Meliá Hotels: "Globalisation, the key to balanced growth and profitability”

The Chairman of Meliá Hotels International, Gabriel Escarrer, made these statements today in his speech at the Annual General Shareholders Meeting 2012, during which he stressed the importance of the globalisation of the company for healthy growth, and its key role in minimising the impact of the crisis in the Spanish hotel industry. With nearly 80% of operating profit generated outside Spain in 2011, Meliá sees 2012 as a time of great challenges, among them the travel boom in emerging economies, challenges which the company expects to meet with great success.

Escarrer began his speech by saying that in a crisis such as the present, companies must evolve and reinvent themselves, before going on to present some of the fundamental changes that Meliá has introduced in 2011, the Strategic Plan 2012-2014, and the renewal of the company mission, vision and values, all accompanying the impetus brought by the change in corporate brand to Meliá Hotels International and sustainability, says 4-traders.

Regarding progress and results in 2011, the hotel company's response to the crisis focused on international expansion, a commitment to its brands and customer loyalty, and financial prudence. Escarrer emphasised the results of the recent company asset valuation (3,314 million euros, a sign of the soundness of assets) thanks to the excellent location and quality of the hotels and the fact that Meliá has continued to generate positive business results and retained the support of major financial institutions to renew and refinance the full amount of its credit facilities.

He also stressed the importance of product innovation to adapt to the needs of new and more discerning and diverse market segments, and also of innovation in marketing and customer relationship management, where a loyal customer base is a key success factor and where online channels and social networks are increasingly important for generating brand recognition and an affinity with customers, while also generating bookings. For example, revenues from the melia.com website have grown from 119 million in 2009 to the more than 180 million forecast for the end of 2012.

Since opening its first international hotel in Bali in 1985, Meliá has grown in key resort destinations worldwide and in major European cities such as London, Berlin, Paris, Rome, Luxembourg, Copenhagen, Lisbon, and Vienna, in which the Chairman said, "Meliá has managed to create flagship hotels." This growth and the dynamism of these markets have meant that in 2011 around 80% of the company's operating profit was generated outside Spain.

Escarrer devoted a special mention to emerging markets such as Brazil, Latin America and Asia, where Meliá already has a significant portfolio and where it will continue to grow in the coming years as demand from these countries grows, stating that "we have to be where our customers are. "

Escarrer announced that this intense globalisation will be facilitated by growth through low capital-intensive formulas such as management or variable lease agreements. The founder of Meliá constantly highlighted the vital importance for the success of company strategy of its corporate values and the talent and commitment of its more than 37,000 employees.