Hotel Marriott Banja Luka

Opportunity

Investment opportunity to acquire the only branded hotel in Banja Luka, built in 2019 with 116 modern rooms of different types and 2 suites, 5 conference rooms equipped with state of art IT technology, a la carte restaurant with more than 100 seats, terrace on the ground floor, popular Skybar on the 11th floor, a wellness centre, a fitness room, a private parking in the basement and in the backyard of the Hotel and other amenities prescribed by the strict standards of the Marriott hotel chain.

The hotel is in the centre of Banja Luka, in the vicinity are administrative and business buildings. The guests are mainly businesspeople from abroad who come to Banja Luka on business, staff of embassies and international institutions and companies (US Embassy, World Bank, IMF, Roche, DDC Group, etc.) as well as tourists visiting Banja Luka and Bosnia and Herzegovina.

The hotel is the central place for holding large events, corporate celebrations, promotions and similar events attended by a large audience - "October Bearfest", "Badel evening", wine tasting evenings by various wineries, romantic weekends, weekend cooking, cocktail evenings in the Skybar etc.

The hotel is new, built in 2019 according to the standards of the world's largest hotel brand "Marriott International", with which it has a franchise agreement. The current owners are property investors and developers who, after the successful realization of this project, want to sell it to someone who would continue the successful operation of the Hotel.

The hotel is profitable. In 2021, the Hotel achieved revenue of €1,415,000, NOI €688,000, ADR €70. Tourism and business are recovering in Banja Luka and statistical data of tourist arrivals and overnight stays for the first 7 months of 2022 indicate that tourism is returning to the level of 2019, which can be seen from the tables given in the "Market" section. The recovery of tourism will have positive effect on growth of the Hotel's income and profitability in this and following years.
All financial performance data and various analysis are provided in the Sale Prospectus. You may request the Sale Prospectus by filling out the Contact form.

In the internal ranking of Marriott Hotels International for Europe/Middle East/Africa, the Hotel is ranked 1st in the "Food & Beverage" category, 7th in the "Selected services" category.

The hotel is highly rated by guests who rated it 9.4 on all major booking platforms such as booking.com or similar platforms.

Description

Business hotel -2B+Gr+7 floors (lower part of the building), and -2B+Gr+Mezz+10+roof terrace (higher part of the building), total net area 7.631,96 m². The hotel was completely designed and built in accordance with the standards of the "Marriott International" hotels.

ACCESS TO THE HOTEL—The main pedestrian entrance to the building is provided directly from the sidewalk/street. Car park access/entrances for garage spaces (underground and outdoor open parking space) are located in the courtyard.

FUNCTIONALITIES—The hotel is divided into public and accommodation areas.
a) The public part is spread over the following floors: - parts of the underground floors (basement 01 and 02), - ground floor, mezzanine and part of the 1st floor (a segment within the higher part of the building) and Skybar on the 11th floor/roof terrace;
b) The residential part occupies all floors above the 1st floor, including part of the 1st floor (a segment in the lower part of the building): - within the higher part of the building: 9 floors; - within the lower part of the building: 6 floors.

Basement 01 and 02—In the underground floors (basement 01 and 02) there are economic, service and technical facilities (sprinkler system, air conditioning chamber, central preparation of hot water, storage areas, staff rooms, etc.) as well as some public facilities (conference rooms) , accompanying toilets for visitors, a fitness hall with a changing room for visitors and hotel guests.
On the Basement 01 level, there is a conference area with smaller capacity rooms (so-called "board rooms") with an accompanying lobby area and service facilities (serving food and drinks, etc.).

Ground floor—On the ground floor is the main entrance lobby with the reception and accompanying service and technical areas (back office and technical rooms), an a la cart restaurant with a bar area and a kitchen for food preparation with accompanying economic and service facilities in the back.

Mezzanine—on the mezzanine (which is located within the higher segment of the building) there are public toilets in the immediate vicinity of the stairs and lifts.

1-10. floor—On the 1st floor, there is a multifunctional conference room for up to 180 people (within the higher segment of the building), while in the lower part of the building, on the same floor (1st floor), is the accommodation part of the hotel. All conference rooms (on the 1st floor and basement 01) have the possibility of functional partitioning of the space with movable (folding, that is, sliding) dividing wall panels. From 2-10th floor (including the segment of the lower part of the building on the 1st floor) is intended exclusively for accommodation.

Accommodation consists of 118 rooms/keys (1-10th floor): 83 king size rooms, 31 twin rooms, 2 suites, 2 ADA rooms (for people with disabilities). Each of the room type differs in overall geometry (depth, width, layout etc).

11th floor—recessed terrace where the popular and well-visited Skybar is located, with a wonderful panoramic view of the city and its surroundings. Please see the "Video" part of the presentation.

Location

The hotel is in the centre of Banja Luka, the second largest city in Bosnia and Herzegovina. In the immediate vicinity are the National Assembly, the Government of the Republic of Srpska, the National Theatre, the Museum of Contemporary Art, parks and the famous Gospodska Street.

In the last few years, Banja Luka's financial sector has developed rapidly and is becoming a financial centre. The city is home to financial institutions such as the República Srpska Securities Commission, the República Srpska Banking Agency and the B&H Indirect Taxation Administration. Numerous embassies, international institutions, domestic and foreign companies are located nearby.

Banja Luka has about 200,000 inhabitants. It is developing into the largest tourist centre of the Republic of Srpska. It is located on the banks of the river Vrbas. It contains cultural and historical monuments from different eras and civilizations that lived in this area.
Castel Fortress —The Oldest Historical Monument of Banja Luka,
Religious monuments—Cathedral Church of Christ the Saviour, Ferhat Pashin Mosque, Church of the Holy Trinity, Krupa and Gomionica Monasteries, Cathedral of St. Bonaventure and other Churches of Banja Luka,
Gospodska Street - always colourful and interesting,

Tourism potential of Banja Luka is reflected in the constant growth trend of tourist arrivals and overnight stays. Due to Covid 19, there is a drop in tourism in 2020, but already in 2021, tourism is recovering. Forecasts indicate that in 2022 it is expected to again be at or above the level of tourism in 2019.

Market

Bosnia and Herzegovina is a very interesting tourist destination. Different cultures, religions and traditions have been intersecting on the territory of this country for centuries. The country has interesting natural beauties and potential that contribute to the further development of tourism. The tourist potential of Bosnia and Herzegovina is based on mountain, spa, coastal, religious, sports-recreational and cultural tourism. In 1984, it hosted the Winter Olympic Games in Jahorina, which today is developing into an important winter tourist centre.

In the Republic of Srpska, the number of domestic and foreign tourists was in a trend of constant growth until 2020, when there was a sudden drop due to Covid-19. Tourism started to recover in 2021, and according to the results in the first 7 months of 2022, it is believed that this year will be better than 2019.

A similar situation exists at the level of the entire Bosnia and Herzegovina.

In the Republic of Srpska, the largest number of guests stay in hotels.

The situation is similar for the whole of Bosnia and Herzegovina.

All the above statistical data show that the tourism in the Republic of Srpska, as well as in the entire Bosnia and Herzegovina, has recovered from the consequences of Covid and continues to grow.

Video

Further info

We have prepared a sale prospectus about the Property with more details. Please contact us to request further details.