The Ibiza Gran Hotel is on fire. It has recently been recognized as one of the five most luxurious hotels in the Balearic Islands by Private Luxury Events at the annual Beyond Luxury Awards gala. Recently, it also picked up the award for the best hotel breakfast in Spain and Portugal in 2024, which is added to the distinction of the best gastronomic hotel in 2022, in both cases distinguished by Condé Nast Traveler. Not surprisingly, its restaurant La Gaia has been boasting a recently renewed Michelin star and two Repsol suns for the past three seasons.
The property, far from being complacent, aspires to even more national and international recognition. That is why it is undertaking the second most important refurbishment since it opened: a new space for La Gaia, as well as a new lobby bar with signature cocktails. We talked about all this with Raúl Sierra Gil (Barcelona, 1972), its director since the hotel opened its doors in 2008. Passionate about the hotel business, the Ibiza Gran Hotel put an end to his globetrotting career, which led him to move 14 times with his family. His professional plans did not include a place to live and work “in a vacation spot, on an island”. However, in January he will be 19 years old in Ibiza. He arrived in 2006, recruited and persuaded by the ownership of the Ibiza Gran Hotel, which also owns the Casino Ibiza. He was looking for a manager with experience in a five-star luxury and urban hotel. Sierra had it. Before that he went through almost every position in a hotel. ”
I arrived in 2006. The hotel opened in 2008. It was a very important work in which I was involved for two years. There were no means that exist now on the island, everything came from outside and this is a complex of more than 27,000 square meters. Mr. Santandreu, the great patriarch of the family, told me that he wanted to make the best hotel in Ibiza and the whole Balearic Islands, not only in terms of facilities, but also in terms of service, and that he wanted to turn this hotel into a real luxury hotel, that the island needed it and would need it for the future. That was what attracted me. We are talking about 2005 and he already saw at that time that luxury was going to be very important in Ibiza”.
-What have I missed by not having tried the breakfast at the Ibiza Gran Hotel?
-It is something spectacular. From the beginning, we worked so that it wouldn’t be just the buffet that you find in every hotel. We have a great gastronomic proposal, a very good product, obviously also with local product, with personalized stations assisted by staff and that we rotate. We have surprises that we give during the week, there are days when we delight our guests with a small boiled potato with a quail egg and caviar on top. Another day we give a classic, churros with chocolate. Or oysters with champagne. This is a must. It all adds up and makes our breakfast a must. We see that year after year the level of attendance grows. There are fewer unforgiving guests who get up and come down to try the breakfast. This is an incomparable experience and creates a great gastronomic and fun moment. All these awards are recognitions and recognitions are always good, not only for the customers to see and know, but also for our internal customer, our staff. It is an award that we all receive, an award that we share with the whole company and that are possible thanks to the 280 people who are serving and taking care of the customers.
The Gaia
-What is this winter’s investment?
-We are undertaking the second most important investment in the history of the Ibiza Gran Hotel: a new space for the restaurant. La Gaia. La Gaia tiene ya tres años con una estrella Michelin . Nos sorprendimos y nos alegramos mucho cuando nos dieron esa estrella Michelin en el local que teníamos. Obviamente, es un local que nació de la nada y ha llegado el momento de darle su propia entidad. It also has two Repsol suns.
The concept of kitchens has changed a lot and we operate with an open kitchen, an interior kitchen and then an R&D area, which is where the chef and his team develop dishes and have special machinery to test and prepare the new menu. In addition, we are going to create a more coquettish, cozier and more subtle lobby bar, with a cocktail bar that we are preparing with our great bar manager, Dani Martínez. The cocktail bar is gaining more and more every day, now they are working on the finesse of the cocktails, even custom-made ones. They are alchemists who even prepare our own macerations… The other day I was given the chance to taste a liqueur distilled from pine leaves. I have never tasted a pine leaf, but it reminded me of the smell? This kind of proposals also evoke Ibiza and are a fundamental part of our history.
-Aiming for a second star?
-We work for it but it’s not a priority or a goal. It’s not our main goal is for diners to say wow, what a place I’ve come to, this is spectacular! and to get that gratification from the diner. If in the end it comes, we will be delighted. Our challenge is to make La Gaia the restaurant that everyone wants to know.
-You have said before, without fear and despite the risk of being accused of being pretentious, that the Ibiza Gran Hotel is the best hotel in Ibiza. Is the Gaia the best restaurant in Ibiza?
-He is one of the best.
-Do you aspire to be the best?
-The gastronomic level in Ibiza is very, very high. This is fantastic for the island, another resource. Fortunately, in Ibiza there is much more than partying, and gastronomic Ibiza is a fundamental part of our offer. More and more prestigious and internationally renowned chefs are coming, we have more and more gastronomic products with more concept that make people talk about us. I think we are at a high level in gastronomy, one of the best destinations in the Mediterranean without a doubt.
