Spain's Melia Looks for Partners to Grow Premium Resort Portfolio
Photo Caption: Located in Spain’s Balearic Islands in Menorca, Villa Le Blanc by Gran Meliá opened in July 2022. Source: Meliá Hotels International.
Skift Take
We bet that Hyatt or one of its rivals will partner with Meliá by 2025, adding a bigger loyalty program and scale efficiencies. But the Spanish leader in resort locations worldwide should reject any offer that would dilute its strategy. Call it turn-down service.
Meliá Hotels International is Spain's largest hotel and resort operator, aiming to grow its portfolio across the Mediterranean, the Caribbean, and Asia Pacific by 40 percent in the next three years. The Mallorca-based company, controlled by the Escarrer family, is open to selling a stake to a world player like Hyatt or Marriott. But its strategy in recent years could set it up to go it alone for much longer.
Meliá, with about 340 hotels in operation, has 62 properties with 15,000 rooms in its pipeline — nearly all in the luxury, lifestyle, and so-called upper-upperscale segments. In December, it launched its latest brand, Zel, in collaboration with tennis superstar Rafael Nadal.
While a publicly listed company, Meliá has 56 percent of its capital base owned by the Escarrer family — divided between investment vehicles they control and roughly 5 percent held by Gabriel Escarrer Juliá, the billionaire non-executive chairman of the group who founded the company at age 21. At the end of last year, the family bought another 1 percent of the company, reaching the 56 percent figure.
"If there is any other hotel company that will help us to increase our leadership in these areas, I'm sure the family won't have any problem diluting below the 50 percent threshold," said Gabriel Escarrer Jaume, CEO and vice-chairman. "But we will always lead this new company."
Meliá reported its financial performance for 2022 on Monday. Last year the company produced a profit of about $117 million (€110.7 million) on operating income of about $1.79 billion (€1.69 billion) in revenue. The performance surpassed expectations by analysts surveyed by S&P Global.
A guest room concept for ZEL, a new lifestyle hotel brand launched in December by Meliá Hotels International and tennis player Rafael Nadal. The first location will be in Mallorca this year. Source: Meliá Hotels International.About 80 percent of its portfolio comprises hotels and resorts in the Mediterranean and the Caribbean for short-haul leisure travelers.
"We're the leader in both regions," Escarrer said. "And we aim to become the leader in Southeast Asia."
The remaining 20 percent of Meliá's portfolio is mainly upscale, centrally-located city hotels that may appeal to a segment of guests as blended travel comes of age.
Meliá has about 15 million members in its loyalty program. But plugging into a bigger company's loyalt
