Apple Leisure Group leverages alliances for European growth

Hotel AluaSoul Ibiza
ALG now includes the Hotel AluaSoul Ibiza as part of its network. Photo credit: Alua Hotels & Resorts

At last week's FITUR, Spain’s international tourism trade fair, Apple Leisure Group EVP and Chief Strategy Officer Javier Coll shared a forecast for the company's growth in Europe.

According to Coll, ALG is looking to grow its European portfolio to 35 hotels and 10,000 rooms across the continent by 2021. This growth, he explained, would help ALG capitalize on its existing relationships with hotel companies and tour operators to sell its resorts in Mexico and the Caribbean.  

The company has leveraged several partnerships to improve its footprint. In November, ALG and Grupo Inversor Hesperia formed an alliance to operate the four resorts in Spain under the AMResorts brands, starting with Secrets Resorts & Spas and Dreams Resorts & Spas. ALG will oversee worldwide sales and marketing of the properties. Through the partnership, ALG will open Secrets Mallorca Villamil Resort & Spa in March, followed by an event in June in Palma de Mallorca to officially launch the four hotels under AMResorts’ brands.

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Beyond this, ALG plans to close 2019 with a new property in another European country, potentially Greece or Turkey. “We are analyzing several projects as we have received great interest from owners,” Coll said. 

Related: 5 questions with Apple Leisure Group’s Javier Coll

Growing Portfolio

ALG closed 2018 with 63 resorts and more than 22,000 rooms in its portfolio and an additional 25 properties with 12,000 rooms in development across 11 countries.

In December, ALG announced the signing of an agreement to purchase a majority share in Alua Hotels & Resorts, a Spanish hotel chain. Under the agreement, ALG will manage more than 4,000 rooms in Spain with the potential to expand across Europe. The Alua acquisition added 12 hotels to ALG’s portfolio, joining the four planned resorts in Europe the company announced earlier in the year. 

“Due to our partnership with Alua, we have been able to enter the European market quickly and strategically,” said Alex Zozaya, CEO of ALG. The group started 2019 managing 16 hotels in Europe, 12 of which are under the Alua Hotels & Resorts brand.

“The addition of Alua Hotels & Resorts as the newest brand in our ever-growing AMResorts collection is the strategic next step in ALG’s European expansion,” said Jordi de las Moras, managing director of Apple Leisure Group, Europe. “This acquisition gives us a robust platform with more hotel rooms, an expanded team, solid marketing structure and the ability to negotiate future hotel deals across Europe.”

While ALG has been focusing on growth in key European markets, the company also is boosting its presence in the Americas. The company recently announced development of Breathless Tulum Resort & Spa in partnership with Grupo Hotelero Santa Fe. Scheduled to open in 2021, the 300-suite resort marks the fifth property for the Breathless Resorts & Spas brand.