The Barceló Group ends 2019 with a historic set of results
To coincide with the up-coming Madrid International Tourism Fair (FITUR), the Barceló Hotel Group’s Chief Executive Officer for Europe, Middle East and Africa, Raúl González, today took part in a press conference held at the Barceló Torre de Madrid Hotel, where he took stock of the results for the end of 2019, and the development of the company during the year. |
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The Barceló Group ends 2019 with a historic set of results
To coincide with the up-coming Madrid International Tourism Fair (FITUR), the Barceló Hotel Group’s Chief Executive Officer for Europe, Middle East and Africa, Raúl González, today took part in a press conference held at the Barceló Torre de Madrid Hotel, where he took stock of the results for the end of 2019, and the development of the company during the year. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2020-01-20
Maintenance of historic results:In spite of the fact that during 2019 the tourist industry has been characterised by instability and a complex competitive climate (a consequence of factors such as the slowdown in economic activity and the demise of Thomas Cook; a reduction in the number of international tourists arriving due to the short-term cyclical change facing the industry; the significant increase in competition in distribution and the concentration of the industry), Barceló Group’s results at the close of the year have remained strong for the third consecutive year, approaching new historic levels.
Although the figures are as yet only provisional, the group estimates that its sales will exceed 3,100 million euros, and that the Recurring EBITDA and the Consolidated Net Profit will be similar to those of the previous year: at around 350 million euros and 180 million euros, respectively.
With regard to the hotel division, sales figures are expected to show an increase of 4% compared with 2018, reaching 1,355 million euros, a percentage increase similar to that calculated for the hotel sector EBITDA, which is forecast to be close to 320 million euros.Growth towards new territories:The good results are partly due to the growth experienced by Barceló Hotel Group throughout 2019, a year in which the hotel chain took on 12 new hotels and 3,700 new guest rooms, raising its offer to a total of 251 hotels and 57,493 guest rooms in 22 different countries.
The expansion achieved has allowed the Mallorca-based group to consolidate its position in North Africa through its advancement into a new destination, Tunisia where the chain has opened 6 hotels, to become that country’s leading international hotel operator. In addition, the acquisition of a hotel in Marrakesh (the Barceló Palmeraie) has enabled the group to consolidate its existing presence in Morocco’s principal cities (Agadir, Fez, Casablanca and Tangier).
During 2019, Barceló Hotel Group continued its growth in the United Arab Emirates (with the incorporation of Dukes The Palm, a Royal Hideaway hotel, located in the exclusive area of Palm Jumeirah), and strengthened its presence in Continental Europe by moving into Hungary with a hotel in the heart of Budapest. In addition, the chain has maintained its commitment to two of its main destinations: Mexico, where it has completed the construction of the fourth phase of the Barceló Maya Grand Resort complex with the opening of a stunning, 850-room, adults-only hotel (Barceló Maya Riviera), whose guests have access to all the resort’s facilities and services; and Spain, where the group has expanded its offer with the opening of the Occidental Fuengirola and of the Almirante Bonifaz in Burgos.
Furthermore, during 2019 Barceló Hotel Group’s Expansion team entered into contracts for 18 new projects in existing destinations and in new markets such as Sri Lanka and the Maldives (which will allow the Barceló brand to position itself in Asia), as well as in Poland, Slovenia and elsewhere. Thanks to these new contracts and to others previously agreed, the chain has a portfolio of future additions amounting to over 25 hotels and almost 7,000 guest rooms, of which 14 establishments and 2,500 guest rooms will come on stream in 2020.
The Mallorcan group’s aim is to attain a size that will establish Barceló Hotel Group as one of the great hotel groups, and will position it among the leading players in the sector at an international level. To this end, it plans to continue working to set up projects in strategic destinations across Continental Europe, Africa, the Middle East and Asia — while not forgetting its firm commitment to continued growth in Spain.
Hotels added in 2019:
– Barceló Palmeraie (Morocco): 5 stars and 252 guest rooms.
– DukesDubai, a Royal Hideaway Hotel (UAE): 5 stars and 566 guest rooms.
– Hotel Almirante Bonifaz (Spain): 4 stars and 79 guest rooms.
– Occidental Fuengirola (Spain): 4 stars and 316 guest rooms.
– Barceló Budapest (Hungary): 4 stars and 179 guest rooms.
