Antonio Catalán, president of AC Hotels by Marriott, at ESADE: 'The hotel industry will end up in the hands of three or four large groups'
‘The industry will end up in the hands of three of four large groups; individual hotels that do not join a major chain will not survive’, said Antonio Catalán, president of the AC Hotels by Marriott Group, speaking in Madrid at the most recent session of the 9th ESADE-Deloitte ‘Family Businesses in the 21st Century: Challenges and Opportunities’ lecture series. Catalán believes in partnerships and he does so based on experience. The company he heads first joined the Marriott International group in 2010 and, just a few months ago, merged with the Starwood group, which operates more than thirty chains. ‘Increasing, we manage fewer hotels and more brands’, he acknowledged. In this regard, Catalán underscored that the key to success was the ‘flexibility and imagination’ brought to the table by his partners at Marriott, fellow travellers whom he thanks for ‘their tremendous support in difficult times’ between 2011 and 2013.
Having rebounded from the economic crisis, AC Hotels by Marriott now has more than one and a half million rooms worldwide and continues to grow. ‘In the United States, we operate as a franchise’, he explained. ‘It is the best way to manage American culture and there, the larger you are, the tougher it is to operate. We are leaders in Latin America, and although it is harder in Europe, we have a significant presence in all countries.’
A dual challenge: booking sites and new rental systems
Looking forward, Catalán, speaking at ESADE Madrid, identified two major challenges: the intermediation of large booking sites and the emergence in cities of new players in the field of apartment rentals. With regard to the former, he is sure that the strategy lies in always supporting the customer. In fact, he said, ‘Today, 69% of our guests are direct customers’ and, to date, the company has issued more than 120 million loyalty cards. As for the second challenge, he spoke calmly: ‘I would like to see legislation, like everyone else, but honestly I am not that concerned. Our hotels are 80% full. We are seeing that there are many types of customers and, just as with taxis and other services, there are some things we can no longer stop. ‘Of course, governments have to understand that big cities need big chains; it is the only way to maintain or increase spending’, he warned.
Family business vs family of business people
In terms of management, the president of the AC Hotels by Marriott group clarified that his concept of family business relies more on the idea ‘that the next generation will be prepared to join the board’ and not so much on the company’s management. ‘For everyday business, I prefer executives’, he said. ‘I would like my six children to have six different companies. That’s why they studied business and economics, learned languages and earned their master’s degrees.’ For Catalán, ‘Spain needs entrepreneurs. Our duty is to educate the next generation for that.’ That is also how they understand things at Marriott International: ‘Bill Marriott’s descendants are in Institutional Relations or on the board of directors, never in operations.’
In addition to Antonio Catalán, president of AC Hotels by Marriott, the latest session of the 9th ESADE-Deloitte family business lecture series featured Pedro Navarro, executive vice president of the ESADE Foundation Board of Trustees; Fernando Baldellou, a partner at Deloitte; and María Jose Parada, a lecturer in the Department of Strategy and General Management at ESADE Business & Law School.
