MADRID (Reuters) - Spain's largest hotel chain Melia on Thursday posted a 25% rise in net profit to 162 million euros ($169 million) in 2024, beating analyst expectations, after focusing on luxury accommodation to better benefit from a record tourism boom.

Analysts, on average, had expected a net income of 130 million euros.

Melia has invested 400 million euros in the last two years in turning more than half of its hotels into premium destinations. It plans to open more luxury hotels in Barcelona, Malaga and Madrid to boost room rates as smaller rivals also bet on the upmarket sector.

Revenues per room at Melia increased by 11% in 2024, and the company said that 75% of this was due to higher room rates. Revenue rose 5% to 2 billion euros, in line with analysts' estimates.

Spain, Melia's main market for city and resort hotels, attracted a record 94 million visitors last year, prompting protests from some locals who say excess tourism has made housing costs too expensive.

Melia's chief executive Gabriel Escarrer said in January he didn't agree with Spain's ambition to boost foreign tourist arrivals to 100 million a year, arguing that it was best to focus on attracting higher-spending North American and Middle-Eastern tourists to relieve pressure on locals and the environment.

Melia expects to open a hotel every two weeks this year and 80% of the pipeline, mostly in the Mediterranean and Caribbean destinations, are premium ones.

The company says bookings are growing at a high single-digit rate this year, but its hotels have confirmed 16% more corporate events than last year.

The Mallorca-based company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of 575.4 million euros in 2024, surpassing the company's target of 500 million. Excluding capital gains, EBITDA totalled 533.6 million euros.

($1 = 0.9589 euros)

(Reporting by Corina Pons; editing by Charlie Devereux)