Tag: Fluxá family

Iberostar will Add 1,500 Rooms to its Portfolio in 2019

24 January 2019 – Expansión

Grupo Iberostar is continuing with its expansion plans and intends to add seven new hotels to its portfolio this year, containing 1,500 rooms in five countries. The new establishments will open in Palma de Mallorca and Madrid, in Spain; in Monastir and Sousse, in Tunisia, where the Spanish hotel chain already has a presence; as well as in Istanbul (Turkey), Rome (Italy) and Lagos (Portugal), where the group will make its debut.

The company, which opened 13 establishments last year, explained that 2019 is going to be “key” for the consolidation of the projects it has underway in Los Cabos and Litibú (Mexico) and for others, which are more advanced, in destinations such as Montenegro, Aruba, Albania and Cuba.

The chain, which is owned by the Fluxá family, owned 96 hotels around the world containing 31,720 rooms at the end of 2018. In Spain, the company owned 35 hotels and 9,888 rooms at the end of last year.

In terms of operational data, Iberostar closed 2018 with revenues of €2.659 billion, which represented an increase of 9% YoY, and it created around 4,000 jobs (…).

Original story: Expansión (by R.A.)

Translation: Carmel Drake

Optimism Abounds Amongst Spain’s Hotel Chains

10 April 2017 – Expansión

Meliá, Barceló, RIU and other groups are hanging the “No vacancy” sign up in top destinations and are increasing their prices, thanks to the pull of the overseas market and the recovery in domestic tourism.

The tourism sector is on a roll and the main Spanish chains – Meliá, Barceló, Iberostar, RIU, Grupo Piñero and Palladium – are getting ready to break records once again. The positive trend in demand, the pull of international tourism in both archipelagos, and the recovery in the domestic market in regions such as Andalucía are allowing the hotel groups to hang the “No vacancy” sign up in some of their destinations, such as in the Canary Islands, and achieve occupancy rates of between 80% and 90% in the Balearic Islands and Andalucía.

Despite the uncertainty generated by Brexit, the British market remains a mainstay for the hotel chains, alongside Germany and Central Europe, in addition to the recovery in domestic demand.

For example, Meliá forecasts growth of more than 6% in its average occupancy rate in vacation hotels in Spain, as well as an improvement in prices with respect to 2016. The markets with the greatest pull for the chain owned by the Escarrer family are the British and Central European, whilst demand from domestic tourists continues its upwards trend.

Meanwhile, Barceló forecasts growth of 6% in its occupancy rate at hotels in the Balearic Islands, with an average occupancy rate of 81% and an average room rate of €110, which represents an increase of 13% with respect to the previous year. In terms of Andalucía, the volume of reservations corresponds to forecast occupancy rates of more than 90% and an improvement of 26% in prices, according to the company.

In the case of Iberostar, the hotel chain owned by the Fluxá family forecasts an occupancy rate of almost 100% over the Easter holidays. Iberostar highlights the good performance of the United Kingdom, Benelux and Germany, compared with countries in Eastern Europe, where demand is “more stagnant”.

In terms of room rates, Iberostar states that prices have improved moderately, by between 2% and 3% on average.

For RIU, the economic situation in the Canary Islands, with very high occupancy rates, means it has little margin for growth, however, there is still scope for increases at the hotels on the Costa del Sol, which have been completely refurbished this season. (…). In terms of the best markets, RIU highlights German tourists, as well as a considerable improvement in the number of reservations from Scandinavian and British clients, plus a 5% increase in domestic tourism.

Meanwhile, Palladium highlights the sweet moment that Ibiza is enjoying. “The season has opened early on the island, with a large volume of tourists visiting in April. This has been made possible by hotels opening early and new flight connections”. Overall, hotel occupancy rates have risen by 4%, whilst prices have increased by 2.5% YoY, for the time being, in line with the annual forecast increase of 7%.

Finally, Grupo Piñero says that its three hotels in Tenerife area already full, with an improvement in prices of between 4% and 8%.

Optimism

And the euphoria of the hotel chains extends beyond Easter. The large hotel groups expect to set new records in 2017. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Hotel Revenues Soar Thanks To Tourism Boom

17 May 2016 – Expansión

Spain’s large hotel groups are preparing for another record year after figures for the start of 2016 have confirmed that the tourism boom is continuing across the peninsula. The volume of international tourists grew by 4.4% between January and April, to 16 million, which together with the successful Easter period and the continuation of the recovery in domestic demand, means that experts are forecasting a better summer season than in 2015 and another record year.

Last year, Spain received 68.1 million international tourists, up by 4.9%, which boosted the business of the main Spanish hotel chains. Barceló, RIU, Melià and Iberostar took advantage of the situation, favoured by instability in rival countries such as Turkey and Egypt, and closed 2015 with double-digit revenue growth. In 2016, profitability will continue to rise thanks to the continuation of the favourable environment and the fact that the chains are accelerating their entry into new markets, as well as remodelling their hotels.

Iberostar’s revenues soared by 29% to €1,847 million and it was the hotel chain that improved the most. The company owned by the Fluxá family will open six new properties in 2016 and will spend €90 million renovating its hotels.

