“You can grow when you find opportunities or by paying too much, but paying too much is a bad idea”

-How was the summer for Fergus? Do you also notice the slowdown that the rest of the sector is talking about?

-We are growing much more than the industry average because we do it in two ways. First with the hotels that we are integrating: this summer alone, we have had seven new openings. And then it turns out that our model relies a lot on asset repositioning. In these repositioned assets, rates are increasing, not because the market is growing, but rather because the value proposition has changed and the market recognizes this. For us, it was a great summer. We are indeed seeing a certain stabilization in hotels that have been repositioned for longer.

-What will Fergus’ results be at the end of the year?

-In terms of group results, we think we will be where we need to be, around 210 million euros in turnover and with a gross operating profit of around 90 million euros.

-How does Fergus develop? The market is overheated, but are there still growth opportunities with new assets?

We continue our openings. On November 14 we will open in Mallorca – the conversation took place in October – the Fergus Style Palma Beach, and in anticipation of the next months of the year we are working on several projects to reposition several of our hotels. In November next year, three Palma hotels will join the portfolio: Fergus Style La Cala, Fergus Marivent and Tent Costa Palma. Also in Catalonia, in Lloret de Mar, we are working on the renovation of the Clipper Hotel, which will also be ready in October next year and will become four stars. We also have a project to renovate the Las Palmeras Hotel, which is currently part of our affiliated line in Fergus and we plan to renovate it starting next winter.

-Is Fergus also interested in the urban segment?

-We analyzed some opportunities in urban areas, but in urban areas that are very vacation-oriented. We looked at something in Palma and Malaga, but we are very clear that we don’t bring as much value here. I think we’ve had a lot of success in vacations and we now have 34 hotels because we bring a lot of value in that segment. Urban warfare is a different war and I honestly believe that there are better managers than us in the urban hotel industry.

-Is your company considering looking for opportunities outside of Spain?

-A bit of the same thing is happening as with the urban segment. Everyone asks us when we’re going to make the jump to the Caribbean and we always say the same thing: “My owner worked in the Caribbean, I worked in the Caribbean, we have a lot of managers who worked in the Caribbean, and that’s why we have a lot of respect for him.” We believe this is an expensive leap that requires some learning. Today in Spain we still have a long way to go to continue working on the opportunities that present themselves to us and we are comfortable in this path. We will come out one day, but God will tell us when, if we come out.

-So what is Fergus’ growth plan for the next five years? How many hotels do you want to reach?

-If there are opportunities, we will grow. The reality is that you grow when there are opportunities or by paying too much. But since overpaying is generally a bad idea, you end up expanding when opportunities present themselves. In 2020, we did not expect to be in 2026 with 34 hotels, but then the opportunities presented themselves one after the other. Next year we may not accept any hotels, because ultimately it depends on whether there are a lot of very good competitors and market conditions. Expansion is always difficult. When the sector is doing badly because it is doing badly and when it is doing well because it is doing very well. There’s never a moment where you say “now that’s easy.” In the end we have been growing by two, three or four assets per year for 4 years and we will see if we are able to continue this pace or increase it, or if we will go a little slower.