Good practice:

PARADORES

“Red de Paradores” (the Paradores hotelchain) was created in 1928 when the first establishment was created in Avila province (Parador de Gredos).
The hotel chain has been deeply committed to the rehabilitation of historic and artistic national heritage throughout its 90-yearhistory.Today, the Paradores chain includes 97 tourist hotels across the whole of Spain.
The commercial company “Paradores de turismo SME SA” has developed a business model based on the following strategy:
• Mission: a policy tool that projects a modern and quality image of the Spanish tourism industry, pursuing territorial integration, recuperation and the maintenance of historic and artistic national heritage, as well as the preservation and enjoyment of natural spaces and landscapes.
• Vision: to become a network of hotel establishments based on:
 Integral quality service
 Differentiation
 Accessibility
 Customization
 Commitment to sustainability (natural, economic and historic environment)
This addresses the key success aspects from the Paradores business model as possible reference to other European territorieswith state-owned heritage assets that are at risk of being lost for ever.

• Heritage Assets with the potential to be converted into exclusive hotels
• Adapted policies and regulations to support the business model
• Qualified staff

• Historic hotel chain created in 1928
• Commercial company established (100% public administration) to manage the business
• 97 hotels
• Over 4,500 qualified and motivated staff
• Recognised (through awards) as number 1 in Spain for cultural and nature tourism
• Over 258,000 € total annual economic income (52% rooms, 48% restaurants)
• 39.1 million € (EBITDA); 1.5 million € (final economic result)
• 6,125 rooms available
• Over 1.4 million of clients (65% national origin, 35% internatio

• Business model definition
• Legal framework to support the business model
• Individual and global (hotel chain) economic feasibility
• Quality of the heritage rehabilitation and maintenance
• Definition and setting up of the sustainability model

The Innocastle partners were impressed by the Paradores network of luxury accommodation in converted historic buildings. They felt it was a replicable business model for other European territories. Particularly in regions where otherwise the cost of rehabilitating and maintaining heritage buildings would be prohibitive.
There is potential in learning from the Paradores model which is a strong product, marketed as a collection and therefore emphasising the quality of the brand. It also lends itself well to cultural tourist routes connecting the Paradores and thereby stimulating heritage tourism.
The Paradores model could provide a template future public-private partnerships and several partners felt that it could be useful in their own regions, particularly in Flanders and Romania.