Spanish hotel chain Melia's profit up 25% with focus on luxury tourism
MADRID, Feb 27 (Reuters) - Spain's largest hotel chain Melia (MEL.MC), opens new tab on Thursday posted a 25% rise in net profit to 162 million euros ($169 million) in 2024, beating analyst expectations, after focusing on luxury accommodation to better benefit from a record tourism boom.
Analysts, on average, had expected a net income of 130 million euros.
Melia has invested 400 million euros in the last two years in turning more than half of its hotels into premium destinations. It plans to open more luxury hotels in Barcelona, Malaga and Madrid to boost room rates as smaller rivals also bet on the upmarket sector.
Revenues per room at Melia increased by 11% in 2024, and the company said that 75% of this was due to higher room rates. Revenue rose 5% to 2 billion euros, in line with analysts' estimates.
Spain, Melia's main market for city and resort hotels, attracted a record 94 million visitors last year, prompting protests from some locals who say excess tourism has made housing costs too expensive.
Melia's chief executive Gabriel Escarrer said in January he didn't agree with Spain's ambition to boost foreign tourist arrivals to 100 million a year, arguing that it was best to focus on attracting higher-spending North American and Middle-Eastern tourists to relieve pressure on locals and the environment.
Melia expects to open a hotel every two weeks this year and 80% of the pipeline, mostly in the Mediterranean and Caribbean destinations, are premium ones.
The company says bookings are growing at a high single-digit rate this year, but its hotels have confirmed 16% more corporate events than last year.
The Mallorca-based company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of 575.4 million euros in 2024, surpassing the company's target of 500 million. Excluding capital gains, EBITDA totalled 533.6 million euros.
($1 = 0.9589 euros)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scotsman
12 minutes ago
- Scotsman
Ian Murray: 'A clear path for the next decade to make the UK secure at home and strong abroad'
Review marks a fundamental shift to restore Britain's readiness, writes Scottish Secretary Ian Murray Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland has always been at the beating heart of the UK's defence and security. From our historic regiments like the Black Watch, to our tradition of shipbuilding, we should be incredibly proud of our history on national security. Advertisement Hide Ad Advertisement Hide Ad We are living in an increasingly insecure world. War in Europe, growing nuclear risks, and daily cyber threats demand a robust response. The Strategic Defence Review we published yesterday sets a clear path for the next decade to make the UK secure at home and strong abroad. This isn't about minor adjustments; it's a fundamental shift to restore Britain's readiness, deter our adversaries and help drive economic growth across the UK. From the highly skilled pilots at RAF Lossiemouth to those who maintain our nuclear deterrent at Faslane, thousands of Scottish-based military personnel do extraordinary work to keep us safe every day. I thank them all for their service. This government is delivering the largest sustained increase in defence spending since the end of the Cold War - a huge boost for Scotland's world-leading defence sector, delivering economic growth and highly-skilled jobs. Advertisement Hide Ad Advertisement Hide Ad Prime Minister Sir Keir Starmer speaks during a visit to BAE Systems in Govan, Glasgow, to launch the Strategic Defence Review | PA Yesterday the Prime Minister came to Scotland to announce up to 12 new attack submarines, building on the £15 billion investment set out for the UK's sovereign nuclear warhead programme, keeping the UK safe for generations to come. And today we're announcing UK troops and warships will be protected by drone and laser weapon technology through a major £5 billion investment, as the UK seeks to become the leading edge of innovation in NATO. From Rosyth to the Clyde, Scottish shipbuilding has been the backbone of British maritime strength, with eight Type 26 ships being built by BAE Systems in Glasgow and five Type 31 frigates by Babcock International in Fife. Our Strategic Defence Review set out the need for an 'always on' pipeline of shipbuilding – bolstering Scottish jobs, Britain's national security and delivering the UK Government's Plan for Change. Advertisement Hide Ad Advertisement Hide Ad This multi-billion pound investment supports thousands of skilled jobs and invests in our communities for years to come. The Review will also deliver significant investment in munitions capabilities, with plans for at least six new munitions factories across the UK creating more than 1,000 skilled manufacturing jobs. Scotland's expertise in this field is already evident, with 155mm munitions produced by BAE Systems in Glasgow and Tomahawk missiles by Raytheon in Glenrothes. Scotland's vital role in UK defence I was astonished to read this week that the Scottish Government is blocking investment in a specialist welding centre in Glasgow, by withdrawing a £2.5 million grant. The defence Secretary was clear, if the Scottish Government continues to block the funding for this centre, the UK Government will step in and fund it directly. I am passionately proud that Scotland plays such a vital role in the UK's defence. That's why I'm particularly pleased about the £400 million investment to ensure our servicemen and women have barracks fit for purpose – addressing military accommodation that has been allowed to fall into disrepair. Advertisement Hide Ad Advertisement Hide Ad The Ministry of Defence already spends £2.14 billion a year here – including £32 million with SMEs – approximately 25,600 jobs across Scotland depend on defence spending. By putting national security at the heart of our Plan for Change, we are ensuring Scotland remains central to the UK's defence capabilities while delivering economic benefits to communities across the country.
Leader Live
5 hours ago
- Leader Live
Buy now pay later provider Zilch to launch first physical card
The fintech, which has been named one of the fastest-growing in the UK, said it means more of its customers can make payments in stores. Zilch currently offers a virtual card, stored in its app or in people's mobile wallets, which links to customers' debit cards and means they can pay for shopping flexibly. People can choose to pay in full, or spread payments over six weeks or three months, at retailers from Primark and Asos to Just Eat and eBay. While the virtual card can be used in shops as well as online, Zilch said that nearly 80% of UK adults do not regularly use mobile wallets so having a physical card will drive more transactions. It is also set to open up buy-now-pay-later options for bigger purchases like home repairs, hotel check-ins, and car rentals. The cards will become available to its existing customers from September. The London-based company has grown its customer base to more than five million since launching five year ago and securing authorisation from the UK's Financial Conduct Authority. It reached a valuation of two billion dollars (£1.5 billion) in 2021 and was named one of the UK's fastest-growing fintech unicorns this year. Buy now, pay later providers like Klarna and Clearpay have come under new standards since legislation was introduced last month. It came amid concerns that a lack of regulation has led some of the 10 million people who use it to take on too much debt.
Rhyl Journal
5 hours ago
- Rhyl Journal
Buy now pay later provider Zilch to launch first physical card
The fintech, which has been named one of the fastest-growing in the UK, said it means more of its customers can make payments in stores. Zilch currently offers a virtual card, stored in its app or in people's mobile wallets, which links to customers' debit cards and means they can pay for shopping flexibly. People can choose to pay in full, or spread payments over six weeks or three months, at retailers from Primark and Asos to Just Eat and eBay. While the virtual card can be used in shops as well as online, Zilch said that nearly 80% of UK adults do not regularly use mobile wallets so having a physical card will drive more transactions. It is also set to open up buy-now-pay-later options for bigger purchases like home repairs, hotel check-ins, and car rentals. The cards will become available to its existing customers from September. The London-based company has grown its customer base to more than five million since launching five year ago and securing authorisation from the UK's Financial Conduct Authority. It reached a valuation of two billion dollars (£1.5 billion) in 2021 and was named one of the UK's fastest-growing fintech unicorns this year. Buy now, pay later providers like Klarna and Clearpay have come under new standards since legislation was introduced last month. It came amid concerns that a lack of regulation has led some of the 10 million people who use it to take on too much debt.
