Hotel Pancevo

Opportunity

An opportunity to acquire this lovely and picturesque hotel located on the outskirt of Pancevo, Serbia. The hotel serves predominantly the business travellers who visit various international companies in Pancevo and their suppliers located in or around Pancevo. Belgrade is 21km away, Belgrade airport 30 km away.

The hotel was built as new and completed in 2019. It commenced business operations in October 2019.

The Hotels is popular with family visitors particularly for weekends. The hotel has its own children playground. The rivers Tamis and Danube with their beaches, fishing places, boating and other outdoor activities are both 2,5km away.

The restaurant, seating 80 guests, offers a variety of local specialties throughout the day. The Hotel features a lovely garden, WiFi throughout, room service, own car park capacity 40 cars.

The restaurant is becoming a very popular place among the locals and foreign guests alike. The garden seating 60 guests is constantly full between May and October. They both have a strong contribution to the overall Hotel’s earnings and profitability. In addition, backed by popular demand, in 2021 the Hotel started food delivery service which also added to its earnings and popularity.

The Hotel is highly regarded by its guests who rated it 9,4 on all major booking platforms such as booking.com or similar.

The Hotel achieved impressive financial results. Year 2020 was its first full year of operations, 2021 the second year. In 2021 revenue jumped 104,73% y-o-y, operating costs was up by 15,61%, the operating profit increased by 238,24% y-o-y. The total revenue per available room TRevPAR went up by 104,73% between 2020 and 2021. In 2021 TRevPAR was €56,83, which is high for a hotel in its second year of operation.

All financial performance data and various analysis will be set out in the Sale prospectus. Please fill out the contact form to request the Sale prospectors.

Description

Ground floor

A car park for 40 cars. From the car park into the front garden and the main entrance. Reception on the right, the restaurant on the left.

The restaurant has a pleasant countryside look and feel capacity 80 seats. A modern stainless-steel kitchen and a bar.

On the other side of the restaurant is a garden featuring lash green vegetation, fountains and waterfalls and a small bridge. A summer house, gazebo and canopies with dining tables. A summer grill and artifacts such as an old carriage or lanterns add to the pleasant atmosphere. The garden restaurant has a capacity of 60 guests. Both the restaurant and the garden are suitable for organising large events such as weddings or similar celebrations.

From the reception, the stairs to the first floor rooms.

The hotel ground floor without the garden is 243,78m2.

First floor and second floor

All rooms and on the first and second floors. The first floor is 205,44m2, the second one is 173,01m2. There are 16 rooms of various sizes with total of 60 beds-7 triple rooms, 3 deluxe rooms, 3 double rooms and 3 family rooms.

All rooms have Wi-Fi, flat screen TV with various cable channels, working table and other modern amenities.

The bathrooms are all new, modern with showers. Floor heating throughout, air-conditioning cooling system.

Some rooms have their own balconies.

Legal

• Private ownership
• No franchise
• The current owners wish to sell in order to reinvest money in other ventures
• Available to purchase as an asset or a company

Location

The Hotel is situated on the outskirts of the city of Pancevo, about 1km from the city centre. Pancevo is a large industrial and business city about 20km away from Belgrade. It has a central European architecture and charm with large promenades and traditional large houses some of which are grade listed (protected from destruction as a part of national treasure). There are charming shops, cafeterias and restaurants alongside the central promenades. Recently a large shopping centre has sprung up BIG Pancevo.

The strength and bright future of Pancevo is in its industrial base which is composed of some large international conglomerates such as Refinery Pancevo by Gaspromneft, HIP-Petrohemija JSC, the largest producer of petrochemicals in Serbia, also by Gaspromneft, HIP Azotara, an agricultural fertilisers and mineral components manufacturer by Promist, ZF Group, a German car components manufacturer, Brose, also a German car components manufacturer and a large number of suppliers to these international giants.

There is a motorway between Belgrade and Pancevo. A new motorway is being built from Pancevo to the city of Vrsac and Romanian border on the North to be connected with the European Corridor IV. On the South side this motorway will be connected to the Belgrade ring road and from there to Central and South Serbia (Corridor X), Montenegro and the port of Bar.

Market

Tourism in Pancevo is dominated by business travellers who visit and/or work with the numerous companies located in or around Pancevo.

Pancevo attracts a significant number of ordinary tourists who explore historical sights and monuments in or around Pancevo or natural beauty locations such as National park Ponjavica (its more 40 species of birds attract birdwatcher), Deliblato Sands (on 300 square kilometres, it is the largest continental desert and one of the most important centers of biodiversity in Europe), Omoljica for angling, beaches of the Rivers Danube and Tisa, routs for cycling and horse riding and other attractions.

In 2019 there were a total of 40.668 overnight tourist stays in Pancevo. 75.85% were foreign visitors staying on average 8,48 per visit.

In 2020, truly an annus horribilis for tourism everywhere caused by the Covid 19 pandemic, the number of overnight stays dropped by 53% to 19.179. However, the visitors are still predominantly business travelers from abroad.

In 2021 the number of visitors and overnight stays recovered to 88% of the 2019 level, which is above average for other business destination, whose recovery is about 65% of the 2019 level. The total number of overnight stays was 31.739, out of which foreign, mainly business visitors made 22.425 overnight stays or 70,65% of all overnight stays. The average stay of a foreign traveler was 7,78 days.

From the data for 2022, there are realistic expectation this year will exceed 2019 level in every aspect. Travel restrictions are completely relaxed and all businesses will accelerate their activities. Leisure tourists will also want to travel more.

Further info

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