Meliá Hotels International: first quarter results 2018
Meliá revenues grew by 4.2% and EBITDA by 13.8% on a constant currency basis. The Company highlights positive momentum in the Caribbean, where it will open more than 3,000 new rooms in Cuba, Mexico, Dominican Republic and Colombia in 2018 |
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Meliá Hotels International: first quarter results 2018
Meliá revenues grew by 4.2% and EBITDA by 13.8% on a constant currency basis. The Company highlights positive momentum in the Caribbean, where it will open more than 3,000 new rooms in Cuba, Mexico, Dominican Republic and Colombia in 2018 |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-05-14
MELIÁ EARNS €22.1 MILLION (+18.9%) IN THE FIRST QUARTER IN SPITE OF THE DEPRECIATION OF THE DOLLARBusiness performance (on a constant currency basis): - Total revenues increased by 4.2%
- Global RevPAR grew by 7.4%, 70% of which is due to price increases
- Growth continued in the Mediterranean and Spanish cities
- Group EBITDA grew by 13.8%
- Excellent recovery in European cities with the exception of Berlin, due to the lack of flights after the end of operations of Air Berlin
- 8.9% growth of melia.com, with an outstanding 46% growth in the Mediterranean
- Healthy evolution of MeliaPro, the booking platform for travel agencies and other professional customers, with an outstanding 30.5% increase on Groups’ bookings through MeliaProMeetings
Financial results: - Earnings per share increased by 18.9%
- Net debt/EBITDA target ratio for the year remains at 2X
- Reduction in financial expenses of €1.6M (-20%)
- Reduction of average interest rate to 3.19% compared to 3.4% in 1Q-2017
International growth: - The company has opened 8 new hotels this year (4 in Cuba, 2 in Spain and 2 in Vietnam)
- To date, Meliá has signed 7 new hotels in 2018: 3 in Vietnam and 1 each in Thailand, Portugal, Dubai and Morocco
- The pipeline for future hotel additions stood at 63 hotels with 16,000 rooms as of March 31, 85% of them under management agreements
Outlook 2018: - Forecasts for the second quarter continue to suffer the effect of the dollar-euro exchange rate
- Excluding exchange rate differences, the forecasts become positive, estimating single-digit RevPAR growth led by hotels in France, Spain and Italy
- The company maintains its forecast of significant improvement in margins in 2018
- Excellent performance and outlook for the Calviá Beach project (Magaluf), with a new hotel and shopping mall opening in its 7th season, and very positive performance from the Palau de Congressos Convention Centre and Hotel Palma Bay in Mallorca after their first year of operations
Gabriel Escarrer Jaume, Executive Vice President and CEO of Meliá Hotels International: “The Meliá global hotel business has had a positive first quarter accompanied by a clear recovery in European cities. This international economic environment combined with our strategy to strengthen our brands internationally, reposition products and firmly commit to digital transformation, boosts our international expansion and allows us to keep consolidating our leadership in the leisure and bleisure (business+ leisure) segments, one of the priorities in our Strategic Plan”.
Meliá Hotels International earned 22.1 million euros in the first quarter of 2018, an increase of 18.9% over the same period in 2017. The positive performance of the hotel business was negatively affected by the significant depreciation of the dollar, down 15% compared to the first quarter 2017, since a large part of the company’s revenues are generated in dollars although its accounts are stated in euros.
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