Meliá Hotels Announces the 2014 First-Half Outcomes
Meliá Hotels International today 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 favorable 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.
The numbers reflect positive developments in the hotel business, in which a global increase in revenue per available room (RevPAR) of 11% over the period - mostly due to price increases - has led to improved operating margins and a 35% 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% 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 optimize 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 organization 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% 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.
By market, the company highlights the spectacular improvement of business in the Americas, where revenue per available room (RevPAR) increased by 19%, in large part thanks to the success of the Paradisus resorts in Playa del Carmen (+44%) and the Paradisus Cancun (+22%), validating the Company commitment to the brand and its strong positioning in the market.
Equally successful has been the introduction of Meliá to the English-speaking Caribbean through the Meliá Nassau Beach, which will be refurbished and rebranded once the renovation project has been completed, joining the multi-million dollar Baha Mar tourism and leisure development.
The first phase of this renovation project will be completed December 2014 making Meliá Nassau Beach the only all-inclusive resort on Cable Beach, The Bahamas. On the downside, there was a poor performance from the Gran Meliá Caracas in the second quarter of the year, with occupancy falling due to social instability in the country.
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% 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.
Source: Press release
