Parques Reunidos has evolved from a primarily Spanish business into a leading international operator. The Group intends to continue its expansion in the near future, seeking attractive growth opportunities worldwide on the basis of two pillars:
1. Focus on Operational Excellence
We have a high-quality portfolio of regional and local leisure parks that are generally well-capitalized and well-maintained. We believe there are continuing opportunities for us to generate growth in these existing and well-established parks. Our strategy for profitable growth consists of capitalizing on top line (revenue) initiatives, novelties and expansion projects, and on strict cost control policies.
Top line initiatives
Our top line initiatives focus on increasing profitable visitor numbers, as well as ticketing and in-park revenue per capita, without compromising safety or customer satisfaction.
Novelties and expansion projects
We have specific plans for novelty capital expenditure at our strategic parks, targeting one novelty every three to four years in each large park.
We believe that expansion projects represent a strong and visible growth opportunity at a number of our key parks.
Strict cost control policies
We apply a strict cost control policy without compromising safety or our levels of customer satisfaction, and as revenue levels increase, we benefit from our operating leverage.
Parques Reunidos invests continuously in renovating its parks by adding new attractions, and is always seeking unique experiences to surprise its guests and encourage them to visit our parks. Optimizing our existing assets through innovation across the portfolio (rides, shows, F&B, shops, strong partners, digital field, etc.) is one of the company’s overarching goals.
Agreements with internationally renowned brands such as Playmobil, Warner, Star Trek or Nickelodeon play a key role in making this possible. For instance, Nickelodeon, one of the world’s leading global entertainment brands for kids and families, has brought its characters, interactive shows and attractions to Parque de Atracciones in Madrid, thus giving birth to the first Nickelodeon-branded attraction in Spain; Parques Reunidos believes that IPs will help position the group as the number-one leisure choice for families, offering unforgettable moments of fun and entertainment.
2. External Growth
Further strengthen our portfolio through strategic acquisitions
We aim to continue to generate value and strengthen and diversify our portfolio through bolt-on acquisitions, applying our business model, best practices and benchmark capabilities to reinforce our position in Europe, the US, the Middle East and Asia, a rapidly growing region with attractive opportunities in the leisure industry.
Parques Reunidos has been the most active acquirer of individual theme parks in Europe and the USA over the last eight years, and we work every day on further strengthening our portfolio through strategic acquisitions.
The most recent transaction was the acquisition of Miami Seaquarium, the largest continuously-operating oceanarium in the United States, located in South Florida. This acquisition reinforces Parques Reunidos’ presence in the US market, where it owns and operates 22 parks through its subsidiary Palace Entertainment.
Our most relevant acquisitions include:
- Miami Seaquarium, USA (2014)
- Noah’s Ark, America’s largest water park (2012)
- Slagharen, the Netherlands (2012)
- Movie Park Germany (2010)
- Faunia, animal park, Spain (2009)
- Tusenfryd, the largest leisure park in Norway (2008)
- Sea Life Park, Hawaii (2008)
- Grupo Kennywood, EEUU (2008)
Enter into management contracts
Given the fact that developing greenfield projects – like those we have in the Middle East and in Asia-Pacific – has proven to be an increasing/growing trend, we believe that the management contracts model represents a growth opportunity for key/main/core assets. Thus, we are confident that are uniquely positioned to win new management contracts given our expertise and singular track record in operating all types of parks across multiple regions.
Our most recent management contracts are, precisely, in those two regions. Our agreement in the Middle East is with Dubai Parks and Resorts to manage Motiongate Dubai and Bollywood Parks. In Asia-Pacific, we have recently signed with Sun Group investment group to manage two parks in Vietnam: the theme park Dragon Park, recently opened, and the Typhoon Water Park, which is expected to open in mid-2017.
Roll-out mall entertainment centers
Shopping mall developers have realized that their product’s position in the market allows for the introduction of entertainment in malls as an additional and innovative source of business diversification. They have identified the creation of entertainment centers inside malls as an option to increase mall visitor numbers. This has allowed us to develop the concept of MECs (Mall Entertainment Centers). Through the agreement between Parques Reunidos and Viacom, will open several MECs with the Nickelodeon brand in Lisbon, Madrid, Murcia, and London in the coming years, as well as an aquarium in Madrid Xanadú shopping center.