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Melia Hotels International – Irrefutably a Propitious Corroboration

Posted : 29 April 2017 03:06:19 | By TWO Bureau | New Delhi

Melia Hotels International – Irrefutably a Propitious Corroboration

Meliá earned €100.7 million in 2016 (+180%) thanks to the positive performance of the hotel business, ending the year with the lowest debt ratio in its history.



Meliá Hotels International earned profits of €100.7 million in 2016, an improvement of 180% over the previous year, a remarkable feat considering that hardly any capital gains from asset rotation were generated over the year. Excluding the effect of capital gains, company EBITDA improved by 14%, and revenues reached €1,798.4 million (+7%). Total revenues including managed hotels and asset sales reached €2,882.4Mn.

 


The improvement in EBITDA margins of almost 100 basis points is also very positive, even more so as it has been achieved while still meeting the growth and repositioning objectives fundamental to company strategy. Financial results also saw 49% improvement, attributable to bothconsistent reductions of company debt (down by €226 million since December 2015) and a reduction in the average interest rate of 90 basis points, leading to financial savings of over €28 million.

 


RevPAR (Revenue Per Available Room), the figure that best indicates the evolution of the hotel business, achieved levels above those of the peak of the previous cycle in 2007 in all regions, even though there still remains room for significant improvement over the coming years.



In Asia Pacific, the company is very proud of its results, both in terms of the slight growth in RevPAR and the 25% improvement in figures for hotels under management, all achieved in spite of the major expansion and the renovation of a large number of rooms which limited the increases in the contribution of affected properties. Meliá emphasizes the importance of its presence in the fastest-growing market both in the inbound business (travellers to APAC) and outbound travel from Asian countries to the rest of the world, and has reinforced its corporate offices in Shanghai and in Jakarta. The growth expected by the company - with 14 hotels in operation and 21 new hotels currently in the opening pipeline – will provide consistent growth in profitability and return on investment in the region.



Gabriel EscarrerJaume, Vice Chairman and Chief Executive Officer of Meliá Hotels International said: "The 2016 results once again show a strong performance from the hotel business as a result of a positive international travel environment, especially in resorts, and our successful strategy over recent years, laying the groundwork for more profitable and qualitative growth in the coming years. Together with a significantly healthier balance sheet, and a business model increasingly based on international growth and management agreements, all of this places us in an unbeatable position to face the significant geopolitical, economic, social and technological challenges that affect the industry on a global level."




Tags : Melia Hotels International, Corroboration, TravelWorldOnline


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