GP Philosophy gets to hotel market
O Estado de S. Paulo
Dutchman Peter Vader, 56, has three maps of Brazil on his mind. The first he began setting up two decades ago when he was working in Shell and traveled from one city to another visiting gas stations. For years, those were his reference points in the country. Later, he left the oil company to restructure the operation of the fast-food chain Bob's. He knows almost all units, mentions some full addresses and knows by heart the names of the managers. In 2009, Peter began outlining another itinerary. His eyes are now trained for finding hotels.
With an degree in tourism (a detail he often omits from the curriculum for lack of attention), the Dutch is the Chief Executive Officer of Brazil Hospitality Group (BHG) - company the in three years went practically from nothing to becoming the third largest company in the Brazilian Hotel sector, only behind the French Accor and the national Atlantica. The logo of the chain, to strengthen the fate of Peter, is a map of Latin America, with the Brazilian territory painted yellow. "Our goal is to color all that space", he says, pointing to neighboring countries, where BHG plans to make businesses in the next two years.
Behind such bold goals is a philosophy that is well-known in the market, but until recently still distant from the routine of owners and managers of hotels: "the GP way of doing business". BHG is controlled by one of the largest private equity funds of Latin America, GP Investimentos, known for a culture obsessed with results. In general, the companies the Fund has interest in become acquisitions machines. It was like that with BRMalls, of the segment of shopping malls. In four years, the company became the largest in the sector, with a strategy of acquisitions in series. Peter Vader's mission is to replicate such model in BHG, already nicknamed the "BRMalls of hospitality".
The arrival of BHG impacted the logics of growth of the companies, forcing them to invest in expansion. So far, the market had two distinct players: the owners of the buildings and the managers. Accor, for instance, integrates the second group. BHG decided to be in both: it went out buying independent hotels, which represented 90% of the undertakings in the country, to manage them under three International brands - Golden Tulip, Royal Tulip and Tulip Inn.
The strategy of growing taking advantage of the high diversification of the Brazilian hospitality is eulogized by analysts. "Family hotels with amateur management are what the country has the most. It is the perfect environment to increase the portfolio," says Cristiano Vasques, Brazilian partner of the international consulting firm HVS. The detail is that in some cases the hotel acquired already operates under the brand of a large chain - and it is forced to give up on it to close the deal. Managing its own hotels is an essential part of the strategy of BHG: nearly 70% of gross income comes from lodging. The earnings per room is one of the highest in the sector, nearly R$ 129 (US$ 76), while the national average is R$ 104 (US$ 61.2) - a result of a series of measures adopted when a hotel joins the portfolio of BHG.
As of this year, BHG will add one more alternative to its model of expansion. Besides managing and acquiring hotels, the company will develop its own undertakings: they will be 40 in the next five years. The new hotels will require investments of R$ 800 million (US$ 470.6 million) - half will come from the cash of the company and the rest will be financed. The focus is in the average-size cities, with perspective of setting up of large undertakings that stimulate business trips. "We are not building for the FIFA World Cup. We are doing it to profit all year around", explains Peter.