Pag Resort Project

Onshore luxury resort project

Pag Resort Project


Pag Resort concept was conceived as a fully integrated and self-contained luxury lifestyle resort that combines various contents which fully satisfy guest’s demands. The site is located 6 km from the City of Pag, app. 30 km from Zadar, the capital and biggest City of County of Zadar, app. 40 km from the airport (Zemunik) and app. 50 km from the main highway Zagreb-Split. All necessary infrastructure (electricity, water, roads) exist around the site. The project will be given to the buyer of presented land with all necessary consulting and help for the development of a presented project. Both local and stated government support can be expected when developing such resort, decreasing overall development risk.


Property ID: 112


LAND AREA

1,173,000 m2

PROJECT

Exists


BUILDING COST

€ 123,200,000

EST. BUILD TIME

2 years


PRICE UPON REQUEST

Resort Project Croatia
Onshore luxury resort project

Pag Resort Project


Pag Resort concept was conceived as a fully integrated and self-contained luxury lifestyle resort that combines various contents which fully satisfy guest’s demands. The site is located 6 km from the City of Pag, app. 30 km from Zadar, the capital and biggest City of County of Zadar, app. 40 km from the airport (Zemunik) and app. 50 km from the main highway Zagreb-Split. All necessary infrastructure (electricity, water, roads) exist around the site. The project will be given to the buyer of presented land with all necessary consulting and help for the development of a presented project. Both local and stated government support can be expected when developing such resort, decreasing overall development risk.


Property ID: 112

Resort Project Croatia

LAND AREA

1,173,000 m2

PROJECT

Exists


BUILDING COST

€ 123,200,000

EST. BUILD TIME

2 years


PRICE UPON REQUEST

Onshore luxury resort project

Pag Resort Project

Resort Project Croatia

Pag Resort concept was conceived as a fully integrated and self-contained luxury lifestyle resort that combines various contents which fully satisfy guest’s demands. The site is located 6 km from the City of Pag, app. 30 km from Zadar, the capital and biggest City of County of Zadar, app. 40 km from the airport (Zemunik) and app. 50 km from the main highway Zagreb-Split. All necessary infrastructure (electricity, water, roads) exist around the site. The project will be given to the buyer of presented land with all necessary consulting and help for the development of a presented project. Both local and stated government support can be expected when developing such resort, decreasing overall development risk.


Property ID: 112


LAND AREA

1,173,000 m2

PROJECT

Exists


BUILDING COST

€ 123,200,000

EST. BUILD TIME

2 years


PRICE UPON REQUEST


Overview


Pag Resort concept was conceived as a fully integrated and self-contained luxury lifestyle resort that combines various contents which fully satisfy guest’s demands. Structure and distribution of the facilities in the resort are designed according to certain principles and criteria with gold to:

- Ensure access to the resort by air, land, and sea;
- Ensure tourism activities throughout the year;
- Separate resort areas by guests activity and dynamics;
- Meet the different tourist needs at the same venue;
- Maintain the character of the local way of life.

Resort location is determined by urban development planning zone. Facing it from the coast, left part of the zone represents resort location i.e. land plot owned by the investor. Currently, there are no plans for the development of the right side of the zone (although possible for acquisition and resort enlargement). area for resort development totals app. 425.000 sqm ( 374.000 sqm construction zone ) and is connected to the main local road. Next to the western border of the resort location are land plots, with an area of app. 750,000 sqm, planned for golf course development. All necessary infrastructure (electricity, water, roads) exist around the site (detailed information about project infrastructure is prepared in advanced.


Overview


Pag Resort concept was conceived as a fully integrated and self-contained luxury lifestyle resort that combines various contents which fully satisfy guest’s demands. Structure and distribution of the facilities in the resort are designed according to certain principles and criteria with gold to:

- Ensure access to the resort by air, land, and sea;
- Ensure tourism activities throughout the year;
- Separate resort areas by guests activity and dynamics;
- Meet the different tourist needs at the same venue;
- Maintain the character of the local way of life.

