When we asked president Gabriele Burgio about this recognition factor, he replied We will continue to use our name on our hotels. We have rebranded our new hotels in Germany and Netherlands; all are NH. In the future maybe we will look at other names.
Other paraphrased points from Burgio:
[ ] We like lease or purchase, not management; we like to have full control of the product. When you buy portfolios you buy the habits, and that is not always easy, but you have something. If you go one by one, it is what you want, but it is slow.
[ ] If you listen to what the stock market wants, you will go broke in a few months. So we look at results. We have had good results and good growth for five years. And we always have control of what we do.
[ ] Is it possible to continue growth in the same way? Stock prices are lower, interest rates are lower, but real estate is difficult.
Meanwhile, NH is catching up on the leader, Sol Melia, see Table, increasing its share from 11% in 1999 to 18% in 2001.
Results on top five hotel groups in Spain
Company US$mn* Growth,% Share,%
2001 2001 2001 2000 1999
Sol Melia 1037 7.0 22.9 24.8 25.7
NH 831 38.5 18.4 15.3 10.7
Riu 758 10.5 16.8 17.5 21.1
Iberostar 425 18.2 9.4 9.2 8.6
Occidental 400 16.2 8.8 8.8 5.1
Top 10 4521 15.6 100.0 100.0 100.0
Notes: *Converted at US$1 to Euro 0.92. Source: Nexotur, Travel Business Analyst.
Logos, product and company names mentioned are the property of their respective owners.