Barceló hails management growth

View from Barcelo Dukes The Palm

Barceló Group said that it was using management contracts to drive growth globally as it sought to become one of “the leading players in the sector at an international level”.

Last year saw the company sign contracts for new markets including Sri Lanka and the Maldives, taking its pipeline to almost 7,000 rooms.

CEO Raúl González said: “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.”

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Provisional results saw the company report a 4% increase in sales in its hotel division, to €1.34bn, with 4% growth in Ebitda, to €320m. During 2019 the group opened 12 new hotels, taking it to a portfolio of 251 hotels in 22 different countries.

The company signed contracts for 18 new projects in existing destinations and in new markets such as Sri Lanka and the Maldives, as well as in Poland, Slovenia and elsewhere. Of its 25-strong pipeline, 14 properties were due to come on stream this year.

González said that the group’s aim was 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”.

The CEO hailed the company’s shift to management contracts, which he said had enabled it to enter new markets. At present, 57% of establishments were under the management model.

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