Resort location is determined by urban development planning zone. Facing it from the coast, left part of the zone represents resort location i.e. land plot owned by the investor. Currently, there are no plans for the development of the right side of the zone (although possible for acquisition and resort enlargement). area for resort development totals app. 425.000 sqm ( 374.000 sqm construction zone ) and is connected to the main local road. Next to the western border of the resort location are land plots, with an area of app. 750,000 sqm, planned for golf course development. All necessary infrastructure (electricity, water, roads) exist around the site (detailed information about project infrastructure is prepared in advanced.

Resort Concept


1. Harbor Village


The Harbor Village, a set of small buildings around the main square with wide range of small shops, restaurants, terraces, Dalmatian taverns and service crafts etc. will be located near the main marina and will be inspired by the traditional Dalmatian architecture. The village will be a major center of social life and the main venue in the resort.
The Village area has an extension of app. 13.000 sqm, built surface covers 7.800 sqm.
Main content is:

- Tourist bureau
- Travel Agency
- Restaurants, Taverns and Bars
- Ambulance
- Post Office
- Fishmonger
- Eco Market
- Pastry shop
- Backery

Resort Project Croatia
 

Resort Concept


 

1. Harbor Village


The Harbor Village, a set of small buildings around the main square with wide range of small shops, restaurants, terraces, Dalmatian taverns and service crafts etc. will be located near the main marina and will be inspired by the traditional Dalmatian architecture. The village will be a major center of social life and the main venue in the resort.
The Village area has an extension of app. 13.000 sqm, built surface covers 7.800 sqm.
Main content is:

- Tourist bureau
- Travel Agency
- Restaurants, Taverns and Bars
- Ambulance
- Post Office
- Fishmonger
- Eco Market
- Pastry shop
- Backery

Resort Project Croatia

2. Boutique Hotel


The boutique hotel is a 100-key five-star property which contains luxury facilities in the unique and intimate surrounding with full-service accommodation. This hotel will be furnished in a stylish manner and focused on offering their services in a comfortable, intimate, and welcoming setting. The hotel is designed primarily for individuals and business guests and represents a complementary supplement to the neighboring Family hotel. Boutique hotel plot area has an extension of 18.000 sqm, built surface covers: app. 6.000 sqm.
Main content is:

- Rooms: 100 units
- Standard rooms: 24 units
- Superior rooms: 24 units
- Deluxe rooms 24 units
- Garden rooms: 12 units
- Junior Suites: 8 units
- Suites: 8 units
- Restaurant
- Cristal Dining Pavilion
- Lobby –bar
- Piano bar
- Hotel shop
- Entrance winter garden
- Underground parking lots (20 units)

3. Family Hotel


The family focused 200-key five-star hotel is located in the immediate vicinity of the beach, wellness club and Water Park. This hotel will also be furnished in authentic style and will provide all the facilities expected from a first-class seaside hotel. The large Spa center will also be nearby for various treatments. The hotel is designed primarily for family segment during the summer vacation, while in spring and autumn period its use is reserved for the convention and sports segment. Family hotel plot area has an extension of 36.000 sqm, built surface covers 12.000 sqm.
Main content is:

- Rooms: 200 units
- Standard rooms: 46 units
- Superior rooms: 42 units
- Deluxe rooms 28 units
- Family rooms: 24 units
- Garden rooms: 32 units
- Junior Suites: 18 units
- Suites: 10 units
- Restaurant
- Crystal Dining Pavilion
- Lobby bar
- Piano bar
- Hotel shop
- Entrance winter garden
- Underground parking lots (20 units) o Children's playroom

4. Marina hotel


Marina hotel is a 60-key four-star property which contains special facilities with full service accommodations. This hotel will be furnished in a nautical stylish manner. The hotel is mainly focused on the yachtsman and boat owners. Marina hotel plot area has an extension of 12.600 sqm, built surface covers 4.200 sqm.
Main content is:

- Rooms: 60 units
– Standard rooms: 20 units
– Superior rooms: 16 units
– Deluxe rooms 14 units
– Junior Suites: 6 units
– Suites: 4 units
- Restaurant
- Nautical club
- Lobby bar
- Hotel shop
- Indoor parking

5. Golf Hotel


Golf Hotel is a 60-key five-star hotel which contains special facilities with full-service accommodations. The hotel will be situated on the edge of the golf course, 300 meters away from the coast and the main center of the resort, thus to ensure a positive ambient peace that is required guest type. The hotel is designed for golfers only, thus facilities are accordantly designed. Golf hotel plot area has an extension of 10.800 sqm, built surface covers 3.600 sqm.
The main content is:

