Interview with Marc Rahola in Vozpópuli.
The group created by Rahola has 250 employees and a turnover of 22.5 million euros in 2019. It is made up of two hotel brands (OD Hotels and Ryans) and companies in the restaurant, real estate, agricultural, construction, engineering and architecture sectors. It also has its own private investment fund, Ocean Group Capital, through which it aims to capture new assets in the hotel market.
Its first hotel establishment was OD Ocean Drive, in Ibiza, followed by four more on the island, one in Majorca, another in Barcelona and a last one in France, still managed under a white label. This portfolio will soon be joined by three projects in Madrid, London and Miami, bringing the total number of hotels to more than ten. The company's objective is to double this portfolio by 2023.
How do you see the hotel sector at the moment?
We are in a process of digital transformation that was already happening but has obviously been accelerated by a survival model and now seems basic and Darwinian. It is much easier for us to understand when we talk about Netflix or Amazon, but the hotel sector was in exactly the same situation. There was a constant search for ways to differentiate and this has accelerated. It is no longer the strongest and the biggest that will survive, but the one that best adapts to the rapid changes we are experiencing.
How has OD Group dealt with the crisis?
We are constantly trying to reinvent ourselves and adjust to reality so as not to stop the machine. During the pandemic we have tended to reinvent events. In this day and age, we want to socialise and the organisation of meetings in a safe environment is much more successful. We have done this thanks to a working structure that we have been modifying and that allows us to make decisions quickly, moving away from the traditional hierarchical and complex formulas of the hotel and catering industry.
How many hotels do you already have in your portfolio?
We currently have five hotels in Ibiza (three OD Hotels and two Ryans), one in Mallorca and another in Barcelona. We also have a hotel in France, in Saint-Tropez, which we are managing under a white label, waiting to refurbish it this winter and operate it under the OD Hotels brand from June or July next year. The work was scheduled for this summer, but the pandemic has delayed the process, so we decided to open it in the meantime and it has worked very well.
And in the pipeline?
In addition to the hotel in France, we are planning a hotel in Miami, another in London and another in Madrid, a four-star hotel in the former Real Cinema located in the Plaza de Isabel II. This brings the total number of hotels to 11. We are also working to build another small rural hotel in Ibiza on a plot of land we own.
How is the construction of the new hotel in Madrid progressing?
The one in Madrid is under construction and we hope to open it between the end of September and the beginning of October next year. We had originally intended to open in June next year, but it has been delayed because a lot of work has had to be suspended during the pandemic. But in spite of everything, it is clear to us that it is an iconic project because of the site, the city and the timing. Besides, for me it's easier to plan for two years than two weeks, and one way or another, this will happen. I love Madrid, it's one of my favourite cities and we are looking to do more projects.
This project has sparked complaints from the Madrid Ciudadanía y Patrimonio (MCyP) association...
There was a lot of noise and they denounced the municipality itself. We were very careful. Before buying the asset, the first thing we did was to study the historical and archaeological part and ask the Heritage Commission. The conclusion was that there was a civil war and many reforms that meant that all this heritage did not exist. Therefore, they are trying to safeguard what no longer exists and there is no legal figure to support that. Everything has been done within the framework of legality.
The pandemic will leave opportunities, do you have any investment planned?
Yes, we are studying proposals because there are opportunities in the market and we hope that in the next few years we will more than double the structure we have right now, reaching 20 hotels. We have been preparing ourselves for the last two years in terms of capacity, project and logistics to be able to do this. We have an investment fund, our own financial arm (Ocean Group Capital), which allows us to continue growing organically without putting the company at risk.
What is the fund's investment capacity?
With the new projects that we have today, we have reached a figure of almost 90 million euros in fundraising, which in equity is 90 million euros and in investment capacity 180 million. In addition, we are obviously considering working with other funds that are not finalists like us but that are interested in either renting the hotels to us or giving them to us in management. We are also working on this and therefore we have a very interesting horizon for growth over the next two years.
What locations are you looking for?
We are Spanish and our preference is always to invest in Spain, but we have our sights set abroad. We are now developing a project in London, where we would like to continue to grow. We are also looking at opportunities near hotels that we already have. For example, we already have an OD in Barcelona, but we would like to have a Ryans in Barcelona. We are now opening an OD in Madrid and having a Ryans in the capital would complement us. I could say the same for Mallorca.
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