Melia Hotel Group Expects Boost in Spanish Sales as Tourism Shifts from Conflict Zones
Impact of Global Events on Melia Hotel Group's Performance
Rising Bookings and Revenue Growth in Spain
MADRID, May 7 (Reuters) - Spain's largest hotel chain Melia expects strong sales in its home country as the Middle Eastern conflict has redirected tourism, although it remains cautious given extreme uncertainty surrounding international trade, its CEO said.
CEO Gabriel Escarrer said bookings for the summer season at its luxury resorts and urban hotels in Spain were growing in double digits and expected high single-digit growth in revenue per room during the second quarter, which marks the start of the peak summer season following the Easter week.
Safe-Haven Destinations Amid Global Uncertainty
"Spain and the Caribbean are far away enough from conflict zones and close enough to key source markets to offer a sort of safe-haven destination this coming summer," Escarrer told shareholders during Thursday's annual meeting.
Short-Term vs. Long-Term Impacts
But he cautioned the short-term impact of the war that began with U.S.-Israeli airstrikes on Iran at the end of February was a mirage and that the uncertainty surrounding international trade was higher than he had previously experienced.
Financial Outlook and Market Stability
Earlier, the company told shareholders it expects to achieve earnings before interest, tax, depreciation and amortisation of at least 565 million euros ($665 million) this year, up from 545 million euros in 2025, as demand in its main markets, including Spain and parts of Latin America and Europe, remained stable.
Travel Trends and Mediterranean Destinations
Despite uncertainties, including the risk of higher airline ticket prices, bookings to Mediterranean countries away from Middle East instability have surged as travellers change plans rather than cancel trips, according to industry executives and travel data.
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(Reporting by Corina Pons, editing by Andrei Khalip and Barbara Lewis)