- Rooms: 60 units
– Superior rooms: 26 units
– Deluxe rooms 24 units
– Junior Suites: 6 units
– Suites: 4 units
- Restaurant
- Golf club
- Lobby bar
- Hotel shop
- Indoor parking
- Spa-wellness area

6. Spa/Wellness club


Wellness club is situated between Boutique hotel and Family hotel, with direct access through the covered gallery from each of them. The Wellness Center includes an area for medical check-ups, and its facilities will have a wide range of services and treatments. Wellness club plot area has an extension of 3.000 sqm, built surface covers 1.500 sqm.
Main content is:

- Health Bar
- Gangway to Park Hotel
- Towel service/ saunas
- Leisure pool area
- Wellness circuit
- Fitness
- Beauty center
- Massage and body treatments
- Medical Check Centre

7. Convention center


Convention and conference center is located in the immediate vicinity of a Boutique hotel and Family hotel. The overall capacity of the center totals 800 seats in a theater setting and 550 seats in the banquet setup. The center will be equipped with the latest audiovisual equipment. Convention center plot area has an extension of 2.400 sqm, built surface covers 1.200 sqm.
The main content is:

- The main hall with movable partitions
- Coffee corner
- Exhibition area (entrance hall) o Service office

8. Recreation facilities (Aqua and soft adventure park)


These facilities are placed approximately 200 meters away from the Family hotel. The buildings will be constructed by taking advantage of the transparency of the walls and roofs to ensure the utmost integration with the outdoor surroundings. The indoor water area will have a tropical atmosphere created by vegetation and a large number of waterfalls, grottos, pools and water games. Communication between the various activities will be possible overhanging wooden bridges or along sandy walking tracks. This area can also be enjoyed by floating along with the gentle river current under bridges and waterfalls. The outdoor water area will have various kinds of water chutes descending through the vegetation from an artificial hill downwards the main lake. The area will have two theme swimming pools and will also have sandy areas for beach games. Recreational areas are continuing on the green coastal belt and fit with beach activities. Recreation plot area has an extension of 11.400 sqm, built surface covers 3.800 sqm.
Main content is:

Tropical Beach area with wave pool - Leisure pool area - Kid’s pool with playground - Indoor icecream parlor - Indoor self-service restaurant with terrace - Slow river with caves and cascades area - Garden self-service restaurant - Outdoor family restaurant - Outdoor beach bar - Action zone: waterslides, sports-pool and surf wave

9. Beach



Resort beach stretches over a length of 500 meters with sandy shore. Sea bed is also sandy.


10. Water sport facilities



At the eastern end of the beach is a center for water sports such as water skiing, windsurfing, parasailing and pedal boats. In addition to the beach are less fit and mobile catering and retail units in service yet.


11. Culture and outdoor event facilities



This segment of facilities with its position continues to harbor village, due to similarities and complements in dynamic environment. Facilities consist of a cinema, summer theater at smaller amphitheater, live music venues and arts and crafts gallery. Culture and outdoor event facilities plot area has an extension of app. 4.200 sqm, built surface covers 2.100 sqm.

8. Recreation facilities (Aqua and soft adventure park)


These facilities are placed approximately 200 meters away from the Family hotel. The buildings will be constructed by taking advantage of the transparency of the walls and roofs to ensure the utmost integration with the outdoor surroundings. The indoor water area will have a tropical atmosphere created by vegetation and a large number of waterfalls, grottos, pools and water games. Communication between the various activities will be possible overhanging wooden bridges or along sandy walking tracks. This area can also be enjoyed by floating along with the gentle river current under bridges and waterfalls. The outdoor water area will have various kinds of water chutes descending through the vegetation from an artificial hill downwards the main lake. The area will have two theme swimming pools and will also have sandy areas for beach games. Recreational areas are continuing on the green coastal belt and fit with beach activities. Recreation plot area has an extension of 11.400 sqm, built surface covers 3.800 sqm.
Main content is:

Tropical Beach area with wave pool - Leisure pool area - Kid’s pool with playground - Indoor icecream parlor - Indoor self-service restaurant with terrace - Slow river with caves and cascades area - Garden self-service restaurant - Outdoor family restaurant - Outdoor beach bar - Action zone: waterslides, sports-pool and surf wave

9. Beach



Resort beach stretches over a length of 500 meters with sandy shore. Sea bed is also sandy.



