The economy hotel industry is set to conquer Spain. Up against the major international brands, Sidorme Hotels plans to become a major player in its domestic market. Founded by Fernando Rivas, former director of the group Danone, the chain has been in existence for 5 years. Supported by opportunistic investors, it is rapidly developing its hotel supply that represents a good value for its price. But what will happen when the initial investors exercise their right to reduce their holdings?
When Fernando Rivas Cortes left Paris and the group Danone in 2004, he had a very precise plan in mind: to create his own hotel group. Sidorme Hotels, the name of the new brand, and its slogan - “Aqui Sidorme bien” meaning “Sleep well here” – promising sleep-filled nights to guests looking for a good value. Having traveled throughout France, this industrial investments manager discovered the appeal of economy hotels. His plan is to export this profitable model to Spain, where it is not very well exploited. His approach might be surprising, but throughout his career Fernando Rivas has worked with a number of sectors that are key to the hotel industry: real estate promotion, finances, communications, marketing. He also worked with the hotel industry directly from 1990 to 1992 as the controller and analyst of investments in the Husa group.Nonetheless, in order to get through the storm, the group will open its sales to major online middlemen such as Expedia, Booking, Lastminute and classic travel agencies such as Viajes Corte Ingles or Marsans. Sidorme has also just signed an agreement with the French group B&B Hotels that foresees links on the websites of the two chains in addition to the exchange of pages in sales brochures. The fruit of this work should not be evident only in the results. The goal is also to develop customer brand awareness. So that the bride to be will have a better dowry on the wedding day… Any suitors?The founder is not alone in this adventure. He has support from a group of Castilian investors from the construction sector who jointly hold 60% of the capital. This is a 100% Spanish response to the ambitions of international brands, particularly French ones. Accor, Louvre Hôtels and B&B have never hid their desire to cross...
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