Project of older building reconstruction in Rijeka!
New design hotel will benefit sea views.
Older building of 1962 will be converted into a modern hotel of 22 rooms, with amazing roof top swimming pool. Total area of the structure to rebuild is 1180 sq.m. Land plot is 670 sq.m.
There is a valid building permit. Reconstruction can be started right away.The approved project envisions a total of 22 accommodation units, including 14 hotel rooms, 6 studio apartments, and 2 larger apartments, complemented by a reception area, lounge zone, and multifunctional space on the ground floor. One of the key highlights of the concept is the exceptionally attractive rooftop area featuring a bar, lounge zone, and a swimming pool approximately 20 metres long. Designed as a modern rooftop hospitality space with panoramic views, this feature represents a unique and innovative concept for the Rijeka market, offering clear commercial potential and strong differentiation in the city-break and premium short-stay accommodation segment. Total accomodation capacity - 68 beds.

Property structure:

The ground floor is organised as the functional and public core of the hotel, clearly separating guest-facing areas from service and operational zones.Key elements include:
• Reception area with direct visual and physical connection to the entrance,
• Breakfast dining area positioned toward the façade, benefiting from natural light and terrace access,
• Fully equipped kitchen and back-of-house facilities, logically connected to the dining area,
• Vertical circulation core (staircase and elevator) centrally positioned for efficient access to upper floors,
• Clear and intuitive circulation paths for guests, staff, and service operations.The layout ensures efficient daily operations, smooth guest flow, and compliance with accessibility and sa- fety requirements, confirming the technical readiness of the project at ground-floor level.

The typical floor (1st, 2d,3d) is organised around a central vertical circulation core, ensuring efficient access, clear orien- tation, and optimal operational logic.The layout combines:
• Standard guest rooms with compact, functional bathrooms,
• Studio units with kitchenette facilities, supporting extended-stay use,
• Clear separation between accommodation units and service circulation,
• Repetitive and rational room modules, enabling construction efficiency and operational consistency.

All accommodation units are oriented to maximise natural light and urban views, while internal circulation remains compact and legible. The floor plan supports efficient housekeeping operations and flexible room allocation, reinforcing the hotel’s suitability for both short city-break stays and longer residential-style visits.The rooftop level is conceived as a shared amenity zone that enhances the overall hotel experience while reinforcing the project’s urban-hospitality positioning.
The layout integrates:
• A rooftop swimming pool as a central leisure element
• Sunbathing and relaxation areas with unobstructed views
• A compact service core (elevator, staircase, technical spaces)
• A multifunctional indoor lounge / breakfast area supporting flexible use throughout the day.

This level functions as a social and experiential layer of the hotel, complementing the accommodation floors below. The rooftop design supports year-round use, extended stays, and premium positioning, while remaining fully integrated within the building’s structural and operational logic. The clear separation between guest rooms and shared rooftop amenities enhances privacy, noise control, and operational efficiency, confirming the project’s readiness for immediate execution.The location is highly convenient and easily accessible, with a bus stop right in front of the building and the city centre just a few minutes away. Within a 300 to 1000-metre radius are KBC Rijeka, the University Campus, and the Faculty of Engineering, providing a wide range of potential guests — from business travellers and academic visitors to medical professionals and students.Architecturally, the project focuses on a contemporary visual identity, emphasising vertical wooden elements and integrated greenery on the façade, creating a modern and inviting aesthetic in harmony with the urban surroundings.This development offers investors the opportunity to enter a clearly defined and well-prepared project without delays caused by lengthy permit procedures, with all capacities and the final market vision already established.It is a rare opportunity for an investor seeking to transform a prime location into a distinctive, high-value hospitality product — projects of this kind seldom appear on the market.Rijeka is a popular tourist, business and congress destination with a shortage of modern 3* and 4* tourist facilities.Based on the approved architectural programme, valid building permit and conservative operating assumptions, the renovation of the hotel at Candekova Street 10 has been analysed as a mixed-use urban hospitality investment that combines accommodation and food and beverage operations. The project is structured around two complementary and largely independent revenue streams, which significantly enhance cash flow stability and reduce dependence on seasonal tourism trends. This dual-income model is particularly well suited to Rijeka’s year-round urban demand and evolving city-break profile.The accommodation component is planned with 22 units and a total capacity of 68 beds. The financial model assumes a stabilised average annual occupancy rate of 65 percent and a blended average daily room rate of 95 euros. These assumptions reflect realistic market conditions driven by business travel, extended stays and consistent urban visitation rather than peak-season tourism alone. Under these parameters, the hotel is expected to generate approximately 5,200 room nights annually, resulting in estimated accommodation revenue of around 500,000 euros per year. Operating costs for a hotel of this size and category have been conservatively estimated at 40 percent of accommodation revenue, covering staffing, housekeeping, utilities, maintenance, administration and distribution expenses. This results in annual operating costs of approximately 200,000 euros and an accommodation EBITDA of roughly 300,000 euros.The food and beverage operation further strengthens the project’s revenue profile. The hospitality programme includes a ground-floor café and restaurant with 56 interior and exterior seats, complemented by a rooftop terrace offering an additional 24 seats, bringing total seating capacity to 80. The location benefits from strong neighbourhood demand, steady daily foot traffic and proven performance of comparable venues in the immediate area. Revenue projections are intentionally conservative and based on minimum expected annual turnover per seat. The ground-floor operation is projected to generate approximately 420,000 euros annually, while the rooftop terrace is expected to contribute around 72,000 euros, resulting in total annual food and beverage revenue of approximately 492,000 euros. This estimate excludes potential upside from events, private functions, catering services or branded concepts that could be introduced in later stages of operation.Operating costs for the food and beverage component are aligned with typical benchmarks for a well-managed urban hospitality venue. Costs for goods sold, staffing and operating expenses are estimated at approximately 70 percent of revenue, resulting in annual operating expenses of around 344,000 euros and an EBITDA of approximately 148,000 euros from food and beverage operations.When combined, the accommodation and food and beverage components generate a total projected annual EBITDA of approximately 448,000 to 450,000 euros. This strong operating performance underpins the investment case for the project. The total capital investment, excluding VAT, is estimated at 3.1 million euros, comprising 1.5 million euros for the acquisition of the property with an approved building permit and 1.6 million euros for reconstruction, fit-out and equipment. Based on stabilised annual operating cash flow, the indicative investment payback period is estimated at approximately 6.5 to 7 years.This payback horizon is considered highly attractive for an urban hotel investment with year-round operations, diversified revenue streams and limited exposure to seasonal volatility. Overall, the financial analysis confirms that the proposed hotel renovation delivers strong and diversified cash flow, relies on conservative and realistic assumptions aligned with Rijeka’s urban tourism dynamics, and presents a balanced risk profile supported by local neighbourhood demand and continuous activity. The combination of an approved architectural solution, an established micro-location and a dual-revenue operational model positions the project as a financially viable and execution-ready urban hospitality investment, suitable for direct ownership, partnership structures or financed development models. Ref: RE-AB-MM1-43178Overall additional expenses borne by the Buyer of real estate in Croatia are around 7% of property cost in total, which includes: property transfer tax (3% of property value), agency/brokerage commission (3%+VAT on commission), advocate fee (cca 1%), notary fee, court registration fee and official certified translation expenses. Agency/brokerage agreement is signed prior to visiting properties.