• 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

Highlights

Business performance

  • 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.

Financial results

  • 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

Outlook 2020

  • 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.

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About Melia Hotels International

Founded in 1956 in Palma de Mallorca (Spain), Meliá Hotels International has more than 400 hotels open or in the process of opening, in more than 40 countries, and a portfolio of ten brands: Gran Meliá Hotels & Resorts, ME by Meliá, The Meliá Collection, Paradisus by Meliá, Meliá Hotels & Resorts, ZEL, INNSiDE by Meliá, Falcon's Resorts by Meliá, Sol by Meliá, and Affiliated by Meliá. The Company is one of the world's leading hotel chains in the leisure segment and its experience in this area has allowed it to consolidate itself in the growing market of urban hotels inspired by leisure. Its commitment to responsible tourism has led it to be recognised as the world's most sustainable hotel in 2022 according to S&P Global's Corporate Sustainability Assessment, as well as being a "Top Employer 2023" brand in Spain, the Dominican Republic, Mexico, Italy and Germany. Meliá Hotels International is also part of the IBEX 35. For more information, please visit www.meliahotelsinternational.com