GRUPO Iberostar’s turnover for 2016 reached 2.03 billion euros, 10% up on the previous year’s figures. These positive results confirm the international consolidation of the firm’s various business lines and the success of its carefully planned expansion strategy.
2017 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 modernisation of its hotels.
In 2016 the company celebrated its 60th anniversary, marking six decades of dedication to the tourism industry and a clear commitment to quality combined with a truly international vocation.
GRUPO Iberostar’s turnover at the close of 2016 stood at 2.03 billion euros, 10% up on last year’s figure, once again confirming the Group’s solid position within the hotel industry. Its international presence, which extends to 30 countries, and its ongoing commitment to quality are the key factors behind these excellent results.
2016 MILESTONE ACHIEVEMENTS
60th Anniversary
In 2016 GRUPO Iberostar celebrated 60 years of business activity. Six decades accompanying guests and employees on a journey that has taken it to the forefront of the tourism industry, with hotels in 17 countries around the world and the acquisition of new companies such as W2M and Almundo.com which are already leaders in their respective markets.
Occupancy and bookings
Iberostar Hotels & Resorts, the Group’s hotel division has enjoyed steady growth throughout the year both in EMEA and America.
In 2016 Spain continued to lead the field in terms of Mediterranean destinations, and the year closed with record figures both in occupancy rates and results. The Canaries, Balearics and Andalusia registered their best year ever in terms of occupancy rates and RevPAR, ranking higher than many other European destinations. These excellent results are attributable to a sharp hike in demand in the Spanish market and the continued upward trend in traditional outbound markets such as Germany and the UK. Average occupancy for the division stands at well over 80% and the RevPAR is now practically in double figures.
As for America, both Mexico and the Dominican Republic stand out for their steady growth in occupancy, rates and profitability. Cuba, one of the Group’s key strategic targets, also registered a rise in rates and profitability.
Investments
In 2016 the chain embarked on an ambitious investment programme with a twofold objective. Firstly, the opening of hotels in new destinations such as the USA (the Iberostar 70 Park Avenue, New York, opened in June 2016) and Ibiza (the Iberostar Selection Santa Eulalia Ibiza Ibiza).Secondly the renovation and modernisation of a number of hotels, bringing them up-to-date with guests’ changing needs and in line with the company’s quality standards.
As part of its profit reinvestment policy, in 2016 the company allocated more than 90 million euros to the renovation of numerous hotels included in its portfolio in various parts of the world.
GRUPO Iberostar diversification
One of the keys to GRUPO Iberostar’s excellent results in recent years is a consolidated strategy aimed at diversifying its business portfolio within the international tourism industry. As part of this strategy, GRUPO Iberostar holds the major capital stake in Almundo.com, Argentina’s biggest physical travel sales network with 50 points of sale and the second largest online travel agency. In 2016 the company further consolidated its online presence in regional markets including Mexico and Colombia, obtaining a turnover similar to the previous year’s figure, despite the dramatic devaluation of the currencies of the countries it operates in.
Similarly, activity at W2M (WORLD2MEET), the global tourism service supplier owned by GRUPO Iberostar, centred on its international expansion process and on consolidating the destinations it already operates in.
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 of 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 authorised by the Cuban Government’s highest executive body to set up Logística Hotelera del Caribe (LHC), a public limited company and joint venture. Iberostar holds a 70% stake in the company, which will be based in the Mariel Special Development Zone in the north of the island, whilst the remaining 30% is owned by LHC.
Cuba currently has 65,000 hotel rooms, a figure that could reach 85,000 by 2020, and rise as high as 110,000 in 2030. As part of its drive to support this growth and guarantee real and effective improvements to the quality of its products and services, thereby ensuring maximum visitor satisfaction levels, the Cuban Government has entrusted Iberostar with the creation and development of a hotel supplies import company which will improve the quality standards of Cuban hotels.
The newly created LHC will provide general logistics services, including the import, wholesale and distribution of goods, as well as their export to major tourist resorts close to Cuba. Initially the company will focus on hotel supplies, although there are plans for diversification into global product exports.
In addition to this activity, Iberostar Hotels & Resorts also intends to increase its hotel portfolio on the island, bringing the total number of Iberostar hotels 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 of each of these hotels.)
