Meliá Hotels International released 2012 results showing an increase of 7.9 percent in RevPAR. Achieving $1,780.4 million in revenue last year, the increase is explained by global improvements in average room rates.
The positive evolution of the global economy supported 4 percent growth in international tourist arrivals in 2012. The ranking was headed by emerging economies-where Meliá Hotels International is focusing a large part of its growth-along with increases in the more advanced economies of 3.6 percent.
Achieved mainly from the strength of the hotel business, the results have led to a hotel EBITDA of $326.5 million with a net profit reaching $48.7 million. The focus on improving revenues and customer loyalty generated the RevPAR growth above market averages-enabling Meliá to post an Ebitda increase of 8.4 percent of the hotel division and an EBITDA margin improvement of 48 basis points. The company also believes that the performance supports the evolution in share performance with a 48.4 percent increase in the 2012 share price, which is well ahead of the Spanish Ibex-35 benchmark index.
With 12,405 new rooms in the pipeline, the company retains a strong focus on international expansion, especially in Latin America and Asia Pacific. The global trend enabled Meliá to generate a 47 percent increase in stays from Latin American source markets such as Brazil, Argentina, Colombia, and Chile. Stays by guests from the U.S.-the leading source market for the Caribbean-grew by 11 percent.
In the Americas, RevPAR has increased by a more than 30.3 percent, which is explained primarily by rate improvement. The EMEA division of hotels saw a 4.8 percent improvement in RevPAR-attributable to rate increases of 6.1 percent. Within Europe, the 18.1 percent RevPAR increase is due to greater direct sales and the replacement of source markets in crisis with less price sensitive markets, including Brazilians, Americans, and Asians.
The Premium Europe division-including luxury branded hotels-experienced a 3.5 percent improvement in RevPAR. The largest contributors to this performance were the Gran Meliá Don Pepe in Marbella and the Meliá de Mar in Mallorca. With a 2.8 percent improvement in RevPAR, the Mediterranean division increases are due to a 7.2 percent price increase.
However in Spain the division’s RevPAR decreased by 2.8 percent due to the slowdown in both occupancy levels and rates. Demand in the city hotel segment remains weak, with the exception of some major cities. Fewer flights, rising energy costs, increased air taxes, and VAT have also decreased demand. Eighty percent of the company’s profit is generated outside Spain in Latin America and European cities.
