Project scope

Horwath HTL conducted a comprehensive market assessment and financial feasibility study for the proposed Four Seasons Resort Hvar, located on the island of Hvar in Dalmatia, Croatia. This project, developed by Arqaam Capital, aims to establish a luxury mixed-use resort featuring a 120-room Four Seasons hotel, 35 luxury villas, 80 apartment units, and additional value-added facilities.

The market assessment involved an in-depth analysis of the luxury hospitality sector in Croatia, with a particular focus on the Dalmatian coast. This region has experienced significant growth in tourism, attracting high-net-worth individuals seeking exclusive experiences. The study examined current supply and demand dynamics, identifying a gap in the market for ultra-luxury accommodations that the Four Seasons brand could effectively fill.

Competitive analysis highlighted the absence of comparable luxury resorts on Hvar, positioning the proposed development as a unique offering. The island’s natural beauty, cultural heritage, and favorable climate further enhance its appeal as a premium destination.

Building upon the market insights, the financial feasibility study projected the resort’s potential performance. Revenue forecasts were based on anticipated occupancy rates, Average Daily Rates (ADR), and ancillary income from facilities such as the spa, restaurants, and retail outlets.

Cost analyses encompassed development expenditures, operational expenses, and maintenance costs. The study also considered financing structures and potential funding sources. Profitability metrics, including Net Present Value (NPV) and Internal Rate of Return (IRR), were calculated to assess the project’s financial viability.

Horwath HTL’s comprehensive analysis provided Arqaam Capital with valuable insights into the market potential and financial feasibility of the Four Seasons Resort Hvar, supporting informed decision-making in the project’s development.

Project Location

Hvar, Croatia