Lack of Russians impacts hotel company Globalia in the Dominican Republic
The impact of the war in Ukraine continues to complicate the relaunch plans of Be Live Hotels, which is why the Globalia group intends to put aside the idea of putting the company up for sale and relaunching the activity. Yet the invasion of Putin’s troops is slowing down some key destinations.
This is the case of the Dominican Republic and Cuba, which are seeing a shortage of Russian and Ukrainian tourists in their establishments.
The company has nine hotels in the first of these destinations and six in the second. In other words, half of all its hotels are not performing as expected. However, Globalia is confident that its offer in Spain, Portugal and Morocco will continue.
Company sources assure Invertia that sales are “going very well” in these destinations and consider that “in the fall, things will normalize”.
The latest statement contrasts with the possibility of Be Live resuming its sales process from September; the step back is not definitive since Juan José Hidalgo prefers to get rid of the company after entering the scene of Cerverus and TPG two American investors who are entering.
However, this will only happen after the summer since, to date, the offers received do not convince Globalia. Some of those who are still interested are considering waiting as they believe the financial emergencies will provide them with a valuation more in line with their true market price, which considers that many hotels need a great investment to renovate them.