Meliá Hotels International results - 9 months 2018
Net Profit grew by 10.1% up to September with a significant 83 basis point improvement in margins |
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Meliá Hotels International results - 9 months 2018
Net Profit grew by 10.1% up to September with a significant 83 basis point improvement in margins |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-11-09
- The Company resists satisfactorily the recovery in competing destinations and the slowdown in last-minute sales caused by the warm summer weather in northern Europe, among other factors
- Remarkable growth of MeliaPro, the exclusive Portal for professionals and Meetings & Events’ segment, that shows the Company’s commitment with its commercial partners
- The Company is ranked as the third most sustainable hotel company in the world by the sustainable investment agency RobecoSAM, responsible for evaluating companies to define the composition of the Dow Jones Sustainability Index
- The net value of the Group's assets in Joint Ventures exceeds estimations and the net asset value per share stands at €15.20
Business performance to September: - Excellent performance of key hotels such as ME London, Gran Meliá Colon (Seville), Gran Meliá Palacio de los Duques (Madrid), Meliá Palma Bay and Calvià Beach The Plaza (Majorca)
- Significant improvement in margins thanks to efficiencies generated by digitalisation and economies of scale as the management model continues to consolidate
- Net Attributed Profit reaches €119.7m, up 10.1%
- EBITDA excluding capital gains grows 5% in the third quarter compared to the same period in 2017
- In constant currency terms, RevPAR in owned and leased hotels improved by 2.9% and EBITDA excluding capital gains by 6.2%
- Melia.com increased sales by 5.4% and its B2b portal MeliaPro increased sales by 34,71%
- The Net Value of Assets in Joint Ventures exceeds estimates and reaches €643m
Financial management: - The Company maintains the Net Debt/EBITDA ratio objective at 2.0x for the end of the year
- Reduction in financial expenses (-22%) due to a lower average interest rate (3.2%) and the positive impact of exchange rate changes
- Meliá reaffirms its commitment to responsible Investment (RSI), that includes a high proportion of its shareholders, by entering the ranking that is the basis of the Dow Jones Sustainability Index
Global development: - Meliá reinforces its leadership in the leisure and "bleisure" segments with 15,000 new rooms signed up and a clear focus on the Mediterranean, Southeast Asia and the Caribbean
- 17 new hotels opened in 2018 up to September, all but one under management agreements
- The Company has also signed agreements for 14 new hotels in priority locations in high-potential destinations in Asia-Pacific, the Caribbean, North Africa and Europe
- 3 hotels signed and several other projects moved forwards in Vietnam and Thailand during the visit by the CEO to Asia Pacific in October
- Meliá has earned more than 57 international awards and prizes for its hotels and service concepts to date
Outlook for the year end: - Favourable performance expected in Spanish city hotels in the 4th quarter (except Barcelona)
- Competition from Egypt in the UK and German markets will make it a tougher winter season for the Canary Islands hotels
- Positive dynamics in France, Germany and the UK and a good first quarter expected in the Caribbean
Gabriel Escarrer, Executive Vice President and CEO:"The first nine months of 2018 confirm the competitive advantage created by a strategy focused on digital and sales strength and the extensive renovation and repositioning of our assets and brands. Our commitment to a model that prioritises adding hotels under management agreements is also beginning to bear fruit, providing us with increasing revenues from management fees and maximising our scale and structure in different markets. I am proud to highlight the positive performance of the Group in the first nine months of 2018, despite the competition from recovering destinations in North Africa and Turkey and the fall in bookings by northern Europeans caused by the exceptionally good weather they have had this summer.
In this changing context, our international growth and clear commitment to sustainability, recently acknowledged by the most important international rankings such as the one prepared by the investment agency RobecoSAM for the Dow Jones Sustainability Index, are even more valuable and make us very optimistic about the future of the business."
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