Luis Riu: “2023 was a record year and 2024 will be full of big projects, starting with Chicago”

25 January, 2024 Share

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2023 was an excellent year, not just for RIU, but for the entire tourism industry. Demand was high in all the destinations where we have hotels. I wasn’t my usual optimistic self at the start of 2023 and was worried, especially about rising costs. On top of this, all the forecasts spoke of a champagne effect, predicting a dramatic rise in travel followed by a drop. However, demand never really weakened. On the contrary, we closed last year with record figures in all indicators and an overall average occupancy rate of 89%, almost five points higher than in 2022.

Luis Riu, CEO of RIU Hotels & Resorts, on White Bay Beach in Jamaica where the future Hotel Riu Palace Aquarelle is being built.

The pandemic changed people’s spending behaviour and this was beneficial for the industry as the public now prioritises spending on leisure and experiences. What’s more, we don’t put off trips that we could take now, as we might not be able to do so later.

Therefore, we’re optimistic about 2024 as the figures are in our favour and we can continue all our major projects with enthusiasm. One of these projects is the beautiful hotel Riu Plaza Chicago, which will place our brand in one of the world’s most important cities before the end of the year.

2023, a year of outstanding figures and great challenges for RIU

We can’t deny that costs, both of all kinds of goods and financial costs, increased throughout 2023, but fortunately, as demand levels were so strong, we could increase our rates by an average of 10%. Thanks to this and the increase in stays, our turnover rose to 3.607 billion euros, a 24% increase compared to our revenue in 2022.

At the end of 2023, we had 97 hotels located in 21 countries, with a total of 50,088 rooms and almost 100,000 beds. Thanks to the work of our 35,808 employees, we welcomed a total of 6.4 million customers in 2023, 38% of whom were repeat guests.

1. Enhance human resources with more training, a goal for 2024

One of the major challenges we faced last year was human resources. Our hotels were operating at full capacity with no quiet periods of low occupancy and it was difficult to maintain staffing levels, especially for specialised positions with high levels of responsibility such as head chef or head receptionist. This will continue to be a challenge in 2024 and we’ll concentrate on training projects to provide RIU employees with opportunities for promotion and attract new workers.

2. Riu Plaza London Victoria, RIU’s first urban hotel in the United Kingdom

Façade of the hotel Riu Plaza London Victoria, opened in London in 2023.

2023 saw many major projects, the most important being the opening of the Riu Plaza London Victoria, our first city hotel in the UK. I am very proud of this opening as London is one of the world’s most important cities, with one of the most demanding and competitive real estate markets. The location is unbeatable, just a stone’s throw from Victoria Station and within walking distance of the city’s major tourist attractions. The occupancy rate has remained at levels of over 80% since shortly after the opening, and this is thanks to the good feedback given by our customers. We want to be the hotel of choice for the Spanish market and also for families with our family rooms, buffet breakfasts and unique benefits such as the possibility of booking rooms with guaranteed views of the London skyline.

3. Reopening of the renovated RIU hotels in Spain and the Americas

The team of the Hotel Riu Caribe in Cancun with Luis Riu, CEO of RIU Hotels & Resorts, at the reopening in 2023 after being renovated .

In terms of repositioning our range of hotels, last year we carried out major renovations at the:

• Riu Gran Canaria in Spain
• Riu Caribe in Cancun (Mexico)
• Riu Palace Macao in Punta Cana
• Riu Palace Pacifico in Riviera Nayarit (Mexico)

I always say that these refurbishments are like opening a new hotel because they change so much. We redo the common areas and the swimming pools, we update the rooms and bathrooms and we rethink the bars, restaurants and leisure facilities. We started in 2010 with the refurbishment of the Riu La Mola in Formentera, and our intention was to gradually update and raise the quality of all our hotels. I’ve always said that this is a never-ending project that would go on and on, because when we’ve finished all our hotels, the first ones will be ready for another refurbishment. And that is what has happened this year with the Riu Gran Canaria, which was completely refurbished in 2013 and underwent its second renovation last year.

4. New leisure offerings with more services for RIU guests

These refurbishments don’t just update facilities that wear out with use, which is very intensive in hotels that are open all year round with high occupancy levels, but also introduce new services for our guests. In this regard, the undisputed leaders last year were Riu Party and Elite Club.

Riu Party, a unique party concept that is a success in every hotel  

Our Riu Party events have become very popular among our customers, and that’s why we want to take them to all our destinations:

• In 2023 we introduced them at three hotels in Spain: the Riu Buenavista in Tenerife, the Riu Chiclana in Cadiz and, after the refurbishment, the Riu Gran Canaria in Gran Canaria. The parties are held on Fridays in these three hotels, alternating the white and neon themes each week. They’re not just for the guests staying at that hotel either, as all RIU guests staying in the nearby area can go. They are held in the theatre and are a real success thanks to the spectacular staging and atmosphere of family fun.
• When refurbishing the Riu Caribe, we took the opportunity to introduce Riu Party events by creating an area with a DJ booth, pool and separate bar. These are adults-only facilities that offer the white, neon, pink and jungle themes. These parties are for over 18s and are on a par with the events held at the world’s most famous nightclubs. We give our all to offer a unique and professional experience that guests really enjoy, and that’s why we continue working to take our Riu Party events to more hotels.

