Gabriel Escarrer: “we completed our 2012-2014 Strategic Plan having kept our promises and achieved our objectives, and we are now preparing the new strategy in which our priorities up to 2018 will be international growth, digital transformation and the building of a more competitive, profitable and responsible company”
- Strategy and the achievement of objectives: “We have come out of the crisis even stronger and more global than ever before, thanks to a successful strategy and a solid and diversified business model.”
- Internationalisation and leadership: “International growth remains key for Meliá, having added 100 hotels over the period of the last Strategic Plan, primarily under management and lease agreements, and the majority outside Spain and in the upscale and luxury categories.”
- Share price performance: “Our share price increased by 127.5% between 2012 and 2014, and so far this year it has grown by 36.23% in 2015 year-to-date”
- People and talent: “In 2015 we will reach 42,000 employees, and our rapid growth makes it a priority that we are committed to attracting talent and providing opportunities for international careers.”
- Digital transformation: “We launched a new digital strategy to help transform our relationships with our customers and hotel owners, and introduce a new way of working globally.”
- Spain: “With €450 million invested since 2008 and 24 new hotels opened in the period, Meliá remains committed to Spain, innovating in the resort segment with major initiatives such as the “Calvià Beach” project to reposition the destination of Magaluf in Mallorca.”
- Growth and outlook for 2015: “After an excellent first quarter, Meliá is expecting a good summer season and positive trends in the major European markets.”
- 25 years in Cuba: The Chairman and Vice Chairman and CEO of MHI recently celebrated in Havana the 25th anniversary of the first Meliá hotel in Cuba, reiterating their commitment and plans to continue to grow at a key moment in time for the history of relations between Cuba and the USA.
The Chairman of Meliá International Hotels chaired today the company’s Annual General Shareholders’ Meeting, which approved the financial results for 2014 and agreed to pay dividends for shareholders of 0,03€ per share. Escarrer explained the satisfactory results of the Strategic Plan for 2012 to 2014, which allowed Meliá to add 100 hotels, mostly outside Spain, and continue to strengthen its position in its domestic market. Escarrer also explained the company’s commitment to globalisation, digitalisation and talent as key factors behind its future leadership and stronger business performance.
A unique business model
For Gabriel Escarrer, the diversified business model based on a solid management system and high degree of internationalisation has been key to the more than satisfactory growth of the company during the strategic plan of the last three years (from 2012 to 2014). With regard to the most important drivers of this model, the MHI Chairman cited the presence of the company in 40 countries,and especially the consolidation of markets such as Asia Pacific, one of the top priorities, the Middle East and the USA.
Equally important according to Escarrer are the company hotel brands, with the rejuvenation of brands such as Meliá and Gran Melia with the creation of a new “urban resort” segment, or the exponential growth of innovative and competitive brands such as ME by Meliá and Innside by Meliá in the world’s major cities and destinations, revolutionising the lifestyle segment and the traditional city hotel model.
The Chairman of Meliá also made a special mention of the transformation of the company’s most traditional resort brand, Sol Hotels & Resorts, which has introduced fresh new concepts aimed at different types of guest who increasingly travel more and choose their holidays in a different and more individual way. For Escarrer, the company’s management model includes two other essential components: on the one hand, commercial strength supported by an extensive international network, a constantly evolving digital strategy, and an efficient direct sales channel, melia.com, which now accounts for over 37% of the company’s centralised sales; on the other hand, comprehensive and global talent management to attract the industry’s finest professionals and provide them with opportunities for international careers and guarantee strong sustainable growth.
2014 Results
In 2014, Meliá saw significant improvements in net profit (+98%), revenue (+7%) and EBITDA (+12%), while also achieving a milestone of 16 consecutive quarters of growth in RevPAR (revenue per available room). On the financial level, Meliá also achieved its objectives and reduced debt by 200 million euros, improving the net financial results by €124 million.
Market trust remained strong, reflected in the excellent growth of the share price which improved by 127.5% over the last three years of the Strategic Plan up to 2014. For Gabriel Escarrer, the fact that Meliá is one of the most attractive shares in the market is justified by the company’s healthy performance and business diversification, its high growth potential, and the positive outlook for an industry which is expected to grow by 5% annually up to 2020.
A new strategic plan for 2016 to 2018
The MHI Chairman ended his speech by talking about the future of the company, a future which will be governed by a new Strategic Plan over the next three years. After consolidating the achievements of recent years, and well aware of the challenges of an ever-changing international environment, the hotel company’s strategic priorities up to 2018 will be:
- To boost the growth of resort hotels and urban resorts in the world’s major cities
- To continue to enhance a strong brand portfolio with innovative products and services
- To make constant progress in improving profitability and financial results
- To consolidate a strategic vision of revenues and added value
- To build a more competitive organisation based on talent
- To enhance the company’s reputation and recognition on an international level
Gabriel Escarrer was proud to note that Meliá was named leader in corporate reputation in the travel industry for the third consecutive year, by the prestigious MERCO index, and said that the company which he founded in 1956 and which is now on the verge of celebrating its 60th anniversary, is in one of its finest moments, facing the next Strategic Plan from a very privileged position, thanks to the effort and focus of a strong and united team: “As I have always said, success and awards do not happen by chance. They have to be earned, and accompanied by vision, perseverance and effort”. And that is the reason he attributes Meliá’s current leadership to “the vision, strengths and values developed by the company over the past six decades”.
The Chairman of Meliá Hotels International rounded off his speech by mentioning another important milestone: the 25th anniversary of Meliá’s first hotel in Cuba. Escarrer took time to remind shareholders of the company’s commitment to Cuba, at a key moment in time in which relations with the USA begin to become normalised. “I can assure you that Meliá will remain firmly committed to Cuba, a country which is deservedly known as the “Pearl of the Caribbean”, and this exciting time ahead of us will undoubtedly lead to greater presence in Cuba and a greater contribution to its tourism development, as well as an improvement in our company performance”.
As expected, the Meeting had the required quorum, and all agreements stipulated in the agenda were approved.