10. Water sport facilities



At the eastern end of the beach is a center for water sports such as water skiing, windsurfing, parasailing and pedal boats. In addition to the beach are less fit and mobile catering and retail units in service yet.



11. Culture and outdoor event facilities



This segment of facilities with its position continues to harbor village, due to similarities and complements in dynamic environment. Facilities consist of a cinema, summer theater at smaller amphitheater, live music venues and arts and crafts gallery. Culture and outdoor event facilities plot area has an extension of app. 4.200 sqm, built surface covers 2.100 sqm.

12. Villas and apartments settlement


The part of resort consisting of luxury villas and apartment houses is situated in a second zone from the sea, behind the hotel and entertainment facilities, providing more peaceful ambiance. Most of the units have the outdoor pool. Each area of the settlement will have its own identity and will be laid out in micro-communities to create a warm, inviting atmosphere. Villas and apartment houses plot area have an extension of app. 51.380 sqm, built surface covers 34.639 sqm.
Main content is:

- Villas type A (single use) 1.760 sqm (220 sqm per unit)
- Villas type B 2.880 sqm (120 sqm per unit)
- Villas type C 6.000 sqm (100 sqm per unit)
- Dwelling houses (apartment units) 24.000 sqm (82 sqm per unit)

13. Equestrian (Horse center)


The equestrian center is located on the north side, behind the villas and apartments, in the third zone, together with a sports center and ethno village. It consists of stables for 20 horses and sports arena with obstacles in the open. The primary purpose of the center is recreational and therapeutic horseback riding. Equestrian plot area has an extension of app. 10.000 sqm, built surface covers 1.000 sqm.

14. Sports facilities

[devider height="10"] The sports complex is located between the equestrian center and the village folk. It provides opportunities for various sports, recreation and training for recreational and/or professional athletes. Besides tennis academy, there are also bowling alley and multipurpose courts for football, basketball, handball, volleyball, athletics etc. Sports center plot area has an extension of app. 19.700 sqm, built surface covers 15.720 sqm.


15. Ethno village



Ethno village is located on the northeastern part of the resort. Ethno village is a unique example of facilities embedded in a luxury resort and its purpose is to establish a special guest contact with the local way of life. This will be achieved through the presentation of old crafts and manufacturing based on local agriculture. The village is conceptually conceived as a group of Dalmatian houses in which are embedded local manufactories and old crafts such as: construction of small vessels, production of an olive oil, rural wineries, country inns, ham and cheese production, ethno house, blacksmith shop, manufacture of rope and fishing nets etc. Ethno village plot area has an extension of app. 3.000 sqm, built surface covers 960 sqm.

16. Golf course



18-hole golf course is located next to the western part of the resort and extending from the northeast to the southwest towards the sea coast. The terrain cascades towards the sea from a higher plateau, incorporating elements of both rock and coastal design. These changes in elevation coupled with the way the course relates to the winds that cross the site will offer real strategic challenges that will certainly appeal to the thoughtful golfer. There are also a number of small water courses that filter through the site creating large, exposed rock faces that form a recurring feature throughout the design. Golf course plot area has an extension of app. 75 hectares ( 750,000 sqm ).


17. Marina



Marina with 200 berths is situated in southwestern part of the resort with quiet and pleasant environment. Its facilities and location are ideal for long term stays and visitors. Marina is able to provide a wide range of services and amenities for professional yachtsman as well as for weekend boaters. Marina offers a multitude of marine maintenance and yacht management.
[devider height="10"] Main content is:
- Dry storage spaces for boats
- Electrical service
- Full service fuel dock with sanitary pump-out station
- Complete marine repair facilities
- 88-ton travel lift and yard
- Boat brokerage sales and service
- 24-hour security
- Dock Store – gifts, snacks, bait & tackle, and necessities
- Shower and laundry facilities
- Easy access with no bridges

Business Model


Pag Resort will be tourist and leisure destination with different accommodation types and variety of facilities that will attract different travelers segments. It will become a place for leisure, culture, tourist and business activities and will enable island of Pag to have internationally recognized luxury destination. Resort’s targeted customers are from aspiring luxury and accessible luxury segments. As a new luxury destination in Croatia, resort aims to attract wealthy travelers which seek for easy access destinations, prime accommodation service, complex entertainment content and opportunity for diverse culinary experience. The business model is based on the direct role of the investor while building the resort complex and later facilities management. Resort developer is the landowner and is in charge of preparation and carrying out the project. This includes preparing architectural studies, obtaining necessary permits and licenses and later preparation of infrastructure works and construction of accommodation facilities.

