Melia Hotels International Announces 9.3% Increase in EBITDA Due to Improved RevPAR and Revenue
PALMA DE MALLORCA, Spain, Nov. 8, 2013 /PRNewswire/ -- Melia Hotels International presents results for the first nine months of 2013, closing the third quarter with an EBITDA of €201.3 million (+ 9.3% from 2012) and a net profit of €25.4 million (-33.6%).
Gabriel Escarrer, Vice President and CEO commented: "Company results were affected by extraordinary financial items in this period, but which in no way affect company strategy nor its ability to generate constant improvements in the results of the hotel business, as we have shown for another quarter".
The discrepancy in Operating Profit and Net Profit are explained by the following factors: €20 million is accountable to convertible bonds (including €12.7 million for the valuation of convertible bond options linked to the evolution of company shares in 2013), the greater capital gains in 2012 (€7.8 million) and hyperinflation in Venezuela (€3.6 million). The progress in the restructuring of debt to extend maturity periods and, in particular, the amortisation of all syndicated loans subject to covenants for €312 million, show the direction the company has defined. These factors partially eclipse the improvement in the business, which saw 4.8% growth in RevPAR, exceeding the industry average.
RESULTS BY DIVISION
EMEA & Premium Europe: The 11.4% growth of RevPAR is explained largely by the improvement in prices (+10.8%).
The division benefited from the new reporting perimeter, as it now includes the Gran Melia hotels in Europe. Gran Melia Rome, after first full year of operation, has achieved excellent results, with the highest average rate of the company. Luxury hotels, including ME London, Gran Melia Don Pepe (Marbella), Gran Melia Victoria (Mallorca) and Melia de Mar (Mallorca) also performed well.
France maintained good growth (+4.6%), Germany showed a slight decrease in RevPAR (-1.8%) due to the absence of biannual trade fairs and the UK -9% compare to 2012 (London Olympics).
ME by Melia hotels had excellent growth in Europe (+24% RevPAR), mainly due to the consolidation of ME London after nine months of operation. The hotel has achieved three major awards at the European Hospitality Awards (including Best Hotel of the Year), confirming its positive positioning in the market.
Mediterranean Spain: The excellent tourist season in the third quarter explains the 4.3% growth in RevPAR, supported by an improvement of 4.8% in occupancy (80% vs. 70% Spanish standard).
The Calvia Beach project to reposition and regenerate Magaluf (Mallorca) increased revenue by 32% in its second season. Innovation in product and guest experience is the main theme of this project. This summer Sol Wave House became the first Twitter Experience Hotel in the world, aiming to attract a new customer profile. The company has also just announced the first hotel for the cutting-edge ME by Melia brand in Mallorca which, together with the adjacent Nikki Beach Mallorca, is completely transforming this previously degraded resort area.
Urban Spain: The 1.5% fall in RevPAR is explained largely by the drop in prices (-1.3%), although the third quarter RevPAR increased by 2.5%. The company benefits from its location in cities and also expertise in the urban resort segment.
America: There has been a 11% increase in RevPAR, with an excellent performance of the Paradisus Brand. The advance is explained by the positive growth of outbound markets in USA and Canada, mainly, and in Latin American countries such as Colombia, Chile, Peru, Brazil and Argentina.
In 2013, Melia Hotels International maintained its ambitious expansion plans, signing 19 hotels, with over 53 in the pipeline. 97% of these are outside Spain (approximately 50% in emerging markets) and in line with company strategy to promote management agreements, 100% will be under management contract or lease agreement.
The expansion strategy also promotes the upscale and premium segments. The company has just announced expansion of its ME by Melia brand, with the opening of the ME Dubai, ME Mallorca and ME Ibiza.
During 2013, the company has opened the hotels INNSIDE Madrid Génova, INNSIDE Madrid Luchana (both in Spain), Melia Atlantico Isla Canela (Huelva, Spain), Melia Capri (Italy), INNSIDE Düsseldorf Hafen (Germany), TRYP Murcia Rincón de Pepe (Murcia, Spain), the Residence of Real Madrid football club and the Paradisus Palma Real Convention Centre.
Gabriel Escarrer stated during the recent World Travel Market in London that "over the next few months, we will announce new hotels in the English speaking Caribbean or in some islands of the Indian Ocean where we never dreamt we would ever be. This raises our profile as a leading resort hotel company, being present in the best and most select holiday destinations in the world".
OUTLOOK FOR 2014:
The company hopes for positive growth in Latin America and the Caribbean in the first quarter of 2014, coinciding with the regional high season, based on the bookings made so far and on the growth of the group segment.
With regard to the Mediterranean and the Canary Islands, the British market is expected to maintain its positive rhythm, according to data collected at the World Travel Market, while the situation in North Africa will have a positive impact on the Canary Islands in winter.
European cities, mainly Berlin, London and Paris, will also experience improvement, while in Spain, the fall in the urban hotel business appears to have reached rock-bottom and improvements should be seen in cities, such as Barcelona.
Overall, the company is optimistic and points again to growth of an average digit for RevPAR in 2014.
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About Melia Hotels International
Melia Hotels International was founded in 1956 in Palma de Mallorca (Spain) and is one of the world's largest resort hotel chains, as well as Spain's leading hotel chain. It currently provides more than 350 hotels and 90,000 rooms in 39 countries on 4 continents under its brands: Gran Melia Hotels & Resorts, Melia Hotels & Resorts, ME by Melia, Innside by Melia, Tryp by Wyndham, Sol Hotels and Paradisus Resorts. Its product and service portfolio is complemented by Club Melia, the only vacation club operated by a Spanish company.
SOURCE Melia Hotels International