Meliá Hotels International Reports First Quarter 2020 Results
Meliá Results Reflect The Strong Impact Of Covid-19, Ending The First Quarter With Decreases In Revenue (-25.5%) In An Entirely Disruptive Context That Distorts Any Comparison With The Previous Year.
- The results reflect the impact of the almost complete closure of the business in mid-March
- The company is working simultaneously on its Contingency Plan and the adaptation of its post-COVID Strategic Plan
- The "Stay safe with Meliá" program certified by Bureau Veritas defines the protocols and standards that Meliá hotels will comply with to guarantee the health and safety of employees and customers worldwide
- Consolidated revenues reached €293M (-25.5%) and EBITDA stood at €14,2M (-85%)
- The Revenue Per Available Room (RevPAR) in owned and leased hotels decreased by 14,7%
- Net Attributable Profit was negative at -€79,7M
- The closure of hotels in mid-March cut short the mostly positive performance of company hotels in January and February, whilst challenges remained in the Dominican Republic
- China and Barcelona, on the other hand, suffered an earlier impact from the pandemic, the latter due to the cancellation of the Mobile World Congress in late February.
- 15 company hotels in Spain, Europe and America remain open and operating as hospitals or residences for emergency service workers.
- Net Debt stands at €2,183.9M (+€155.1M compared to December 2019)
- The Company has taken several measures to maintain liquidity to allow it to face the coming months with a certain calm, guaranteeing employment and the continuity of the business.
Strategy for "the day after"
- Meliá has adapted its Strategy to the needs of the recovery period and the competitive environment which will exist after COVID, prioritizing security, the people, liquidity, the business continuity and competitiveness for the new scenario
- It is focused on reviewing all of its processes and operating model in terms of efficiency and digitalisation, accelerating its BeDigital360 programme
- The Group works closely with its partners, hotel owners and strategic suppliers to build a joint and collaborative way out to the crisis
- Low visibility on how the crisis and the recovery will evolve do not currently allow any estimates of the financial impact for financial year 2020.
- The most difficult months in terms of revenue are expected to be April and May, given government travel restrictions and difficulties in recovering demand and flights from destinations for an uncertain amount of time.
- A positive impact is expected over the coming months from the cost-saving measures already introduced.
- The recovery is expected to be gradual and mainly based on domestic markets, already shown by an incipient yet dynamic recovery in consumption in hotels in China.
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.