Industry Update
Press Release 6 May 2016

“Bleisure” hotels, a response to a new type of demand - Melia reports

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Logo 'Sol Melia Hotels'

Rapid change is something that defines the modern globalized world. Everything evolves very quickly, and in an activity such as tourism in which the Internet is used more and more, it is changing even quicker. There are new demographic (millennials, Gen Z, etc), socioeconomic and psychographic profiles (groups defined by their personality, lifestyle, interests, tastes, aesthetics, values, etc.).

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In this context, travelers' demands and expectations when they search for a hotel are also changing, along with the way they actually travel. Change affects both resort and city hotels. While resort hotels are focusing on customers and personalizing products and experiences that complement the "sun and beach" package, city hotels are seeing growing demand from guests that seek something more than just accommodation and appropriate service during their business trips to the city.

City hotels have evolved in parallel with these changes, and the line between business trips and leisure breaks or urban tourism has faded considerably as more business travelers complement their work time with dining experiences, wellness or sport, social interaction with local residents, and of course, discovery in the destination. Cities have also been strengthening their tourism and leisure efforts, with city breaks increasing exponentially along with occupancy in city hotels at the weekend.

The ideal hotel for this new demand has to offer a full experience and a perfect setting for a business trip and leisure and discovery experience. In other words, it should be a "bleisure hotel" (a term that comes from the combination of "business" and "leisure") and its management also requires a very strong sales system (melia.com allows us to personalize the proposals we make to every individual website user), excellence in operations in both the city and resort segments, and, of course, hotels with unique attributes that create unforgettable customer experiences.

Meliá Hotels International has an impeccable track record of 60 years in hotel management, and also has the best mix of resort hotels (60%) and city hotels (40%) in the industry, making the Company an international leader in this segment. With a growing proportion of upscale hotels (48%) and midscale 4-stars hotels in prime locations in major cities, our portfolio provides the ideal conditions for delivering the Bleisure experience our customers are looking for.

This advantage gives us unique expertise in leisure and business customer relationships, allowing us to maximize occupancy and average rates in our city hotels. Whereas city hotel guests were traditionally mostly business travellers, thanks to appropriate marketing and appropriate products, nowadays Meliá has a high percentage of hotels that we may call "bleisure" hotels. This proportion is clearly a majority in Asia Pacific, where 75% of our city hotels can be considered "bleisure". This is a little lower in the Americas (45%), and 30% in EMEA. In particular, in the Middle East all our facilities have been designed to operate as "bleisure" hotels, given the hybrid nature of Gulf cities as important business hubs and first class tourist destinations at the same time.

According to Maria Zarraluqui, VP Development at Meliá Hotels International, "our experience is tremendously satisfying, and the data shows an increase in average length of stay in bleisure hotels, an increase in occupancy and average daily rate, and a reduction in the gap between occupancy during the week and at the weekend".

About Melia Hotels International

Founded in 1956 in Palma de Mallorca (Spain), Meliá Hotels International is one of the largest hotel companies worldwide, as well as the absolute leader within the Spanish market, with more than 380 hotels (current portfolio and pipeline) throughout more than 40 countries and four continents, operated under the brands: Gran Meliá Hotels & Resorts, Paradisus by Meliá, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, Sol by Meliá and TRYP by Wyndham. The strategic focus on international growth has allowed Meliá Hotels International to be the first Spanish hotel company with presence in key markets such as China, the Arabian Gulf or the US, as well as maintaining its leadership in traditional markets such as Europe, Latin America or the Caribbean. Its high degree of globalization, a diversified business model, the consistent growth plan supported by strategic alliances with major investors and its commitment to responsible tourism are the major strengths of Meliá Hotels International, being the Spanish Hotel leader in Corporate Reputation (Merco Ranking) and one of the most attractive to work worldwide. Meliá Hotels International is included in the IBEX 35 Spanish stock market index. Follow Meliá Hotels International on Twitter @MeliaHotelsInt and Facebook meliahotelsinternational.

www.melia.com

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