The group reported a net profit of €128.7 million (+27.8%) driven by positive tourism trends and a "coherent" marketing strategy.
Gabriel Escarrer Jaume, Executive Vice President and Director of Meliá Hotels International: "Meliá achieved very positive results, benefiting from both an exceptional environment for international travel and the fruits of a coherent business strategy and a profound digital and cultural transformation [...] We ended the year 2017 slightly above market expectations despite some events that had a negative impact, such as the Caribbean hurricanes, the devaluation of the dollar and instability in Catalonia in the last quarter."
Global RevPAR grew by +5.6% and Meliá enjoyed sustained growth in France (+12.2% in the fourth half of the year), Spain (+16.2%), the United Kingdom (+9%), the Canary Islands (+8.3%) and Brazil (+4.7%). Hurricanes Maria and Irma hit the Americas, particularly the hotels in Cuba and Puerto Rico. Nevertheless, the Group expects performance to improve in the coming months.
Net income amounted to €128.7 million, up 27.8% compared to 2016 and the EBITDA amounted to €310.3 million, up 11%. Consolidated revenues amounted to €1,885.2 million (+5%) and total revenues (owned, leased and managed hotels) amounted to €2,672.67 million.
The digital strategy generated a +21% improvement in direct online sales via Melia.com (up to €520 million) and the MeliaPro platform.
Meliá underlines the importance of the Asia-Pacific region, which has more than 40 hotels in operation or open (representing 33% of the company's expansion pipeline). However, the region was impacted by the eruption of the Agung volcano, affecting Indonesia and the launch period of some hotels.
As Gabriel Escarrer explains: "The Asian market undoubtedly offers the greatest potential for international travel, but it is also a very complex market for Western companies, which is why the learning curve that Meliá has developed in Asia over the past 32 years and our strong alliances [...] give us a fundamental competitive advantage to help us develop in this part of the world."
In 2017, Meliá Hotels International reviewed the architecture of its brand, including its three luxury brands (Paradisus de Meliá, ME de Meliá and Gran Meliá) and its two upscale brands (Meliá and Innside de Meliá), and signed 30 new hotels, 90% by management contrats or franchise.
At the same time, the hotel owner continued its repositioning project. In 2018, the company estimates a combined investment in Spain of more than €100 million. Gabriel Escarrer explains it "as part of our 2020 Vision, which aims to strengthen our leadership in resorts and urban recreation, but also to be leaders in excellence, responsibility and sustainability."
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