Melia profits up 74% as Spain demand surges

Melia profits up 74% as Spain demand surges

Increased demand for holidays in Spain this summer helped boost finances at Meliá Hotels International.

Net profit for the first nine months of the year was up by 74% to €92.2 million over the same period in 2015.

This came against a backdrop of holidaymakers surging into Spain following security concerns in Turkey, Egypt and Tunisia.

The Mediterranean saw overall positive results in the year to September with the predominant source markets being the UK and Germany.

Tenerife led the revenue improvement with an increase of 65%, followed by the Balearic Islands and Las Palmas with 25% growth, while resorts in mainland Spain grew by 15%.

The evolution of British and German markets have extended the season in 2016 with strong results in October.

Hotels in the Canary Islands are showing confident 2016-17 winter season forecasts.

However, the Spanish chain is to continue to monitor the potential impact of Brexit on the region, which will not be seen until 2017.

Chief executive Gabriel Escarrer said: “Business results through to September 2016 were boosted by the impact of positive tourism trends in Spain.

“Our company has been able to maximise this thanks to our experience and leadership in the resort hotels segment, alongside the successful strategy to renovate, rebrand and reposition some of our most emblematic properties.

“In addition, intense debt reduction and improved financial results have put us in an excellent position to take on the growth we expect in the short, medium and long-term."

The company added 14 hotels in the first nine months of the year.

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