Land for sale Pag Croatia
Land for sale Croatia

The developer will also supervise the development of rest of the areas (with specialized professionals), being the final authority with full responsibility for the complex functioning and later maintenance. The role of the developer is to equilibrate operations between the different business units, allowing each of them to carry out their own activity, but generating synergies and minimizing operational risks. For a segment of the hotel management and operational activities, the subject developer will conclude a franchise/management agreement with some of the leading high-end management companies. Recreational and entertainment facilities will be managed by the developer which includes: marina, golf court, recreation facilities, water park, equestrian complex, non-hotel F&B units and ethno village with local manufacture and craft units. This integrated business model will contribute to more efficient complete resort management holding essential the coordination between hotel management operator and developer.

Business Model


Pag Resort will be tourist and leisure destination with different accommodation types and variety of facilities that will attract different travelers segments. It will become a place for leisure, culture, tourist and business activities and will enable island of Pag to have internationally recognized luxury destination.

Land for sale Pag Croatia

Resort’s targeted customers are from aspiring luxury and accessible luxury segments. As a new luxury destination in Croatia, resort aims to attract wealthy travelers which seek for easy access destinations, prime accommodation service, complex entertainment content and opportunity for diverse culinary experience. The business model is based on the direct role of the investor while building the resort complex and later facilities management. Resort developer is the landowner and is in charge of preparation and carrying out the project. This includes preparing architectural studies, obtaining necessary permits and licenses and later preparation of infrastructure works and construction of accommodation facilities.

Land for sale Croatia

The developer will also supervise the development of rest of the areas (with specialized professionals), being the final authority with full responsibility for the complex functioning and later maintenance. The role of the developer is to equilibrate operations between the different business units, allowing each of them to carry out their own activity, but generating synergies and minimizing operational risks. For a segment of the hotel management and operational activities, the subject developer will conclude a franchise/management agreement with some of the leading high-end management companies.

Recreational and entertainment facilities will be managed by the developer which includes: marina, golf court, recreation facilities, water park, equestrian complex, non-hotel F&B units and ethno village with local manufacture and craft units. This integrated business model will contribute to more efficient complete resort management holding essential the coordination between hotel management operator and developer.

Conclusion


This study is prepared for the exclusive use of investor regarding the development of Pag resort in the island of Pag, Croatia. Aim of this study was to analyze market potential for multi-purpose self-contained resorts on Croatian coast. In distinction from well-developed resort market in advanced tourist destinations, various studies show that the market of a luxury seaside resort in Croatia is characterized by low competitiveness and immature market. Overall Croatian seaside hotel market is leisure oriented, thus more sensitive in price deviations than transient oriented. As emerging destinations are becoming increasingly popular, satisfying the demand for the new and exclusive as well as reflecting local experiences, Croatian cost is anticipated to be the very attractive market for various real estate/hotel investments in the near future. On the other hand major impediment for this project is still moderate overall economic recession risk.

Resort Project Croatia
Resort Project Croatia

Total resort construction costs amount to 123,2 million EUR. It is estimated that the resort will be built in two years. Resort revenues total 44,0 million EUR in Year 1 and increase to 67,9 million EUR in Year 10 while resort expenses total 32,6 million EUR in Year 1 and increase to 45,2 million EUR in Year 10. Net operating income increases from 11,4 million in Year 1 to 22,7 million in Year 10 with NOI margin at app. 33,4 percent. Project valuation is based on the income capitalization method which predicts different components of capital. Different loan and equity components and therefore costs of capital result in different returns for debt investors and equity investor while business or property value equals mortgage component and equity component. Total project value (total project cost) combines discounted cash flows to both equity and loan and amounts 229,8 million EUR. Net income IRR is targeted above 10,0 percent (it totals 11,49 percent) while net income to equity IRR is targeted at 22,5 percent, justifying land value estimates at 41,8 million EUR and making this project feasible.

