Spanish hotel group Melia hailed a strong first half performance in 2024, with net revenues up 11.2% as its hotels in all regions reported increased rates and occupancy.
The positive performance comes as Melia pushes hard to grow its portfolio in key markets, having opened 13 hotels in the first half of 2024 and signing 27 new properties to its pipeline. All of the additions are asset light, being agreements to brand properties under either management agreement or franchise.
Spanish city hotels perform strongly
For Melia’s second quarter of 2024, it was hotels in Spain that performed most strongly, with revpar up 18.2% at urban properties, and up 14.7% at leisure-led hotels. A strong calendar of events including conferences, sporting events and music concerts proved particularly beneficial for hotels in Madrid and Barcelona.
Elsewhere in Europe, German hotels had a solid quarter, helped by visitors coming to enjoy the Euro 2024 soccer championship, and a growing number of trade fairs. Asia was the second best region, up 11.2% for the quarter when compared with the previous year.
In recent months, openings have taken Melia into several new markets, including Sardinia, Malta and further afield in southeast Asia, Laos. In Madrid, the Casa de las Artes hotel joined the Melia Collection, the group’s independent and individual hotel grouping.
The company has launched its second hotel in collaboration with tennis legend Rafael Nadal. The Zel brand’s addition has opened in Costa Brava, joining the venture’s launch property in Mallorca. For Zel, there will be further openings soon in Madrid, Mexico and the Dominican Republic.
“Melia’s results continue to reflect the positive evolution of the tourism sector in the first six months of the year, in which the group has been able to capitalise on the continued strength of travel demand,” said Melia chairman and CEO, Gabriel Escarrer. “The company is now reaping the rewards of its firm commitment to digitalisation, international expansion and the renovation and repositioning of its assets, with a strong focus on premium and luxury products.”
Upcoming openings for the group through the second half of 2024 include the Torre Melina Gran Melia hotel, and in Madrid, the Innside Valdebebas. As well as the Spanish home market, hotels will open in Cuba, Portugal, Malta and Mexico.
A focus on luxury
Melia’s luxury brand ME by Melia will see a growth spurt with new properties opening in Malta, Lisbon and Sayulita in Mexico through the back half of 2024. The momentum will continue into 2025, with openings planned in Guadalajara, Mexico as well as Malaga and Marbella; followed by San Miguel de Allende in Mexico in 2026, and planned for 2028, new sites in Albania and Guangzhou.
Another premium brand, Gran Melia, is also on the expansion trail, with three large hotels in Dubai, Mexico and Albania on the way. The Melia Collection will expand its offering with openings in the new destinations of China, Albania and Mexico, as well as further planned growth in Spain and Italy. And, not to be left out, the Innside brand will launch its first hotels in the markets of Malta, Greece, Portugal and Sicily during 2025.
