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Grupo Pestana Bets More on Expansion of Pousadas de Portugal

 

22 August 2017

Pousadas de Portugal has reached 75 years of age. The Pestana group, which manages operations, has a new expansion plan, which goes beyond what had been agreed with the Portuguese state and foresees additional projects.

After having completed the first complementary expansion plan for Pousadas de Portugal in 2016, the Pestana group has already stated its intention to elaborate a new plan. Like the previous one, it foresees the development of three new inns in qualified buildings, with 200 rooms.

“The expansion plan is being analysed by Enatur,” the new president of Pousadas de Portugal, Luís Castanheira Lopes, who took over the position in February, told the Jornal de Negócios. Enatur is the public company responsible for the Pousadas de Portugal concession network, 51% owned by Turismo de Portugal (TP) and 49% owned by the Pestana Pousadas Group (GPP).

If by the year 2023, when the concession ends, three new inns have expected to be opened in the new plans, further expansions are still possible. “The current contract permits us to open more inns than had been included in the completed expansion plan, regardless of whether there is a second plan,” Castanheira Lopes said.

Castanheira Lopes chose not to elaborate on concrete projects but believes that Pestana, which has been responsible for the management of the Pousadas de Portugal brand since 2003, will be able to apply for properties belonging to Revive, the program that leases public assets to private companies for development and operation. However, the tenders already launched in Elvas, Guarda and Caldas da Rainha did not interest the Pestana group. “Either because we were already there or because we considered the locations to have no strategic interest,” he explained, pointing out their “interest” in other assets in the program.

At a time when Pousadas de Portugal has reached a venerable 75 years of age, there are no plans to change the corporate relationship with Enatur, where Pestana has a minority stake. “I can’t say that the model limits our activities or expansion plans because, despite everything, the relationship between our two companies has developed in a completely normal and positive way. There are, of course, some adjustments that could be made,” Castanheira Lopes added.

With GPP as a 49% stakeholder and a tenant of Enatur, there are “often situations of conflict of interest.” When the group submits proposals for new projects, it must abstain from the decision. “At Enatur, we cannot vote on this proposal. It is an unfair situation for a company that holds 49% of the capital, and which does not feel fairly represented in the decision-making process”, which is the responsibility of representatives of Turismo de Portugal, he adds. However, “we got used to living with this and it is no longer a problem”, Castanheira Lopes minimized. The focus is also on growing the business that, he reported, only registered profits in 2007 and 2016. “This year we also have [to make a profit], but we must also compensate for the negative results [of previous years],” he says.

Last year, operating results surpassed, for the first time, 10 million euros, compared to a turnover of 30 million. For 2017, the expectation is to increase the indicators, to 11 and 32 million euros, respectively.

Original Story: Jornal de Negócios – Wilson Ledo

Translation: Richard Turner