Paradores Investigates an Investment Plan For Jewels in Its Chain

27/03/2014 – Expansion

After cutting in expenses and staff, Paradores takes another step towards loss farewell and seeks new investment in its hotel jewels, like León or Santiago. The public chain run by Ángeles Alarcó has arranged a competition for external advisors that would analyze present state of its 12 most valuable paradors (tourist hotels) and suggest solutions for decreasing losses.

According to the bid documents, the work result will be a foundation for a long-term investment plan for the following hotels: Mérida, Zamora, Aiguablava (Gerona), León, Jaén, Baiona (Pontevedra), Santiago de Compostela, Tortosa (Tarragona), Olite (Navarra), Úbeda (Jaén), Nerja (Málaga) and Ceuta. Althought the service contract expires after three months, the named company will have to provide an interim report on half of the establishments within 6 weeks from signing the agreement.

The documents shall describe physical state of each building (in terms of facilities, acustical and thermal conditions and finished goods) and shall draw a 6-year action plan for each of the properties, with estimated budget and suitability for various scenarios. (…).

Likewise, the future advisor will be responsible for preparing a priority ranking and indicating the building to be refurbished first. In parallel, they shall calculate the cost and approximate term for creating SPAs in Santiago and Nerja paradors and a thalassotherapy center in the hotel of Baiona. Potential candiates may issue their offers for a €145.200 contract with Paradores  by April 4th.

(…) The company is considering launching a franchise network with first establishments in Badajoz or Béjar (Salamanca). (…) Paradores was founded in 1928 and currently runs 94 hotels. In spite of introduction of the viability plan aiming at saving €50 million thanks to reduction in expenses, staff and number of establishments, the company is expected to lose €8 million this year. (…).

What is more, Paradores joined El Corte Inglés in a campaign promoting Spain as a touristic destination in Sao Paulo, Buenos Aires and the New York, among others.

 

 

Original article: Expansión (Yovanna Blanco)

Transalation: AURA REE

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