Melia Hotels AGM endorses 3-point growth plan and €130 investment in digital

Meliá Hotels International told shareholders at its AGM in Majorca, 18 June, that it had signed 9,500 new rooms and invested more than €130m in the digitalisation process. The CEO’s report also spoke of pride at being recognised as the third most sustainable hotel company in the world. The CEO highlighted the company’s ‘three-pronged growth plan’ which placed an emphasis on the digital, cultural and the sustainable. Cristina Enríquez de Luna was appointed as a new member of the Board and founder and current Non-Executive Chairman, Gabriel Escarrer Juliá, highlighted the importance of Corporate Governance in a company with a strong family component. He also affirmed the Group’s commitment to tourism development in Cuba. Executive Vice- President and CEO, Gabriel Escarrer Jaume, reviewed what he called a set of positive 2018 results, highlighting a record year for Net Profit and EBITDA. Escarrer also noted than 9,500 rooms had been added to the portfolio, as well as €1.1bn invested in renovating and repositioning hotels. Escarrer highlighted Meliá’s commitment to the UN 2030 Sustainable Development Goals agenda and noted Melia had eliminated single-use plastics in 68% of the hotel portfolio and generated savings of 18.4% in CO² emissions per stay. Over half (54%) of the electrical energy that the company’s hotels consume worldwide now comes from renewable sources. Melia also reported that a third of managerial positions were now occupied by women, and earmarked a figure of €130m to be invested in digital over the next three years. Other significant statistics included a 68% increase in online sales during 2018. RevPAR had grown for 34 consecutive quarters up to the end of 2018, the company reported, with a 16% increase between 2015 and 2018. There was a 20% increase in asset value to €4.4bn and an increase of 250% in Earnings per Share over the same period. On a global level, Escarrer noted there were challenges in both America and Europe but said he looked towards recent openings to drive an improvement in results in areas such as Punta Cana, Cuba and Mexico.