The daughter of a Brazilian hotelier, Érica Drumond is aiming to turn her company Vert Hotéis, founded in 2010, into a major player in Brazil.
To do this, Vert Hotéis, Belo Horizonte, Brazil, is using the Ramada brand of Wyndham Worldwide, Parsippany, New Jersey. Wyndham recently announced that agreements entered into with Vert call for nine new hotels, which include two recently opened Ramada properties in the country’s top two markets São Paulo and Rio de Janeiro. Currently Vert operates three Ramada-branded hotels, including one in Belo Horizonte, under leases.
For more details on her plans for the company, HOTELS recently spoke with Drumond, president and majority owner of Vert Hotéis. Drumond said the company currently has 18 hotels under construction in Brazil and is striving to have 90 hotels in operation within the next 10 years.
HOTELS: What are the biggest challenges Vert Hotéis faces?
Drumond: Trying to expand further within Rio de Janeiro and the city of São Paulo. It is very expensive and when we plan all the numbers, land in São Paulo doesn’t return on the investment anymore. Meanwhile in Rio it is impossible to find land that a hotel is not currently operating on due to zoning restrictions, so it’s challenging to find good places to build hotels.
HOTELS: What owners are you working with to expand?
Drumond: We work with all different owners, as the hotels are being developed under the condominium system. Lower inflation is helping spur this kind of development in Brazil.
HOTELS: So where is it easier to develop?
Drumond: In Brasilia and suburban São Paulo.
HOTELS: How is your portfolio currently performing?
Drumond: Our results are what drive our expansion, as they have impressed owners. We broke even our first month of operation in Rio. We increased by 25% our occupancy in the third month after the conversion in Belo Horizonte to Ramada.
HOTELS: Why did you choose to partner with Wyndham?
Drumond: I was interested in working with a hotel company that offered a sustainability program, and Wyndham Green is the best. Sustainability is an important part of Vert Hotéis operations.
I also wanted a major brand’s distribution and a hotel loyalty program that our customers could use here and in the U.S., which is their number one international destination.
We also chose Ramada because we could fit the brand with three standards — economy, midscale and upscale. We are working with the Ramada Encore, Ramada Hotel & Suites and Ramada Plaza sub-brands.
Also the word Ramada is much easier to pronounce for Brazilians than other brand names. This is really important for me because it means less spending on the marketing needed to make the brand known in this huge country.
HOTELS: What is the typical guest profile at Vert Hotéis properties?
Drumond: At the three properties we currently operate in São Paulo, Rio and Belo it is domestic business travelers, while Rio gets significant leisure travelers on weekends.
HOTELS: How are you developing your human resources for these new hotels?
Drumond: We are working with Wyndham’s MyPortal, using its manuals.
HOTELS: Who are your primary competitors in Brazil?
Drumond: We have a huge competitor in Accor. Their consolidation of the Ibis brands has resulted in different products, such as former Formule 1 hotels, under the same name with no standardization, which means guests don’t get as in touch with the brand.
HOTELS: Why did you choose the name Vert for the company?
Drumond: It is quite close to the Portuguese word for green, so domestic consumers understand the meaning very easily. We wanted to do an eco-friendly venture with profitable hotels that are well behaved toward the Earth.