The Value of Meliá Hotels International Assets Has Increased by 5.8% Since 2018

• According to CBRE, the value of the assets owned by Meliá stand at €4,641Mn, with a revaluation on a comparable basis of 10.6% compared to the last valuation in 2018
• The assessment includes 57 owned and joint-venture hotels, and estimates the average value per room at €307.275 (21,2% higher than in 2018)

Meliá Hotels International presented a new valuation of its assets today, carried out by the specialist international firm CBRE. The total value of the assets under global integration criteria is €4,041Mn, which is added to the assets in joint ventures in which the Meliá participation is valued at €600Mn. The total value of assets owned and in joint ventures is therefore €4,641Mn, 5.8% higher than the 2018 valuation in spite of the reduction in the number of assets entirely owned by the company after the asset disposals made since 2018.

Meliá Hotels International currently has a portfolio of 57 owned hotels and other assets which are distributed as follows: 27 assets in Spain which represent 31.8% of the total value of the portfolio, 8 assets in other European countries (18.9% of the total), 9 in Mexico (24.5% of the total), 8 in the Dominican Republic (21.9% of the total), and 5 in South America (2.9% of the total).

With respect to the 2018 valuation, the company has seen an increase of 10.6% in the total value of its assets on a comparable basis, mainly due to the renovation and repositioning of properties and the strategic commitment to upscale and luxury hotels. The report also analyses the average value per room, which now stands at €307.275, an increase of 21,2% over the last valuation.

This strategic commitment to renovation and repositioning, as well as the location of its assets in key leisure and "bleisure" (business + leisure) destinations in Spain (such as Madrid, Barcelona, Seville or Palma), the Caribbean (Cancun, Riviera Maya, Riviera Nayarit or Punta Cana) and Europe (London, Paris or Milan), the company has seen the value of its assets increase in spite of asset disposals during the period. Meliá also highlights the balance achieved in terms of the quality of both its resort and city or "bleisure" hotels, in line with the overall upgrades to the category of its hotels and the growing customer demand for experiences and lifestyle.

As CBRE explains, discounted cash flow techniques have mainly been used to determine the asset value, taking into account business forecasts for each asset and the market context based on recent transactions, all adjusted with regard to other factors such as location and asset quality. ​