Barcelo

Hotel Division: Barceló Hotels & Resorts

Barceló Hotels & Resorts

The Barceló Hotels & Resorts portfolio consists of nearly 100 hotels and almost 38,000 rooms, distributed over 18 countries.

2014: cycle change

Refurbishment

The increase of rates recorded this year in some areas, such as the Dominican Republic and Riviera Maya, has been one of the most influential factors in income and EBITDA improvement. This growth has been possible, in nearly all cases, due to the ambitious refurbishment plan that the chain has implemented over the last 7 years. From the start of the economic crisis in 2007 until now, the group has invested more than 1,000 million euro in refurbishing some of its flagship hotels, both nationally and internationally. These include the Barceló Bávaro Beach Resort, the Barceló Maya Beach Resort, the Barceló Sants (Barcelona), the Barceló Castillo Beach Resort (Fuerteventura), the Barceló Hamilton Menorca and the Barceló Illetas Albatros (Mallorca), as well as many others.

Time has proved that the chain made the right decision when, at the start of the recession, it decided to take advantage of the reduced occupation at the hotels and upgrade them. This meant that they were ready when the cycle changed and could operate at 100% with a new and extremely competitive product for customers.

Expansion

During the Barceló Hotels &Resorts 2005-2010 strategic plan, that partly coincided with the most dynamic period of the property bubble, the chain increased rapidly, incorporating between 20 and 40 new hotels each year. Logically, one of the most noticeable effects of the recession has been the deceleration of expansion and the disaffiliation of establishments that, reaching the end of their contracts, would not offer the desired profitability.

As a consequence of that new economic perspective that we gained, growth is going to begin again, something that Barceló Hotels &Resorts has experienced since the very start of 2015. After a 2014 which saw the opening of two hotels, the Barceló Tiran Sharm (Egypt) and the Barceló Milan, there are high expectations this year for the latter to be considered by many as ‘the’ hotel for the International Exposition that will take place in Milan from 1 May until 31 October. Our chain started this year by opening its first hotel in Puebla (Mexico), and by signing contracts that will allow us to open 6 new hotels between now and 2016: 2 hotels in the centre of Madrid, 1 hotel in the Ensanche district of Barcelona, its first 5-star hotel in Tenerife and 2 hotels in Algeria.

This exciting start to the year, which signs indicate that it will carry on for the whole financial year, seems to put the chain on the path to growth again, so it will be able to increase its current portfolio of 95 hotels and nearly 30,000 rooms in 18 countries. There are also 74 establishments in the U.S. that are operated by Barceló Crestline, a management company of which Barceló Hotels &Resorts owns a 40% shareholding.

If 2013 showed signs of recovery, 2014 appears to be confirmed as the year of the anxiously-awaited cycle change. There are many signs that indicate that economic recovery is a reality and that tourism can again carry our country on a path towards growth.