Meliá’s turnover grew by 16.3% to €1,738 million, whilst Barceló generated revenues of €2,480 million in 2015, representing growth of 20.6%, and a net profit of €100.2 million, up by 116%. It was the most profitable Spanish hotel chain. This year the group expects to see improvements across all of the regions in which it operates. Specifically, its objective for 2016 includes generating EBITDA of around €326 million and a net profit of €125 million.

In the case of RIU, its revenues grew by 14% to €1,848 million. The company has announced its intention to invest €390 million in 2016 with the opening of four hotels and the complete refurbishment of another eight.

Meanwhile, last year Palladium recorded revenues of more than €500 million for the first time in its history, up by 20% compared with 2014. The chain owned by the former minister Abel Matutes plans to create 1,300 jobs in Spain and 300 in America. The group is undergoing an expansion process in Latin America, which includes opening new hotels in Jamaica and Mexico, with a committed investment of between €800 million and €900 million over five years.

According to the Chairman of Cehat, Juan Molas, who confirmed the current trend, 2016 is going to be a “very good year”, thanks to traditional markets, such as the UK, German and French and the recovery of the Russian Market, which had declined somewhat in recent years. In addition, new routes to Asian countries may boost alternative tourism besides the traditional sun and beach segment.

Meanwhile, the Chairman of Ceav, Rafael Gallego, said that some destinations, such as the Balearic Islands, Costa del Sol and Levante, are already close to overbooking. Instability in countries that compete with Spain, such as Turkey, is contributing to this record; as is the parity of the dollar with the euro, which makes Caribbean destinations less attractive; and the price of oil.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Iberostar Refinances Its Debt & Releases Guarantees

11 December 2015 – Expansión

New financing conditions / The hotel group owned by the Fluxà family is restructuring its debt and postponing its repayments until 2021. Its profits remained stable in 2014.

Iberostar is refinancing its debt for the second time in less than three years. In April this year, the hotel group controlled by the Fluxà family restructured the majority of its financial liabilities, according to the 2014 annual accounts of the parent company, Iberostar Hoteles and Apartamentos, filed with the Mercantile Registry. At the end of last year, the group’s short and long-term debt amounted to more than €400 million – most of which was held with financial institutions – and the liabilities between the group’s companies amounted to €533 million.

The agreement establishes a new timetable, which runs until 2021 – three extra years – and reduces the guarantees provided by Iberostar. Under the previous refinancing agreement, completed in 2012 and amounting to €768 million, the hotel chain offered a personal guarantee against the obligations of a €285 million loan, as well as mortgage guarantees over Spanish assets and the pledge of its 5% stake in ACS.

Percentage in ACS

The Fluxà family is the shareholder of the construction group that has been chaired by Florentino Pérez since 2006, when Iberstar sold its tourism division to Carlyle and Vista Capital for around €900 million to focus on the hotel sector. The private equity companies created Orizonia – which no longer exists as it filed for bankruptcy in April 2013 – and the Fluxà family invested almost all of the resources obtained on the purchase of ACS.

Iberostar paid €46.82 for each share – €826 million in total. Yesterday, ACS closed trading with a share price of €28.49, representing an increase of 2.76% during the session. In 2012, Iberostar was forced to recognise an impairment on its shareholding amounting to €147.12 million, which meant that the company recorded losses that year. At the end of 2014, the company recognised its shareholding in ACS at €36.41 per share and set its recoverable value at €40 per share. Despite this difference, Iberostar has not reversed the impairment recorded in previous years.

Iberostar is represented on the board of ACS by Sabina Fluxà, the Executive Co-Vice-President and CEO of the hotel chain, and it received dividends amounting to €20.34 million on its shareholding.

In 2014, the parent company’s turnover amounted to €43.47 million, down by 6.36%. The operating result decreased by 76.4% to €7.97 million, due to a reduction in other operating income and an impairment for the transfer of tangible assets and financial instruments. Iberostar expects to improve that figure this year, by maintaining stable turnover and cutting down its expenses. Nevertheless, the net result remained stable – at around €15.7 million – due to the positive effect of the lower tax charge on its profits.

As a whole, Iberostar and its subsidiaries invoiced €1,435 million in 2014, up by 29.6%, to place it in fourth position by turnover, surpassed only by Grupo Barceló – which also includes its tourism business – , RUI and Meliá.

Dividends

In 2014, the parent company allocated its profits to offset its negative results from previous years, but it distributed €55.7 million in dividends distributed against reserves. Moreover, it repaid debt amounting to €18.78 million owing to the Tax Authorities for Corporation Tax for the years 2007 and 2008.

Meanwhile, Iberostar has the option to purchase an additional 29.15% stake in Royal Cupido, in which it already holds a 29.5% shareholding, for €44.54 million. Pontegadea, the investment arm of Amancio Ortega, controls 45.5% of Royal, which owns five hotels in Spain and earned €3.43 million in 2014.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Iberostar Adds Two 4-Star Hotels To Its Portfolio

19 November 2015 – Expansión

Iberostar, the Mallorcan hotel group controlled by the Fluxá family, has incorporated two new hotels into its portfolio – one in Ibiza, its first on the Balearic Island, and the other in Estepona (Málaga), its sixth in Andalucía. The 4-star establishments will both open their doors next year.

Original story: Expansión

Translation: Carmel Drake