Meliá Hotels International has increased EBITDA after the first 9 months by 4.3% (11.5% underlying EBITDA) and net profit of 36.7 million euros, representing a decrease of 4.1% over the same period last year. In the hotel business, the average rate increase offset a slight decline in average occupancy levels, RevPAR ending in owned and leased hotels with growth of 8% through September.
Financial results saw a lower contribution of the Real Estate area in the period compared to the same period in 2011 (-3.9 million €) and the impact of the non-securitization of the Club Meliá customer portfolio (-3.5 million €) compared to 2011. If these factors are not taken into account, EBITDA would have grown by 11.5% during the nine months, with an EBITDA margin improvement of 62 basis points.
The positive development of the resort hotels that the company operates in the main tourist destinations in the world, with a healthy increase in RevPAR of 6.1% in the third quarter (and 11.3% to September) mainly due to increases in price, meant that revenue per available room – RevPAR – for the company during the first 9 months rose by 8%.
Outlook
Meliá expects a very positive first quarter for 2013 in Latin America and the Caribbean, where the period coincides with the high season.
In Spanish holiday resorts, the ongoing negotiations with major European tour operators indicate slight increases in rates for the summer of 2013, and strong growth in bookings from direct sales channels.
The results of the World Travel Market tourism fair in London, the most important for the British market, also point to a positive season, with the good performance of the Russian market and the Eastern countries, while still observing a weak demand on the Spanish, French and Italian markets.
With respect to major European cities, the macroeconomic situation in the Euro zone and UK requires the company to be prudent despite positive developments, focusing on expanding and developing a strategy based on customer accounts in London, Paris and major cities in Germany.
Finally, and in global terms, as noted earlier, the company expects a significant improvement in the contribution of e-commerce (online tour operators and travel agencies) and especially from its own direct sales channel
80% of operating profit outside Spain
Meliá diversification, both geographically and by product segment, remains a key strength to understand the continued positive results of the business: the company gets 80% of its operating profit from outside Spain, mainly in Latin America, Europe and Middle East, and its hotel portfolio, with 60% of resort hotels compared to 40% of city hotels, benefited from the strength of international demand in the leisure segment, even in Spain.
In the sales area, Meliá also highlights advances in electronic commerce, with a notable improvement in online agencies and tour operators, as well as the growing importance of direct sales channels, which up to September 2012 contributed 134 million in sales, This is 13.5% above the previous year. 2013 is expected to see increases of 39% in this area.
Continued commitment to internationalization
Currently, the Meliá hotel pipeline includes 34 hotels with approximately 11,000 rooms, 92% in the Upscale and Premium categories. Of these new properties, 91% are located outside Spain and 58% of them in emerging markets, reinforcing the Meliá presence in countries like Brazil, China and Indonesia.
In the next few weeks the ME London hotel will open, becoming one of the leading European hotels designed by Foster & Partners in the business and entertainment heart of London. This spectacular and vibrant hotel will have a positive impact on boosting the international positioning of the premium brand ME by Meliá (which next year will open another hotel in Vienna).
The fact that 100% of the 34 hotels in the pipeline Meliá will be added under management, lease and franchise agreements also confirms the hotel’s commitment to strengthen its business model as a “hotel manager” and supports the company’s management maturity and the confidence that its hotel brands offer investors and hotel owners.