ZAGREB (Croatia), May 23 (SeeNews) - Croatian hotel owner and operator Valamar Riviera [ZSE:RIVP] said its supervisory board has approved a contract to continue providing management services for the Valamar Obertauern hotel in Austria.
“By concluding the contract, the previously concluded contract in relation to the management of hotel and tourist properties and facilities from 2019 would be repealed,” it said in a filing to the Zagreb bourse published on Friday.
For the most part, the new contract follows previous management contracts concluded by Valamar, reflecting the structure of hotel management that successfully lives in practice, as well as standard types and levels of management fees, with minor adjustments to the specific circumstances of business in Austria, Valamar Riviera said.
The standard duration of the contract is 20 plus 5 years, it added.
The company runs hotels, resorts and campsites along Croatia's Adriatic coast as well as two hotels in Austria.
Valamar Riviera also said that on Friday its supervisory board gave its consent to the conclusion of a contract with Croatian electricity distributor HEP Opskrba for the purchase of electricity for the needs of the company for the period from June 1, 2022 to end-May 2023, capping the increase in the cost of electricity at 220% of the cost applicable for the previous one-year period.
Valamar's shares traded 0.29% higher at 34.20 kuna on the Zagreb bourse intraday on Monday, hitting a turnover value of 982,300 kuna ($139,000/130,000 euro).
(1 euro = 7.533 Croatian kuna)