GRUPO Iberostar reports earnings of 2.03 billion euros in 2016, an increase of 10% from the previous year
This year, GRUPO Iberostar will see the opening of six new Iberostar Hotels & Resorts establishments, as well as an investment of more than 125 million euros in the renovation and modernization of its hotels
In 2016 the company celebrated its 60th anniversary, marking six decades of dedication to the tourism industry and quality offerings for guests
GRUPO Iberostar ended 2016 with earnings of 2.03 billion euros, a 10% increase from the previous year. These results are a true testament to the group’s continuous growth internationally and reflect the company’s ongoing commitment to quality and customer service, which will continue to be a central focus in 2017.
2016 MILESTONE ACHIEVEMENTS
60th Anniversary
2016 marked the 60th anniversary of GRUPO Iberostar being a leader in the international tourism industry. For the last six decades, Iberostar has been dedicated to providing quality offerings internationally and now has top hotels in 17 countries around the world and has new companies such as W2M and Almundo.com.
Occupancy and Bookings
Iberostar Hotels & Resorts, the Group’s hotel division has evolved positively both in EMEA and America.
In 2016, the Group’s Spanish destinations outgrew other Mediterranean destinations with record figures in both occupancy rates and results. The Canaries, Balearics and Andalusia reported an excellent year in terms of occupancy and RevPAR, exceeding the rest of the region. These excellent results are attributed to the strengthening of the Spanish market and the upward trajectory of traditional outbound markets such as Germany and the UK. Average occupancy for the division stands well over 80% and the RevPAR has now reached double figures. The Latin American markets also showed a steady growth in occupancy, rates and profitability in the Group’s Mexican, Cuban and Dominican Republic hotels.
Investments
In addition, 2016 saw the launch of the chain’s ambitious investment program with a twofold objective: firstly, the opening of hotels in new destinations such as the USA (Iberostar 70 Park Avenue, New York) and Ibiza (the Iberostar Selection Santa Eulalia Ibiza Ibiza), and renovation and modernization of several hotels to align with guests’ changing needs and the company’s quality standards.
In 2016, as part of the company’s profit reinvestment policy, more than 90 million euros were allocated to the renovation of many of the hotels in the Group’s portfolio.
GRUPO Iberostar Diversification
GRUPO Iberostar has opted to follow a strong diversification strategy for its business portfolio within the international tourism industry. As part of this strategy, GRUPO Iberostar holds majority stake in Almundo.com, Argentina’s largest travel sales network and the second largest online travel agency that boasts 50 points of sale. In 2016 the company further consolidated its online presence in regional markets including Mexico and Colombia, resulting in earnings similar to the previous year, despite the major currency devaluation in those countries the company operates in.
Similarly, W2M (WORLD2MEET), the global tourism service supplier owned by GRUPO Iberostar, focused on extending its international presences and strengthening its current destinations.
PLANS FOR 2017
Expansion and New Openings
Iberostar Hotels & Resorts is constantly searching for new business opportunities to secure its sustained expansion and growth in two major directions: new destinations that can be added to the existing offer and growth in those areas in which it already operates. The company will be opening six new hotels in 2017:
• Iberostar Grand Portals Nous (Majorca, Spain)
• Iberostar Berkeley (South Beach, Miami, USA)
• Iberostar Bella Vista (Varadero, Cuba)
• Iberostar Club Palmeraie Marrakesh (Morocco)
• Iberostar Selection Cancún (Mexico)
• Iberostar Playa Blanca (Cayo Largo, Cuba)
(Appendix 1 of this press release contains further details of these new hotels).
Destination Cuba
Iberostar Hotels & Resorts and Cuban company AT Comercial S.A. have recently been authorized by the Cuban Government’s highest executive body to set up Logística Hotelera del Caribe (LHC), a public limited company and joint venture in which Iberostar owns 70% stake and LHC owns 30%. The company will be situated in the Mariel Special Development Zone, located in the northern region of the island.
Cuba currently has 65,000 hotel rooms, a figure that could reach 85,000 by 2020, and could potentially rise to 110,000 in 2030. The Cuban Government has entrusted Iberostar with the creation and development of a hotel supplies import company (LHC) to improve the quality standards of Cuban hotels. This is part of the Cuban Government’s drive to support the growth and improvement of the quality of its products and services, thereby ensuring the upmost levels of satisfaction from visitors.
The newly created LHC will provide general logistic services, including the import, wholesale and distribution of goods, as well as their export to major tourist resorts close to Cuba. The company’s primary focus will be on hotel supplies, but they plan to extend their services to exporting global products as well.
In addition, Iberostar Hotels & Resorts also intends to increase its hotel portfolio on the island to 17 by the end of 2017. Major projects on the island include the Iberostar Riviera and the Iberostar Grand Packard in Havana; the Iberostar Heritage Casa Granda, Iberostar Heritage Imperial and Iberostar Gran Hotel in Santiago de Cuba; and the Iberostar Colonial in Cayo Coco.
