Schauinsland-Reisen Buys Two Hotels In Fuerteventura

28 November 2016 – Real Estate Press

The German tour operator Schauinsland-Reisen has acquired Hotel R2 Río Calma and the Maryvent apartment complex, both located in Fuerteventura.

According to a statement issued by the Company, the Canary Islands represent one of the main destinations for the tour operator. For this reason, Schauinsland-Reisen has invested in two very well-known and well-regarded tourist complexes in the Canary Islands. The two buildings are located on the Costa Calma de Fuerteventura and are very popular with the German market, according to the company. The group has acquired 100% of the superior 4-star Hotel R2 Río Calma, which has 416 rooms, and has become the majority shareholder of the Maryvent apartment complex, which is also a 4-star property.

Gerald Kassner, CEO at the company, appeared very happy with the success of the agreements and the incorporation of these hotels into the firm’s portfolio. “We are very happy to be acquiring these two beach-front hotels for the German market and for our clients. Both tourist complexes fit perfectly with the Schauinsland-Reisen portfolio in terms of quality and location”, he said.

The group highlights that the Maryvent apartment complex has a “prime location” right on the beach front at Playa de Costa Calma. Guests stay right next to the 1km-long, shallow beach. (…).

Within the R2 hotel chain complex, the tour operator Duisburgo also exclusively operates the 5-star R2 Romantic Fantasia Suites Design de Bahía Playa, the 4-star R2 Design Hotel Bhía Playa and the 4-star R2 Romantic Fantasia Dream.

In June, the German tour operator bought its first hotel in Mallorca, the Bahía Cala Ratjada, a 4-star property, formerly known as Eva Park.

Original story: Real Estate Press

Translation: Carmel Drake

Barceló Buys Spain’s 5th Largest Tour Operator

11 January 2016 – Expansión

The travel division of the Barceló Group has acquired all of the shares in Spain’s fifth largest tour operator, Special Tours, which specialises in tours of Europe, the Middle East, the Far East, Africa and Oceania, as it continues progressing with its plans to internationalise and strengthen its position in Latin America.

The Mallorcan group, which did not disclose any of the financial details of the operation, will incorporate Special Tours’ entire workforce, comprising 300 employees. It will also maintain the company’s current operations, which are headquartered in the Ciudad de la Imagen in Madrid, as well as its management team, led by Carlos Jiménez (pictured above), who will continue to be the CEO of the company after the integration.

The Barceló Group has said that this operation, which is pending approval by the corresponding regulatory bodies, forms part of the company’s commitment to product specialisation and internationalisation and goes some way towards fulfilling its objective of becoming a major player in the Latin market.

In this sense, the Barceló Group said that Special Tours has been operating in every country in the Latin American market, where it plays a very important role, for more than 30 years.

Focus on Latin America

The Corporate Director General of the Barceló Group’s travel division, Alejandro Subías, said that the operation represents a “significant” boost to the firm’s strategic plan and allows it to continue its commitment to consolidating its position in Latin America.

“With the integration of the team led by Carlos Jiménez, we are continuing to grow, complementing and strengthening our current product portfolio, and to offer even more travel options and experiences to our clients, which is the real raison d’être of our group”, added the director.

Original story: Expansión

Translation: Carmel Drake

Hilton To Double Its Presence In Spain In 3 Years

14 April 2015 – Expansión

Growth / The US hotel giant, which is the second largest chain in the world, operates eleven hotels in Spain and is now backing its own growth in Madrid, Barcelona and Sevilla.

Hilton is redoubling its commitment to Spain. The US hotel giant, which is the second largest chain in the world by size (with 4,115 properties and 678,630 rooms at the end of 2013, according to the ranking published by Hotels magazine) manages nine hotels in Spain (66% through franchise agreements).

In addition, Hilton owns two other hotels, which are due to be incorporated into its network imminently, including the Reserva del Higuerón complex (in Málaga). Hilton will take over the reins there this summer and will thereby return to the Costa del Sol after (an absence of) more than 40 years.

“Our model is based on management; investment is undertaken by a partner, and it has been difficult to finance projects in Spain in recent years, but now the market is starting to open up and we have always been very interested in it”, says Simon Vincent, President of Hilton in EMEA (Europe, Middle East and Africa) and a member of the chain’s Board of Directors.

“The market in Spain is very fragmented, but we believe that opportunities exist for refurbish existing hotels and incorporating them into our network; furthermore prices are beginning to recover”, he adds.

In terms of the numbers, Vincent’s objectives are clear: “Doubling our size in Spain in two or three years would not be unreasonable, since that is what we have done in Turkey”. In Europe alone, Hilton operates 353 establishments and will incorporate a further 447 hotels (into its network) over the next three years. Barcelona and Sevilla are both on its priority list, but its primary focus in Spain will be on Madrid. “We were the first international brand (in Madrid), when we opened the Madrid Castellana Hilton in 1953 (today the Intercontinental) and the capital city is a high priority for the group and all of its brands”, he says.

At this stage, a priori, Hilton has ruled out forming an alliance with a local partner to accelerate its growth, like Marriott did with AC Hoteles in 2010.

Market consolidation

Vincent is very familiar with the travel sector; he has two decades of experience working for groups such as Opodo – today part of the eDreams Odigeo group – and Thomas Cook. He considers that if Spain lacks a large hotel group of its own, then “that is because the market is regional with strong (local) brands, which is precisely one of its strengths”. Nevertheless, “over time, there will be consolidation in the industry and the tour operators will want to participate and control the experience they offer their customers”.

In terms of the emergence of Socimis (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria or Listed Real Estate Investment Companies), which are similar to REITs in the USA, the executive belives that “they may help to professionalise the sector, because that is how the funds that invest in hotels work”.

In his opinion, “the key (to success) in the hotel sector is size at the global level. For Hilton, the most important objective is not to have a presence in as many countries as possible, but rather to bring the greatest number of customers as possible to those countries through our (its own) system”. This is demonstrated by its loyalty program, which has more than 40 million users.

With 12 brands, Vincent argues that Hilton’s success is “based on our ability to convert revenues into profitability and growth, because our brands are in very high demand”. Thus, 19% of the hotels that the chain will open around the world over the next few years will bear one of the Hilton’s own brands. Nevertheless, the door is open to new brands as well. “We think that there is still space (in the market)”.

Over the medium term, Hilton’s route map includes increasing its scale and enhancing its geographical diversification and the appeal of its brands, as well as promoting the digitalisation of its content, and expanding its distribution channels.

Hilton recorded revenues of (US)$10,502 million and profits of (US)$673 million in 2014 and predicts further growth again this year, both at the operational level, as well as in terms of its share price, which is currently trading at $30.38/share. According to Vincent, “we are very happy with our IPO, the foundations of our business are solid and the market acknowledges that”.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake