Business

Is Casa Andina for sale?

Originally published in El Comercio
Translated and adapted by Hannah Vickers

There are rumors that Intercorp might be selling its successful Casa Andina chain, but the CEO denies it.

Is Casa Andina for sale?

(Photo: Casa Andina/El Comercio)

After 12 years of operation in Peru – not a lot of time for the climb with which the return of large-scale investments in the hotel sector is measured by – the hotel chain Casa Andina, property of the Intercorp group, has become the biggest in Peru.

After beginning their work in 2003 with the administration of the San Antonio of Miraflores hotel, today they have 23 establishments with their three brands: Classic, Private Collection, and Select in 13 destinations across the country. An exponential growth, with one or two new hotels a year, which many specialized in the hotel industry explain as only possible because of the enormous power of management behind it: the group led by Carlos Rodríguez Pastor.

It is this commitment, by the way, so bold in the first 12 years of the chain, which would have attracted the attention of a team of Peruvian and foreign investors, who have made ​​contact with the owners of Casa Andina to acquire the brand and, However, his ambitious and promising business model.

According to a group of executives who took part in the talks, these were on and off until they reached a breaking point last July, when they arrived at a disagreement about the transaction amount. That is, the offer was not enough for the Intercorp stakeholders.

The group has acquired a number of companies in different fields, from ‘retail’ to education, through its successful management and mall developer. However, in all this holding, participation in services activity that operates Casa Andina, is less, and in this context it would be inconspicuous.

In fact, a study presented at the Graduate School of Esan in 2012 estimated that the turnover of the chain would exceed $30 million per year, a small figure compared to $ 4,000 million from the holding mother.

So was Casa Andina for sale? Will it be sold in the future? Is it a sign that the operator Suasi Island in Puno hotels and Select Chachapoyas, Amazonas announced his retirement last week?

For Felipe Del Campo, Managing Director of Hotel Consulting, the removal of these markets is valid as part of a restructuring that the chain can be done without thinking about a future sale.

In that vein, Luis Sicheri, Dean of Scientific Tourism South University, says that, if it occurs, the transaction should consider that 90% of the group’s hotels belong to local owners, with whom should clarify things before sell the brand umbrella, because their agreements with Casa Andina would be 20 years, on average. Complex, but feasible.

Response from CEO Jual Stoessel

The CEO of Casa Andina, Juan Stoessel, denies that the chain has been in talks to sell or plan to sell Intercorp. “It is totally false,” said the executive.

In July, Stoessel told this supplement are reorganizing the organizational structure, creating seven regional offices, with the idea of ​​having a platform capable of delivering around 40 hotels over the next five years.

He added that sales grow at a rate of 14% annually.

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