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The Pestana Hotel Group released its 2023 financial results this Tuesday. The group’s revenue reached 557 million euros, representing an increase of 23% compared to the previous year. The group also presented an EBITDA of 189 million euros and recorded a net profit of 105 million euros in 2023.

Revenue growth was driven by hotels, which represents 67% of the group’s total revenue, but also by the real estate area, which operates under the Pestana Residences brand, and which accounts for 16%. The group’s other activities, including golf, Pestana Vacation Club and Empresa de Cervejas da Madeira, contributed 17% of revenue.

In addition to the solid financial performance that it has been consolidating over decades, the Pestana Hotel Group recorded, in 2023, a customer satisfaction level of 87.8%, reflecting the quality of service and the group’s commitment to the guest experience. client.

According to the CEO of Pestana Hotel Group, José Theotónio, “The 2023 results reflect the strong investment we have been making in our people, but also in reducing the carbon footprint and improving energy efficiency as well as high investment in digital transformation. We are committed to continuing to grow in a sustainable way, continually improving the conditions of our people and the quality of services, providing unique experiences to our customers.”

20% growth in salaries and charges

Of note, in 2023, was the investment made in people, which reflects the group’s policy of recognizing and rewarding the commitment of its employees, with a 20% growth in remuneration and charges, representing an increase of more than 19 million euros compared to to 2022.

Pestana Hotel Group’s salary policy has historically been to reinforce the remuneration and benefits of its employees, with an average increase of 12% in base salaries in 2023. Participation in results also resulted in an average of two extra salaries per employee, totaling 7.5 million euros.

The importance of sustainability in the hospitality sector

With an investment of 12 million euros expected until 2025, the group is committed to reducing the impact of its operations on the environment, and developing an integrated strategy based on five pillars – energy, water, waste, suppliers and mobility.

In this context, the Pestana Hotel Group has been implementing the Carbon Zero project with very positive results, resulting in an 11% decrease in carbon emissions in the last three years.

By 2030, the group’s goal is to reduce carbon emissions by 37% compared to 2019, ambitious objectives that involve several projects, such as the implementation of a consumption monitoring system in all Pestana units, the installation of photovoltaic panels or water circularity projects, such as the desalination plant located in Alvor and the use of wastewater from the Boavista WWTP in the Algarve to irrigate golf courses.

Renovation and new projects

The renovation of hotels or the acquisition of projects represented, in 2023, an investment by the group of 85 million euros. The Pestana Hotel Group renovated the Pestana Vila Lido Madeira and Pestana Blue Alvor Beach hotels, and acquired the Vila Sol tourist resort, in Vilamoura, in which it already had operational management of the hotel and its golf course. In Lisbon, the group completed construction and opened Pousada Alfama and Pestana Rua Augusta. Several real estate projects in the Algarve, Costa Alentejana and Madeira regions also contributed to this investment value.

Business sustainability has been a priority for the group throughout its more than 50 years of history. Throughout 2023, taking into account the volatility of interest rates, the group chose to prepay loans with variable rates, maintaining the fixed rate strategy, with a very positive impact on its financial position that resulted in a favorable evolution of the Debt ratio Net/EBITDA, currently with a value below 1, thus contributing to the financial solidity of the Pestana Hotel Group.

Results that allowed, at the beginning of 2024, to continue with the expansion of the Pestana Hotel Group, strengthening the group’s presence in the United States, with the acquisition of Pestana Orlando Suites – Lake Buena Vista and continuing with the development of ongoing projects, namely the construction of the Pestana Dunas eco-resort, in Porto Santo and the Pestana CR7 Paris.