Meliá Hotels International has announced results for the first half of 2014 in which the hotel industry showed signs of greater strength, mainly thanks to sustained economic growth in numerous markets which is reflected in the favourable trends in the resort hotel business, especially in the Caribbean and Mediterranean. Particularly noteworthy was the evolution of the recent additions to the company portfolio, such as the Paradisus resorts in Playa del Carmen, and the Gran Meliá Palacio de Isora, major commitments, which are already delivering success for Meliá in their early years of operation.
Gabriel Escarrer, vice-chairman and CEO of Meliá Hotels International says, “The results of the first half of 2014 and forecasts for the rest of the year confirm the global recovery of the resort hotel business, in which Meliá is a market leader, and substantiate our strategies for globalisation, revenue management, loyalty and customer relations. All of this together with the success of melia.com, the strong positioning of our brands, and the strength of our global sales organisation, allows us to maintain trust and create value for hotel owners and investors worldwide.”The numbers reflect positive developments in the hotel business, in which a global increase in revenue per available room (RevPAR) of 11 per cent over the period – majoritarily due to price increases – has led to improved operating margins and a 35 per cent increase in EBITDA, excluding capital gains from asset rotation which were less than in the same period in 2013. Net profit was 6.3 million, 39 per cent less than in 2013. Amongst the reasons for the positive numbers, the company cites its leadership and positioning in the resort hotel segment, (the segment with the best results) and its ability to optimise the management of its city hotels, in which the company is well above industry averages. Also behind these results is the strength of its global sales organisation and a strategy focused on revenue management and innovation oriented to enhance customer relationships, with a growing contribution of the Meliá Rewards loyalty Program. Meliá specially highlights the extraordinary growth of melia.com, a sales channel, which continues to register record numbers, (+ 29 per cent in the first half of the year) complementing the privileged relationship and collaboration held by Meliá with the main International Travel Agencies and Tour Operators. Meliá also took the opportunity to announce a new and important step in its growth in Latin America with the signing of an agreement through which the company will operate (under Management Contracts) five new Innside hotels in Venezuela, to be built by Franco Biocchi Zurita, beginning with the Innside Punto Fijo, (already in the Meliá pipeline and with a signed management contract). The agreement is an excellent opportunity for this successful city hotel brand in a market in which Meliá already enjoys high recognition. The current bullish trend in the markets, including the Spanish market, thanks to the recovery of domestic demand, with a summer season in Spanish resorts which is expected to better 2013, added to the significant contribution of the third quarter to annual results– about 40 per cent of total hotel EBITDA – allows the company to remain optimistic about results to year end, with an estimated RevPAR growth of a medium-high single digit for 2014. The Company remain cautious about the evolution of City Spain hotels, specially focusing on Madrid and the influential area of Madrid Barajas Airport. Results to date (with a 29 per cent increase in sales at melia.com) confirm the company’s successful distribution strategy, focused on enhancing its direct sales channels, guest relations and innovation via the launch of new products and services which allow us to differentiate our brands and maintain our position at the forefront of technology and the creation of experiences.