subsidiaries of GS Hotels and Resorts.

Project Cost

EUR 330 million.

Environmental Impact

Screened B1. The project may result in some future environmental impacts, which are not expected to be significant and which can be readily identified and assessed. Therefore, the EBRD has classified the project B/1 and an Environmental Analysis of the planned expansion programme and an Environmental Audit of the existing facilities has been undertaken by independent environmental consultants. Environmental audits have been carried out for the five hotels under the Project by an independent consultant in October 2006. The environmental due diligence based on the audit report identified the following main issues:

In general, environmental performance at the hotels is satisfactory. All of the hotels have a good understanding of the environmental regulations that affect their operations and have assigned duties to staff and prepared procedures that achieve compliance with relevant regulations. The Company however needs to develop environmental, health and safety systems at the group level.

Technical Cooperation


Company Contact

Marino Cehic

Grupa Jadranski Luksuzni Hoteli d.o.o.
Dolac 4
51 000 Rijeka



Business opportunities

For business opportunities or procurement, contact the client company.

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General enquiries

EBRD project enquiries not related to procurement:
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Text of the PIP

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