Costa del Sol-based boutique hotel chain expands with 20 new establishments this year

President and co-founder of one of Malaga's tourism jewels - the Soho Boutique Hotels chain - Gonzalo Armenteros is planning an ambitious expansion project this year. The group intends to add 20 new establishments, aiming to consolidate the growth it experienced in 2024.

The new hotels will focus on designs consistent with holiday resorts in beachfront locations, straying away from the typical for the group urban profile. They will be managed under the Moon Dreams brand.

Armenteros also says that the company's growth is not limited to Spain, with potential expansion being considered in Morocco and Italy, the latter being a completely new direction for the company. "We believe there is a huge opportunity and we are betting very strongly on the beach segment," said Armenteros. For now, he says, the company is only going to focus this expansion into the holiday segment in Spain, with potential future implementation of the model outside the country.

Looking inwards, Armenteros also sees great potential in "the coast of Almeria and Granada, which are less exploited or with assets that were a little forgotten".

Amid all the expansion plans, Malaga remains Soho Boutique's crown jewel. In Armenteros's opinion, "the city has to continue expanding", considering the high average occupancy rate and the "room for urban tourism". "Of course we are going to have more presence on the coast. There are products from the real estate and tourism boom that took place in the 70s in Spain, in destinations such as Torremolinos, that have not been renovated," stated Soho Boutique's president, who considers that there is a strong need to increase the quality of establishments in the beach segment.

The challenge that Soho Boutique is ready to accept is to be present in all Andalusian provincial capitals within a couple of years. The group still has Almeria, Jaén, and Huelva to conquer, although another hotel in Seville is already scheduled to open before the summer. "In the last ten years, the expansion of the chain in Spain and in Malaga has been crazy. Soho Boutique owes what it is to Malaga city," said Armentero. The group has nine establishments in the city, plus the other ones in the province - in Rincón de la Victoria, Torremolinos, Ronda and Fuengirola. "We are planning another hotel in Malaga, with more than 100 rooms. This city was already a jewel and has become a powerhouse. With over a thousand beds, we closed 2024 with an average occupancy rate of 93%," he said. Nationally, the company has also made a strong push into the Balearic Islands, Alicante, and the Catalan coast.

International jump

The expansion plan goes beyond Spain's borders. "We want to land in Italy as soon as we can and continue growing in Morocco, where we already have a presence in Tetouan, with projects signed in Tangiers, Rabat and Casablanca," said Armenteros, who explained that the Moroccan establishments combine the urban Soho Boutique and the Moon Dreams brands. In addition, there is a plan to launch in Portugal as well.

The 20 new establishments will add some 3,000 beds to the group. The current success of Soho Boutique is, to a large extent, the result of governmental support during the pandemic, thanks to a loan of 30 million euros, which saved its 34 establishments and 3,000 employees. From that point onwards, the group has fully recovered and has been paying back its debts.

Armenteros says that, "although the year started off weaker than last year, it has already picked up again" and looks ahead at a favourable future. What's more, he is confident that the group will reach, if not surpass, last year's records, in spite of all the world turmoil, with tariffs and wars. "We will continue to grow our business in the years to come," he stated.

As for the pressures exerted by anti-tourism campaigns, Armenteros says that he does not plan on ceasing the company's growth because of the overcrowded state of the city centre. "Malaga already has the good and bad things of a big city, but the important thing is that people have prospered because of tourism," he concluded.