Following international expansion, especially after
acquiring the Dutch hotel chain Krasnapolsky (2000),
the Mexican chain Krystal (2001) and the German chain
Astron (2002), NH Hoteles has been in the throes of an
integration and unification process. We can now say
that this process is practically complete and that the
company is ready to take up the strategy of playing an
active role in the sector’s concentration process.
Moreover, NH Hoteles accomplished cost savings of
€38 million in 2004, which, along with debt
restructuring, significantly contributed towards making
the company more efficient today, with a 7% reduction
in the average cost per occupied room.
Add to this, the process of adjusting the hotel
portfolio, which involved the sale of some hotels or a
change from ownership to leasing or management
contracts, NH Hoteles is now a strong company that is
poised to continue expanding and creating value for
shareholders.
The company wants to grow in markets where it is
already present and where it has seen after many years
of experience that the NH product works and that
there is potential for further growth. Among these
markets, we can highlight Mexico and Argentina, in
addition to Eastern Europe.
Expansion objectives also include new and important
markets in Old Europe, like Italy, where NH Hoteles
has already taken its first steps with a hotel in Venice
specialised in large conventions. Italy, where the hotel
sector is very dispersed, has strong growth potential
for successful brands because of their experience and
type of product. Other potential markets for NH
Hoteles expansion are the United Kingdom, where it is
looking for locations mainly to lease or manage, and
where it has just added the Harrington Hall hotel and
France, although in this case entry is more difficult
because of the strong presence of large chains.
Another important objective is to offer customers
more and more leisure activity alternatives in the cities
where hotels are located and which can be held at
hotels. The aim is to offer business travellers who stay
at hotels from Monday to Friday different ways of
spending their weekends or holidays.
Through Sotogrande, the company is studying growth
in the golf-related resorts market and the real estate
business. To this end, several projects are being
analysed in Spain, other areas of Europe and the
Caribbean.
In short, NH Hoteles wishes to maintain strong
leadership in the city hotel segment, specialised in
business travellers, with satisfactory growth, with
locations in European and Latin American city
centres, in addition to meeting this customer
profile’s very select requirements in leisure activities
and offers.
NH México City gym (Mexico)
NH Palacio de Santa Marta - Trujillo (Spain)
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FUTURE STRATEGY
13
After over two years of integration, after purchasing the Krasnapolsky, Krystal and Astron
hotel chains, to reduce debt and achieve significant cost savings, NH Hoteles is ready to
continue growing with the objective of playing an active role in the sector’s international
consolidation process
< NH Palacio de Ferrera - Avilés (Spain)