-From 1 to 10, where are you on the challenge of being the best hotel in Ibiza and the best hotel in the Balearic Islands in terms of facilities and services, which is soon to be said?
-I think we’re over it, we’re on 12.
-So you claim that it is the best hotel in Ibiza?
-Yes, with all forcefulness and with all certainty. There are very good hotels here, but very good hotels are one thing and the best is another. When I arrived in 2006, there were already several five-star hotels, although not many: Hacienda Na Xamena, Insotel Fenicia Prestige and Aguas de Ibiza Deluxe Hotel, which opened just a little earlier. I say this is the best because the level of facilities and the level of investment in improvements each year is second to none. It is clear to the ownership that we have to offer the best service on the island. That’s why we invest heavily every winter. This level of continuous improvement is not the norm in the hotel industry.
-In any case, investing in construction is relatively easy, all you need is money…
-The commitment to human resources is another of the things we have done very well from the beginning. Our Director of People and Culture, Rocío Caballero, started with me and from that moment on we began to outline what staff and what structure we needed in this hotel. In 2007 it was not easy to complete the staff because there was no staff with experience in luxury in Ibiza and bringing staff to the island was already very complicated at that time. Now it is also complicated but due to different circumstances. We were looking for managers and department heads who had experience in five-star hotels because it was very difficult to explain the level of service to which we aspired if they had not previously experienced it. From there, we thought about how we could train all our teams, because it is very important to train and create a school.
Ibiza Gran Hotel (Image: courtesy of IGH)-Do you have housing for workers? -This is one of the concerns. We already began, more than ten years ago, to think that access to housing for workers was going to become more complicated, so we started acquiring apartments to house our staff. What better investment than buying housing to ensure decent housing for our staff. If we want to provide a luxury 5-star service, our workers have to live in decent housing, not overcrowded. I am old, I did my military service and slept in a bunk bed. I told a council that I would not agree to put bunk beds in the apartments. They laughed. In the apartments we have two rooms occupied by two employees, not one more and not one less.
-This makes it easier to fill the workforce…
-We have covered the workforce of 285 employees almost 100%. But we are not only committed to providing them with decent housing, there are many social policies behind to retain talent, Rocío takes great care of them. We are actively listening to all employees, we propose improvements, training and many internal actions so that our team stays and grows with us and are our best ambassadors, because in the end they are true hosts of the Ibiza Gran Hotel brand. Internal customers are becoming more and more important. Every year, at the human resources level, we incorporate more people to better and more successfully manage this department. For example, we are exploring a new action this year, which is to measure the employee experience. Just as Inditex analyzes the customer experience…. We also do this exercise with the employee experience, from the moment they meet us or begin to hear the word Ibiza Gran Hotel until the day they leave us because they have decided to go to another company or to grow professionally because there have been no opportunities at home. We have a very well identified talent map, which facilitates internal promotions. Before going outside, we have to look inside and find out which people can evolve and grow in our company. An example: our current maître d’ general, Pepe Cardona, a person from Ibiza who started as a waiter. A clear evolution of a talented person who feels Ibiza Gran Hotel in his chest, and that is fundamental.
Luxury hotel and personalized service
-What is the difference between a luxury hotel and one that is ‘only’ luxury?
-Several factors. The first of these is the condition of the facilities. That is a basic requirement. Then the attention of the staff, we have 285 employees for 187 rooms, so our ratio of qualified employees is very high. And our service is tailor-made, a tailor-made suit for our customers, who are mostly international.
-What nationalities?
-We have less and less Spaniards and more and more British and Americans. We do everything in our power to make them feel Ibiza Gran Hotel as their summer home. Through the guests experience, who are people who follow up with them personally, as well as the brands ambassadors and the hostesses at the different points of sale, we ask them at all times what they need and what they miss. Our guests have a hard time answering service surveys and when they do it is because they are disenchanted for some reason. If we only had that tool, we would miss all the other constructive and good part, and we have to listen to that too. We know everything about our guests: what time they go to bed, what their favorite soft drink is, what their favorite dish is, how they like their bed made, who they like to be served in the restaurant, which receptionist they like to check them in, all those things. We provide the best personalized service.
-What technology do you have for this?
-We record as much as we can in our database across the entire workforce. For example, the Bentley drivers, with whom we provide free shuttle service, are a great source of information. In that moment of honesty, customers tell a lot of things.
-Define your typical customer.
-From the beginning we decided not to work with Booking or Expedia, which has proven over time to be risky but a great success. We go to luxury fairs which is a growing trend all over the world, not only in Ibiza. We also work with agencies and agents specialized in luxury.
Season 2024 for Ibiza Gran Hotel
-How was last season?
-For us it was better than the 22nd and 23rd, which were already spectacular, post-covid. Our percentage growth has also been very interesting.
-More turnover, more profitability and more benefits…
-Yes, we have a very organic growth. Since 2008 the hotel has always been growing, some years more and some years less.
