REAL ESTATE CRISIS
SPRING 2014 ARCH 7130 MASTER’S RESEARCH STUDIO
ABANDONED HOTEL + RESORT STOCK
Crikvenica
RESILIENT COASTAL LEISURE ENVIRONMENTS
Hotel Miramare
Rijeka
Senj
Hotel Panorama/ Motel Sljeme
Motel Vratnik
Slavonski Brod
Omišalj
Hotel Park Motel Marsonia
Hotel Ucka
Malinska
Plitvička Jezera
Haludovo Palace Hotel
Plitvice Motel
Pag Hotel Bellevue
Tučepi Hotel Jadran
Trogir
Krvavica
Motel Trogir
Children’s Health Resort
Dugi Rat
Igrane
Hotel Dalmacija
Novi Sad Institute for Communal Construction Resort
Bol
Dubrovnik Hotel Belvedere
Bijela Kuca
Kupari Grand Hotel Pelegrin Kupari
Jelsa Belgrade Children’s Resort Hotel Jadran
Goričine Goričine II
Plat Hotel Ambasador
former Belgrade Children’s Resort
BUSINESS PROFILE KERMAS Ltd Profiling Croatian company, Kermas Limited Investment Group, identifies diversified private investment and development pusuits targeting the country’s abandoned real estate. Since founding the company in 1989, Dr. Danko Koncar has helped build Kermas from the ground up, and guided its evolution from a trading company into a large diversified international corporation, with major investments in real estate, renewable energy, marina development, agriculture and shipbuilding. The purchase of Jelsa’s former Belgrade Children’s Resort from the Republic of Serbia secured an opportunity to develop a partnership with the Island of Hvar while initiating growth. As it stands, the former resort is located along one of Hvar Island’s most pristine bays, making it a top destination for a luxurious getaway just minutes away from all Jelsa has to offer. Additionally, the concrete structural frame repeated throughout the complex provides a prototypical base layer, of which other socialist era hotels throughout the country may draw from, for developing rehabilitation techniques of abandoned real estate into high-class resorts for the new tourist of the Adriatic.
The current landscape and development potential of Croatia is unsettled by an astounding 96 abandoned hotel and resort properties in its real estate portfolio, two (2) of which are located in Jelsa. The existing infrastructure of these properties presents a major opportunity for strategic revitalization to meet increasing tourism needs. Many visitors view hotels, especially those built during the socialist era, as undesirable, lacking amenities, luxuries – even depressing. A lack of outside investment into the hotel industry and a tainted identity demands unique measures to grant the updated, luxurious tourism experiences that Croatia aspires towards. However, the success of the development is determinate on place branding measures that will redefine the relationship between place, community, visitors, and experience. Tourism as an industry directly affects the physical, cultural, economic, and sociopolitical environments that it encapsulates. Approaching tourism as a holistic enterprise across industries reflects the EU model for viable and resilient destinations.
Dr. Danko Koncar
EU Crisis
Croatia Joins EU
2009
2013
Major Tourism Investments 1977
1966
1989
Early Career in Electronics/Engineering
KERMAS Investment Group founded
earned PhD in Computer Science
Samancor Chrome served as Chairman and successfully orchestrated the restructuring of the mining firm
Mogale +
BMM Intl.
+
Framework
Chromex +
=
+
+
investments revolve around Croatian real estate and tourism development, green energy and marinas, as well as Kermas’ deep investment in mining and mineral processing
Afarak Group sold stake in Samancor and resigned chairmanship in order to start a new business venture, using Kermas to become the single biggest shareholder in Finnish company, Afarak Group (ex Ruukki Group)
Brijuni Riviera Investments (Kermas Istria) Vodnjan: Dragonera + Porto Mariccio Sveta (Marina) Katarina
RCS
+
Veremo
FUTURE
Incarcerated
Jugoturbina company sentenced to prison time for abuse of position and illicit material gain after holding on to foreign currency the factory had earned abroad.
University of Zagreb, Croatia Bachelor of Science + Master of Science in electronic engineering
2005
Croatia $1 billion property investment
Recent Purchases Belgrade Resort €6.25 million from the Republic of Serbia Brodotrogir Marina bid accepted from the Croatian Goverment >> restructuring cost estimated at €665 million
TMS
Afarak =
+
Marina Brodotrogir
EWW
Brodotrogir Kermas Istra +
Kermas Energy
+
Kermas Energy
+ +
Real Estate
Kermas Investments Vodnjan
Heritage
Kermas InTech
Community
Visitor
Infrastructure
+
Oštra stina
Green Energy
SUSTAINABLE TOURISM + RESILIENT DESTINATIONS
+ +
Adriatic Investments
+
Marina Katarina
+
Brodotrogir
+
Mining
Coin Ltd
BELGRADE CHILDREN’S HEALTH RESORT
Enterprise
Administration
+
Adriadiesel Dublin Institute of Technology Sustainable Tourism Model
Zenisce Bay, Jelsa DIVERSIFIED PLAYER KEY Financial Trajectory
+/-/
Main Business Unit
Dependence Provides Service Profit Support
* Kemas Investment Group Company Website Globus http://globus.jutarnji.hr/hrvatska/od-robijasa-do-brodara Business News Europe http://www.bne.eu/story3373
JELSA
500 ft 0
200 m
BELGRADE L U X U RY R E S O R T
FIBER REINFORCED POLYMER applications
WALLS FRP is applied for additional shear strength and targeted structural repair.
