Melia Profit Rises 24 Percent on Luxury Room Rates
The Spanish hotel chain reported a full-year net income of 200.2 million euros, exceeding analyst expectations. Growth was driven by higher prices at luxury resorts.
Spain[Country:{ "assets":{ "country":"ES" } }]'s premier hotel group, Melia, has announced a 24% surge in its 2025 profits, bolstered by strong performance in its luxury segment. The company reported a full-year net income of 200.2 million euros ($236 million), surpassing the 151.23 million euros anticipated by market analysts. This financial success comes as the hospitality industry faces a slowdown in global tourism following the initial post-pandemic travel boom. The hotelier noted that revenue per room grew by 5.4% over the past year. While this represents a deceleration from the 11% growth seen in 2024, the company emphasized that higher room rates were the primary driver of revenue growth, outweighing occupancy gains. Melia has been intentionally pivoting toward luxury hotel openings to capture higher margins. According to CEO Gabriel Escarrer, the company anticipates that room rates across its Spanish resorts will continue to climb, with a projected 5% increase for 2026. This growth is expected to remain in line with overall revenue targets as the brand continues its upscale expansion.
