Hotelier of the Week: Jesus Arnedo

Jesús Arnedo, general manager of the five-star Hesperia Madrid talks to ABTN's Sara Turner about the merger between Spanish hotel chains NH and Hesperia, and about running one of the largest business hotels in Madrid

Jesús Arnedo has been interested in the hotel trade since he was a small child, and paid no attention to his father when he warned him off the business.

"My father was a head waiter and he told me never to work in hotels," explains Arnedo.

But the advice fell on deaf ears. Arnedo (pictured) has managed numerous hotels around Spain, from Fuerteventura to San Sebastian.

"It's something that catches you. In the end, I had to do it. I love it.

"I started working in bars and in restaurants. I liked it very much - to give good service, to see the guests happy, to have that connection."

He now runs the Hesperia Madrid and speaks fondly of his hotel as a small town - each member of staff is important in ensuring the positive experience of the guests.

The hotel has fared well in the recession, says Arnedo, but Hesperia Hotels made some difficult decisions early on and has recently merged with NH Hotels.

"At the end of 2008 we really saw the wolf. We were scared. The results until May/June 2008 were fine, but from September 2008 it got worse and worse - it was a vision of the future.

"So, we made big adjustments, of the costs and of the way of working. We made some hard decisions, but it has improved our current outlook."

Arnedo says the merger between two of Spain's largest hotel chains "is something very curious".

"It's a very interesting experience because very few chains in Spain have this type of movement - it's a combination."

"Hesperia is the principal shareholder in NH Hotels," explains Arnedo.

Hesperia Hotels owns 25% of NH Hotels, he reveals, with the next largest shareholder owning 10%.

The Hesperia brand is unlikely to disappear, but will Hesperia Madrid be renamed? Arnedo says not.

"At the moment we are maintaining the names. For example, as it is a member of Leading Hotels of the World, it is very difficult to change the name. It would not be a very good marketing idea.

"NH Hesperia Madrid also wouldn't work - it's too much."

There will, however, be closer working ties between the two companies.

Two executives will join the NH board from Hesperia, likewise Hesperia will join the NH board.

Arnedo views the merger as a positive move, opening up opportunities. "With the talent of NH plus the talent of Hesperia we can make something together.

"If it means we grow and produce, if that is the target, then it's a good thing. It's worth it."

He knows both companies well, having worked for NH for several years before joining Hesperia in 2002 overseeing all new openings. He then went on to manage the Northern area of Spain, before being asked to take over management of Hesperia Madrid.

"My general manager phoned me and said: ‘I need you in Madrid. I want you to change the hotel - we need more activity and more business.'

"For me it's been a good experience - a change of life. I'm very happy."

Arnedo ran a number of resort hotels before taking on the role at Hesperia Madrid.

"For me it was a change of lifestyle to come to Madrid. I used to live in the mountains or near the sea."

For Arnedo the major difference is in the type of guest. "Guests live in a resort hotel. They swim there, eat there, play cards, whatever - in the end they are like friends.

"Normally the executive guest is in more of a hurry. They are on business, do they really need to check their emails, or they need rest for the next day. You don't look for a relationship, because they don't need it."

Business guests are more demanding than ever, he says. "In a very short amount of time business travellers have to do many things - go to a meeting, have dinner, meet a friend who lives in the city.

"The evolution in hotels is moving very quickly these days. Also in how we communicate with our guests - with internet, blogs, facebook."

Arnedo predicts that hotels will become more and more specialised to keep up with what guests want.

"You'll have hotels for teenagers, for people in their 20s, then more classic hotels for people who are over 60, who are looking for a different service.

"There will be a very high specialisation to respond to the needs of those types of guests."