“There is a lot of money in the market, very interesting opportunities are coming to us”

The Smart Rooms group has just celebrated ten years of life. What prompted you to enter this industry?

We were born on Sant Jordi’s day in 2012. I come from a family business and it was always my dream to own a hotel in Barcelona. I studied at Esade and then was developing projects around the world in a tourism consultancy where I met Gabriela Fernández, my current partner and now the group’s marketing manager. My father died and I had to go back to the family business, but I soon realized that I had to fulfill my dream. I met my partner Manel by chance in Barcelona one day and we talked about an idea that had been around for a long time: to create an accommodation manager. We went to eat at Passeig de Gracia and everything started to take shape there.

How do you go from zero to managing 1,100 rooms?

The beginnings were difficult. You are nothing and a very referential industry. We started looking for real estate in Barcelona and in parallel we met people who were interested in setting up student hostels in Brazil. We went to explore the project that didn’t happen but helped us understand that over the past decade Latin America’s university population has doubled without infrastructure. My partner went to Colombia to develop a university housing project in Bogota and meanwhile we managed to get our first touristic apartment building in Passeig de Gracia. Then the building on Pau Claris street in Barcelona, ​​and then the first hotel, Yurbban Trafalgar.

Student dormitories, touristic apartments, hotels… How many divisions does the company have?

Smart Rooms works through the group’s parent company, manager and various brands. We have two broad areas: Living, for stays of more than 30 days, student residences and apartments where we are concentrated and where we work with The Spot brand. There is also the Hospitality area, which includes the brands Spotty Hostels, Uma Suites, Uma House and Yurbban Hotels, which basically consists of hostels and hotels.

Why so many brands?

The diversity of brands allows us to adapt management to different environments. We can even work with white label, that is, we manage businesses that do not lose their brand and image. We handle the operational and efficiency part, but the customer maintains his image.

And they are starting to grow amid a global pandemic that has forced many companies in the industry to shut down…

The first decision we made with the 2020 confinement was to withdraw as much as possible so that we could cut all expendable expenses. Since we have a relatively small build, we were able to do it very smoothly. Also, we had almost no debt, which helped us a lot to survive. At that time, we had two choices: either we waited for the storm or we sought new revenues to stay the same. We bet on the second.

Conclusion?

We made some deals with different mutual funds. We hired a hostel in Pau Claris in Barcelona, ​​it was opened in June 2021 after renovation. We also just opened a building in Madrid, a building in Miami and the Yurbban Ramblas Boutique Hotel in front of the Canaletes fountain. There is a lot of money in the market right now and there is a lot of interest in the sector, we get opportunities to study very interesting projects. For example, funds entered very strongly in the housing segment.

Do you consider the possibility of accepting new partners?

In the matrix, no. I’m not saying no to develop a particular line of business. Until now, investors have limited themselves to buying or guaranteeing assets. In the future, it is possible for us to give someone input to help develop and promote a particular brand.

Does it mean that there is someone interested in creating their own brand with Smart Rooms?

Yes, everything is in the working phase and that doesn’t mean we agree. In fact, a preliminary agreement was reached at another time, but we refused to protect our core. If it does happen in the end, you have to respect the way we work because we don’t want to lose our soul. We have values ​​and a very integrated culture and we want to respect that. He is the essence of the group.

What numbers does the group currently manage?

Turnover will be 22 million euros in 2022 and the forecast is to double this figure in four years. We currently manage 1,100 rooms and will grow to over 2,000 in the coming years. Our workforce is 179 people, but this number will rise to over 200 as soon as the restaurant of the new hotel on Las Ramblas in Barcelona is up and running.

Do you have a presence in Colombia, Miami, Madrid and Barcelona to date?

We have two hostels in Colombia, Bogota and Chía, and are currently examining possible future projects for new dormitories in Ecuador or Peru due to their proximity, but we are not disregarding any tourism projects either. Miami showed up without thinking about it, and it was an opportunity to seize. It’s been a great experience and if more come out, we’ll always be checking them out. We have a hostel in Madrid that we opened just before the quarantine in January 2020, and we are now finishing the renovation of another apartment building that will be operational at the end of May. Additionally, this summer we are making our debut in Palma de Mallorca with a Yurbban hotel and restaurant business.

The first hotel in Mallorca?

Yes, it will open towards the end of summer. The concept that characterizes Yurbban hotels is ‘live like a local’, so we strive to give the hotel those authenticity you can only find in Palma de Mallorca. We are looking for island-specific organic ingredients for different levels of decoration, and we finish defining a gastronomic offer that can offer the local essence: a breakfast not to miss with sobrasada, a wide variety of cheeses, different types of bread, etc.

So every Yurbban is different?

Yes, each institution has its own characteristics. We didn’t want a chain where all hotels are the same. The city in which they are located is the starting point. We make sure that every business has its own stamp, and at the same time, it is unique and original, but does not cease to be functional and comfortable.

They’re also betting on restoration…

This is an activity segment that we want to promote. We purchased the old Baviera on Las Ramblas in Barcelona to serve our newly opened Yurbban as well as anyone passing through the area looking for a place to eat. We have invested 550 thousand Euros and we are in a complete reform. It will be operational in the early summer. You can eat well in a price range of around 15 to 30 euros. We want to promote and promote Catalan cuisine. In all the organizations we manage, the aim is to reflect the essence of where we are. Cities are known for their taste.

What other cities do you have in mind?

I really want to work in the south of Spain: Malaga or Seville, for example. We also want to set foot in Porto or Lisbon. We were about to do this but in the end we don’t quite understand each other. This is another way of working but I believe sooner or later Portugal will come.

And occupation of workplaces?

The start of the year was complicated by waves of new coronavirus. It was all doubt. But right now, we have a permanent profession between 80% and 100%.