– Occidental SousseMarhaba (Tunisia): 4 stars and 240 guest rooms.
– Barceló Maya Riviera (Mexico): 5 stars and 850 guest rooms.
– Barceló Concorde Berges du Lac (Tunisia): 4 stars and 129 guest rooms.
– Occidental Paris (Tunisia): 4 stars and 70 guest rooms.
– Occidental Sfax (Tunisia): 4 stars and 130 guest rooms.
– Occidental Marco Polo (Tunisia): 4 stars and 464 guest rooms.
– Barceló Concorde Green Park (Tunisia): 5 stars and 452 guest rooms.
Total: 12 hotels and 3,727 guest roomsA commitment to an operation focused on the creation of value:It can be seen from the contracts signed during 2019 that Barceló Hotel Group is continuing to grow as a hotel operator. The parent group’s change of model in favour of hotel management has enabled it to enter new markets, including Sri Lanka and Tunisia as already mentioned. In these countries, the company has set up joint ventures with local partners to operate new hotels, with the objective of making them leading players. At present, 57% of establishments are incorporated under the management model.
This success has been achieved thanks to the company’s own business model (which has been adapted to the particular characteristics of each country in which it operates) and to Barceló Hotel Group’s recognised capacity to sign up to contracts that take into account the needs of its local partners. This is something that sets the Mallorca-based group apart and positions it as one of the most flexible and adaptive European companies to become involved in each type of hotel project. This makes Barceló Hotel Group a trusted and flexible partner, capable of forging lasting relationships with all its collaborators.
This clearly defined strategy has positioned Barceló Hotel Group as the second-largest Spanish hotel chain, and led to its selection in 2019 as the World Travel Awards “Best hotel management company in the world”. This accolade marks a milestone at international level, as an acknowledgement of the magnificent work being done by the company to offer an excellent hotel management service throughout the world.A high level of investment in the portfolio:Over the past 5 years, Barceló Hotel Group has invested almost 1,500 million euros in refurbishments and new acquisitions in order to present its customers with the finest possible offer. Of these 1,500 million euros, around 380 million, or 25% of the total, were invested during 2019. Two of the major refurbishments undertaken during 2019 were those of the Barceló Maya Riviera and the iconic Santa Catalina, a Royal Hideaway Hotel (Gran Canaria). The latter, which is an outstanding hotel by virtue of its remarkable history and architecture, received an investment of 24 million euros to restore the hotel to the condition and grade of luxury originally envisaged for it. The Barceló Maya Riviera was an ambitious project involving the refurbishment of 850 guest rooms. It received an investment of over 220 million euros, and includes one of the largest conference centres in the region.A focus on the customer experience as a differentiating factor:In addition, the good results obtained by Barceló Hotel Group in 2019 serve to validate and underline the value of the company’s Customer Experience strategy, which sets it apart from the competition. In this area, the company has developed a strategy based on the differentiation and personalisation of key moments in each customer’s experience, in order to excite and impress them.
The strategy is based on the company’s 4 brands (Royal Hideaway, Barceló, Occidental and Allegro); on the design of the individual brands’ differentiated experiences; on technology focused on the customer experience, and on the company’s teams, who are at the forefront of its relationship with guests.
Throughout 2019, Barceló Hotel Group focused on improving customers’ experiences during their stay. Under the premise of experiential innovation, and with an emphasis on local character, the company has developed a wide range of options to enable customers to fully experience the real essence and flavour of each destination.
These initiatives include healthy breakfasts, prepared using home-made, zero-kilometre products (Royal Breakfast, B-Likeat, O!Breakfast and AllegroMornings); the Barceló Experiences (impressive experiences inspired by each destination, such as sailing on a llaüt on the waters around Formentor or discovering the hidden corners of Madrid in the company of locals known as B-Locals); and a series of innovative leisure concepts such as WeHappy — targeted at adults and families aged over 18 years — and Happy Minds, a programme for children based on H. Gardner’s theory of multiple intelligences.
This commitment to value creation for guests has a direct impact on the results achieved by hotels through improved income, additional income streams, increased efficiency, and the optimisation of costs. The strategy is not simply a matter of investing in the hotels, refurbishing the guest rooms and facilities and upgrading them in line with new trends, but of going much further to bring innovation into every point of contact with the customer. The objective of Barceló Hotel Group is to continue working towards being able to offer a differential, personalised experience to each of its guests.
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