26 January 2017 – Expansión
B&B Hotels is putting its foot down on the accelerator in Spain and wants to double its size in the country over the next three years. The French hotel group, which is owned by the private equity fund PAI Partners, currently operates 20 hotels in Spain following its purchase of the low-cost chain Sidorme last October. It is planning to grow its portfolio to 40 hotels by the end of 2019, according to Jairo González, CEO at B&B Hotels for Spain and Portugal.
“PAI Partners have owned B&B Hotels since March 2016 and they expressed their interest in Sidorme immediately”, said the Director. B&B Hotels has operated four hotels in Spain since 2015 and added 15 assets to its portfolio last year through the purchase of Sidorme. Moreover, in January, the chain incorporated a new hotel in Vigo.
The private equity fund’s commitment to Spain is “clear”. “The idea is to open five hotels this year and to commit to opening another five in the future. Our plan is to open 20 more hotels between now and the end of 2020, which would mean doubling our current operations”, said González.
Moreover, the company wants to make its debut in Portugal. “It is a very interesting market and it is perfect for a product such as ours. We want to open our first hotel in the country during 2017”.
Last year, the company recorded turnover of more than €20 million in Spain and an EBITDA of more than €5 million, which represented a two-fold increase compared to the previous year. “The forecast for this year is to achieve growth of between 20% and 30%. Our size still allows us to do that”, said González.
And he added: “Rapid growth generates a certain degree of chaos, which, if channelled in a productive way, permits a very positive vibrant effect, but, otherwise, is self-destructive”.
The company’s plans also include selling the owned hotels it inherited from Sidorme – eight of the twenty assets in its current portfolio – to focus on the management of its assets. The company manages almost 3,000 rooms with a RevPAR (average revenue per available room) of around €30.
In terms of the tourist apartment business line, the company will analyse any new opportunities that fit with its strategy. “We see this business as an opportunistic option. If we come across operations such as the one on Calle Fuencarral, 46 (in Madrid), we will be delighted to proceed, but we are only interested in buildings that are close to existing hotels so that they can complement the existing products”, added the Director.
Sidorme currently operates apartments on Calle Fuencarral, 46, which are located just a few metres from a Sidorme hotel on the same street.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake