Barceló to Invest €100 Mn in Hotel Renovation in 2014

Barceló Corporación Empresarial gambles on its hotels refurbishment and this year the firm is going to destine €100 million for this intention.

Last year, the group from Majorca controlled by the Barceló family spent €76 million on renovation of such establishments as the Barceló Sants (Barcelona) and the Barceló Castillo Beach Resort (Fuerteventura), among others. At present 95% of its hotels are new or have just been refurbished and almost all of them are labelled as 4- or 5- star.

In total, at 1st May 2014, Barceló disposed of 140 hotels and 37.380 rooms in 17 countries. The chain owns about 39% of all.

Together with leave from the Playa Hotels & Resorts fund in 2013, the real estate of the firm got reinforced. Barceló held 23% in the vehicle which stake was swapped for equity and 9 hotels (6 in Mexico and 3 in the Dominican Republic). The entire operation involved €307.32 million (at current exchange rate).

Moreover, the hotel chain wishes to shed stakes in Crestline and other companies.

En 2013, Barceló multiplied by 7 its net profit which showed €25 million. Its ebitda was of €183.3 million and around 75% originated from hotels in Southern America, principally from Mexico and the Dominican Republic. Revenues rose until by 39.5%, to over €1.12 billion. Spain contributed with €734.5 million.

Barceló Viajes doubled its sales network to 688 offices, launched new brand VaiVai Viajes and gave up selling the National Geographic products. At the end of 2013, 23.327 people worked for the chain.

Original article: Expansión (by Yovanna Blanco)
Translation: AURA REE

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