Meliá Hotels International has released its nine-month 2017 financial results which show it has increased profits by 23.3% and improved margins and sales efficiency, consolidating a business model focused on hotel management.
The business model based on managed hotels has seen an increase in EBITDA of 9.2%, due to an increase in fee revenues. However, the situation in Catalonia, the Venezuelan Bolivar exchange rate, the hurricane in Puerto Rico and the closure of several airlines in Europe had a negative impact on performance.
Meliá Hotels International will sign more than 30 new hotels during the remainder of 2017, having already signed 23 new hotels in the first nine months of the year with four more to be signed in Asia in October. The company has recently opened the Meliá Iguazu in Argentina and is preparing the opening of the Meliá Serengeti Lodge, in Tanzania, and ME Sitges, in Spain, later this year.
The pipeline currently boasts a global offering of over 17,000 rooms in 70 hotels, representing 18% of the current portfolio. Around 93% of these hotels will be added to the Meliá Hotels International portfolio under management agreements.
Gabriel Escarrer, executive vice president and chief executive officer, Meliá Hotels International, commented: “The first nine months of 2017 confirm the strength of the company despite a less favourable business environment. Despite these challenges, the positive results in urban and resort hotels in Spain, excellent performance of major projects such as the Gran Meliá Palacio de los Duques in Madrid and ME London, and the trends in sales driven by the company’s digital strength make us optimistic about the outlook.”
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