-And how is the next season shaping up?
-It is too early to say anything about it. It looks like it’s going to be a good season, with price growth for those with concept and image. In the end, copy and paste is going down the drain in a short time. You see it a lot in restaurants. Every year many open, but many others close as well. Those that really have something behind them always last.
-Does Ibiza still have the capacity to grow in price?
-As long as it’s accompanied by service, yes, otherwise it won’t work. Many hoteliers are joining the upward trend in rates and are cutting back on the other hand. We have to be consistent and we have to think long term. Price growth, yes, but not a big ball.
-It makes me sad when I see such a large establishment, which has required so much investment, closed in winter, especially when it has an ideal location to be open all year round.
-Yes, it is a pity that it is closed in winter. The initial idea of the property was to have it open all year round. We tried in 2008 and 2009. It is not feasible. The island closes for vacations in winter and there is not enough connectivity. It is very difficult.
-You told me earlier that you have many customers from the U.S. What would be the impact of a direct line from New York or Miami?
-It would be essential. It already helps us that they can buy flights with a stopover in Mallorca. The North American client has skyrocketed in all Mediterranean destinations and is a very good client, with a very important purchasing power, with a longer stay than the UK. And I think it is a market that will remain.
-Is the U.S. market strategic for you?
-Yes, together with the Mexican, Brazilian and some other South American countries, they are very important. They are clients who want to come to Ibiza as part of their trip to Europe. As they are longer trips, they usually take advantage to have longer stays.
-You told me that Ibiza is not just about partying. What is the hotel’s relationship with leisure and what impact does this industry have on the type of client of the Ibiza Gran Hotel?
-99.9% of our clients come for a night out. They come to enjoy the best nightlife in the world. Ibiza creates trend. Lo que se ve aquí en verano es replicado en el resto del mundo. Ocio, gastronomía, la náutica, con Formentera, son grandes activos. Además, somos un destino muy seguro, eso también aporta valor. México y Brasil son países muy inseguros y los clientes me dicen: “Raúl, ¿sabes lo bonito que es poder salir del hotel, pasear y no tener que ir con un guardaespaldas o con alguien que vigile por ti?”.
-As long as they don’t wear a luxury watch on their wrist….
-State security forces have done a very good job this year and it is to be appreciated. The clients appreciate going to Lío to spend the night and come back peacefully. It is something that we do not value because we are used to it, but they do. They also highlight the natural hospitality of the Mediterranean people. People love to come to Spain and enjoy themselves, smile, see how good the food is, and how good the drinks are, and how we enjoy it. They come to Ibiza, uninhibited and have a great time.
-The Ibiza Gran Hotel is in a way like a shopping mall, with the Casino Ibiza, the Chinois, Zuma, Cipriani, as well as the nearby venues such as Pacha, Lío…
-We were Heart’s partners. The project did not consolidate, and we drew up the strategy of complementing our complex with the best offer we could. Our first bet was already 14 years ago with Cipriani, which when it arrived on the island, everyone was surprised. It is a great product. Then came Heart and now we have Zuma, which is another international brand that everyone recognizes and which has customers all over the world. Then there is Club Chinois, which has well defined what it wants to be and where it wants to go, it does not compare with Pacha or Hï Ibiza. And since two years ago, we also have Novikov.
-Have you received many purchase offers from investment funds?
-The whole island is an attractive destination for investment funds because everyone wants to invest in Ibiza. Ibiza is a safe value, a growing value and everybody is looking for it. Obviously we have also received these proposals, but we are a family business with a lot of heart and the people who founded the casino, and now their children, are still here. There is a lot of love for Ibiza and the product. –I interviewed the owner of Na Xamena a few weeks ago.
and told me that there was an oversupply of 5 stars in Ibiza. Do you agree?
-I don’t know if it is excessive. In the end, the law of supply and demand, which is very wise, will tell. Obviously, every time a new five-star establishment opens, the market moves. We play in the great real luxury, the one that is felt, and here it is more difficult to play. The market ends up putting everyone in their place. And within the 5-star range, there are also different levels and there is room for everyone. There are five-star hotels with lower prices than four-star hotels. In this segment there is more competition. Our average price is above 800 euros per night and can reach much higher prices during the season. But there are 5-star hotels that are at 300. They have a much larger bank of beds and they have to occupy them.
The schism in the Hotel Federation
-The Hotel Federation is going through a turbulent moment… -Yes, it is, but in the end I think it is more noise than anything else. I believe that the waters will return to their course. The Hotel Federation has room for the big and the small. We have to understand that this island is not an island of hotel chains or small establishments, but that we are a community in which the interests of all have to be defended. We have to be respectful. The big ones are the ones with the biggest names, we have to respect the smaller ones, and the small ones also have to understand the hotel chains. It is important that the Hotel Federation represents everyone.
