Parques Reunidos has transformed 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, and aims to continue growing the business in the future through a growth strategy based on 2 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, mature parks. Our strategy for profitable growth consists of capitalizing on top line (revenue) initiatives, novelties and expansion projects and strict cost control policies.
Top line initiatives
Our top line initiatives focus on increasing profitable visitors, increasing ticketing revenue 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 is constantly seeking new, fun, unique experiences to provide guests with compelling reasons to visit our parks. Optimizing our existing assets through innovation across the portfolio (rides, shows, F&B, shops, strong partners, digital) is one of the company’s overarching goals.
The Group invests continuously in renovating its parks and adding new attractions to surprise its guests. 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, giving rise 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, Middle East and lastly 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.
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.
Acquisitions over the period 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
We believe that management contracts represent an asset-light growth opportunity for us on the back of the increasing trend for the new development of greenfield projects, particularly in the Middle East and Asia Pacific. We believe we are uniquely positioned to win new management contracts given our management expertise and know-how and singular experience operating all types of parks across multiple regions.
We plan to deliver on our existing management contracts in place with Dubai Parks and Resorts regarding Motiongate Dubai and Bollywood Parks, as well as with the recent agreement reached with investment group Sun Group to manage two parks in Vietnam: the theme park Dragon Park, recently opened, and the water park Typhoon, expected to be opened in the coming months.
Roll-out mall entertainment centers
In the proliferation of malls, developers have identified the need to find novel ways to increase footfall, leading to an opportunity for us to develop MECs (Mall Entertainment Centers). Thanks to the agreement reached between Parques Reunidos and Viacom, new Nickelodeon-branded family entertainment centers will open in the coming years: in Lisbon, Madrid, Murcia and London, along with the first Aquarium concept in Madrid Xanadu.