Dalmatie Group, the Croatian subsidiary of the pan-European property investment and asset management conglomerate Indotek Group, today presented the ongoing 20M EUR refurbishment project of the 248-room Hotel Labineca in Gradac at a press tour. Slated for completion by the 2025 peak season, the hotel project is a milestone in revitalizing the local tourism landscape. It demonstrates Dalmatie Group’s commitment to sustainable value creation throughout its Dalmatian portfolio.

The milestone refurbishment project was officially presented at a press tour of the hotel today, where Dalmatie Group outlined its vision for transforming Hotel Labineca into a 248-room, 3-star plus, state-of-the-art facility. The project will introduce cutting-edge amenities, positioning the hotel as a game-changer in the local tourism sector.

“Our hotel will revitalize and reposition Gradac as a key tourism destination. This project will generate jobs, introduce new revenue streams, and invigorate the local hospitality scene. The municipality, local businesses, and the town will benefit, as will families looking for affordable, high-quality accommodation in one of the most pristine locations on the Croatian shore,” says Tim Wilkinson, Head of International Acquisitions at Indotek Group.

Dalmatie Group’s close collaboration with Mayor Matko Buric and the Gradac Municipality has been instrumental in advancing the project. “We are delighted to collaborate with Dalmatie Group on this transformative project. The renovation of Hotel Labineca represents an essential advancement for Gradac and transforms a decades-long wait into reality, offering both economic and sentimental value. The strength of our partnership guarantees considerable benefits for the local community from this development,” stated Mayor Matko Buric.

In preparation for the renovation, Dalmatie Group undertook extensive administrative, contractual, and financial preparations starting last year, when structural inspections revealed the need for substantial design changes to ensure safety and enhance the hotel’s offerings.
These updates, aimed at extending the tourist season in Gradac, have slightly adjusted the project timeline but have not impacted the targeted reopening. “Dalmatie Group remains committed to relaunching operations for the 2025 peak season,“ Nives Grzunov, .

In August 2023, to mitigate the potential economic impacts of the temporarily closed hotel on the local community, Dalmatie Group proactively advanced specific concession fees and taxes for 2024 and 2025 to the local municipality. The refurbished Hotel Labineca is expected to double room revenues, tangibly compensating for any short-term economic impacts of the delay. Dalmatie Group acquired Hotel Labineca in Gradac as part of a non-performing loan package. Its previous owners had no intention of investing in the renovation or upkeep of the hotel, leaving devastating conditions and numerous unresolved issues, including unsettled taxes, contributions, and supplier debts. Dalmatie Group reached reasonable settlements with debtors, offered tangible assistance to partners, and worked to retain all employees throughout the COVID-19 pandemic. Currently, 40+ former hotel employees work in other properties of the Group.

Future-proofing in progress

The hotel complex consists of four buildings: the central nine-story building is situated directly on the beach, while 3 three-story apartment houses are located behind the hotel building.

The renovation integrates environmentally conscious and cost-efficient solutions to elevate the guest experience in all facilities. The central building will feature modern, energy-efficient HVAC systems and advanced water conservation technologies. The hotel’s exterior facades will be thermally insulated using stone wool to improve energy balance throughout the year.

New tourism-related amenities include a state-of-the-art wellness center and cutting-edge conference rooms. With its full panoramic outdoor terraces, the redesigned restaurant will offer à la carte and buffet services, enhancing the dining experience. The outdoor pool area will be completely renovated, complemented by a new jacuzzi and extensive terraces, providing ample space for relaxation with stunning sea views.

The hotel will feature family rooms to provide affordable, high-quality accommodations for families traveling with children.

The project will replace all internal systems, including electrical, water supply, and drainage, install solar panels for hot water preparation, and completely refurbish the interior to meet modern standards. (The hotel meets all but one standard of the four-star classification; room sizes prevent the qualification from exceeding 3.5 stars.)

The comprehensive renovation underscores Dalmatie Gropu’s commitment to creating value through sustainable development and future-proofing the Dalmatian hospitality scene.

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About Dalmatie Group

Dalmatie Group, part of the Indotek Group, owns a diverse portfolio of properties along the Croatian coastline, including five seaside hotels, a resort, a campsite, and a marina.
Operating within Indotek’s Central and South European hospitality branch, Dalmatie Group aspires to develop its existing Croatian properties and expand its local portfolio.
Dalmatie Group is committed to sustainable community growth, employing over 500+ individuals during peak periods.

For more information, please visit Dalmatie Group’s website.