Hotels a hard sell in tourist magnet Croatia

(Agencies)
Updated: 2009-11-06 10:09

Unsworth instead bought several derelict houses and built six suites in a venture which he said came close to breaking even in 2009.

Other companies have built from scratch, including a Radisson hotel that opened in June on the coast north of Dubrovnik.

But complex building codes, including a ban on new construction directly on the coast and a prohibition on mixing condo unit sales in a hotel complex, have deterred others.

Some privatizations have resulted in impressive renovated luxury hotels, including the Excelsior on the same Dubrovnik bay overlooking the old town as the Belvedere, bought eight years ago by Adriatic Luxury Hotels.

The group paid four million euros, assumed debt of 20 million and spent another 24 million euro to remodel. But the overall hotel group still fell several million euros below projections for revenue this year, Montgomery said.

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