The Elite Club, premium services for the most demanding guests 

The same applies to our premium Elite Club service. It was launched at the Riu Palace Kukulkan in Cancun when it opened in November 2022, and since then we have worked to introduce this service at numerous Riu Palace hotels. Elite Club aims to meet the wishes of our most discerning guests by giving them the opportunity to purchase a package that includes exclusive benefits such as:

• A private check-in area
• Rooms with the best views
• A private restaurant for breakfast and dinner
• A reserved pool and beach area
• Access to premium drink brands both in their room and at the bar

Elite Club also pushes us to improve our level of service, which then benefits the whole company as innovation always leaves a positive mark on our entire portfolio. Since its launch, we have already introduced this service at the Riu Palace Macao, Riu Palace Pacifico, Riu Palace Baja California and Riu Palace Jamaica, and in 2024 we’ll introduce it at the Riu Palace Antillas, Riu Palace Mauricio and Riu Palace Bavaro.

RIU projects for 2024: in Jamaica, Mauritius and Chicago

We’re really enthusiastic about all the great projects we have underway this year.

1. Construction of the hotel Riu Palace Aquarelle in Jamaica

Sea view of the hotel Riu Palace Aquarelle under construction in Falmouth, Jamaica.

In Jamaica, the construction of the Riu Palace Aquarelle is progressing well and the opening is scheduled for May. This will be RIU’s first hotel in Falmouth, a new destination with a spectacular beach, and our seventh in Jamaica, where we’ll have a total of 4,094 rooms.

Luis Riu, CEO of the chain, in the center with the team responsible for the construction of the hotel Riu Palace Aquarelle in Falmouth (Jamaica).

Luis Riu, CEO of RIU Hotels & Resorts, and his sons Luis and Roberto with the management team of the Riu Palace Aquarelle hotel in Jamaica.

2. The Riu Turquoise and Riu Palace Mauritius: opening in late May 2024

RIU hotel development complex in Mauritius: Riu Turquoise and Riu Palace Mauritius, opening in May 2024.

Throughout 2023, we worked on building two new hotels in Mauritius. For our renovation project in this country, we decided to demolish the existing establishments and start again from scratch to create two hotels that we had designed and include all the service innovations that we had introduced in recent years. They will also feature the latest advances in water and waste management and will generate green energy with photovoltaic panels.

The Riu Turquoise and the Riu Palace Mauricio will open at the end of May. Multiple markets will be able to access this exotic holiday option, including Spain as there will be a charter flight operating from Madrid.

3. Hotel Riu Plaza Chicago, RIU’s future American landmark

Aerial view of the future hotel Riu Plaza Chicago and its surroundings in the Streeterville District.

At the end of the year, one of RIU’s most outstanding projects of recent years will see the light: the Riu Plaza Chicago. This US city has one of the world’s best-known skylines and is one of its great cultural, economic and intellectual capitals. We are extremely proud to bring the RIU brand to the heart of this city’s shopping and entertainment district in the Streeterville neighbourhood, very close to the Magnificent Mile and the famous Navy Pier, with the Chicago River to the south and Lake Michigan to the east.

A rendering of the future sky bar with a glass balcony suspended in the air on the 26th floor of the Riu Plaza Chicago hotel.

The hotel is also very beautiful, elegant and sober. Its architecture and interior design pay tribute to the Chicago School, an architectural style developed in the city when it became the birthplace of the world’s first skyscrapers. It will have almost 400 rooms, 28 floors and an impressive sky bar on the 26th floor with a glass balcony that hangs in the air. It has been exciting to see the building take shape from the foundations to the crowning floor. It’ll be really satisfying to welcome the hotel’s first guests.

Renovation of the Riu Palace Bavaro and Riu Negril Hotels in Jamaica and Punta Cana

And to round up this review of our main projects for 2024, we have our major refurbs. This year there will be two: the Riu Palace Bavaro in Punta Cana and the Riu Negril in Jamaica.

Riu Palace Bavaro expands by absorbing the former Riu Naiboa site

The hotel Riu Palace Bavaro will become a large hotel by incorporating the area previously occupied by the Riu Naiboa, which was demolished at the end of the year, as an annex. With this refurbishment, all our hotels in the Dominican Republic will be new or will have been renovated. I’m particularly fond of this destination not only professionally as I directed the opening of RIU’s first international hotel there, but also personally as my three children, Luis, Naomi and Roberto, were born there.

Riu Negril will renew its interior design and add new services

The Riu Negril has a unique architectural style with buildings set along Bloody Bay beach, considered one of the best in the Caribbean. This makes it a real haven of peace and disconnection. When we renovated the hotel in 2015, we focused on the common areas, and now we want to introduce all the new services and adjust the rooms to the new interior design style.

2023 could not have been any better and 2024 is full of exciting new challenges. I couldn’t end this article without thanking RIU’s amazing team of professionals, who make these good results possible and carry our all these projects to impeccable standards. Both Carmen and I are very proud to see the company that we have all built together and is still strong enough to continue growing today.

Fdo. Luis Riu