Spain’s Fergus Group pivots to repositionings

INTERNATIONAL REPORT — Born out of Palma de Mallorca, Spain, a decade ago, the Fergus Group’s 34 hotel assets stretch across key Spanish holiday regions, including the Balearic and Canary Islands, Catalonia, and Andalusia.

The Spanish company owned by Mallorcan entrepreneur Pep Cañellas specializes in repositioning, managing, and commercializing hotel assets across various brands from luxury to mid-market. It owns and operates hotels under the Fergus Hotels and tent Hotels, while its soft brand is Affiliated by Fergus.

Already, in 2025, the group has added seven new properties to its portfolio, with three in Mallorca and one in Sitges on the Barcelona coast. About a dozen more hotel transformation projects are in the pipeline for 2025 and 2026, said CEO Bernat Vicens, particularly in the Canary Islands and in new opportunities areas such as the Valencian Community, with a special interest in Benidorm.

Bernat Vicens

“Our growth strategy is strongly rooted in the repositioning of underperforming assets in Spain’s mature vacation destinations,” Vicens said. “That said, our priority when assessing new opportunities is clear: we only move forward with projects that allow us to create long-term value—for the hotel and the destination. We are selective in our growth.”

The group’s local knowledge gives it the edge on U.S. companies looking to expand in Spain in the holiday resort market, Vicens added.

“Managing beach-oriented leisure hotels, particularly in a mature destination like Spain, requires a very specific expertise,” he said. “While the core principles of hotel management remain common, vacation hotel management differs from urban or business hotels. Guest behavior, expectations, seasonality and spending patterns demand a tailored approach.

“Many large U.S.-based or publicly traded companies rely on strong brand architecture but often lack the operational experience and commercial strategies needed to succeed in this niche. Our strength lies there.”

Vicens added that the Fergus Group model is flexible and adapts to the ownership structure of each asset, noting that some of the hotels are owned.

“We collaborate with a diverse range of owners, from small family-run businesses to international investment funds and other hospitality groups, who all share the objective of maximizing asset value,” Vicens said.

The lineup

The Fergus Hotels brand includes 4- and 5-star properties across Spain’s top coastal destinations. The brand operates three distinct sub-segments: Fergus Club, aimed at all-inclusive, activity-rich, family-oriented travel; the lifestyle-oriented Fergus Hotels; and the premium, adult-oriented Fergus Style.

Sea View Suite at the Fergus Style Tobago, Spain

In 2020, the company launched tent Hotels, targeting the mid-range to premium market segment, and Gen Y and Z travelers, with a modern and flexible approach.

“Tent Hotels is a trailblazer in the B&UB (Bed & Unlimited Brunch) category,” Vicens said. “These properties are tailored for travelers seeking flexibility and immersion in the local destination.”

Affiliated by Fergus targets independent hotels that wish to retain their identity while benefiting from Fergus Group’s operational and commercial expertise.

Vicens said that as a third-party management company, its strategy is to add value to both the holding company and its partners. “We choose hotels that are not at the level of performance that they could be and, through a change in management and reinvestment, take them to another category.

“Our GOP delivery strategy is rooted in a combined formula of efficiency and a consumer value-driven model. We focus on unlocking underutilized potential in assets through targeted repositioning, lean operational structures and a tailor-made, asset-by-asset commercial strategy.”

This, too, Vicens believes, differentiates the group from larger U.S.-based operators who may standardize performance.

“We adapt our approach to each property—maximizing owner returns by blending operational flexibility with a deep understanding of local requirements, seasonality, and labor dynamics.”

Bottom line

Vicens said the company’s success can be measured by the international companies that have chosen them as a management partner, such as Grupo Piñero and Grupo de Empresas Matutes (owner of the Palladium Hotel Group).

To date, the group has invested over €130 million in hotel repositioning projects, “always with a focus on unlocking long-term value.”

We expect to close 2025 with a turnover of €210 million and a GOP of €90 million, an 88% growth compared to recent years.

Bernat Vinces

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Vicens said the group’s profits are soaring along with its expanding portfolio and staff.

“We expect to close 2025 with a turnover of €210 million and a GOP of €90 million, an 88% growth compared to recent years,” he said.

This year, Fergus is opening seven new hotels, including the Fergus Style Punta Arabí in Ibiza, its entry into Menorca with two hotels, two new assets in Catalonia, and the ninth opening for its tent Hotels brand. In 2026, three more hotels in Cala Major, Palma’s coastline, will be renovated before reopening under the Fergus, Fergus Style, and tent Hotels brands in 2027.

Vicens said the Spanish market continues to demonstrate strong fundamentals in both domestic and international travel.

“We expect continued growth in ADR and RevPAR in the leisure segment, especially in coastal and island destinations,” he said. “With increased interest in quality, authenticity, and year-round experiences, repositioned assets are in a strong position to outperform the market.”

Even with the uncertainty of global macroeconomic factors, Vicens feels the outlook is positive, particularly for operators who can adapt quickly and deliver tailored guest experiences.

“Each year, we add value to the sector by introducing new repositioning projects that actively contribute to the evolution of tourism in Spain,” he said.

Vicens gives the example of the €20 million investments last year in launching three hotels in the Calvià area in southwestern Mallorca: Fergus Club Mallorca Waterpark, tent Calvià Beach, and tent Mojito Suites.

Closer to home, overlooking the Bay of Palma, the group is expanding its footprint with three new properties set to open in the seaside resort of Cala Major in 2027. Following an extensive repositioning project, the Fergus Style La Cala, Fergus Marivent, and tent Costa Palma will re-emerge with upgraded facilities and services.