Company Attributes Revenue to Consolidated International Expansion, Diversifying Source Markets and a Commitment to Quality
Iberostar Hotels & Resorts has finished the 2013 financial year with 1,107 million euros in revenue, a 6% increase compared to 2012. The Mallorca-based hospitality chain grossed more than 1,000 million euros for the second consecutive year, contributing to an overall revenue increase of 36% in five years. The company’s success is the result of consolidated international expansion, the diversification of source markets and a firm commitment to quality as a differentiating factor, which places the chain as one of the leading companies in the hotel industry.
Visitor retention and strong customer satisfaction continue at a high for the brand. Iberostar reports a repeat visitor rate of 42%, and its properties garnered 119 awards in 2013, which was 33 more than last year.
Of this bevy of awards, 42 were TripAdvisor Traveler’s Choice Awards. Iberostar dominated the traveler review website’s “Top 25 All-Inclusive Hotels – World” list, with the Iberostar Grand Paraíso in Mexico ranked Best All-Inclusive Resort in the World. The Iberostar Grand Bávaro and the Iberostar Grand Rose Hall in the Caribbean were also included in the top 10, while the Hotel Iberostar Anthelia in Tenerife was named the best all-inclusive resort in Spain. For a company that is so dedicated to customer service, these awards are especially important, as they are based on the opinions of guests, and confirm that Iberostar is a leader in hospitality.
The growth of Iberostar Hotels & Resorts throughout 2013 has been evident in Europe, the Middle East, Africa and America. Spanish destinations have shown themselves to be particularly strong over the last year and are slightly ahead of other Mediterranean destinations. The Balearic Islands, Andalusia and the Canary Islands have had a strong financial year in terms of room occupation and RevPAR, which is slightly higher than the rest of the region thanks to classic markets such as the British and Germans, as well as the Russians, a market that has seen significant growth over the last few years.
On an international level, the USA and Canada have grown significantly as source markets, while European markets still show similar levels to 2012 (with an increase in Russian and French guests). Growth from Latin America stands out in particular, and this has been very important for hotels in Mexico, Brazil and the Caribbean. Iberostar continued expansion in this region with the December 2013 inauguration of the Iberostar Playa Mita, the company’s first hotel on Mexico’s Pacific Coast. The brand will continue development in 2014 with further projects in Brazil and Colombia.
Milestones in 2013
Throughout 2013 Iberostar Hotels & Resorts maintained a strong approach to expansion in countries where the chain already had a presence, as well as identification of new destinations. These efforts rang true with the recent opening of the new Iberostar Playa Mita, located along Mexico’s Pacific Coast in the emerging tourist destination of Riviera Nayarit. The company has invested 100 million euros in the design and construction of this new five-star resort, a first for the brand on the Riviera Nayarit coastline. The Iberostar Playa Mita brings the brand’s total properties in Mexico to 10, with the other nine hotels located in the Riviera Maya and Cancun area.
In Spain, the company added Hotel Iberostar Son Antem to its portfolio in May, the first five-star Iberostar resort in Mallorca. This establishment is the 14th hotel from the chain on the island, reinforcing links to the region and a commitment to solid and continuous growth in a key destination. The opening of this hotel also reaffirms the chain's dedication to golf tourism, following the incorporation of Golf Novo Sancti Petri in Cadiz.
In addition to these developments, the company has also invested a total of 33 million euros in 2013 to hotel renovations. On an international level, the Iberostar Cayo Coco, Iberostar Daiquiri and Iberostar Taínos in Cuba will be refurbished, as will the Iberostar Costa Dorada in the Dominican Republic. In Spain, the hotel Iberostar Jardín del Sol Suites (Mallorca) was completely refurbished, as well as all the rooms in the Iberostar Isla Canela (Huelva) and the Iberostar Bouganville (Tenerife).
The international expansion of the company has always been accompanied by a commitment to sustainable development in every establishment. This policy has become an essential part of the brands’ work method, and a fundamental pillar of the company's values and vision. An example of this is the 80 international environmental certifications (Green Globe, Green Key, ISO 14001, ISO 9001, EMAS and Martí) obtained by the hotel chain, 23 more than in 2012. The extensive auditing process carried out through the different establishments has been underlined in the efforts made by Iberostar Hotels & Resorts to practice responsible tourism, and stemming environmental impact.
In 2013, the Executive Chairman of GRUPO Iberostar, Miguel Fluxá, received the International Humanitarian Award bestowed by the American Friends of Jamaica, in response to the work of the Iberostar Foundation in Jamaica.
Projects for 2014
Iberostar Hotels & Resorts continues its constant search for new destinations to expand its portfolio into and business opportunities for growth in destinations in which it already operates. Along these lines, in 2013 Iberostar Hotels & Resorts signed an agreement to manage a hotel complex in Maceió, the capital of the state of Alagoas in the north east of Brazil. The five-star Iberostar Magia Maceió will offer 250 rooms and, while construction work on the resort has already started, it will continue throughout the year with the aim of opening in mid-2015. This will be the fourth Iberostar property in the country. The company has also started a new project in Cartagena de Indias. The five-star property will have 400 rooms and will stand as the first Iberostar hotel in Colombia with an expected opening date of 2016.
In addition to investing in new openings, the company allocates funds to renovating current properties. Looking towards 2014, the investment in existing hotels will be approximately 36 million euros.
Iberostar will continue to focus on its IberostarCHEF culinary initiative, which covers all the activities related to cuisine in the chain, with innovation as a key goal. The Mencey hotel will offer Cookery Classroom workshops with a Michelin star chef. The brand also has an agreement with Spain-based Lamoraga restaurant group to open an exclusive restaurant within the Iberostar Grand Budapest. The new restaurant will open in March, as part of the Moraga Premium category, and will offer a menu with dishes created by 14 chefs with 22 Michelin stars between them.
Looking towards the coming year, the company has signed new agreements to collaborate with topbonus from airberlin, with the aim of allowing guests to redeem miles from topbonus and other associated oneworld companies in exchange for stays in Iberostar hotels.
The Mallorcan chain will continue development in 2014, researching key opportunities for growth in European and Latin American capitals, and carefully evaluating each project with the aim of gradually entering into the city-center holiday travel sector.
About Iberostar Hotels & Resorts
Iberostar Hotels & Resorts is a family-owned Spanish hospitality company with more than 50 years of experience in the travel industry. Iberostar provides unique vacation experiences, rooted in superior customer service and quality, in the world’s most popular vacation destinations. With around 100 hotels in 13 countries, Iberostar Hotels & Resorts is committed to offering excellence in quality and service and providing personal attention to each guest.
For more information, please visit iberostar.com.