Meliá Hotels Keep Doing Well in the Americas

Meliá Hotels International announced results for the first nine months of the year today, boosted by the positive impact of demand in a positive summer season in Spain, and also reaping the rewards of the strategy to renovate, rebrand and reposition some of its most emblematic resort hotels in recent years.

The results in the region of the Americas were positive as expected, overcoming the slowdown seen in the first half of the year, mainly thanks to the contribution of new openings such as the ME Miami, and especially the Innside New York Nomad.

The latter continues to exceed expectations in its first months of operation, with occupancy rates above 85% and a growing price positioning, forming an excellent base for the growth that the Company expects to boost in the US market in 2016 and 2017.

Equally positive was the performance in Mexico despite the decline in business groups and the situation in some Latin American feeder markets. In particular, the Company highlights the evolution of some key assets in the region: firstly, the ME Cabo Hotel saw a dramatic improvement in results after a major renovation; and secondly, the Paradisus Cancun and Paradisus La Perla and La Esmeralda in Playa del Carmen continue to consistently improve results. In the fourth quarter the Company will open the Meliá Cartagena de Indias in Colombia.

Looking forward to the fourth quarter, Meliá hopes to maintain occupancy at acceptable levels and to continue to improve profitability, while also expecting to see a short-term improvement in the pace of reservations made for hotels in the region.

The Company recorded a net profit of EUR92.2 million, a 74% increase over the first nine months of 2015, an increase that rises to 130% if the effects of extraordinary items are eliminated, such as the EUR48 million of capital gains and impairment of Puerto Rico, which both impacted the results for the same period in 2015.