At the FITUR Tourism Trade Fair in Madrid, Meliá Hotels International Vice Chairman and Chief Executive Officer Gabriel Escarrer offered his thoughts on how the Mallorca-based hotel group will respond to macro-economic challenges in 2017:
Geopolitical risks: “We have chosen international diversification, prioritizing safe destinations such as Asia, the Caribbean and the Mediterranean.” Escarrer announced at least 23 new hotel openings in 15 countries for 2017.
Brexit: “Although we do not expect a major impact on the UK feeder market, we will compensate the slowdown expected in high season and in more expensive segments with demand from other feeder markets.”
Regional macroeconomic variability: “Our management and asset-light model minimizes risk and allows us to grow faster.”
Collaborative economy and hyper-segmentation of demand: “Our response is more brands, more service and more quality, and, of course, our leadership in resorts.” In 2017 the company will complete the renewal of its brand architecture, and the updating of brands in the resort segment such as Sol Hotels and its new sub-brands Sol House, Sol Beach House and Sol Katmandu, and in the urban-bleisure segment, Meliá and Innside by Meliá.
Industry consolidation: “We do not want to be the biggest, we want to specialize and be the strongest company in the resort environment.” He said Meliá is also committed to forging strategic alliances for growth and the repositioning of products, a strategy that allows it to strengthen itself at a corporate level and grow strategically, together with some of the most important international investment funds.
The need for a new tourism model in Spain: “We have two objectives: to reposition mature resort products and destinations, and to transform cities with large hotels in the luxury and bleisure segments.” Meliá recently opened the Gran Meliá Palacio de los Duques hotel in Madrid, a flagship property for the Gran Meliá brand. The company is also preparing the opening of the future Congress Centre and hotel in Palma de Mallorca.
At the operational level, all of the regions, including city hotels in Spain, Meliá reported for 2016 RevPAR figures above those at the peak of the cycle in 2007, with increases close to double digits. According to Escarrer, the company expects these strong results to be reflected in EBITDA and Net Profit figures slightly above market expectations.
At the financial level, Escarrer highlighted the significant reduction in company debt, which is at record low levels, in addition to improvements in its financial results.
The Meliá CEO also especially highlighted the important commitment to Spain, reaffirming the company’s commitment to the transformation and improvement of the tourism industry. Meliá continued to invest in the renovation and repositioning of its resort hotels in mature destinations such as Magaluf in Mallorca, where it has already invested more than €200 million, or Torremolinos in Malaga, where the company has invested about €40 million.
In response to the growing global interest in experiences, and especially in gastronomy, Escarrer outlined the new Meliá F&B strategy, introducing new concepts in all of its brands and Michelin-star and signature restaurants for premium-brand hotels, as well as roof terraces.