Hispania Buys Hotel Paradise Portinatx In Ibiza For €11M

19 July 2016 – Expansión

The Socimi Hispania Activos Inmobiliarios has acquired 100% of the shares in the company Later Deruser, owner of the Hotel Paradise Portinatx in Ibiza (Balearic Islands), for €11 million, which will now be operated by Barceló.

Hispania has performed the operation through its subsidiary Bay Hotels & Leisure, according to a statement filed with Spain’s National Securities and Markets Commission (CNMV).

Hotel Paradise Portinatx is a three-star facility, with 134 rooms.

As part of its investment strategy, Hispania will undertake a comprehensive refurbishment of the property, spending approximately €8 million, to increase it to an “adult only” 4-star hotel.

The Barceló Group will operate the hotel through a lease contract (with fixed and variable elements) under a framework agreement that covers all of the hotels operated by the group.

The asset is located on Playa de Portinatx, right on the beach. The town of Portinatx, in the north of the island, is seeing a significant upgrade of its hotel offerings.

According to available data about occupancy rates and average revenues per room, Ibiza has established itself as one of the primary destinations in the Mediterranean.

Hispania considers that there are still attractive investment opportunities in the hotel sector, as it gains presence in vacation destinations with growth potential, as well as in privileged locations.

According to the CEO of Hispania, Concha Osácar, this operation shows, once again, that the Balearic Islands – and Ibiza in particular, which is the best performing island in the region – are a key market for Hispania.

Currently, Hispania owns four hotels on the island: the recently repositioned Hotel Barceló Pueblo Ibiza, and three hotels recently purchased in Cala de San Miguel, which will be repositioned in 2017.

Original story: Expansión

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