REGIONAL PROFILE
B & B CARVES
ECONOMY NICHE
ACQUISITION
OF COPY CAT BRAND MAKES
FOR EASY PLAY .
French budget chain B & B Hotels is expanding its footprint in Spain following its acquisition of Sidorme last year . The takeover combined 15 Sidorme locations with the five operated by B & B for 20 hotels , concentrated mostly in Madrid and Catalonia . In a recent interview , Jairo González , CEO of B & B Hotels in Spain and Portugal , discusses the chain ’ s strategy .
HOTELS : How would you describe B & B ’ s niche ? Jairo González : We call ourselves 2-star-plus , select-service . Our rates range from € 40 to € 90 ( US $ 47 to US $ 106 ) or more in city centers . But we feel like a 3-star hotel . We have a clean environment , free , high-speed WiFi and 24-hour reception , which is not the standard in economy hotels .
H : How did the merger go ? JG : Sidorme was a copy of B & B , so integration was easy and we didn ’ t have to spend a lot of money . I was CEO of Sidorme and now I ’ m CEO of B & B in Spain . It seems like we were always B & B .
H : What is the plan for expansion ? JG : We have 10 projects under development in Spain and Portugal with different degrees of maturity . They are spread throughout the Iberian geography . We plan to double in size by 2020 . We ’ re focusing on cities with a population of more than 100,000 with 15,000 rooms .
H : What is your approach to attracting millennials ? JG : We offer value for the money . We ’ re redesigning our digital platforms to deliver a state-of-the-art digital experience . Low-energy consumption designs , local food for breakfast , bikes and electric car chargers are part of the mix . We embrace green and sustainable practices to meet the requirements of the most demanding millennials .
H : How would you describe the health of the market ? JG : Spain is recovering ground lost in the years of the deep crisis . The vacation hotels are having a great time , but , as always , you have to go destination to destination . Madrid has recovered a long way but is still below pre-crisis RevPAR levels .
Reception at newly styled B & B hotel in Spain
H : What ' s your perspective on Barcelona ? JG : Barcelona is expected to remain one of the most dynamic international tourism destinations in the coming years . But 2017 activity will be hurt by the August terrorist attack and the climate of tension as a consequence of the call for independence . The current moratorium on development limits possibilities but favors income growth for the operating hotels .
H : Did the August terrorist attack in Barcelona result in lower bookings ? JG : It is difficult to measure but it seems that the impact was moderate — 2 % to 3 % cancellation in the days after the attacks . The recovery of the Spanish economy together with growing foreign tourism will be the main drivers of growth in demand and profitability .
H : How has the sharing economy impacted the traditional hotel business in Spain ? JG : Airbnb is a powerful supply and demand connector . A large number of its offerings are owned and / or managed by companies and investment funds . In time they will start selling hotel rooms as well as apartments , and that will narrow the gap between apartment and hotel room prices . Airbnb ’ s big success lies in enabling more people to travel .
34 hotelsmag . com December 2017