11/10/2024 – 8:30
Two passions drive the routine of Espírito Santo executive Eduardo Giestas, CEO of the Atlantica Hotels chain: traveling and surfing, not necessarily in that order. Now living in the capital of São Paulo, he goes down to Serra do Mar whenever he can to catch waves with his children on the north coast of São Paulo. “It’s at sea that I enjoy life and rest,” said Giestas, in an interview with DINHEIRO.
+ Rio Bravo pays R$68.5 million to own 5 properties in Pernambucanas
Luckily for him and the company he has run since January 2017, it is leisure tourism and the sea that have helped to multiply business. Under his command, the chain is migrating from a focus on corporate hospitality to the leisure segment.
This year, around 30% of revenue will come from tourists. Seven years ago, this percentage was zero. It is no coincidence that the group’s revenue jumped from R$650 million and 18 brands the year he took over, to R$2.65 billion and 32 brands this year. “We realized that balancing revenue sources with all segments, in addition to new brands and boutique hotels, is the best and safest strategy for growth.”
The plan to evolve also includes raising the level of services and competing in the competitive high-end hotel segment. Among the new units, Atlantica signed agreements to open a Transamérica Collection in Gramado (RS), a very popular destination among leisure tourists.
The company is also expanding its presence in metropolitan regions, such as Porto Alegre and Novo Hamburgo, with hotels aimed at both leisure – with wave pools – and the corporate public. A trend observed by the company is the growing demand for resorts and hotels close to large urban centers, which attract both families and companies looking for locations for events.
“We will increasingly invest in options that have a high level of service and comfort.”
Eduardo Giestas, CEO of the Atlantica Hotels chain
Another example is The Coral Beach Resort, a hotel complex located on the paradisiacal and peaceful beach of Guajiru-Flecheiras, on the west coast of Ceará. The place is an oasis of sophistication amidst the two wind turbines. “We will increasingly invest in options that have a high level of service and comfort,” said the CEO.
Today with 190 units, Atlantica’s goal is to reach a turnover of R$5.5 billion and 40 thousand rooms by 2029. To achieve this, Giestas plans to have another 51 hotels by 2028, which should generate investments of R$3 billion . “This number is what we have already contracted with new units or conversions, which shows that we can perform even better.”
Atlantica’s current good performance contrasts with the difficulties faced during Covid-19.
• In the first months of the pandemic, 90% of the chain’s hotels temporarily closed.
• With the implementation of prophylactic measures and the adoption of strict safety protocols, hotels began to gradually reopen.
• Despite the difficulties, Atlantica wasted no time and began adopting a focused approach to crisis management.
• The company has become a point of reference for hotels managed by third parties, guiding them on how to use government measures, such as reducing working hours and salaries, and the use of benefits such as MP846, aimed at preserving jobs.
• Cash management was also a challenge as many hotels faced severe financial problems.
“The strategy of quickly adapting to new market conditions and the search for operational efficiency gains proved to be fundamental in overcoming this difficult phase,” stated Giestas.
Among the measures adopted were the automation of processes, the centralization of functions and the digitalization of sales, a movement that was already underway, but was accelerated by the pandemic.
Atlantica Hotels also took advantage of the pandemic to reinforce its expansion plan. The chain had already embraced the growth project in the leisure segment before 2020, but the pandemic boosted this strategy.
“This year has been very interesting, with the resumption of negotiations. We should close the year with 22 new contracts, totaling more than 3,500 rooms”, added the executive.
The Brazilian hotel market, in Giestas’ assessment, has a lot of room for growth. The company sees potential both in increasing the supply of rooms and in converting independent hotels to large chains.
Today, around two-thirds of the hotel industry in Brazil is still independent, which offers a significant opportunity for expansion through mergers and acquisitions. During the pandemic, Atlantica acquired Vert Hotéis and Transamérica, which contributed to its accelerated growth.
To reach the goal of 40 thousand rooms in operation by 2029 and revenue exceeding R$5 billion, the company intends to continue investing in new technologies, optimize its operations and expand both in the leisure and corporate segments, according to Giestas.
Diversification
In addition to traditional hotels, Atlantica is also looking at new types of hospitality, such as multi-property and residential with services. These segments have gained ground in Brazil and offer diversification opportunities for the network.
Multi-property, for example, is mainly aimed at leisure destinations, while residential with services serves the public in large urban centers.
In the CEO’s assessment, Atlantica Hotels is in a strategic position to capitalize on the growth of tourism in Brazil. Whether through organic expansion or acquisitions, the company plans to maintain its growth trajectory and continue to innovate in the hotel sector.
“With a renewed focus on the leisure segment and strong expansion into secondary markets, the company is well positioned to continue its successful trajectory in the coming years.”
Tourists are grateful.
#Atlantica #Hotels #outlines #billiondollar #plan #hotels