Trivago: Hotel Prices 30% Lower In Sept vs. Aug

19 September 2016 – El Economista

According to the tHPI study prepared by trivago.es., hotel prices in Spain are 30% lower in September compared with August, with an average cost per night of €115, whilst the average in Europe amounts to €134.

The most expensive cities to spend the night in a hotel this month are Palma de Mallorca (€176), San Sebastián (€175), Barcelona (€168), Cádiz (€132) and Madrid (€117).

At the other extreme, Lleida, Lugo and Murcia (€60 each), Castellón (€62), Vigo (€67) and Teruel (€68) are the cheapest cities.

The Spanish destinations that have experienced the highest increases in average prices over the last year are: Mojácar, Roquetas de Mar, Zahara de los Atunes, Oropesa del Mar and Almuñecar, where prices have risen by 54.9%, 54.8%, 52.9%, 52.6% and 51.5%, respectively.

By autonomous region, the most expensive places to spend the night in September are the Balearic Islands and Cataluña, which cost €167 and €138 on average, respectively. At the opposite end of the spectrum, the cheapest regions are Galicia (€71), Murcia and Asturias (€73) and Aragón (€74). (…).

Original story: El Economista

Translation: Carmel Drake

One Shot Wants To Expand To 15 Hotels, In Europe & USA

8 June 2015 – Expansión

Geographical diversification / One Shot Hotels, which has just signed its third project in Madrid, is evaluating an IPO on MAB in the medium term as it looks to open a hotel in New York.

One Shot Hotels is quickening the pace and looking towards Europe and the USA. The chain led by Luis Felipe Mendieta and owned by the Solís family is, despite its young age, the new star in Madrid’s hotel market. In just two years, One Shot has signed three projects in the capital. The latest one, the conversion of an office building into a hotel on Calle Fortuny, was completed a few weeks ago.

“One Shot began as a university start up, with several 30-bedroom hotels in Andalucía”, says Luis Felipe Mendieta, the CEO of One Shot Hotels. After obtaining financial backing from the Solís family, the project made the leap to the Premier League, in Madrid: “We saw that there was very little differentiation; price was the only factor”.

To differentiate itself, One Shot put its commitment to contemporary art on the table, by converting its hotels into a dynamic platform for unknown artists. One Shot 23, a 42-room three-star hotel on Calle Prado (pictured above) was the company’s first property in the capital, which opened in 2013.

Since then, One Shot has invested €35 million in eight projects. Only two of its hotels are currently operational – Prado 23 and Recoletos – but this year, the firm will open nine establishments in Valencia, Sevilla and London – owned 50% with the Arab investor Riz Ali- and more hotels will be opened in Madrid and Barcelona in 2016.

In terms of its model, the chain mainly focuses on four-star hotels that have between 50 and 80 rooms. “And for the purchase and rental, the management is complicated because we do not generate sufficient critical mass”, according to Mendieta.

Spain – Barcelona, Bilbao and San Sebastián; UK – London; Italy – Rome; USA – New York, Los Angeles, Miami and San Francisco – are all on the radar… In numbers, “our objective is to double our size, to 15 hotels by 2020, and mainly concentrate on overseas expansion”.

At an operating level, the company closed 2014 with revenues of €3.5 million and a gross operating profit of close to 35% of turnover. Once the eight hotels in the pipeline have been opened, the firm expects to generate revenues of between €18 million and €19 million p.a.. The average daily rate (including VAT and commission) at the Hotel One Shot Recoletos, on Calle Salustiano Olozaga, is €135 – €105 in the hotel on Calle Prado – with an occupancy rate of 96% and with 75% of the guests coming from overseas. “So far in 2015, we have noted an increase in the average revenue per room (RevPar), which is not being driven by an increase in the occupancy rate, but rather by an improvement in prices”, says Mendieta.

(…)

Mendieta is considering an IPO on the MAB, but says that “it is wiser to wait until the entire project has been developed”. And he explains why: “It is more attractive (for us) than a Socimi, which forces you to distribute dividends, whereas what we want to do is reinvest, and that is the strategy we value for expanding into the market in New York, listing on the MAB or joining forces with a fund”.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Barceló’s Profits Soar By 86% In 2014 To Reach €46.4M

23 April 2015 – Expansión

Barceló’s results are improving thanks to the economic recovery. The tourism group closed 2014 with turnover of €2,056.6 million, up 6.2% from a year earlier. Net income increased by 22.1% to €1,329.7million – €888.4 million in Spain – whilst its gross operating profit (EBITDA) amounted to €216.7 million. The group’s profit for the full year after tax shot up by 85.6% to €46.4 million and its net debt decreased by 15.3% to €717.3 million, to yield a ratio of net debt over EBITDA of 3.3x.

By division, Barceló Viajes, which will soon be renamed B The Travel Brand, recorded revenues of €1,200 million in 2014, up 14.2%. The increase came as a result of the decrease in the number of operators in the Spanish market – after the disappearance of Marsans and Orizonia – and the upturn in domestic demand.

At 31 December 2014, Barceló had 653 agencies, several tour operators and the charter airline Evelop.

Latin America

In the hotel segment, the company highlights the rise in the average daily (room) rate and revenue per room, which allowed it to offset the 0.6% decrease in its occupancy rate. In Latin America, Barceló’s properties recorded EBITDA increases of 30% and overall accounted for 74% of the group’s total profits. In addition to the increase in (room) rates, Barceló’s policy to refurbish its hotels has also had an effect. Since 2007, the group has spent more than €1,000 million in this area – €90 million in 2014.

At 1 March 2015, Barceló operated 95 hotels – it owned 55% of these and rented 27% – and 29,375 rooms in 16 countries. 59% of its properties are four-star hotels and 65% are sun and beach locations. Moreover, Barceló owns a 40% stake in Crestline, a company that manages another 74 properties in the USA.

After opening two hotels in 2014, the Group’s routemap includes resuming growth. As such, the chain has started the year by opening a new hotel in Puebla (Mexico) and will incorporate another six properties (into its portfolio) before 2016.

In parallel, at the beginning of 2015, the Group created a Socimi with Hispania. It will transfer 16 hotels and two shopping centres valued at €421 million to this entity to reduce its exposure to real estate, which is currently at its highest level ever. Similarly, in 2014, Barceló sold a number of its hotels in the USA and Dominican Republic.

This year, the goal of the company, which is controlled by the Barceló family and employs 23,681 people, is to generate EBITDA of €251 million and net profit of €99.8 million.

In 2014, Barceló agreed to distribute €10 million in dividends and has proposed an additional payment of €4.3 million in 2015, which is pending shareholder approval.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake