Best use concept and financial feasibility study for upland project Mandalina Šibenik, Croatia
Office: Horwath HTL Croatia
Project Overview: The Investor (Dogus Group) intended to enter into the second phase of tourism development project in Šibenik, following the project of Marina Mandalina. As the part of concession agreement, investors/developers had to deliver varios resort components such as: hotel, villas, offices, apartments, sport facilities and retail shops. Due to the global financial crises, and its’ effects on the tourism, the investors were questioning initially proposed project components and its timing.
Horwath HTL Solution: The extensive work that Horwath performed in this assignment included:
- The evaluation of supply and demand factors affecting each component of the resort
- Location analysis
- Benchmark and competition analysis
- Assessment of development concept of the project
- Project development scenarios
- Phasing of development
- Business mix and marketing strategy for the Phase 1.
- Market projections
- Financial projections
- Financial and economic evaluation of the project
Implementation: As a result of the findings and Horwath’s recommendations presented in the study, the investor has entered in the negotiation of the concession amendment with local authorities. The amended concession assumed the development of the hotel with villas and other supporting marina facilities. Planned development was conducted and round 25 million EUR was invested so far in the upland Mandalina project. The hotel, villas and other facilities were opened in the summer of 2015 as D-Resort Šibenik.