Conclusion


This study is prepared for the exclusive use of investor regarding the development of Pag resort in the island of Pag, Croatia. Aim of this study was to analyze market potential for multi-purpose self-contained resorts on Croatian coast. In distinction from well-developed resort market in advanced tourist destinations, various studies show that the market of a luxury seaside resort in Croatia is characterized by low competitiveness and immature market.

Resort Project Croatia

Overall Croatian seaside hotel market is leisure oriented, thus more sensitive in price deviations than transient oriented. As emerging destinations are becoming increasingly popular, satisfying the demand for the new and exclusive as well as reflecting local experiences, Croatian cost is anticipated to be the very attractive market for various real estate/hotel investments in the near future. On the other hand major impediment for this project is still moderate overall economic recession risk.

Resort Project Croatia

Total resort construction costs amount to 123,2 million EUR. It is estimated that the resort will be built in two years. Resort revenues total 44,0 million EUR in Year 1 and increase to 67,9 million EUR in Year 10 while resort expenses total 32,6 million EUR in Year 1 and increase to 45,2 million EUR in Year 10. Net operating income increases from 11,4 million in Year 1 to 22,7 million in Year 10 with NOI margin at app. 33,4 percent.

Total resort construction costs amount to 123,2 million EUR. It is estimated that the resort will be built in two years. Resort revenues total 44,0 million EUR in Year 1 and increase to 67,9 million EUR in Year 10 while resort expenses total 32,6 million EUR in Year 1 and increase to 45,2 million EUR in Year 10. Net operating income increases from 11,4 million in Year 1 to 22,7 million in Year 10 with NOI margin at app. 33,4 percent. Project valuation is based on the income capitalization method which predicts different components of capital. Different loan and equity components and therefore costs of capital result in different returns for debt investors and equity investor while business or property value equals mortgage component and equity component. Total project value (total project cost) combines discounted cash flows to both equity and loan and amounts 229,8 million EUR. Net income IRR is targeted above 10,0 percent (it totals 11,49 percent) while net income to equity IRR is targeted at 22,5 percent, justifying land value estimates at 41,8 million EUR and making this project feasible.

 

There is also the possibility of buying additional land that borders with this property and expanding the size of the plot to build on. This size of that land is 675,000 m2 See here - Property ID: 109 making then the total area almost 1,850,000 m2.

 
 
About location

Dalmatia

Dalmatia is the region of Croatia, extending along the Adriatic Sea, approximately from Rijeka to the Gulf of Kotor. The split is the provincial capital; other cities include Zadar, Šibenik, and Dubrovnik. Except for a coastal lowland, Dalmatia is generally mountainous, rising to the Dinaric Alps. The coast, which is famed for its scenic beauty and its resorts, has many bays and excellent harbors protected by a chain of islands. Dalmatia has always developed itself as a region by cherishing and protecting all its treasures, its natural resources and its environment. Tourism, agriculture and fishing are the principal economic activities. One of the most visited destinations in Croatia, Vodice, is situated on the area of North Dalmatia near the town of Šibenik. Pag has become in recent years an increasingly popular island to visit in no small part because the resort of Novalja, to the north of the island, is considered one of Croatia’s premier party destinations. Pag is also very easy to reach from the mainland by bridge

 
About location

Dalmatia

Dalmatia is the region of Croatia, extending along the Adriatic Sea, approximately from Rijeka to the Gulf of Kotor. The split is the provincial capital; other cities include Zadar, Šibenik, and Dubrovnik. Except for a coastal lowland, Dalmatia is generally mountainous, rising to the Dinaric Alps. The coast, which is famed for its scenic beauty and its resorts, has many bays and excellent harbors protected by a chain of islands. Dalmatia has always developed itself as a region by cherishing and protecting all its treasures, its natural resources and its environment. Tourism, agriculture and fishing are the principal economic activities. One of the most visited destinations in Croatia, Vodice, is situated on the area of North Dalmatia near the town of Šibenik. Pag has become in recent years an increasingly popular island to visit in no small part because the resort of Novalja, to the north of the island, is considered one of Croatia’s premier party destinations. Pag is also very easy to reach from the mainland by bridge


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