The Spanish hotel chain, formerly known as Fiesta Hotel Group, has ambitious expansion plans in Europe and the Americas as it approaches the 50-hotel mark.
IBIZA, Spain—Turning 50 sometimes brings with it a midlife crisis. When the Spanish hotel chain formerly known as Fiesta Hotel Group approached 50 years old and coincidentally grew to nearly 50 hotels, the company experienced somewhat of an identity crisis.
So, in October, Fiesta launched a strategy to focus on global luxury growth and rebranded itself to the Palladium Hotel Group. As Spain’s sixth-largest hotel chain, Palladium has ambitious expansion plans both in Europe and the Americas with plans to open its 50th hotel in 2013.
“Our growth plans include expanding our Palladium and The Royal Suites brands in the Americas, and opening other Ushuaia Hotels abroad—including the U.S.—but the right conditions must be met in every destination,” said Alfonso Giménez, associate director of marketing for Palladium.
Palladium is owned by Grupo Empresas Matutes. The chain has 47 hotels operating under seven brands: The Royal Suites by Palladium; Palladium Hotels & Resorts; Fiesta Hotels & Resorts; Ushuaïa Ibiza Beach Hotel; Ayre Hoteles; Sa Talaia Boutique Villa; and Mallorca Rocks Hotel.
The private company has hotels in six countries: Spain, Mexico, Dominican Republic, Jamaica, Italy and Brazil. Of the 47 hotels, 45 are owned by Grupo Empresas and the other two are either leased or managed.
During 2011, Palladium had a 10% to 12% increase in revenue, Giménez said. He said the company has experienced continual revenue growth since 2009, rising from €260 million ($343.88 million) in 2009 to approximately €300 million ($396.87 million) in 2011.
In 2008, the company hired Abel Matutes Prats as CEO. In addition to renaming the company, Prats implemented a strategic plan that aims to grow the group’s brands in attractive, emerging destinations.
In a statement to HotelNewsNow.com, Prats said the rebranding is the reflection of where he wants the company to go and what he wants it to become.
“Choosing the name Palladium Hotel Group was the logical next step because the brand Palladium Hotels & Resorts continues to gain great visibility and customer loyalty around the world. By changing our name, we just want to continue offering excellence and exclusivity,” he said. “By growing in different market niches, we’ve been able to consolidate our position as one of the world’s leading hotel chains.”
The company’s emerging brand, Palladium Hotels & Resorts, is a luxury brand comprised of all-inclusive resorts that opened its first two properties in 2002 in Riviera Maya, Mexico—both luxury eco-resorts. Since, the brand has grown to 15 properties in Mexico, the Dominican Republic, Jamaica, Brazil and Spain.
In the first quarter of 2013, Palladium will open a 70-room Ayre boutique hotel in Madrid, Spain. Later in the year, a second tower at Ushuaia Ibiza Beach Hotel in Ibiza, Spain, will open.
Next up on the to-do list is expanding the Grand Palladium Resorts property in Jamaica, which will feature the island’s largest casino in a beach hotel. The company also plans to expand the Grand Palladium Resorts in Riviera Maya.
“We’re constantly investing in offering our guests the highest added value possible,” Giménez said.