Hotel Brands

Melia Hotels reveals record net profits amid expansion

Meliá Hotels International has revealed the results of its three-year strategic plan has led to a “record year” for net profits.

At the company’s AGM meeting on 18 June 2019, both the founder and non-executive chairman of the company, Gabriel Escarrer Juliá, and its executive vice president and CEO, Gabriel Escarrer Jaume, reviewed the achievements of its 2015-2018 Strategic Plan.

During the period Meliá highlighted its RevPAR for the past 34 consecutive quarters up to the end of 2018, with a 16% increase between 2015 and 2018. The CEO also emphasised a 20% increase in asset value to €4.4bn (£3.9bn) and an increase of 250% in earnings per share over the same period.

Additionally, Melia said after investing €130m in the three years, Meliá reports “significant progress” in its online offering, supported by a 68% increase in online sales over the period and a 1,400% increase in sales through mobile devices. The pair also highlighted the fact that more than 9,500 rooms had been added to the portfolio, and €1.1bn (£982m) had been invested in renovating and repositioning hotels.

Moving forward Escarra Juliá highlighted a “three-pronged transformation”, with objectives including strengthening its leadership in the resort and urban leisure segments, completing its digital transformation and consolidating its position as a leading employer and responsible company.

Gabriel Escarrer also announced the decision to hold the pay-out ratio steady at 30%, implying the payment of a dividend per share of €0.1830 (+ 8.86%).

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