On 23 January, at the 39th edition of the FITUR, the Barceló Hotel Group revealed its results of their 2018 results, which included 13 new hotels, as well as announced its expansion plan for 2019.
2018: The Barceló Hotel Group becomes one of the leading groups in Spain and ranked amongst the Top 30 Internationally.
2018 saw the Spanish hotel group exceed its rate of growth in comparison to recent years. With an additional 13 new hotels and 2,519 rooms, the group now has a total of 249 hotels and 55,014 rooms across 22 countries. These figures now place the business as the third largest hotel group within Spain and 29th internationally. Notable news from 2018 includes the expansion into Portugal; becoming a prominent hotel group in Morocco and developing a presence in the Middle East, amongst others.
New 2018 openings:
Occidental Vigo (Spain): 104 rooms
Royal Hideaway Corales Resort (Spain): 235 rooms
Barceló Imagine (Spain): 156 rooms
Barceló Ourense (Spain): 90 rooms
Allegro Palma Real (Cuba): 470 rooms
Occidental Pera Istanbul (Turkey): 61 rooms
Barceló Istanbul (Turkey): 270 rooms
Allegro Madeira (Portugal): 124 rooms
Occidental Lisboa (Portugal): 105 rooms
Barceló Tánger (Morocco): 138 rooms
Allegro Agadir (Morocco): 321 rooms
Barceló Anfa Casablanca (Morocco): 206 rooms
Occidental IMPZ Dubai (United Arab Emirates): 239 rooms
Total: 13 hotels and 2,519 romos in 6 countries
Jaime Buxó, Chief Development Officer at Barceló Hotel Group, comments that “following the financial crisis, the last three years (2016-2018) has seen us reactivate the expansion plan and we have added 35 new establishments and 6,971 rooms to our portfolio, thanks to our ability to negotiate with local groups and independent hotels. We offer flexible proposals and work with hotels and groups who offer great value hotels with unique personalities, while providing them with the highest possible long-term profitability.” Looking ahead, he concludes, “we have an exciting few years in the pipeline with the guaranteed expansion of more than 6,000 rooms. These will beincorporated by 2021 as well as the signing of 75 new projects as part of our new Strategic Plan (2019-2021).”
Historical Economic Results from 2017
Raúl González, CEO of EMEA of Barceló Hotel Group comments, “although the economic results of 2018 are yet to be finalised, they will be similar to the results achieved in 2017, which was a historic year for us. In 2018, we will achieve 3,000 million euros in sales with a consolidated net profit of 180 million euros “. In terms of regional activity, he adds, “Latin America improved slightly with 82% on average compared to 80% in 2017; while Spain and Europe remained the same with 73%. ” In RevPAR it was the opposite, “Spain and Europe closed with an average price of 101 euros per night compared to 100 euros in 2017; and in Latin America it was 151 dollars compared to 152 dollars in the previous year; in any case, very similar figures in both exercises.”
Another factor to consider has been the fluctuating value of the US dollar. He adds that “in 2018 it was valued at 1,188 compared to 1,114 the previous year, so a weaker dollar ensued a similar net profit to that of the previous year of 180 million euros “. Finally, “the significant reduction in net financial debt that we have achieved, going from 330.7 million euros in 2017 to 79.2 million euros in 2018 should be highlighted. This will allow us to carry out an important plan of reforms and investments for an amount of 250 million euros in 2019. ”
A new cycle to be implemented by the Barceló Hotel Group
According to Raúl González, “interest in the Spanish tourism sector from international visitors is likely to decrease in 2019, due to the recovery of other competitive destinations in North Africa and Turkey.” He explains that although they are cautious “we maintain a positive outlook for 2019 as we believe that during the previous commercially successful years, we have carried out strategic investments, that will enable us to take advantage of the opportunities that will arise during this new phase. In our view, the Spanish hotel market will remain attractive for investors.”
About Barceló Hotel Group
Third biggest hotel chain in Spain and the 29th biggest in the world. The Group currently operates 249 city and leisure 4 and 5-star hotels,and nearly 55,000 rooms distributed among 22 countries worldwide and marketed under 4 brand names: Royal Hideaway Luxury Hotels & Resorts, Barceló Hotels & Resorts, Occidental Hotels & Resorts and Allegro Hotels.