Melia beats 2024 EBITDA target, sees better year ahead

MADRID (Reuters) -Spain's Melia Hotels beat its profit target in 2024 and expects further growth this year, with a focus on the premium end of the market that it says could help solve excessive tourism.

Spain attracted a record 94 million visitors last year, prompting protests in popular destinations such as Barcelona, the Canary Islands and Mallorca, where some locals say tourism has made housing costs too expensive.

"I'm against the goal of 100 million tourists in Spain," Melia Chief Executive Gabriel Escarrer told a press conference on Wednesday, adding the industry should look to higher-spending North American and Arab tourists - as well as those who travel in the off-season - to make tourism more sustainable.

He said Melia's earnings before interest, taxes, depreciation and amortization came in above 525 million euros ($548 million) last year, topping the company's target of 500 million euros.

He also said Melia, one of Spain's largest hotel operators with a global presence, expected a high single-digit percentage rise in revenues per available room - a key industry measure - this year, with more than 60% of rooms in the premium market.

Melia has benefited from 400 million euros of investments in new hotels in 2023 and 2024, including 235 million euros in Spain alone, Escarrer said.

It will open 70 new hotels through the end of 2026 to have more than 430 in total, focusing on luxury hotels in Spain, Portugal, Mexico and the Caribbean.

The CEO said the new hotels were looking to adapt to strict hurricane regulations to protect them from climate change, such as building 3 metres (10 ft) above sea level in beach areas.

"We're trying to adapt because no one knows what effect climate change can have," he said.

($1 = 0.9577 euros)

(Reporting by Corina Pons. Editing by Inti Landauro and Mark Potter)