López Seijas

HOTELS: Tell us about your hotel expansion plans.

López: Over the next few years we intend to consolidate our presence in the major European capital cities and continue growth in the United States and Latin America. We have some 25 projects ready to be undertaken over the next three years, practically all of which will eventually form part of the Eurostars chain. Our formula is to grow as hotel owners or via leasehold agreements. The option of strict hotel management is one that we have not yet taken into consideration, although we do not reject taking it up in the future.

HOTELS: How quickly do you plan to expand, considering current economic conditions?

López: Over the past few years we have grown between 10 and 15 hotels per year and, despite the current situation of uncertainty, we do not foresee this rate being reduced, at least on the short term. In 2008, we are going to overcome it with ease… Growth, for us, is not an end in itself but rather the way to guarantee sustainability of the company for the future.

HOTELS: Do you both own and operate, or do you have financial partners?

López: Of all the hotels in our portfolio, 40% are owned and the remaining 60% are on long-term leasehold agreements signed with independent owners, construction companies or investment funds… The financing for our growth is via our own funding or through credit facilities. We recently signed a loan facility with several banks to finance the building and running of the three hotels in Germany.

HOTELS: What percentage of your Eurostars growth will be leisure versus business hotels?

López: The majority of our hotels are urban business hotels. We do have some projects that, either because of the destination or their conception, are aimed at the vacation segment, although we do not intend to enter into competition in this market as just another agent, but rather specialize in small boutique resorts. The best example is the Eurostars Blue Tulum Resort & Spa, a luxury hotel located on the Mexican Riviera Maya.

HOTELS: Tell us about the growth of Hotusa and Elysées West Hotels. What are the plans and how is this market evolving?

López: Hotusa Hotels is the germ of what currently is our tourist group. We are the leading hotel consortium in Europe and we are situated amongst the largest in the world with more than 200 associated establishments. We have taken an important leap ahead in France with the acquisition of Elysées West Hotels, a small consortium specializing in the representation of business hotels, with around a hundred member hotels. Our strategy is based on the specialization of our offer through brands aimed at concrete segments and which provide high value-added services to our member hotels.

HOTELS: Tell us about the 30th anniversary of the company and what it means to you personally and professionally.

López: For me, it is a matter of great pride to have reached our 30th anniversary, but even more so is the knowledge that we are laying the foundations to guarantee the future of the company for the next 30 years. That has been the objective that has motivated us since we embarked on this adventure in 1977—to constantly improve, innovate and diversify our business to become increasingly stronger, more solid and larger. Bear in mind that we started off as a small firm in Barcelona with capital of little more than 125,000 pesetas, and that today we are a company with a turnover of over €700 million with a notable international presence. The backward glance we have taken on the occasion of our 30th anniversary allows us to see that we still have a long path ahead of us.

HOTELS: Tell us about hotel performance to date for 2008.

López: Last year our global turnover increased 18%. Given the current economic situation, we are moderately optimistic and believe that we will be able to consolidate a similar growth figure to that percentage, albeit slightly lower. The hotel division’s turnover will continue to grow at a good pace thanks to the newly opened hotels. Fortunately, none of our business lines will register a negative performance, although the growth recorded in recent years will be slightly curtailed.

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