MADRID — Palladium Hotel Group has unveiled a new growth strategy that will see the company implement a new hotel management model in the Caribbean, Mexico, South America and Europe, in addition to its current ownership model.
In 2016, the company achieved a turnover of US$596 million, which represents a 13.94% increase in profit compared to the previous year. A new expansion department led by José Matheu, development director at Palladium Hotel Group, was established to address the changes in structure and its operational system that are needed to implement growth.
“We want to continue to grow in the Caribbean and enter new markets. In 2017, after internally implementing our model of moving from being owners to being managers, our priority is to grow through contracts for hotel management,” says Matheu. “The expansion department’s objectives include investigating projects that are cost-effective for both the company and for the owners, namely projects in which we can develop the group’s brands through management models.”
Matheu adds that another priority is finding investment partners who can help repeat success stories like Ushuaïa Ibiza Beach Hotel, Hard Rock Hotel Ibiza and Hard Rock Hotel Tenerife.
A large part of the expansion efforts that the company will be making will be focused on the Caribbean, Mexico and South America where it hopes to increase the numbers of American and European visitors. The Group is actively researching in Aruba, Cartagena de Indias (Colombia) and Los Cabos (Mexico) for management projects to develop in the near future.
Palladium Hotel Group has already implemented its expansion plan for the next few years, which includes mostly five-star properties under the Palladium Hotels & Resorts brand in the Caribbean. Two new resorts in the Costa Mujeres region to the north of Cancun, one under the Grand Palladium brand and the other under the group’s premium brand, The Royal Suites by Palladium, and one hotel in Cancun, Ushuaïa Cancun, are currently underway.
Plus, the company will export its experience in Ibiza, Menorca and Sicily to expand the hotel management model to other areas of the Mediterranean such as Mallorca, the Costa del Sol, the Greek Islands and the Algarve.