Valamar Riviera stock: Revenue rises 15.2% as profit falls

Valamar Riviera reported strong growth for the first nine months of 2026, but rising costs and lower tax incentives reduced the benefit at the bottom line. In its October 29 release, the Croatian tourism group said consolidated revenue reached EUR 499.4 million in the first nine months, up 15.2% from the prior-year period.

Growth Meets Higher Costs

Adjusted EBITDA increased 9.2%, while operating costs rose 17%. Valamar said the cost increase reflected higher staffing, wage increases and material expenses linked to newly opened and repositioned properties. According to IntelliNews, net profit fell 9.2% to EUR 84.1 million, while the average daily rate rose 12.5% to EUR 172 and overnight stays increased 1.7%.

Pical Supports Premium Strategy

Pical Resort was a central contributor to the performance. The five-star property in Porec opened in March with 513 accommodation units and an investment of more than EUR 200 million. Valamar said the resort achieved a guest satisfaction score of 95% and that its full contribution should build over the next two years as occupancy and average daily rates improve.

For 2026, management expects operating revenue of EUR 524 million to EUR 528 million and adjusted EBITDA of EUR 141 million to EUR 144 million. The EBITDA outlook includes EUR 5.1 million of non-recurring costs connected with Pical Resort and Sunny Porec.

Valamar's Business and Competition

Valamar operates hotels, resorts and campsites in Croatia, with properties in destinations including Istria, Dubrovnik and Rab. Its portfolio serves leisure tourism through accommodation and related hospitality services, with premium and year-round tourism as strategic priorities. IntelliNews identifies Valamar as Croatia's largest tourism company, while Arena Hospitality Group, Liburnia Riviera Hoteli and Ilirija compete in the country's listed hotel, resort, campsite and marina market. Valamar's broader portfolio and larger revenue base distinguish it from these more focused Croatian operators.

Croatia's tourism sector remains part of the wider market backdrop covered in Current market reports.

Further investment is planned for 2027, including work on the Brulo sports zone, Valamar Diamant Hotel, central facilities and the completion of Arba Resort. More news and analyses on Valamar Riviera stock.