In our comprehensive study, we evaluated the feasibility and profitability of constructing a tourist resort with hotels, villas, and apartments at the seaside location of Mikulići, Konavle. All necessary infrastructure, construction, and preparatory costs were considered, as well as ownership models, projected revenues, and returns on investment (ROI, ROE) for all key partners.zir.nsk
Mikulići is a small village located in the eastern part of the Municipality of Konavle, at the southernmost edge of Croatia, within the Dubrovnik-Neretva County. It lies on slopes approximately 1 km from the coastline with an average altitude of around 300 meters, situated 36 km from Dubrovnik and 16 km from Dubrovnik Airport.
Accommodation capacities
| Facility | Number of units | Beds per unit | Number of beds |
|---|---|---|---|
| Thalasso hotel | 100 | 2 | 200 |
| Resort hotel | 160 | 2 | 320 |
| Villas (70) | 70 | 6 | 420 |
| Villas (30) | 30 | 2 | 60 |
| Apartments | 50 | 4 | 200 |
| Total | 410 | 1,200 |
Effect on investment calculation
A capital investment of this scale requires serious financial planning and careful analysis of market returns. A realistic minimum construction cost of 2,500 €/m² brings the total required investment for building the hotel and apartment complex above 83 million euros, representing a major initial capital requirement. This information is crucial when deciding to start the project, approaching financing, and estimating long-term return and profitability.
Net profit
Operating expenses: €156,954 (30% of revenue)
Net profit before tax: €366,226
Corporate tax (20%): €473,245
Net annual profit: €892,981
Revenue estimates are based on average accommodation prices, occupancy rates, and realized income according to actual examples from the Croatian market.
Key advantages and risks
Advantages:
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High accommodation capacity and diversified offer
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Fair and transparent distribution of capital and profit
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Favorable seaside location in Dubrovnik-Neretva County
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Involvement of landowners reduces liquidity needs
Risks:
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High initial capital and long payback period
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Revenue depends on tourist season and market trends
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Potential increase in operating costs and tax rates