The increasing relevance and growth of urban hotels
Iberostar Hotels & Resorts is currently immersed in an ambitious project aimed at increasing the number of hotels it operates in the urban segment and is therefore considering expansion opportunities in major tourist capitals around the world. Actions for the immediate future in the urban segment are centred on opening the chain’s second hotel in the USA, situated on Miami’s South Beach.
Within the next three years the company will have a total of 15 urban hotels situated in some of the world’s most popular tourist destinations, including Budapest, New York, Madrid, Miami, Havana, Barcelona, Lisbon, Santo Domingo or Lima, clear proof of Iberostar Hotels & Resorts’ determination to consolidate its holiday and business hotel portfolio in leading cities that have experienced sharp hikes in visitor numbers in recent years.
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, proof of company’s considerable real estate assets. Furthermore, the company has an ongoing renovation strategy designed to ensure that the highest standards of quality are maintained at all times. The aim of these improvement projects is 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 class status or included in Iberostar’s most prestigious category: The Grand Collection.
Renovation projects for 2017
Offering guests top quality products and services lies at the heart of Iberostar Hotels & Resorts’ corporate philosophy. In recent years the company has made major efforts to reinvest profits in projects to renovate and modernise its hotels, bringing them in line with guests’ changing demands and Iberostar’s quality standards. In 2017, 125 million euros will be channelled into renovation projects at the 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 at the end of this press release contains full details of each of the projects mentioned here.)
Innovation and digital transformation
As part of its commitment to continuing offering its guests innovative products and services in keeping with the current digital transformation process, Iberostar Hotels & Resorts will be launching its new Iberostar APP for 2017, featuring a considerable number of additional functions such as the e-concierge, whereby guests can chat with hotel staff in real time. The new app, which has already been tested in five Iberostar hotels and will be gradually introduced into the rest during the course of 2017, is a new communication channel guaranteeing direct contact with consumers that will enable them to enjoy their experience at the company’s hotels to the full.
Gastronomy, entertainment, service, décor and wellness: key aspects of our offer
In order to introduce ongoing improvements to the guest experience, Iberostar Hotels & Resorts has set up an ambitious work programme targeting several key areas within the company. These include gastronomy, updating and extending the culinary offer at all its hotels; entertainment, in order to guarantee guests a truly memorable holiday experience; décor, including major internal efforts to create a unique and highly personalised style; and wellness, with a full range of sporting and wellness activities combined with gastronomy, designed to encourage guests to adopt a healthy lifestyle, even when on holiday.
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 and the agreement reached 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 is continuing its ambitious project to renew its restaurant offer in order to remain at the forefront of the latest culinary trends.
As for its American hotels, The Grand Collection category (the highest in the chain) will be a focal point for the company in 2017, with major efforts being channelled into renewing the range of products and services on offer. In keeping with the policy of recent years to offer its guests personalised programmes and one-of-a-kind experiences, Iberostar Hotels & Resorts will continue to add to its exciting and highly innovative Fit & Fun programme, designed to enable guests to follow a healthy lifestyle that includes one-to-one sessions with a trainer in the fitness room as well as at the pool and on the beach. Gastronomy remains a key priority for the company and the second edition of IberostarChef on Tour will be continuing over the next few months. This initiative offers guests staying at a number of The Grand Collection hotels in the Caribbean the chance to enjoy unique culinary experiences created by international Michelin star chefs.
2017 looks set to be a year filled with exciting challenges for GRUPO Iberostar; a year in which the company is confident it will be able to continue doing what it knows best: offering its guests truly memorable holiday experiences.
APPENDIX 1: NEW OPENINGS FOR 2017
• Iberostar Grand Portals Nous, Majorca. This new 5 star hotel, situated in Portals Nous and set to become the first in The Grand Collection on Majorca, will offer a total of 63 rooms. Scheduled to open in April 2017, this hotel will feature a range of suites designed by the famous artist Marcel Wanders and the most exclusive services, guaranteed to position it at the forefront of Majorca’s luxury hotel sector.
