PERSONALITIES
HISTORY of HOSPITALITY
Mario Candeias
MARIO CANDEIAS SEES OPPORTUNITY AS HE NAVIGATES ESPINAS HOTEL GROUP THROUGH IRAN ’ S ECONOMIC TURMOIL .
By BARBARA BOHN , MANAGING EDITOR
Things were looking bright for Iran when Mario Candeias became managing director of Espinas Hotel Group in early 2017 : Global relations were thawing amid a deal to limit the scope of nuclear activities ; inbound tourism was increasing to explore a rich cultural history ; and the hotel market was bursting with opportunities for the right operators , especially at the luxury level .
“ The winds were a bit different ,” says Candeias , whose career was spent in his native Portugal , including stints at Pestana Hotel Group and Tivoli Hotels & Resorts .
Those winds shifted abruptly in May , when the U . S . administration pulled out of an international accord , and they blew harder in August , when the U . S . announced it would tighten economic sanctions , since enacted , that pushed down the currency and increased unemployment . European carriers and companies pulled out .
“ Now the environment business-wise is a bit more challenging from here ,” Candeias says , but he remains optimistic , pointing to a domestic market of 80 million and his shareholders , a family with ties to construction and development . They have invested in three hotels , two in Tehran and one along the Caspian Sea , totaling 800 rooms and 700 employees .
The US $ 100 million Espinas Palace Hotel in Tehran , of which Candeias is general manager , is the flagship , with banquet facilities for 2,000 and an attached , 3,000-seat concert hall to capture a domestic market . The investments mean that “ now they are really stuck in it , in a good way … They are ‘ all in ,’ like the Americans say , right ?” he says .
They certainly are : The company is seeking funding for its next hotel project on property it owns in Tehran — a US $ 300 million , 840-room hotel with a condo-hotel and shopping mall .
In a normal market , Candeias says the hotel would be doing around US $ 200 ADR with 60 % to 65 % occupancy for the year ; now , ADR is around US $ 120 and occupancy for the year should average about 55 %, he says . Before the sanctions , the primary customers were domestic and Chinese ; since then , the the drop in Chinese and European business has been compensated with more domestic business .
LONG PERSPECTIVE Up until 2016 , most of Iran ’ s travel dollars
18 hotelsmag . com December 2018