8/01/2015 – Expansion
Hotel chain Sidorme has just opened a 3-star, 44-key hotel in Fuencarral Street, Madrid, at 500 meters away from the known high street Gran Via. Sidorme has invested €2.2 million in this rented building. At the end of December, another contract was nailed down on a property at Puerta del Sol Square. Set to open its doors in 2016, the 70-room hotel is undergoing a retrofitting worth €4 million.
After the two openings, Sidorme will own three hotels in the Community of Madrid region as last July the chain inaugurated an establishment in Las Rozas (pictured). Sidorme is controlled by 14 family offices from all around the country. All the hotels have three stars, a model comparable to Ibis.
The company has changed its strategy, now looking to central locations and rather to lease than to buy.
‘This is the perfect time to get resonable rents in the city centers’, assures its CEO Jairo González. ‘Moving from one place to another allows us to double the prices, depending on the demand’, he says. Sidorme advocates for growth in Barcelona and Madrid, while analyzing investment opportunities in Valencia, San Sebastian, Bilbao, Oviedo and Salamanca.
The label ‘low-cost’ will be preserved. ‘We aim at offering decent rooms with comfortable beds, Internet and showers’, Mr Gonzalez explains.
Currently, Sidorme operates in 10 hotels, of which 5 are situated in Catalonia. In 2014, the firm earned €6.9 millin and gained €400.000. In 2015, the chain expects to earn €8.5 million and gain €0.7 million.
Original story: Expansión (by Artur Zanón)
Translation: AURA REE