Thursday, March 27, 2025
11.6 C
Ibiza Town

Kabir Mulchandani, Chairman of the Pacha Group: “Acquiring Grupo Pacha was more than just a business deal; it stemmed from a deep connection to the brand’s core values”

The latest stage of the Pacha Group passes through the hands of entrepreneur Kabir Mulchandani, renowned for his transformative contributions in the hospitality, real estate and philanthropy sectors. Under his leadership, FIVE Holdings has made a strategic move into global entertainment with the acquisition of the Pacha Group for €302.5 million, one of the most iconic brands in the world of nightlife and entertainment. The entrepreneur responds to an email questionnaire.

Why did you decide to buy Grupo Pacha?

Acquiring Grupo Pacha was more than just a business deal; it stemmed from a deep connection to the brand’s core values. For me, it’s a real privilege and a pivotal step in growing FIVE Holdings. The decision was driven by several strategic advantages. The iconic cherries open doors to significant cross-border opportunities, such as expanding the Ibiza experience to Dubai with concepts like Pacha Beach at FIVE LUXE. This exchange between two vibrant destinations allows us to blend the best of both worlds: bringing Ibiza’s renowned nightlife to Dubai and introducing Dubai’s FIVE-Star luxury to Ibiza with Destination Five Ibiza. Finally, the acquisition helps us optimize the seasonality of both brands, ensuring year-round operations for guests and artists. By maintaining high-caliber residencies and fully utilizing our talent throughout the seasons, we can deliver exceptional experiences even during off-peak times. This partnership strengthens both brands and positions us as leaders in the global entertainment and hospitality scene, driving collective success in creating a sustainable global entertainment ecosystem.

What has your experience been like during this first year?

This first year has been nothing short of extraordinary. I firmly believe that success comes from passion, dedication, and the collective efforts of a great team, and this year has proven that. Pacha Ibiza has had a monumental season, hosting some of the world’s top artists, including CamelPhat, Bedouin, Robin Schulz, Marco Carola, Bora Uzer, and Solomun as residents. We’ve also held exclusive events featuring global stars like Anitta and Tyga. Our commitment to bringing the best talent has reinforced our mission to provide unforgettable experiences for our guests, while continuing to cement Pacha Ibiza’s legacy as a leader in world-class entertainment.

Actuación de Keinemusik en Pacha Ibiza | PACHA
Keinemusik performance at Pacha Ibiza | PACHA

Your commitment to the environment is well known. What has it translated into at Pacha?

I’m incredibly proud of the strides we’ve made in sustainability. Pacha Ibiza now runs on 100% renewable electricity for the 2024-2025 season, and we’ve reduced carbon emissions by 8% in just one season. Across the entire Pacha Group, carbon emissions dropped by 22%. By 2025, Pacha Ibiza will be the first independent nightclub in the world to achieve LEED Platinum certification, a pioneering milestone in the industry. Our hotel, Destination Pacha Ibiza, is on track to become the world’s first to receive LEED Zero Water & Energy certification. We’ve already cut fresh water consumption by 30.3% in July and August 2024, equivalent to saving enough water for two Olympic-sized swimming pools while maintaining the same occupancy levels as last year. This is made possible by our water treatment plant, which processes black and grey water for reuse in irrigation and cleaning, saving around 70,000 liters of water daily, with a capacity of 350,000 liters by 2025, benefiting neighboring properties as well. We’ve also secured a groundbreaking deal to provide 100% renewable electricity to all our Pacha Group hotels, clubs, and stores, significantly reducing our carbon footprint. In fact, the carbon footprint per guest per night at Destination Pacha Ibiza is three times lower than the average resort in Spain, according to the Cornell 2023 Hotel Sustainability Index.

At the beginning of the year, you announced a focus on the company’s social arm, the Pacha Foundation. What changes have you implemented in this area?

The Pacha Foundation has continued to grow, managing over 35 local initiatives in Ibiza focused on social assistance, arts, sports, and the environment. In 2024, we increased the Foundation’s budget by 350% and are set for even more growth in 2025, deepening our connection to Ibiza and expanding our social impact. One of our proudest accomplishments this year has been ensuring that all team members share in our success. Previously, only staff interacting directly with guests, such as food and beverage, concierge, front desk, and area managers, received tips. Now, 100% of our team, including maintenance, production, housekeeping, security, and visual equipment staff, can earn their fair share. Between April and August 2024, tips distributed to Pacha employees increased 2.6 times compared to the same period last year.

The Pacha Group started with nightclubs, but has diversified significantly into hospitality and fashion. Can we expect further exploration into new products?

While we’re always exploring new growth opportunities, our current focus is on enhancing the exceptional experiences we’ve already created, ensuring we remain at the forefront of entertainment, lifestyle, and culture. One of the most exciting launches this year has been The Pacha Collection 2024, a fun and bold fashion line capturing the vibrant essence of Ibiza. Pacha Ibiza, the world’s most iconic nightclub, has long been synonymous with legendary DJs and the ultimate nightlife experience. This year, the collection launched with a highly sought-after collaboration with Keinemusik, which quickly sold out. We followed up with limited-edition T-shirts in collaboration with electronic artists like Adriatique, Bedouin, BLOND:ISH, CamelPhat, and Lost Frequencies. More recently, we added a collaboration with Marco Carola’s iconic residency, Music On, further solidifying the connection between fashion and music.

Cherries are now an image closely tied to Ibiza. What role does the island play in the company’s development?

Ibiza is integral to the Pacha Group’s identity and growth. It’s both our inspiration and our home. The island’s vibrant culture, unique energy, and international appeal have shaped our brand, with the iconic cherries symbolizing not only our destinations but also the Ibizan lifestyle. With tourism contributing 87% of the Balearic Islands’ GDP and 40% of the industry’s jobs, it’s crucial for us to support regulated tourism that enables businesses to contribute positively to the local economy, protect the environment, and address the island’s housing crisis. Combating illegal tourism is fundamental to preventing overcrowding, tax evasion, and unsustainable pressure on housing availability.

How many jobs do you provide on the island?

The Pacha Group proudly employs over 600 dedicated team members who are part of our extended Pacha family at our destinations committed to sustainability in Ibiza.

What can we expect for the upcoming season at the Ibiza nightclub?

The upcoming season at Pacha Ibiza is set to be electrifying, combining the iconic with the new. Guests will enjoy a mix of legendary DJs and exciting fresh talent. We’ll continue with the revamped Flower Power experience, featuring new twists that celebrate our rich history. Our VIP areas have been transformed as well. The Pacha Family VIP Garden is now a creative haven with cutting-edge technology, including a “floating cloud” effect made possible by a fiber-optic raised floor. This area provides a graffiti-filled space where guests can connect, reflecting our values of freedom, creativity, and inclusivity. The new VIP area also offers stunning views of the club, including the DJ booth, and can accommodate up to 100 guests in an exclusive space with private bars, making it the perfect spot for those seeking luxury and the best view of the action.

How heavy is the responsibility of maintaining the trajectory of such an iconic international business group?

The responsibility of continuing the legacy of an iconic brand like the Pacha Group is immense, but it’s also incredibly exciting. The Pacha Group has led the entertainment industry for decades, and maintaining that legacy is a privilege we approach with passion. Our focus is not just on preserving history, but on continuing to nurture the essence of the Pacha Group by integrating creativity, inclusivity, and sustainability into everything we do. We’re committed to building Global Sustainable Entertainment Ecosystems and using digital innovation to elevate the brand to new heights.

For the full article, please visit Diario de Ibiza website here.

Latest news

Related news