(Appendix 2 of this press release contains full details surrounding each of these hotels.)
The Increasing Relevance and Growth of Urban Hotels
In an effort to gradually strengthen its presence in the urban market, Iberostar Hotels & Resorts continues to search for new expansion opportunities in top international tourist destinations. The most immediate urban opening will be the chain’s second hotel in the USA, Iberostar Berkeley, located on Miami’s South Beach.
Within the next three years the company will have a total of 15 urban hotels located in some of the world’s most popular tourist destinations, including Budapest, New York, Madrid, Miami, Havana, Barcelona, Lisbon, Santo Domingo and Lima.
Ownership of 60% of the Total Number of Beds
Iberostar Hotels & Resorts currently owns 60% of the total number of beds it manages within its extensive portfolio of hotels around the world, a testament to the company’s considerable real estate assets. Furthermore, the company’s ongoing renovation strategy is aimed to offer guests cutting-edge services of the highest standard, and in the last five years more than 50% of the company’s hotels have been awarded 5-star class status or included in Iberostar’s most prestigious category: The Grand Collection.
Renovation Projects for 2017
Iberostar Hotels & Resorts’ ongoing renovation strategy is aimed to offer guests cutting-edge services of the highest standard. In recent years the company has made major efforts to reinvest profits into projects to renovate and modernize its hotels, aligning with guests’ changing demands and Iberostar’s quality standards. In 2017, Iberostar will invest 125 million euros into renovation projects for JOIA Bávaro by Iberostar (Punta Cana, Dominican Republic), Iberostar Selection Cancún (Mexico), Iberostar Waves Alcudia Park (Balearic Islands), Iberostar Waves Playa de Muro (Balearic Islands), Iberostar Waves Bahía de Palma (Balearic Islands), Iberostar Selection Santa Eulalia Ibiza Ibiza (Ibiza, Balearic Islands), Iberostar Waves Málaga Playa (Andalusia), Iberostar Selection Lanzarote Park (Canary Islands), Iberostar Selection Anthelia (Canary Islands) and the JOIA Salomé by Iberostar (Canary Islands).
(Appendix 3 of this press release contains full details of each of the projects mentioned here.)
Innovation and Digital Transformation
Additionally, in 2017, Iberostar Hotels & Resorts will be launching Iberostar APP, a new phone app for guests that will enable them to enjoy their experience at the hotel to the fullest. The Iberostar APP will feature functions such as the e-concierge, whereby guests can chat with hotel staff in real time. The new app has already been tested at five Iberostar hotels and will be gradually introduced into the rest of the portfolio throughout 2017.
Key Offerings: Gastronomy, Entertainment, Service, Décor and Wellness
This year Iberostar Hotels & Resorts will be focusing on product and service innovation, as a part of its commitment to improving guests’ experience. These include gastronomy, strengthening the culinary offerings at all properties; entertainment, revamping leisure activities for adults and children; décor including major refurbishments to create a unique and highly personalized style; and wellness, with a full range of sporting and wellness activities, designed to offer guests healthy lifestyle options during their vacation.
The focus on gastronomic excellence has played a key role in the success of the chain’s European hotels. Following the opening of the Marea and Cataria restaurants at the Iberostar Selection Playa de Palma and Iberostar Selection Andalucía Playa in 2016 along with the agreement with El Capricho to serve what many consider to be “the finest meat in the world” at a number of the chain’s Spanish hotels, Iberostar Hotels & Resorts will continue to enhance its restaurant offerings in order to remain at the forefront of the latest culinary trends.
As for the American hotels, The Grand Collection category (Iberostar’s most prestigious category) will be a main focus for the company in 2017, with major refurbishment projects planned for the products and services offered. To uphold the company’s policy to offer its guests personalized program and one-of-a-kind experiences, Iberostar Hotels & Resorts will continue to expand its exciting and highly innovative Fit & Fun program, designed to allow guests to follow a healthy lifestyle that includes one-on-one sessions with a trainer at the fitness room, the pool or the beach. In addition, the second edition of IberostarChef on Tour, a unique initiative that offers guests staying at The Grand Collection hotels in the Caribbean the chance to experience the culinary dishes of international Michelin star chefs, will remain a key priority for the next few months it’s offered.
2017 is set to be a year filled with exciting goals for GRUPO Iberostar; a year in which the company is confident it will continue doing what it does best: offering its guests truly memorable vacation experiences.
APPENDIX 1: NEW OPENINGS FOR 2017
• Iberostar Grand Portals Nous, Majorca. This new 5-star hotel is Majorca’s first in The Grand Collection and boasts a total of 63 rooms. Located in Portals Nous and set to open in April 2017, it features a number of suites designed by Marcel Wanders in addition to the most exclusive and luxurious services.
