Jadranka Hotels

Location:

Croatia

Project number:

38365

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

22 Jan 2008

Status:

Completed

PSD disclosed:

28 Sep 2007

Project Description

The proposed project consists of an equity investment in Jadranka Hotels d.o.o. The proposed transaction is designed primarily to finance the refurbishment of the group’s existing hotel portfolio through the implementation of a significant capital expenditure programme aimed at improving the standards of existing hotels to international 3 - 4 star ranking.

Transition Impact

The transition impact of this project stems from:

  • Demonstration of how local companies can adopt best international standard practices and attract international financing.
     
  • Transfer and dispersion of skills to the predominantly local staff.
     
  • Promotion of environmentally-friendly developments in line with the Croatian authorities’ aim to preserve the unique natural environment of the Croatian coastline.
     
  • Greater competition on the tourism market in Croatia through increased competitive pressure, which is likely to increase the efficiency of the service industry.

 

The Client

Jadranka Hotels d.o.o, a limited liability company incorporated in Croatia that owns and operates a portfolio of 10 hotels and villas on the Mali Lošinj island. Jadranka d.d, the sponsor is a holding company, which includes in addition the Jadranka Hotels d.o.o camps operating under Jadranka camps, a charter fleet within Jadranka yachting, and Jadranka trade, a developed retail network. Jadranka d.d is currently listed on the Zagreb Stock Exchange.

EBRD Finance

Up to EUR 24.4 million.

Project Cost

EUR 75.3 million.

Environmental Impact

Screening category and justification

Screened B/1. Environmental, health and safety issues associated with refurbishment and operation of hotels can be readily identified and addressed through the implementation of adequate mitigation measures.

Due diligence and iImplementation requirements

Refurbishment and operation of the tourism properties on the Mali Losinj island could be associated with specific environmental issues, such as past environmental liability, ecological conditions of the location, waste water treatment and solid waste management practice of the hotels, life and fire safety issues and adequacy of the mitigation measures. Therefore, a corporate environmental audit of the Sponsor and the existing portfolio are currently under way for the Project in order to examine the Sponsor's environmental risk management practices as well as environmental risks of the sub-projects. The project is required to comply with national and EU environmental, health, safety and labour requirements as well as be in line with overall sustainable tourism requirements of the island. The Bank will monitor the project’s environmental, heath, safety and labour performance during the life of the project.

Technical Cooperation

None.

Company Contact

Mr. Darin Lekić
Jadranka Hotels d.o.o.
Jadranka d.d.
Dražica 1
51550 Mali Lošinj
E-mail: darin.lekic@jadranka.t-com.hr

 

Business opportunities

For business opportunities or procurement, contact the client company.

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