Barcelo outlines hotel investments in Europe
Grupo Barcelo plans to invest 600 mln eur up to 2003 to expand in Europe and the U.S., the Expansion financial daily reported, citing co-chairman Simon Pedro Barcelo.
Barcelo said the growth plan is on the back of a complete restructuring of the organisation after the sale of its travel business to First Choice Holidays, in exchange for 20 pct of the UK group. Barcelo operates almost 100 hotels in Europe and the U.S. and forecasts a 7.5 pct rise in net profit to 60 mln eur on sales of 300 mln eur.
He said the goal is to become the second largest chain in Spain behind Sol Melia SA in two years and double its number of hotels to close to 200. ‘Our hotel business will provide cash flow of 270 mln eur over three years, which combined with further investment from our partners will allow us to reach the size we are seeking,’ Barcelo said.
He added that the Grubarges SA hotel joint venture with Banco Bilbao Vizcaya, Argentaria SA and Fomento de Construcciones y Contratas SA plans to increase its shareholder base through a capital increase next year.