In brief
- Preatoni Group, owner of the Domina resorts, published its half-year update on 14 August 2026. The hospitality branch is meeting its targets in Egypt and Italy, though no specific figures were disclosed.
- The group highlights an increase in average revenue per room and steady occupancy rates, particularly in Sharm El Sheikh, home to its flagship asset.
- The only figures published are those of Pro Kapital Grupp, the Baltic real estate subsidiary owned at 49.62%: €26.1m in revenue for the first half, down 9%, and net profit nearly halved to €3.3m.
- Cash flow, however, improved: €9.3m in operating cash flow compared to €8.5m a year earlier. Furthermore, €8.2m of convertible bonds have had their maturity extended from 2026 to 2028.
- The group remains cautious for the end of the year due to the geopolitical backdrop and its impact on energy costs.
The name may not mean much to the general public, yet Preatoni Group owns one of the largest resort complexes on the Red Sea. Listed on Euronext Growth in Paris, the group delivered its half-year update on 14 August. A word of caution is needed when reading: the published figures do not relate to hospitality, but to its Baltic real estate subsidiary. Here is what the semester really shows.
What the group says about its hotels
For the Hospitality and Tourism division, Preatoni sticks to a qualitative assessment. First-half performance was deemed in line with management expectations, both overall and for each of the significant entities in Egypt and Italy. Two positive indicators are highlighted: growth in average revenue per room and resilient occupancy rates, particularly in Sharm El Sheikh.
However, the group accompanies this observation with a clear caveat. The geopolitical climate is described as unfavourable, and international uncertainties, especially regarding energy, prompt it to remain cautious for the coming months. For an operator whose flagship asset is an Egyptian seaside resort, sensitivity to energy costs and destination perception is far from theoretical.
Domina Coral Bay, the heavyweight asset
It is by far the group’s primary asset in terms of both size and revenue, fully owned and operated. Domina Coral Bay spans 738,000 sq m of group-owned land and comprises seven five-star hotels, across standard and luxury categories, offering a total of 2,165 rooms and villas. The group directly operates 965 of them, with a portion under timeshare use.
The entire complex functions as a small seaside town: twelve restaurants, multiple bars, swimming pools, a beach club, a diving centre, a spa, shops, a casino, a nightclub, and even a medical clinic. This scale explains why occupancy is so closely monitored: it serves as the barometer for the entire division.
Three Italian addresses in addition
The rest of the portfolio is Italian and considerably more modest. Domina Zagarella is a four-star seaside hotel located in Santa Flavia, in the Bay of Porticello, roughly 20 kilometres south-east of Palermo. Set across five hectares with private access to the sea, it comprises 381 units including 43 villas (324 operated by the group), along with two restaurants, three swimming pools, a diving centre, two padel courts, and a conference centre accommodating up to 500 guests. A concession project at the Lido Olivella site is slated to provide it with a private beach.
In Milan, Domina Milano Fiera pursues a different strategy: a four-star hotel with 194 rooms, meeting rooms, and a fitness centre, capitalising on its proximity to Fiera Milano, one of the city’s two major convention centres, which hosts over 200 events a year. The property is also located three kilometres from the Milano Innovation District, an emerging hub dedicated to science and research.
Finally, the Domina Borgo degli Ulivi residence, in Gardone Riviera on the shores of Lake Garda, offers 29 apartments operated as timeshares and holiday rentals within a two-hectare park.
The published figures relate to real estate
This is the crucial distinction. The half-year figures detailed in this release belong to AS Pro Kapital Grupp, a Tallinn-listed company in which Preatoni holds 49.62% and which manages property development operations across the Baltic states. They provide no direct insight into hotel profitability.
| Pro Kapital Grupp | H1 2026 | H1 2025 |
|---|---|---|
| Revenue | €26.1m | €28.5m |
| Gross margin | €9.6m | €10.2m |
| Operating profit | €5.6m | €7.5m |
| Net profit | €3.3m | €6.2m |
| Operating cash flow | €9.3m | €8.5m |
The 9% drop in revenue is attributed to the product mix, namely the types of residential units delivered over the period. This is standard in property development: revenue is only recognised upon transfer of ownership before a notary, meaning any given half-year depends largely on project completion timelines. In contrast, the contraction in net profit, from €6.2m to €3.3m, is sharper than the top-line decline, while operating cash flow improved.
On the balance sheet, a deadline has eased: €8.2m of convertible bonds, out of an outstanding €18.7m, have had their maturity extended from 31 October 2026 to 31 October 2028. This provides two additional years of financial breathing room.
Status of the Baltic developments
In Tallinn, in the Kristiine City district, the Uus-Kindrali project reports 90% of apartments sold in the White Building, while the neighbouring 90-unit building is already over 40% sold. The Musketäri Majad development, launched in early 2026 with 144 apartments, is progressing as planned, as are the design and permitting stages for the district’s other schemes.
In Riga, the Blue Marine development is moving forward on schedule. In Vilnius, City Villas maintains its stance in the city’s most exclusive segment, commanding high prices. The official launch of the Borgo project, 50 upscale apartments within a historic building in Vilnius’s Old Town, is slated for the second half of 2026.
Making sense of the half-year
Preatoni Group is a unique player in the listed hospitality landscape: neither an asset-light brand operator nor a conventional property investment company, but an owner-operator that owns its freehold land and develops it in-house. Founded by Ernesto Preatoni, cited by the company as one of the pioneers of Sharm El Sheikh’s development, the group employs over 1,500 people and is headquartered in France.
This half-year presents a two-part picture: a hotel business that management states is meeting expectations without providing figures, and a real estate subsidiary weathering a transition period while generating more cash flow. The upcoming full-year results will show whether the announced rise in revenue per room in Sharm El Sheikh translates onto the bottom line.
