Tess Oriol, Sébastien Pradairol and Carlos Krauel promoted the idea of Mucho Sur. A model that is based on the rental of small hotels in destinations, to a greater extent, outside large urban centers and under the premise of environmental, social and cultural sustainability.
In an interview with LR, Carlos Krauel explained how his business model works and growth expectations.
Why bring Mucho Sur investments to Colombia?
In Colombia we have an abundant hotel offer, but it is not very profitable and not very professional. Our proposal is part of the solution to improve the industry. We seek to provide a solution to those who have an asset, such as a hotel, but who do not get the profitability that it deserves.
What is the brand concept?
We bet on small establishments. Our idea is to go for hotels that have few rooms, between 15 and 45, in order to prioritize the customer experience. With smaller hotels you have the possibility of controlling the staff you collaborate with, something that may not happen in larger hotels.
We lease to hotel owners and adapt them with our own ‘look and feel’ and implement our management models.
What are the negotiation conditions with hotels?
The first thing is to select hotels that have between 15 to 45 rooms. The second thing is that our collaborations are established under the premise of sustainability, it is one of the biggest challenges we face.
From there, we establish lasting relationships, lasting more than 15 years. We do not do short-term collaborations (three or four years) with the purpose of giving the owners some confidence in the productivity of activities and profitability of the investment.
What other factors do they take into account?
We also look at the location of the places we collaborate with. For example, in Bogotá we prefer areas that allow us to best deploy the Mucho Sur experience, such as Chapinero Alto or Parque de la 93, some of the most touristy areas of Bogotá.
How are the internationalization plans going?
Our idea is to continue in Colombia for the remainder of this year and in 2025. By 2026, our goal is to internationalize and reach territories from Río Grande, in Brazil, to Tierra del Fuego, in Argentina.
In which places do you plan to invest?
Mucho Sur is interested in the Eastern Plains, the Colombian Massif, the Pacific and the Caribbean Coast. We are also interested in capital cities and heritage towns such as Villa de Leyva.
How much is the investment figure?
From 2023 and so far in 2024 we have spent US$2 million and the idea is to continue with the same figure next year. On the international scene the figure is similar, although in a second year the figure would rise to US$4 million.
Now, we are not sure if we want investments to continue at this rate, we do not imagine having 15 Mucho Sur in the Dominican Republic, for example.
What is the type of clients you host?
We have a varied audience with a common thread, which is the conscious tourist. He is the one who truly thinks of the hotel as a gateway to the destination, but at the same time thinks about the environmental, social and cultural footprint.
