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NH Hotels Announces Growth Strategy

2 min reading time

Published on 19/10/11 - Updated on 17/03/22

NH Hoteles is basing its present worldwide strategy on improving the efficiency of all its processes, in strengthening its commercial structures and developing growth through low risk formats, such as incorporating managed assets.

To implement its current plans, NH Hoteles recently announced a change in its organisational structure aimed at aligning this to the Group’s medium-term strategic objectives. Thus, the Company recently launched an efficiency improvement plan, consistent with the fluctuating world economic climate, through which it expects to reduce costs by 10% over the next two years. Amongst the initiatives that stand out and illustrate the responsibility of employees towards current cost containment plans it is worth mentioning that the Company’s management team recently made an austerity commitment with the Group with a voluntary reduction in fixed salaries and other social benefits ranging from between 5% and 10% for the former and between 10% and 40% for the latter.Within the framework of a policy aimed at providing the Company with liquidity and reducing its debt, last week NH Hoteles sold the stake that it still held in the Lotti hotel in Paris, and which will now be placed in the Group’s portfolio of managed hotels for the next two years, thanks to the commercial alliance signed by the buyer of the establishment. With the sale of Hotel Lotti, NH Hoteles has exceeded by 15% the objectives initially established in its 2009 divestment plan.The new organisation has allowed for a commercial strengthening of the Group, and provided it with new technological capacities to manage price and occupancy levels as well as management teams focused on the development of its online business and a denser distribution network.The growth strategy for the Group’s hotel base, based principally on low capital intensive formats has already started to bear fruit. Out of a total number of 21 planned new hotel openings with 2,418 rooms worldwide, NH Hoteles currently has a portfolio of projects based on this new philosophy representing 40% of the total of the new openings. And it is estimated that around 5 new hotels in Colombia could be added to the Group’s portfolio of projects under this system in the medium term. Additionally, NH Hoteles is looking into the possibility of entering Brazil under the same format, a market with significant potential for the Group and where it currently does not have a presence, with the aim of opening between 10 and 15 hotels over the next five years. Finally, the Company will continue to consolidate its position in other markets on the continent through the same formula.Within the framework of a policy aimed at providing the Company with liquidity and reducing its debt, last week NH Hoteles sold the stake that it still held in the Lotti hotel in Paris, and which will now be placed in the Group’s portfolio of managed hotels for the next two years, thanks to the commercial alliance signed by the buyer of the establishment. With the sale of Hotel Lotti, NH Hoteles has exceeded by 15% the objectives initially established in its 2009 divestment plan.

NH Hotel Group

NH Hotel Group

Hotel Group

  • NH Hotel Group Spain
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