Benidorm loses its hotel attraction

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EVEN in the crisis some businesses flourish.

Servi Group, the Benidorm based hotel chain which was established in the town 42 years ago, has announced it is buying two hotels for a total of €24 million, but not in Benidorm.

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One is in La Manga, and the other in Castellon. 

Both however, come within Servi Group’s criteria of being on the coast and not more than 300 miles from their Benidorm base.

With these two hotels the group gained an extra 9,000 beds. “Benidorm is selling itself below cost,” said Jose Maria Caballe Horta of Servi Group, whose client base is 40 per cent British.

“We have adjusted prices with the crisis, but we have not fallen significantly,” said Caballe, which allowed Servigroup to maintain in 2011 the same turnover as 2010, and which was eight per cent higher than 2009.

The focus of the chain has been allowed to keep their establishments open all year round “with a lower occupancy than other hotels in Benidorm, but at a better price,” said Sr Caballe.

With 16 hotels throughout the Valencia region, Servi Group is a powerful employer, having up to 2,000 staff in the high season.

However, its two latest purchases are away from its Benidorm home, indicating perhaps, a shift in the town’s draw on a commercial level at least for hoteliers.

Low prices are not seen as a good thing by everyone.

By Paul Deed

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