Smartrental grows at a giant step and in 2024 fired its income by 44%. The group already manages more than 3,000 beds in the main tourist destinations in Spain such as Madrid, Barcelona, Valencia, Ibiza or Las Palmas de Gran Canaria and has … More than 25 assets in property, income and management. The company will put 2025 the focus on continuing its internationalization and will expand in markets such as the United Kingdom, Portugal and Greece.
-How was 2024 for the group?
In 2024, the company has continued its expansion phase with the acquisition of new assets and entry into key markets aligned with our business strategy. At the same time, we have strengthened the presence in the markets where we already operate, consolidating ourselves as a reference group in the hotel and alternative stays sector. This year has been crucial to explore new asset categories within the sector and reaffirm our commitment to accompany our clients at all stages of their life. As a result of these efforts, during exercise 2024 we have achieved an increase of 44% in our total income and a 30% growth in the Revpar (revenue per room available) compared to the previous year.
What forecasts does smartrental for 2025?
By 2025 our ambitious expectations are maintained, we continue to bet on diversification by incorporating new business lines, in turn, it will be for us the year of internationalization taking off in new markets such as the United Kingdom, Portugal and Greece. Our intention is to maintain sustained growth, which ensures us to sustain quality and philosophy in all the assets we already have. This year it will also be key to strengthening our proposal in the Living Segment (Housing) with the Evaca Living brand that is incorporated into our Porfolio, thus responding to market demand and betting on the category of the Silver (senior citizen).
-What markets will the group grow? Do you see interesting opportunities in Spain?
We will continue to grow in strategic European markets such as Portugal, the United Kingdom and Greece, where we see great potential for our brands. In Spain, we focus on strengthening our presence in cities with great demand for flexible accommodation, such as Valencia, Malaga or Seville, and consolidating our position in large capitals such as Madrid and Barcelona. Spain continues to offer interesting opportunities in the field of coliving and flexible housing solutions, segments that are gaining ground as market dynamics change. This year we will reinforce our commitment to the Flex Living division, which includes solutions such as coliving and flexible accommodation for professionals and students. The market in the living environment is triggered and this growing demand reflects our commitment to offer alternative solutions that help define the future of the sector. At the same time, we will continue to develop our brands of Hospitality (hotels and apartments), with a special approach to urban destinations and in offering unique and differentiating experiences for our clients. We will continue to bet on customers a good ‘Value for Money’. And we will continue to recover and bet on its brand component and Life Style.
-Do you think there is a housing problem in Spain?
Yes, it is undeniable that Spain faces a problem of access to housing, especially in big cities. The lack of affordable offer and barriers to put residential urbanizable land or rehabilitate new spaces are factors that aggravate this situation. We detected more than 8 years ago so our mission has been to bet on helping and energizing the available offer and offering alternatives. However, the private company will not be able to solve by itself a problem of this magnitude and we also consider that public-private collaboration is fundamental. We are concerned that we do not observe solutions that point to the root of the problem, meanwhile private companies are willing and available to help improve this situation and collaborate closely, it is the only way. We also detect that there are groups that are sometimes demonizing private companies, and we are here to contribute to improve and contribute everything in our hand.
-Do you notice in your living business (housing)?
The concepts that encompass the living room are born with the purpose of accompanying people in their life cycle, thus this concept is not born with the objective of solving the definitive housing problems but it is contributing to facilitating flexible and adapted solutions. We are betting on microsegmentation, betting on customizing experiences and offering adapted housing solutions. The Living division today has an occupation of 98%, this demonstrates the need for the market and how from Smartrental Group we are offering flexible, adapted and segmented solutions.
-What do you think when tourist floors are the problem?
I think the subject has been demonized and several aspects are being mixed: on the one hand, there is the position of the hotel sector, which for years has been reluctant to the Service Apartments model (apartments with services). However, these do not compete directly with hotels, but respond to a specific market demand, offering advantages that traditional hotels do not cover, such as greater privacy, independence, more space, kitchen, automation or common areas to share with relatives and Friends without reserving several rooms or looking for communicated rooms. Many hoteliers are currently launching their own residence brands, which are basically Service Apartments. On the other hand, the institutions face a housing problem in the main cities and consider, in my opinion erroneously, that the solution is to restrict tourist floors, when this will not solve the situation. In addition, the lack of clear leadership in the creation of a joint regulatory policy has led us to the current point. From the private sector, regulated and professionals are totally in favor of establishing adequate regulation. We believe it is the best for everyone.
-The noise of the interventions puts you on guard?
We are aligned with the need for regulation, but we are concerned about the confusion generated by contradictory messages, both at the state and provincial level. Sometimes, noise in the debate hinders a clear and structured approach to advance in effective regulations.
-Would you intervene something on the market?
-I think that an open and constructive dialogue between companies, administrations and society to find balanced solutions. If an intervention is not well founded or has a negative impact on the industry or community, it is important to review and adjust.
-The Ministry of Housing, in order to pursue the irregular offer, demands from this year the owners to have a registration number to be able to publish their apartments on the reservation platforms. How is the process for smartrental?
-There a few weeks ago, the government announced changes in the Police Sheet, which has generated a stir in the tourism sector. These modifications, implemented without consensus with companies, can have a significant impact on the image of Spain and believe that they should have previously worked with the sector. Something similar occurs with the new registration code: we are in the process of obtaining it for each of our assets, but we consider that it is not the real solution to the problem. It is likely that, in a time, we will meet again at the same point, since, like the changes in the police file, this measure does not address the root of the problem.
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