• Iberostar Berkeley, South Beach, Miami. Set to become Iberostar’s second hotel in the USA and situated in South Beach, one of Miami’s most delightful areas, this hotel will have 96 rooms housed in an exclusive Art Deco style building. The opening is scheduled for April 2017.
• Iberostar Bella Vista, Varadero, Cuba. This five star hotel will be located in Varadero, overlooking one of the world’s finest beaches. Its 827 rooms, spacious grounds, four pools and an extensive entertainment offer will position it as one of the best holiday hotels in the area. The opening date is set for April 2017.
• Iberostar Club Palmeraie Marrakesh, Morocco. 2017 has seen extensive renovation work on this hotel, which has been completely redesigned and modernised prior to its reopening, scheduled for April 2017. Standing in the heart of Marrakesh’s palm grove, the hotel is just 15 minutes from the city centre. The facilities include an 11 hectare Mediterranean garden and three swimming pools, a new splash pool, Star Camp for the kids and a spa. Golf lovers will particularly appreciate the nine courses situated within easy reach of the hotel.
• Iberostar Selection Cancún, Mexico. Work on a new tower housing 156 junior suites will be finished by the end of the year. The new accommodation options all boast sea views and facilities of the highest standard. The hotel will also have new dining spaces.
• 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, standing on seafront at Playa Blanca. It has 374 rooms, villas and bungalows distributed between the hotel (306), Villa Marinera (23) and Villa Bella Arena (45). The facilities also include three swimming pools, a buffet restaurant and two speciality restaurants, as well as three bars.
APPENDIX 2: CUBAN PROJECTS FOR 2017
• Hotel Riviera, Havana. Iberostar Hotels & Resorts took over management of this classic hotel on 1st January. Standing on the famous Malecón esplanade in the heart of the Cuban capital and built in the style that was typical of when the hotel first opened in 1957, this hotel will soon be undergoing an ambitious integral renovation project. Once complete, it will have 352 fully redecorated rooms and will be upgraded to five star category.
• Iberostar Grand Packard, Havana. Boasting an unbeatable location on Havana’s Paseo del Prado avenue, this hotel is set to become the chain’s first The Grand Collection hotel in the Cuban capital. 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. A historic 4 star hotel located in the centre of the city, next to Céspedes Park. It has 58 rooms and a magnificent terrace overlooking the park.
• Iberostar Heritage Imperial, Santiago de Cuba. A 39 room boutique hotel situated in the city centre. Surrounded by landmark buildings, this 4 star hotel features some of the most eye-catching architecture in the area.
• Iberostar Gran Hotel, Santiago de Cuba. A 4 star hotel standing in the city’s old town. Boasting 42 rooms, it is within easy reach of the city’s finest tourist attractions. Built in the Chicago School style of architecture, the exterior is characterised by numerous eclectic elements and a clearly 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
• Modernisation of the communal areas at the JOIA Bávaro by Iberostar (Punta Cana, Dominican Republic).
• Further additions to the ‘Adults Only’ facilities at the Iberostar Waves Alcudia Park (Balearic Islands) including the construction of a new block of 60 Star Prestige suites and an exclusive rooftop lounge.
• Integral renovation of the Iberostar Waves Playa de Muro (Balearic Islands) and the construction of new leisure facilities.
• Integral renovation of the full range of facilities at the Iberostar Waves Bahía de Palma (Balearic Islands) and extension work consisting of an additional floor providing extra rooms and a rooftop swimming pool.
• New ‘Star Prestige’ rooms and leisure areas at the Iberostar Selection Santa Eulalia Ibiza Ibiza (Ibiza, Balearic Islands).
• Renovation of all the rooms, leisure and gastronomy facilities at the Iberostar Waves Málaga Playa (Andalusia)
• Integral renovation of the full range of facilities and the creation of additional rooms at the Iberostar Selection Lanzarote Park (Canary Islands), which will be upgraded to a five star category at the end of 2017.
• Full renovation of all the rooms at the Iberostar Selection Anthelia (Canary Islands) hotel, voted Spain’s Best All Inclusive hotel for the fourth year running by TripAdvisor users.
• Full renovation of all the facilities at the JOIA Salomé by Iberostar (Canary Islands) which will be reopening with 32 exclusive suites and a new infinity pool featuring a bubble bed and hydromassage zone.
