The Management Board of Globe Trade Centre S.A. (the “Company” or “GTC”) hereby announces that it has decided to expand the previously announced and implemented strategy of the Company, which strategy will now include investments and developments in real estate projects involving hospitality assets, in particular in the high-end segment of the market in Europe.
The resolution regarding the expansion of the Company’s strategy was adopted by the Management Board of GTC on 29 May 2023.
GTC owns an attractively located development land plot of 126ha dedicated for high-end hospitality in Istria, Croatia since 2006. Based on the current market trends, GTC initiated predevelopment phase of the project, including design and search for the hotel operator. The Management Board of GTC believes that investments in high-end hospitality properties in Europe and the potential addition of such properties to GTC’s portfolio would be beneficial for the Group for the following reasons:
- the hospitality sector has rapidly recovered from the outbreak of the COVID-19 pandemic, with many markets having already surpassed their 2019 performance levels and further growth expected in the coming years;
- within the hospitality sector, leisure travel has been the main driver sustaining travel figures, with leisure-focused destinations benefitting from this trend;
- average room rates and occupancies in the hospitality sector have been growing over the last few years;
- hospitality assets act as a hedge against inflation as strong cash flow growth offsets rising interest rates and inflation;
- investor confidence in the hospitality sector has recovered, along with the warming up of the markets as a whole;
- assets located in attractive and unique locations prove to be the most popular, with the high-end segment outperforming all other hospitality segments;
- hospitality assets tend to be more resilient to value fluctuations resulting from economic downturns; and
- a more balanced portfolio of the Group could attract a more diversified investor base.
Legal basis: Art. 17 (1) of the Regulation of the European Parliament and Council (EU) No. 596/2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (inside information).
29/05/2023 14:01
