BlueBay Hotels: Expansion of its hotel offer in chain’s strategic destinations

While year-over-year percentage changes show significant increases because of comparison with a pandemic-affected period in 2020, the country’s performance levels remained well below the pre-pandemic comparable of April 2019:

Occupancy: 29.4% (-52.7%)
Average daily rate (ADR): CAD113.77 (-25.1%)
Revenue per available room (RevPAR): CAD33.41 (-64.6%)

“Occupancy had been on a slow, upward trajectory. However, the spike in COVID-19 cases, restrictions on domestic travel and extended restrictions on land and air international travel resulted in more subdued hotel demand throughout the country,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.

“ADR followed a similar pattern and fell month over month in April. However, the metric is holding relatively strong as hoteliers know that cutting rates is unlikely to generate demand in this environment.

“During this third wave of COVID-19 cases, the vaccine rollout has ramped up significantly, and as of May 23, 51.3% of Canadians had received at least one dose, which surpassed the 49.3% mark in the U.S. New cases are plummeting across much of the country, which will have a positive impact on travel demand once stay-at-home orders and domestic restrictions are lifted. Some of the orders are expected to be lifted over the next few weeks—just in time for hoteliers to benefit from pent-up domestic leisure demand in Q3. We expect this to have a real impact on resort locations and smaller cities, while demand in larger urban areas is expected to lag. The updated STR forecast shows some international and corporate travel demand is expected to resume in Q4. There is, however, an element of risk surrounding the timing of the reopening of the U.S./Canada land border. The longer-term recovery outlook remains unchanged with demand not exceeding 2019 levels until 2024.”

Among the provinces and territories, New Brunswick recorded the lowest April occupancy level (24.3%), which was 53.8% below the pre-pandemic comparable. 

Among the major markets, Montreal posted the lowest occupancy (21.6%), which was a 69.0% decline from 2019. 

The highest occupancy among provinces was reported in British Columbia (34.5%), down 49.2% against 2019. At the market level, the highest occupancy was reported in Vancouver (35.5%), which decreased 55.2% from 2019. 

PALMA DE MALLORCA – BlueBay Hotels, the eighth hotel company by international presence and the twelfth largest Spanish company by number of rooms, announces the expansion of its hotel offer in two strategic sun and beach tourism destinations. President of BlueBay Hotels Jamal Satli Iglesias announced that the chain will invest 180 million euros until 2024 for the implementation of these projects in three of its establishments, committing to vacation tourism that he considers strategic for chain ́s international expansion.

“It is a clear commitment to destinations such as Mallorca and especially Alcudia area with its magnificent beaches and a strategic position for European tourism. In the same way, for the American continent, Riviera Maya in Mexico is a destination of great importance” affirms the president of BlueBay Hotels.

The hotel group has begun to implement the renovation and construction works in three establishments: BlueBay Grand Esmeralda (Riviera Maya, Mexico), Bellevue Club Mallorca (Mallorca, Spain) and Bellevue Lagomonte (Mallorca, Spain), with a goal of finish them in 2024.

Satli Iglesias confirms that the chain took advantage of the halt and shutdown of hotel operations due to COVID-19 to begin the renovation and construction works in BlueBay Grand Esmeralda located in Riviera Maya, Mexico, a 5-star resort, 180 hectares on the beachfront, made up of 979 rooms.

The project started with remodeling works in execution of the swimming pools and the beach with piers, that will be used to access 30 units of new villas on the sea – a stilt houses built on the water. In addition to a construction of 1200 rooms, of which 200 units of loft type – family villas have already begun to be built this year along with a development of new 6000 square meters SPA. The loft rooms will be finished in 2022. The construction of 1000 remaining rooms is expected to be finished in 2024.

The biggest attraction of this Caribbean resort will be the development of the new water theme park, designed for all ages, where customers can enjoy many slides and pools in a world where water is the protagonist. The offer of this new water park that will occupy 60,000 square meters will complement a gastronomic proposal with three new theme restaurants and the refurbishment of the existing ones.

In the same way, the stagnation of the sector due to COVID-19 was used to proceed with remodeling of 3,000 hotel beds, swimming pools, themed water areas, and leisure areas with seven new restaurants in Bellevue Club Mallorca, which will result in launching new rebranded resort in 2022. Located in Alcudia, it is the largest hotel complex in Europe, which has 5,700 hotel beds distributed in 17 builidngs, with an area of 250,000 square meters.

The comprehensive resort refurbishment aims to make it one of the largest family complexes in Europe with an important water park in the area, which will occupy more than 30,000 square meters, a wide complementary gastronomic offer with more than 14 restaurants and snacks, 17 swimming pools, outdoor gym, running tracks, and a pool club, an area for adults only. Fully themed, rebranded resort with a new leisure concepts and differentiating offer. All this in a privileged, integrated environment, surrounded by lush vegetation and colorful fauna of Alcudia.

Bellevue Lagomonte located in Alcudia, Mallorca, a 4-star hotel, consisting of 272 rooms and renovated in 2019, will expand its hotel beds with the construction of 200 new family units that will have equal access to the new Bellevue Club Mallorca water park.

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