The Hotel Faro, a Lopesan Collection Hotel, has solidified this premium asset as the undisputed financial engine of the hotel chain. The five-star establishment's exceptional performance has mitigated the group's expansion costs on the Iberian Peninsula and the ongoing legal battles in Spanish courts. The annual accounts, approved by management, confirm that the repositioning strategy towards the ultra-luxury segment and the investments made in the culinary area have protected the profitability of the subsidiary in the Canary Islands from inflationary pressures in the sector.
Hotel Faro's operating income climbed to €17,2 million, a net increase of €2,1 million compared to the previous year. Average room rate (APR) reached a record high for the company at €342 per night, significantly surpassing the €313 achieved in 2024. This increase in the average room rate did not negatively impact occupancy at the hotel adjacent to the Maspalomas lighthouse; on the contrary, average occupancy rose steadily from 73% to 76,1%, demonstrating the strong resilience of high-spending international demand.
The operational efficiency of the hotel allowed gross operating profit to soar to €5,3 million, up from €4,5 million. This improvement offset the overall increase in operating costs, which climbed to €12 million due to higher supply costs and the hiring of qualified staff. Business optimization boosted the hotel's working capital margin from 29,4% to 30,9% of total revenue, leading the conversion ratios across the entire asset portfolio of the parent company, controlled by the Lopesan group.
The balance sheet of the instrumental subsidiary IFA Faro Maspalomas expects to consolidate this strength in 2026 and close the year with total assets of 34,3 million euros and increase turnover to 17,7 million euros.
The cash flows generated in southern Gran Canaria contrast with the initial impact of the geographical diversification operations carried out in the mainland market. Lopesan, through IFA Canarias, finalized the acquisition of 100% of the shares of the Hotel Miguel Ángel in Madrid for €200 million, assuming an accounting loss of €9,6 million resulting from the period of inactivity under the previous seller. The board of directors is currently undertaking a comprehensive renovation of the property, budgeted at €45 million, to refurbish its 241 rooms and common areas with the aim of reopening the asset in the last quarter of 2026.
The financial strength provided by the Canary Islands' accommodation sector is crucial in a scenario marked by the immobilization of resources due to corporate litigation. The full integration of the Anfi Sales and Anfi Resort timeshare complexes remains contingent upon the Supreme Court's ruling on the appeal filed by a dissenting creditor. The viability plan designed requires IFA Canarias to act as joint guarantor of the operation, committing payment guarantees worth 50 million euros that will only be executed once the Supreme Court issues a final ruling, expected during the first months of this year.
The Annual General Meeting unanimously ratified the Board of Directors' proposal not to distribute dividends from the annual profit, prioritizing the reinvestment of net profits to guarantee the group's solvency. The company's liquidity is strained by the delay in receiving €9 million in compensation promised by Lopesan Touristik SAU, which has been held up by three lawsuits filed by minority shareholders challenging the restructuring agreements approved at the extraordinary general meeting of June 2025. The funds generated by the record performance of the Hotel Faro safeguard the hotel chain's technical viability while the parent company's legal troubles are resolved.
