Q1 results: Meliá reports a 25.5% revenue drop for Q1 2020

by | 22 May 2020 | Chains

Meliá Hotels International has reported significant losses in Q1 2020. (Picture: Melia Development)

COVID-19-related travel restrictions and lockdowns have resulted in Meliá’s RevPAR reporting a 14.7% decline after a strong start to the year.

2020 started strong for the hotel industry in many regions. Unfortunately, the emergence of Covid-19 promptly dashed any dreams of the new decade beginning with a record year.

We find out how Meliá Hotels International has been affected by taking a closer look at its Q1 results.

Meliá reveals impact of coronavirus

For Q1 2020, Meliá has reported a 14.7% decline in RevPAR [revenue per available room] and consolidated revenues of €293 million, which represents a 25.5% drop on Q1 2019. EBITDA was down by 85% at €14.2 million, and net attributable profit was negative at -€79.7 million.

“The disruption caused by the Covid-19 pandemic in the world economy and its brutal impact on the travel industry have generated an extreme turning point in the results of Meliá Hotels International, ruling out any basis for comparison with previous years,” said Gabriel Escarrer Jaume, executive vice president and CEO of Meliá Hotels International.

“The moderately positive performance that the company expected for the year, and which was the case up to the end of February, ended in mid-March when the global emergency was declared, causing the almost immediate closure of hotels worldwide. This forced us to implement a rigorous contingency plan to guarantee the continuity of the business and the preservation of employment, as well as adapting our strategic plan to ensure we are stronger and more competitive when the industry returns to business after Covid.”

Looking to the future

Despite the trying times and the drastic measures that Meliá has had to take recently, the hotel group’s leadership remains positive about its long-term prospects.

“Without any doubt, our financial strength, our strategic commitment to digital transformation over recent years, and our geographic diversification are strengths that will help us maintain our leadership and competitiveness in the new travel industry which emerges after Covid, and for which the company is preparing itself intensively,” said Jaume.

The company has also adapted its strategy in an effort to better meet the likely demands of doing business in a post-coronavirus world. Among the steps it is prioritising are adopting measures to ensure liquidity for the coming months of slow business, as well as stepping up hygiene and sanitation protocols, and adopting previously planned digitisation more quickly to reduce the need for direct contact at its properties.


Meliá 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.

Virgin Hotels Las Vegas reveals restaurant partners
Covid19 live blog roundup: Hotels start planning for 2021
Acker and Nuenemann launch Shoreline Hospitality
Covid19 live blog roundup: Hotels look forward to life after coronavirus
Covid19 live blog roundup: Hotels get to grips with coronavirus emergency
Covid19 live blog roundup: Hotels reopen amid raft of new protocols
WTTC backs making face masks mandatory to tackle Covid19
Ascend adds Dolphin Tale-inspired hotel to portfolio
Invest in Portugal: A poetic and charming European country
Covid19 live blog roundup: Hotels respond to the challenge of coronavirus
Covid19 live blog roundup: Hotels start welcoming guests once more
Covid19 hotel development analysis: Choice Hotels International [Infographic]
Global signs of recovery: Roundup of key hotel markets worldwide
Seaside resorts in Phuket to remain closed for several months
Covid19 live blog roundup: Hotel sector prepares to enter new era
Covid19 live blog roundup: Hotel industry rapidly adjusts to ‘new normal’
Hotels urged to embrace technology to survive amid coronavirus
Middle East’s ghastly hotel numbers in April could be the bottom [Construction Report]
Signs of a hotel rally emerge as Covid19 persists
Marriott cautiously optimistic about demand rising in US and China [Construction Report]


With the online database TOPHOTELCONSTUCTION you will have access to +6,000 hotel projects and all relevant decision-maker contacts.


Pin It on Pinterest