A Success Story, Family Style

PHOTO: The Riu Palace Antillas in Aruba.

Today, Riu Hotels & Resorts operates a hotel empire featuring 105 properties in 16 countries that employs 27,107 people. The road to the company’s success, however, began modestly enough, when, in 1953 the Riu family acquired the 80-bed San Francisco hotel in Mallorca’s Playa de Palma. “This was to be the first hotel of many hotels in the future of the international hotel chain,” says Sergi Ruiz Pique, vice president of business development and partner marketing at Riu Hotels & Resorts, part of a third generation involved in the family business.

Next, the family took advantage of a charter opportunity to bring German travelers to Mallorca. “The business succeeded because of the good relationship between Riu and the German travel agency Dr. Tigges, known as TUI since 1968, and the negotiation of the first charter flights between Germany and Mallorca,” says Ruiz.

Riu later expanded into new areas of mainland Spain and the Canary Islands. “It was in 1991 that the company expanded into the Caribbean [with] a property in the Dominican Republic’s Punta Cana,” says Ruiz.

PHOTO (Above & Below): The Riu Palace Antillas in Aruba.

The Rius, however, were never a family to rest on their laurels. In 1997, the company expanded its reach into Mexico, where it now operates 17 hotels, with the opening of the Riu Yucatan in Playacar, a residential area of Playa del Carmen. “I started at the company at the same time and am very proud to have opened this hotel,” says Ruiz.

From Cancun, Riu looked to Mexico’s west coast, to Puerto Vallarta and then Cabo San Lucas Mazatlan, Guadalajara, where it opened Riu Plaza Guadalajara, the company’s only urban hotel in the country. “From Mexico we moved into Jamaica, opening the first property of any Spanish hotel chain,” says Ruiz.

More recently, Riu has expanded into St. Martin and added a second hotel in Aruba, the Riu Palace Antillas. “We also have a presence in Costa Rica, with the Riu Palace Costa Rica and the Riu Guanacaste, both of which have been very successful,” says Ruiz.

Last year, Riu debuted its second property in Panama (see related sidebar) and the first all-inclusive beach resort for RIU in that country, the Riu Playa Blanca. “This resort is located about an hour-and-a-half drive from Panama City, where we opened our very first urban hotel, the Riu Plaza Panama in 2010,” said Ruiz.

The company’s portfolio of Riu Plazas, the term Riu uses for its urban hotels, are also being expanded and enhanced. “We’re investing $20 million in renovating the Riu Florida Beach hotel to transform it into the Riu Plaza Miami Beach,” says Ruiz. “In other big news, we’re entering the New York City market this year with the Riu Plaza New York Times Square on 46th and 8th Avenue, which is scheduled to open in the fall.”

Riu also has its sights set on more far-flung destiantions. “This year we will open three hotels in Mauritius: the Riu Le Morne, the Riu Creole and the Riu Coral,” says Ruiz. “We’re also opening a hotel in Sri Lanka, which is scheduled to debut in 2016 and we’ve also been growing in exotic countries like Turkey, Bulgaria, Morocco and Cape Verde.”

As the company continues its aggressive expansion, it has not lost site of its existing cadre of properties. “We have just invested $20 million into the Riu Cancun,” says Ruiz. “Last year, we invested $300 million in renovations and we will continue to invest in our existing properties. So it’s not only expansion but also improving what we already have.”

PHOTO: Riu Palace St. Martin is the second Riu on the island.

PHOTO: The Riu Palace St. Martin’s rooms offer a modern feel.

On the leisure front, Riu’s resorts offer something for virtually everyone. “We have the Riu Classic, which are the family-oriented properties, and then we have the Riu Palace, which are more upscale and offer an exclusive variety of services and amenities, including more dining choices, room service and free Wi-Fi,” says Ruiz.

In terms of target markets, Ruiz stresses that the family sector is the basic foundation of the company business. “We are very specialized in the this segment,” he says. “We have a lot of hotels with capacities for three kids and two adults, which makes us very special.”

The company’s focus on families, however, has not come at the expense of those guests looking for adults-only choices, which are available at Riu Palace resorts. “Guests can enjoy this increasingly popular option at hotels like the Riu Palace Peninsula, where we have an adults-only area, or in properties that are wholly dedicated to adults, like the Riu Palace Jamaica or the new Riu Palace Antillas in Aruba, the only adults-only all-inclusive on the island,” says Ruiz.

Some of Riu’s fastest-growing travel segments include destination weddings and groups. “We offer excellent savings and special treatment for groups of all sizes, including small groups of up to nine rooms,” says Ruiz.

All things considered, Ruiz believes that travel agents have played a pivotal role in Riu’s success. “Historically, we have always supported the agent community because we grew hand-in-hand from the very beginning of the company,” he says.

With the help of its travel agent partners, Ruiz believes Riu’s future is virtually limitless. “Last year was a really good year for Riu, and the forecast for this year continues to be the same."