• Iberostar Berkeley, South Beach, Miami. This will be Iberostar’s second hotel in the U.S. Situated in South Beach, one of Miami’s most charming areas, this hotel will offer 96 rooms in an exclusive Art Deco style building. Scheduled to open April 2017.
• Iberostar Bella Vista, Varadero, Cuba. This 5-star hotel will be located in Varadero, overlooking one of the world’s finest beaches. Its 827 rooms, spacious grounds, four pools and extensive entertainment offerings will position it as one of the best holiday hotels in the area. The hotel is scheduled to open April 2017.
• Iberostar Club Palmeraie Marrakesh, Morocco. Standing in the heart of Marrakesh’s palm grove, the hotel is just 15 minutes from the city’s center and is scheduled to open April 2017. The facilities include an 11 hectare Mediterranean garden and three swimming pools, a new splash pool, Star Camp for the kids, a spa and nine golf courses within the vicinity of the hotel.
• Iberostar Selection Cancún, Mexico. A new tower housing 156 junior suites will be finished by the end of the year at this 5-star hotel. The new accommodation options all boast sea views and facilities of the highest standard. The hotel will also have a new restaurant.
• Iberostar Playa Blanca, Cayo Largo, Cuba. This recent addition to the company’s portfolio is a charming hotel situated on the paradisiacal island of Cayo Largo del Sur. The property boasts 374 rooms, villas and bungalows, three swimming pools, three bars, a buffet restaurant and two speciality restaurants.
APPENDIX 2: CUBAN PROJECTS FOR 2017
• Hotel Riviera, Havana. Iberostar took over management of this classic 1950s Cuban style hotel on January 1st, 2017. Standing on the famous Malecón esplanade in the heart of the Cuban capital, this classic 1950s Cuban style hotel will be undergoing major renovations. Once complete, it will have 352 fully redecorated rooms and will be upgraded to 5-star status.
• Iberostar Grand Packard, Havana. This hotel is Havana’s first in The Grand Collection and will boast an unbeatable location on Havana’s Paseo del Prado Avenue. Guests will be able to enjoy stunning views of the bay from the luxurious rooms as well as the magnificent rooftop.
• Iberostar Heritage Casa Granda, Santiago de Cuba. This historic 4-star hotel has 58 rooms and is located in the center of the city, next to Céspedes Park. Guests can also enjoy a magnificent terrace overlooking the park.
• Iberostar Heritage Imperial, Santiago de Cuba. Surrounded by landmark buildings and situated in the city center, this 4-star boutique hotel has 39 rooms and features some of the most eye-catching architecture in the area.
• Iberostar Gran Hotel, Santiago de Cuba. Boasting 42 rooms, this 4-star hotel is near the city’s finest tourist attractions. Built in the Chicago School style of architecture, the exterior is characterized by numerous eclectic elements with a Neoclassical influence.
• Hotel Colonial, Cayo Coco. A 4-star hotel standing on the beachfront of the paradisiacal Cayo Coco. Built in the colonial style, this hotel has all the facilities guests need for a perfect family holiday.
APPENDIX 3: MAJOR RENOVATION PROJECTS FOR 2017
• JOIA Bávaro by Iberostar (Punta Cana, Dominican Republic). The hotel will undergo modernization of the communal areas.
• Iberostar Waves Alcudia Park (Balearic Islands, Spain). Once renovation is complete, this hotel will reopen with new to the ‘Adults Only’ facilities, including 60 new Star Prestige suites and an exclusive rooftop lounge.
• Iberostar Waves Playa de Muro (Balearic Islands, Spain). The project includes renovations to the property and the construction of new leisure facilities.
• Iberostar Waves Bahía de Palma (Balearic Islands, Spain). Following a renovation, this hotel will reopen with an additional floor with extra rooms and a rooftop swimming pool.
• Iberostar Selection Santa Eulalia Ibiza Ibiza (Ibiza, Spain). This hotel will be adding new ‘Star Prestige’ rooms and leisure areas.
• Iberostar Waves Málaga Playa (Andalusia, Spain). The hotel will renovate of all its rooms, leisure, and gastronomy facilities.
• Iberostar Selection Lanzarote Park (Canary Islands, Spain). Renovation work at this hotel includes the complete refurbishment of all its facilities and the creation of additional rooms. Once work is complete, the hotel will be upgraded to the 5-star status.
• Iberostar Selection Anthelia (Canary Islands, Spain). This hotel will undergo a full refurbishment of all its rooms.
• JOIA Salomé by Iberostar (Canary Islands, Spain). The project covers the complete renovation of all the facilities and will include 32 exclusive suites and a new infinity pool featuring a bubble bed and hydromassage zone.
