BARCELONA, Spain—With luxury assets spread throughout Europe’s major metropolitans and aspirations to expand into Asia and Latin America, Derby Hotels Collection accurately can be labeled an outwardly focused, worldly chain.
But owners are just as quick to tout the insular nature that has allowed the family-owned business to ensure success within its 20 hotels and apartments.
“At Derby Hotels Collection, we have always worked to maintain control of the hotels' property and operation,” said Joaquim Clos, Derby’s general manager and son of the group’s founder, Jordi Clos.
That commitment was recently on display when Derby acquired for €120 million ($166 million) the remaining 50% share in its Hotel Banke in Paris and The Caesar in London, which previously were held by Metrópolis equity group. Derby now owns 100% of its portfolio.
“We saw the opportunity to continue with our strategy in these two cities and we did not hesitate,” Clos said via email.
The group also manages each of its assets. “This allows us to always manage our hotels under the same operating standards,” he said.
That consistent approach to operations is especially important given each asset’s unique look and feel.
“We work to create unique spaces, in one-of-a-kind buildings, that offer service of the highest quality,” Clos said. “Each hotel is different, each one with its own art collection, personalized décor and a wide range of services in line with its category—unique spaces in which our guests can enjoy new experiences.”
The Banke, for instance, features original molding and marble fireplaces that originate from the building’s early 20th-century origins. The Caesar’s rooms are highlighted with exposed brick that frame the recently remodeled Victorian shell.
Such character and charm speaks primarily to high-end leisure guests, who make up 65% of Derby’s demand, Clos said. The remaining 35% comes from corporate customers.
Maintaining occupancy from those two groups is Clos’ No. 1 challenge, he said, especially at a time in which “demand is being affected by the global economic crisis.”
Also high on his list? “Having our (gross operating profit) hold steady and even increase.”
Opportunities and expansion
The No. 1 opportunity for Derby is the emergence of new markets such as Russia, South America or Asia, Clos said.
“This represents an increase in the demand for luxury tourism, and this is the segment in which the majority of our hotels are situated,” he said.
Derby has hotels open in Barcelona, Madrid, London and Paris.
“We are always located in major cities or capitals and in the historic and/or tourist center, in buildings with a history that leave no one indifferent. That is how we have been able to position ourselves as one of the most prestigious hotel chains in our country,” he said.
Derby has no immediate plans to expand its network, but executives are always searching for new opportunities.
“This does not mean that we do not pay attention to the European real estate market. In fact, we continue to visit buildings and are on the lookout for a good opportunity,” Clos said.
“We would like to continue growing in the future. Although we have always focused on Europe, areas such as Asia and Latin America also offer an advantageous position,” he said, adding potential funding could come from a variety of sources.
For now, executives are concentrating on their most recent capital investments in London and Paris.
“It is important to go step by step, and after this last investment, our interest is in focusing all our efforts on promoting these two cities to the max,” Clos said.