11/07/2014 – Expansion
Accor gains ground in Spain as the French hotel group is going to add the Hotel Convención to its portfolio. The property is situated on the O´Donnell street in the Spanish capital, very close to the Retiro park. Accor has signed a franchise agreement to operate under the Novotel brand with the family that owns the unit, the Santos, the holders of real estate manager Sandi. Irea acted as the advisor at the operation.
The four-star establishment was opened in 1978. During the process, it will remain open but will undergo a comprehensive refurbishment which will consume between 30 and 40 million euros. The works are predicted to end in 2016, converting the hotel into the largest Novotel in the world with 790 rooms.
With this size and 2.400 square meter area of conference rooms, being able to host up to 1.500 people, the Novotel Convención Madrid will compete with other hotels in the city like the Meliá Castilla (915 rooms), the Westin Palace (467 rooms) and the NH Eurobuilding (440 rooms).
Together with the new establishment, presently Accor has got three Novotels in Madrid under management. The firm expanded its Spanish portfolio to 86 hotels, 23% of them franchised. On the global level, Accor administers over 3.600 hotels in 92 countries through its 12 brands.
Once battered, hotel market in Madrid starts to recover in terms of occupancy but not prices. In 2012, the Hotel Convención gained €11.29 million, over 89% of the 2000 earnings. Apart from the establishment, Accor manages an aparthotel close to the Barajas Airport (Madrid).
Original article: Expansión (by Yovanna Blanco)
Translation: AURA REE