Hungarian property investor and developer Indotek Group has been granted permission from the Croatian authorities to buy the Jelsa Resort, a huge hotel complex on Hvar Island. The complex offers 1,400 rooms but needs to be refurbished, vg.hu reports.
Jelsa Resort consists of two operating hotels and a resort. The fourth component is the abandoned Jadran hotel. Before the recent troubled years, more than 100,000 guests visited the complex each year over several decades.
The complex, established in 1911, has operated permanently since the beginning. However, the owners from Croatia who controlled the majority of the management company's shares failed to develop the property as needed, the local media reported earlier. Covid-19 has added more trouble as guests were in short supply. This caused a near-bankrupt situation resulting in the disappearance of the company from the Zagreb Stock Exchange.
Realizing a good business opportunity, Bohemian Financing Zrt., a subsidiary of Indotek Group stepped in and made an offer (€0.22/share) for the whole complex, the portal added. The Hungarian company had obtained a minority share (16.5%) of the Croatian firm before that faced financial difficulties.
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