Melia posts positive Q1 financial results

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

Meliá has doubled profits and improved in all regions, according to its Q1 financial results. 

Gabriel Escarrer, vice-chairman & CEO, Meliá Hotels International.
Gabriel Escarrer, vice-chairman & CEO, Meliá Hotels International.

The company also saw a 14% growth in revenues and net profit attributable improved by 98%. Results were attributed to a strong performance of the hotel business.

RevPAR (Revenue Per Available Room) increased 12%, while Club Meliá saw an improvement of 39% in revenue.

Success and consolidation of major transformation projects for the Sol brand and resort products in Mallorca, Menorca and Ibiza will now continue in the Canary Islands and Costa del Sol.

The Company maintains its debt reduction guidelines for 2015, based mainly on the sale of a minimum of €200 million of assets and increased free cash flow.

2015 will be an intense year for hotel openings, with eight hotels already opened in the first quarter and plans to open a further eight properties by the end of the year, the company said.

Its pipeline now stands at more than 60 hotels with over 15,000 rooms; 100% of them to be added under low capital intensive formulas.

Technological and revenue management enhancements continue to drive growth of sales through melia.com, which improved by 32.2% compared to the same period last year.

Gabriel Escarrer, vice-chairman & CEO, Meliá Hotels International said Meliá results “have certainly gained momentum from a favourable economic environment and positive tourism trends, but the consistent performance and the extraordinary improvement of our results are primarily explained by our strong strategy over the past three years and our commitment and focus on globalisation, innovation, digital transformation, quality and excellent management”.

Klook.com

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