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Melia Hotels International Announces Positive Performance in First Quarter 2017

May 29, 2017 Financial No Comments Email Email

Spanish’s leading hotel company, Melia Hotels International announces its financial achievements in the first quarter of 2017. The company generated EURO20.4 million in the first quarter in 2017, with total revenue of EURO420.3 million, increasing by 5% and EBITDA improved by 3%. This positive results also include strong performance according to the key performance indicator, Revenue Per Available Room (RevPAR), which increased by a healthy 8.3%.

Gabriel Escarrer Jaume, Vice President and Chief Executive Officer of Melia Hotels International stated that the company has achieved a significant increase seen by the RevPAR score in this year’s first quarter, especially supported by the opening of new properties in several tourism destinations, such as Indonesia. “This will be the 27th consecutive quarter of growth. Melia Hotels International will continue to strengthen its products through extensive investments in the renovation and repositioning of hotels, and has added 15 new hotels in the year to date.”

The Company announced an increase in shareholders’ dividends, raising the pay-out to 30% in 2016, vs. 25% in 2015. A strong improvement is being generated from the opening of new hotels around the world, especially in the Asia Pacific region. “Two new hotels have been opened this year in China, in the cities of Shanghai and Zhengzhou, and we will open three more in Indonesia,” adds Gabriel. “ We also just signed 8 new hotels in Cuba, another area of special focus.”

The results for the first quarter are influenced by the “Easter effect”, which, as Easter falls in April this year, will have a positive impact in the second quarter. In spite of this, the revenues of owned and leased hotels plus the fees paid by managed hotels increased by EURO28.5 million compared to the same period in 2016. The company continues to achieve strong results from its digitalization strategy, where its most important direct sales channel,, increased sales in the quarter by 8.1%. Including April, the sales increase rose to 20% due to the “Easter Effect”.

As much as 5 of the newest properties in the Asia Pacific region which are Melia Yangon, Melia Shanghai Hongqiao, Melia Makassar, Sol Beach House Phu Quoc and Sol House Bali Legian are expected to continue to increase their market penetration at the highest possible speed. Robust performance is seen in China thanks to the solidity of the business and the quality of the products that Melia operates in the country, and also in Vietnam, due to the persistent growth of Vietnam as a tourist destination. Indonesia has also become one of the developing markets, especially in the resort sector where Melia Hotels International owns 3 resort properties: Melia Bali, Sol Beach House Benoa and the newest addition to the line, Sol House Bali Legian, opening in the first quarter of 2017.

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