Spain's Melia's Profit Is Up 25 Pc With A Focus On Luxury Tourism

Spain's biggest hotel chain, Melia, reported a 25 per cent increase in net profit to 162 million euros in 2024, exceeding expectations due to a focus on luxury accommodations. Revenue rose to 2 billion euros as Melia invested 400 million in premium and plans to expand its luxury offerings further.

Spain's biggest hotel chain, Melia, posted a 25 per cent rise in net profit on Thursday to 162 million euros in 2024, beating analyst expectations after focusing on luxury accommodations to better benefit from a record tourism boom. Analysts, on average, expected a net income of 130 million euros. In the last two years, Melia has invested 400 million euros in turning more than half of its hotels into premium destinations. It plans to open more luxury hotels in premium destinations. It plans to open more luxury hotels in Barcelona, Malaga, and Madrid to boost room rates as smaller rivals also bet on the upmarket sector.

Revenues per room at Melia increased by 11 per cent in 2024, and the company said 75 per cent of this was due to higher room rates. Revenue rose 5% to 2 billion euros, in line with analysts estimates. Spain, Melia's primary market for city and resort hotels, attracted a record 94 million visitors last year, prompting protests from some locals who say excess tourism has made housing costs too expensive.

Melia's chief executive, Gabriel Escarrer, said in January he disagreed with Spain's ambition to boost foreign tourist arrivals to 100 million a year, arguing that it was best to focus on attracting higher spending North American and Middle Eastern tourists to relieve pressure on locals and the environment. Melia expects to open a hotel every two weeks this year, and 80 per cent of the pipeline, mainly in the Mediterranean and Caribbean destinations, is premium. The company says bookings are growing at a high single-digit rate this year, but its hotels confirmed 16% more corporate events than last year. The Mallorca-based company reported earnings before interest, taxes, depreciation and authorization of 575.4 million euros in 2024, surpassing the company's target of 500 million. Excluding capital gains, EBITDA totalled 533.6 million euros.

#spaintourism #traveltospain #hotels #travelnews #tourismupdate