GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Spain's Melia returns to profit after completing Cuba exit - Finance news and analysis from Global Banking & Finance Review
Finance

Spain's Melia returns to profit after completing Cuba exit

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

Add as preferred source on Google

Melia Sees Profit Bounce Back After Exiting Cuba, Q3 Revenues Up 8 Percent

Melia's Financial Performance and Market Impact in Q3

Q3 Profit Recovery and Analyst Expectations

MADRID, Nov 3 (Reuters) - Spanish hotel group Melia on Tuesday reported a consolidated profit of €89.4 million ($100 million) in the third quarter, virtually unchanged from a year earlier, but showing a recovery from a first-half net loss of €7.5 million caused by the company's exit from Cuba.

Analyst Forecasts Surpassed

• The net profit came in above analysts' average forecast of €80.3 million.

Impact of Cuba Exit and Summer Demand

Offsetting the Loss from Cuba Operations

• Demand at Melia's resorts during the summer season offset the impact of ceasing operations at its 34 hotels in Cuba amid the hardening of US sanctions and the island’s growing economic crisis. The exit occurred between June and July.

Revenue and EBITDA Growth

Revenue Increase Across Regions

• Revenues at Spain's largest hotel chain, which also operates across Europe, Asia and the Caribbean, rose 8% from a year ago to €659.6 million.

EBITDA Performance

Comparison to Consensus Estimates

• Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 4% from a year earlier to €198.3 million, broadly in line with the consensus estimate for the period in an LSEG survey.

RevPAR and Future Outlook

RevPAR Growth and Projections

• Revenue per available room (RevPAR) rose 7.5% at constant currency in the third quarter, excluding the ceasing of Cuba operations, and the Mallorca-based company expects RevPAR to grow in high single digits this year.

Fourth-Quarter Bookings

• The company said its fourth-quarter bookings are rising at a double-digit rate through its direct sales channels compared with a year ago.

Potential Risks and External Factors

Impact of Madrid-Seville Train Crash

• Still, it warned that the deadly October 28 train crash on the Madrid-Seville line and the suspension of service there could slow demand for its southern Spain destinations in the fourth quarter.

Additional Information

Currency Exchange Rate

($1 = 0.8937 euros)

Reporting Credits

(Reporting by Corina Pons, editing by Andrei Khalip)

Key Takeaways

  • Melia’s €89.4 million Q3 net profit contrasts with a € 7.5 million first‑half net loss due to its Cuba withdrawal, exceeding analyst expectations (€ 80.3 million forecast) (marketscreener.com)
  • Q3 revenue rose 8% to €659.6 million and EBITDA climbed 4% to €198.3 million, driven by a 7.5% constant‑currency RevPAR increase excluding Cuba (marketscreener.com)
  • Melia completed exit from its 34 Cuban hotels between June and July amid tightening US sanctions and Cuba’s economic crisis, and sees strong bookings but warns of fallout from the Oct 28 Madrid–Seville train crash on southern‑Spain demand (uk.marketscreener.com)

References

Frequently Asked Questions

What was Melia's third quarter profit after exiting Cuba?
Melia reported a consolidated profit of €89.4 million in the third quarter after exiting its Cuba operations.
Why did Melia exit its Cuba operations?
Melia exited Cuba due to the hardening of US sanctions and the island’s worsening economic crisis.
How much did Melia's revenues increase year-on-year in Q3?
Melia's revenues rose 8% year-on-year to €659.6 million in the third quarter.
What growth did Melia report in revenue per available room (RevPAR)?
Melia recorded a 7.5% increase in RevPAR at constant currency in Q3, excluding Cuba operations.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category