22 August 2017
The hotel company has boosted its sales thanks to the acquisition of Sidorme Hotels in October 2016, together with the launch of new hotels such as the B&B Hotel Puerta del Sol in Madrid and the B&B Hotel Vigo.
The hotel group has quintupled it sales with this result
B&B Hotels, the hotel chain which specializes in offering comfortable accommodations with high-quality design and services, has quintupled its revenues in Spain in the first six months of this year compared to the same period in 2016, thanks to the 20 hotels the group operates in Spain.
The acquisition of Sidorme Hotels in October 2016, together with the launch of new hotels such as the B&B Hotel Puerta del Sol in Madrid and the B & B Hotel Vigo, haves boosted the group’s revenues above 13 million euros in the first half of the year.
This increase has had a positive impact on the hotel’s general operating profits, which have improved by 18 percentage points, leading Ebitda for the same period of 2016 to increase by a factor of fifteen, reaching 3.4 million euros in the period.
B&B hotels also obtained a 57% improvement in RevPar, with both occupancy (OCC) increasing by 45%, and the average price (ADR) by 9%.
Operating on a rental basis
In the first half of the year, the chain also sold the eight hotels it owned outright to the French fund Corum Asset Management so that all its hotels are operated on a rental basis.
“This is an excellent start for the first half of 2017, and we intend to improve our results even more by the end of the year. In 2016, the B&B Group registered the highest growth in the budget hotel sector, with a 15% increase, driven largely by the Iberian market, which further strengthened the confidence our shareholders and financial partners. We must take advantage of our good financial health to continue growing both in the Spanish market and in the Portuguese market with the medium-term intention of reaching the 40 hotels between the two countries. To achieve this goal, we will always offer our guests quality accommodations at an unbeatable price throughout Europe,” Jairo González, general manager of Spain and Portugal for B&B Hotels, stated.
B&B Hotels was the fastest growing independent hotel chain in Europe in 2016, reaching around 400 hotels in total, with 33,600 rooms and 6.8 million overnight stays.
The establishments are spread between France (254 hotels), Germany (93), Italy (25) and Spain (20). The company also operates five hotels in Poland, one in Morocco and another in the Czech Republic, and is expected to open units in Switzerland, Belgium, Austria and Brazil in the coming months.
The group intends to increase its network to 600 hotels by 2020, reaching some 50,000 rooms.
Original Story: agenttravel.es
Translation: Richard Turner