Arena Hospitality Group achieves record high consolidated revenues with growth of 11%

Arena Hospitality Group  ( AHG ) achieved growth in the first nine months of this year with record high consolidated revenues of EUR 125,4 million, which is an increase of EUR 12,6 million (11,2%) on an annual basis, and this is the result of continued gradual improvement operations in all operating regions.

Published report represents the consolidated results of Arena Hospitality Group dd and its subsidiaries in all countries in which it operates, i.e. in Croatia, Germany, Hungary, Serbia and Austria as a Group and the individual results of Arena Hospitality Group dd.

Operating profit before depreciation and amortization (EBITDA) is EUR 39,4 million compared to EUR 35,0 million in the same period last year, which is an increase of 13%. The excellent financial results were primarily contributed by the strong results achieved in Croatia during the summer, the continuous growth of income in the city portfolio in Germany and the CEE region together with cost optimization. 

In Croatia, total revenues increased by 9,1% and amounted to 93,9 million euros (2023 – 86,1 million euros).

The increase in revenue came from all segments of the business, including campsites, apartment complexes and hotels, with the biggest impact coming from hotels, where revenue increased by 17% overall, primarily thanks to Grand Hotel Brioni Pula, a Radisson Collection hotel, which continued to profit from recent investments and works throughout the year, and thanks to the income generated in the newly opened hotel art'otel Zagreb. EBITDA amounted to EUR 32,1 million (2023 – EUR 30,2 million) as a result of increased revenues and reduced costs.

"Business through the end of the year will be in line with our expectations in all our operating regions. The fourth quarter of the year is usually a strong quarter in Germany and Hungary, as well as in the capitals of Croatia and Serbia, while most Croatian facilities on the Adriatic are closing. The winter season for our hotel in Austria starts at the beginning of December. Given the current economic climate, the Group plans to preserve and improve liquidity, but remains committed to raising the standard of the hotel and camping portfolio through regular investment projects and rebranding to maximize opportunities, prepare for investment in all regions and explore new growth opportunities with high potential in Croatia and Central and Eastern Europe." he said Rally Slonim, President of the Management Board of Arena Hospitality Group dd 

A significant increase in results is also visible in the strong growth of RevPAR in all regions, since demand continued to grow in the segment of city hotels, as well as rest facilities. Investments in increasing the quality of facilities in recent years have improved the overall value of the offer for guests and provided a good foundation for continued positive contribution to the Group.

The Group's total revenues were supported by significant RevPAR growth of 14% in Germany and 22% in the CEE region, mainly through higher occupancy levels, which increased by 13% in Germany (to 68,7%) and 34% (to 56,0 %) in the CEE region, compared to the same period last year. 

Investment in development contributed to the Group's good results. Through successful investment through two phases and the repositioning of Arena Stoja Campsite, the camp was upgraded to a four-star classification. Arena Stoja Campsite received the prestigious designation Croatia's Best Campsites 2025 for the second year in a row, together with the Arena Grand Kažela and Arena One 99 Glamping camps.

Since this year, Arena Stoja Campsite is one of the few in Istria and Croatia to offer winter camping, which indicates the recognition that is the result of efforts and continuous investments in the camps.

After the recent investment program of the repositioning of Arena Franz Ferdinand Nassfeld and Park Plaza Budapest, encouraging trends in occupancy growth have been observed, while the former  the former Park Plaza Berlin Kudamm rebranded as Radisson RED Berlin Kudamm, the second hotel in the Group with the Radisson RED brand.

The Group is strongly liquid, and with no increase in debt-related interest and no new refinancing, the Group's cash flow remains in line with expectations taking into account the requirements to fund changes in working capital due to the seasonal nature of part of its business.

The company also adopted a share buyback program on September 13, which is a continuation of its ongoing efforts to increase shareholder value and improve share liquidity.

Photo: Arena Hospitality Group