With 15 Hotels in Operation, Mercan Group Has 16 More Projects “On the Way,” with a Focus on the Algarve

Source: Turisver

During a breakfast meeting at the Renaissance Porto Lapa Hotel that brought together João Pedro Figueira, Director of Operations and Business Development at AHM – Ace Hospitality Management, a Mercan Properties Group company, and members of the tourism trade press, topics such as the opening of new properties and the development of international brands being implemented in Portugal were discussed.

AHM – Ace Hospitality Management (the hotel management company of the Mercan Properties Group) was established in 2019 and, according to João Pedro Figueira, Director of Operations and Business Development, is “a multi-brand white-label company, as we work with a variety of different branded products.” This means that “our visibility is not the same as that of a traditional hotel group, because there is always another brand behind us that we represent, such as the Renaissance Porto Lapa Hotel, which is a Marriott sub-brand. We adapt the product and the brand we choose according to the location and the characteristics of the property.”

João Pedro Figueira added that, as hoteliers, “we are able to handle everything from a commodity-type product focused on guests who simply want accommodation, breakfast, and then leave the property, to more sophisticated products, as well as corporate-oriented products such as the Renaissance. In other words, we have a very broad range of capabilities and expertise.”

According to the executive, these capabilities allow the company to approach the business from multiple angles, as AHM currently operates 15 properties, stretching from Amarante to the Algarve. The first hotel to open was Casa da Companhia, located on Rua das Flores in Porto.

AHM is internally structured to support both its existing portfolio and the properties scheduled to open in the coming years. “We are divided into several departments. We have a Sales department, a Revenue department, a Procurement department, a Finance department, Sales and Marketing, and a Construction and Development department, which also supports hotel maintenance. We also have a Human Resources department. In other words, we have nearly all the functions of a hotel operation, except for the line staff,” he explained.

“In the coming years, our expansion will focus on the Algarve, where we will have several projects, including the country’s first Hard Rock Hotel, at Praia do Vau, and soon two Hilton properties in Lagos, a Curio Collection by Hilton and a Hilton Garden Inn. In addition, we will also have another Indigo, an IHG brand, in Faro.”

In the coming years, the group’s expansion will indeed focus on the Algarve, where it will introduce several projects, including the country’s first Hard Rock Hotel, at Praia do Vau, as well as two Hilton properties in Lagos, a Curio Collection by Hilton and a Hilton Garden Inn. The group will also add another Hotel Indigo, an IHG brand, in Faro. Altogether, the executive emphasized, “we have a significant pipeline of products entering the market.”

With 15 hotels currently in operation, there are 16 additional properties on the way, including “our first property on an island, in Madeira. We acquired the Golden Gate Café, right in the center of Funchal, and we are going to develop a premium Marriott property there, which will be an Autograph Collection,” João Pedro Figueira revealed.

Regarding the performance of the tourism sector this year, he stated that “things are going very well, very much in line with our expectations and our budget. Our properties are being very well received, and we are even being approached by external clients interested in having us manage assets that are not part of the Mercan portfolio.”

As for the operational management of the brands, João Pedro Figueira explained that “the brands have standards and conduct regular inspections. We strive to adapt our service standards to what each brand requires, and then the brand audits whether we are actually delivering according to those standards.” He further clarified that “responsibility for management and financial performance lies entirely with AHM and Mercan, with the support of each hotel’s operational teams.”

Asked who chooses the brand for each project, he explained that “the brand is usually selected by the Mercan team, with contributions from our CEO.” However, in many cases, the brands themselves make direct proposals. He also highlighted that “we currently work with four brands—Hilton, Marriott, Wyndham, and IHG—and we will soon add two more, Accor and Hard Rock Hotels. As a result, we may become the company representing the largest portfolio of hotel brands in the country.”

When asked about the most attractive regions for investment in Portugal, João Pedro Figueira noted that “it is easier to achieve quick results in Porto and Lisbon, where properties gain immediate traction due to their locations. However, there are other destinations that have been very pleasant surprises.” As an example, he cited Beja: “Beja was something of a question mark, and the reality is that it has been a tremendous success,” he concluded.