REHABILITATION SOLUTION
FIBER REINFORCED POLYMER FIBER REINFORCED POLYMER wrapping systems generate a comprehensive and versatile method for structural upgrade through the repair, restoration, and strengthening of damaged or altered building members. Comprised of fibers (i.e. glass, carbon, kevlar) combined with polymers, the wrapping system enhances the performance of applied members through a variety of diverse applications, including but not limited to: seismic retrofit, pipe rehabilitation,
OPENINGS FRP frames new and existing openings to increase strength.
structural preservation, blast mitigation, corrosion related repair, increased structural loading capacities, and environmental protection needs. FRPs are primarily used as an externally bonded or near – surface mount addition to exisiting structural elements such as columns, beams, slabs, walls, pipes, tanks, chimneys, and structural connections. FRPs may be bonded to concrete, masonry, steel and wood structures using a specially formulated structural epoxy. REHABILITATION PROCESS
FLOORPLATES FRP is applied for additional flexural strength and targeted structural repair.
FRP arrives in various sized rolls per application and may be cut to size on-site.
Once surfaces are prepped by repairing damage to the concrete or masonry, a base coat of epoxy resin is spread onto the surface and FRP sheets are applied.
Applying multiple sheets of FRP requires a coat of epoxy resin between each layer. The wrapping is completed by spraying on a protective coating.
BEAMS, COLUMNS + SUPPORTS FRP is placed along the underside of the beam, followed by additional wrapping along the length of the beam, while the column or support is wrapped for additional shear and flexural strength, ductility and corrosion prevention.
BELGRADE L U X U RY R E S O R T
GUEST EXPERIENCE
LUXURY STANDARD SUITE Fabric Interiors Assembly
FABRIC DRAPED INTERIORS Moving forward in the revitalization process, this project will look towards developing a strategy to generate public awareness around site issues and future potential, establish a new reputation amongst the community and visitors, and build upon a recognizable brand. Focusing efforts on a long-term seasonal hotel design solution will enable the project a quick construction turn around to meet demand over the 4-month tourism season and create a dialogue that speaks to the cultural preference of existing visitors. Croatia represents a severe departure from the Mediterranean tourism typology, with a mere 12.5% of guests choosing to stay in hotels. Croatia’s alternate accommodation anomaly is driven by the high demand for campsite typologies, of which Jelsa has four – Camp Nudist Vrboska, Camp Mina, Camp Holiday, and Camp Grebisce. Drawing from this, hotel renovations can capitalize on the bohemian experience, branding a boutique identity through the use of soft infrastructural installations. Deploying the use of fabric as an interior aesthetic utilizes a material that is readily available across markets, adaptable, lightweight, flexible and easy to install.
Fabric panels suspended with adjustable bolts attached to the underside of renovated slab
Fabric panels along lower half of wall held taught with a wire frame wrapping the room
FRP wrapping
Rubber coated fabric panels attach to facade where covering is needed
Mechanical, plumbing, HVAC and lighting systems can easily be integrated into the renovated structure with unsightly pipes or wiring discreetly held behind fabric
BELGRADE L U X U RY R E S O R T
FIRST FLOOR +1
1 2 3 4 5 6 7 8 9 10 11 12 13 14
12
Entrance / Concierge Check-in Loading Bay / Storage Laundry Cocktail Lounge Open Plaza Pool / Gym / Sunbathing Decks Luxury King Suite Luxury Standard Suite Private Courtyard Private Function Room Spa Parking Below Beach Access 175 ft
0
11 4 10
3
9 6
5
2
8
1
7
14
13
ESCALATING THE BRAND Potential Hvar Island Hotel Investments
“A basic rule of happiness is don’t buy things; buy experiences. The market has taken one commodity product after another and turned it into an emotional experience — even hotel stays. I don’t know how you measure how much better off we are because of that, but we are significantly better off.” — David Brooks, NYTimes
hvar
stari grad jelsa
50 m
SECOND FLOOR +2
1 2 3 4 5 6 7
Administration Offices Kitchen Restaurant / Dining Room Luxury King Suite Luxury Standard Suite Private Function Room Luxury Double Suite
7 6 4
5
3 2
1
GROUND FLOOR 0 Guest Suites Weight Stations Fitness Equipment Sun Deck
POOL -1 Olympic Pool Locker Rooms Sun Deck