Spanish hotel giant Melia has reported a 24.5% increase in net profit, amounting to €162m ($169m) for the year 2024.
The company said that the positive performance in the fourth quarter led to double-digit growth in revenues per available room (RevPAR) for the year, reaching €85.0, a 10.7% increase across all its hotels. This growth was primarily driven by higher prices, which contributed to 75% of the RevPAR increase.
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Meliá noted that its RevPAR growth in 2024 outpaced the industry’s average, reflecting the company’s ability to take advantage of favourable market conditions.
This success was supported by the total revenue strategy and a focus on high-performing, resilient segments, including premium and luxury hotels.
Melia has also seen its attributable net income rise to €140.6m, marking a 19.4% improvement from the previous year.
The company’s consolidated revenues, excluding capital gains, have also experienced a 4.4% year-on-year increase.
However, Melia’s earnings before interest, taxes, depreciation, and amortisation (EBITDA), excluding capital gains, stood at €533.6m, compared to €486.5m in 2023.
The company also reported a decrease in depreciation and amortisation expenses by €12m compared to 2023. This reduction was mainly due to a €12.3m impairment recorded on an asset in the Dominican Republic during its renovation process in the previous year.
Looking ahead, Melia aims to sign 25 new hotels and open at least 20 new properties this year.
Melia president and CEO Gabriel Escarrer said: “The sharp post-Covid demand surge has now given way to healthy growth in a more stable environment, where we are well-positioned to continue optimising our management and creating value.
“Meliá’s RevPAR growth in 2024, which doubled the industry’s average increase, demonstrates that our company has successfully capitalised on favourable market conditions.
“This was achieved through our total revenue strategy and our focus on the most profitable and resilient segments, such as premium and luxury hotels. This is also reflected in our strategic and high-quality international expansion (with 34 new hotels signed in 2024, adding over 5,000 rooms), the repositioning of a large part of our portfolio towards higher segments, and our emphasis on valuable, high-profit markets like North America and the Middle East.
“This strategy is further supported by a strong commercial focus on direct distribution, with proprietary channels like Melia.com and the Meliá App continuing to grow, already surpassing €1,000m in sales.
The company said it decreased its net financial debt by €391m.
