Highlights

• Substantial hotel growth in EAME (Europe, the Middle East and Africa) and across the globe can be achieved when resort management companies focus on five key points – strategically facing challenges, employing a long-term approach to development, being flexible by staying attuned to customer and owner/investor needs, executing a clearly defined vision with targeted destinations for expansion, and promoting a company’s impressive record of success.
• A resort management company like AMResorts is well-poised to leverage its sizable strengths and two decades of experiences in the luxury all-inclusive space in order to realize expansion across EAME, driving a profitable future for the company and its valued investors/developers.

Expanding a luxury all-inclusive hotel brand into EAME takes a coordinated approach requiring a deep understanding of the market, belief in a vacation concept that transcends geographic borders, and tons of perseverance. Crucial to achieving successful growth, though, is for a resort management company to always stay true to its core principles of hospitality – to deliver a distinctive, unrivaled vacation experience that results in strong customer loyalty and hotel profitability.

With this in mind, what are key aspects of this coordinated approach for effective hotel growth in the EAME region?

Strategically Face Challenges

The pandemic reminded the world that unprecedented global situations can emerge at any time, but resort management companies must continue to strategically face challenges and carve out opportunities to achieve their growth goals.

Persistent challenges from COVID, including emergence of new variants and any future travel restrictions governments may impose, are continuing to impact hotel occupancy, causing some owners to divest assets. Additionally, family-operated hotel groups dealing with succession changes even prior to the pandemic are seeking out ways to restructure family estate and reassess the property and management of their assets. Within this situation, are there opportunities in the EAME region? The answer is an unequivocal yes – there are opportunities for resort management companies with sufficient financial strength and a solid management model aimed at targeting institutional investors, who have become the main investor in hotel real estate assets, to build or convert in destinations with tremendous potential for the luxury all-inclusive product.

A company such as AMResorts, with its depth of experience, proven record of success, and seasoned team of hospitality professionals, provides institutional investors with the level of confidence they need to develop luxury all-inclusive resorts in EAME during these unprecedented times.

Emphasize A Forward-Thinking Approach To Cultivate Profitability

Growth of a hotel company’s portfolio should be done smartly to ensure an optimum experience for developers and all teams involved in sales, marketing and management. Developing luxury all-inclusive branded hotels in destinations across the EAME region requires a forward-thinking approach encompassing the following, similar to what we do at AMResorts.

• Move towards bringing-to-market most of the hotels in the conversion phase by providing the necessary support and resources.
• Accelerate the integration of newly signed hotels and teams incorporated as a result of expansion.
• Promote commercial efforts aimed at increasing the penetration of direct sales channels and optimizing costs from the hotel side and through brand management services.

The impressive results of this approach are evident as 2020 marked an historic year of European expansion for AMResorts. We started the year with 21 hotels and ended it with 50 properties and more than 13,000 rooms. We signed our first deals outside of Spain with three hotels in Greece (two branded as Dreams and one as Alua) in addition to incorporating six new hotels on the Iberian Peninsula and in destinations that are important to our development like Costa del Sol.

Be Adaptable

Adaptability is essential for EAME growth in the face of ever-evolving guest expectations and investor needs. Being adaptable isn’t about changing the defining values of a company’s operational strategy and vacation experience. It’s about understanding shifting market conditions, always keeping the needs of investors and guests at the forefront of all decisions, and using those insights as a springboard for increased development.

The luxury all-inclusive segment is a flexible model providing important personalization for guests. The ability of Apple Leisure Group (ALG) and AMResorts to offer owner-operators a flexible product has allowed the company to successfully accelerate growth in the EAME region while establishing long-term relationships with owners in very attractive conditions for both parties.

ALG’s flexibility is further reflected in the recent launch of the AMR Collection, AMResorts’ new Master Brand, and a refreshed brand architecture. This introduction, in conjunction with AMResorts’ 20th anniversary, simplifies our organization structure and provides a better understanding of our portfolio to the benefit of consumers and investors, a move that strengthens us for future growth in EAME and elsewhere while lessening regional conflicts.

Develop, Execute & Adhere To A Clearly Defined Vision

The hospitality industry has been dealing with pandemic-related challenges that are likely to ebb and flow at least for the immediate future. Fortunately, a well-defined and well-executed vision keeps a luxury all-inclusive resort management company focused on sustainable growth in EAME.

Emphasizing an asset-light strategy towards portfolio growth, AMResorts has sought opportunities across our main destinations in Spain and marked our entry into Greece. We are also eyeing expansion in other core leisure destinations, including Portugal, Italy, Turkey, Cyprus, Croatia, Slovenia, the United Arab Emirates, Egypt, Tunisia, Morocco and Cape Verde. Additionally, we are exploring strategic alliances and joint ventures with strong players to fast-track entry into certain key markets, such as Italy, Turkey, Cyprus and the Adriatic region.

We currently have the Secrets, Dreams, Zoetry and Alua brands in EAME with the goal of bringing all AMResorts brands to the region. Alua, which is our flagship four-star brand, presently has the largest footprint in EAME, particularly in Spain. A sign of effective growth, Alua had 16 resorts operating with the brand when we acquired them in 2018, and today we have 32.

Leverage A Proven Track Record Of Success

Significant luxury all-inclusive hotel growth is intrinsically tied to a resort management company’s reputation. Institutional investors and developers are attracted to companies with a robust distribution network, well-known brands, skilled leadership, specialists in the segment, and proven turnaround experience. Expansion in EAME is fueled by investor confidence in a brand, driven by the quality of the guest experience and a resort management company’s extensive support from pre-ground-breaking to opening and beyond.

AMResorts’ strength in traditional distribution, digital distribution and direct sales capabilities, coupled with recognition of its high-quality vacation brands takes on special relevance in the competitive EAME region, putting the group in an advantageous position to capture a larger share of investor and guest demand. Recent news of ALG being acquired by Hyatt Hotels Corp. will allow developers to take advantage of Hyatt’s global distribution, sales, marketing and technology, providing another avenue for boosting profitability.

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Hospitality is a people-centric business where delivering a top-quality vacation experience to guests is paramount. Expanding the luxury all-inclusive vision beyond where it has achieved tremendous success (the Caribbean and Mexico) into the EAME region requires a strategy that plays to the essence of hospitality and a resort management company’s focus on cultivating the highest levels of satisfaction for both guests and investors. Despite the global pandemic challenges, this remains an exciting time for expansion in EAME where resort management companies such as AMResorts are well-poised to bring their luxury brands to new destinations, growing the number of loyal guests and owners.