Melia Hotels announces its financial results
The Spanish group has recorded a 7.7% increase of the RevPar, pulled by the increase of daily rates. Benefits of the group have grown by 34%.
Melia Hotel Bilbao
Melia group has announced its financial results, that show a clear evolution of the RevPAR. In fact, it has increased by 7.7% overall, which can be explained by increased daily rates. If South America and Asia-Pacific regions have seen their RevPAR decrease, the first semester of 2017 was a success for the rest of the world, especially for Spain (+18.9%) and the Mediterranean area (+15.5%). In France and Europe, growth in demand and the upgrading of existing hotels are the main motivations for those positive results.
Gabriel Escarrer, Vice-President and CEO of Melia Hotels International, says the group's progress is due to "our excellent positioning on the emerging sector of the "bleisures" (business and leisure), where we are pioneering as we provide our clientele with value-added experiences and services." One can also add to this brand positioning the qualitative leap made by certain markets, especially in Spain.
The EBITDA has seen a 9% increase, and sales revenue is up by 7%, despite the negative effect of poor Venezuelan exchange rates. On a whole, the online platform melia.com has largely enhanced its sales, with a global increase by 20%.
72 hotels, totaling 18,000 rooms, are expected worldwide for the group. Between 2011 and 2016, the group and its partners invested €500 million in Spain only in order to develop their hotel complex. Those diverse investments should allow the group to find the right business model, especially in Asia where Melia deems it hasn't reached adequate size.
After opening 19 additional hotels since the beginning of the year, the group is expecting very good results for the third quarter of 2017. The group's renovation and progressive requalification strategy for its hotels is in line with the increase observed in daily rates since the beginning of 2017.
As of January 1, 2017, Melia Hotels International ranked 21st hotel and residence group worldwide, with 218 properties totaling 65,976 rooms, according to data published by Hospitality ON.