Spain's Melia Reports "positive performance in all regions except Cuba" With 20.8% Decline.
/Melia First Quarter Results- 2025
excerpts
Positive performance in all regions except Cuba.
Consolidated revenues excluding capital gains increased by 0.8% compared to the first quarter of 2024, even if it’s been affected in part by the decrease in the generation of third party fees from our management model, mainly due to the unfavorable situation in Cuba.
In Cuba, the situation remains challenging, with no clear sign of improvement in supply problems and energy shortages. The coverage and echo of the news have negatively affected the tourism sector, reducing demand for the destination in important markets during the high season. In general, air operations have been reduced by approximately 12%, and some connections have been cancelled. In this environment, both rates and occupancy have decreased once again this quarter.
In Cuba, the situation remains challenging, with fewer stays and lower rates compared to the previous year. The commercial situation remains challenging, with a lower On the Books position for the region compared to the same date last year. To reverse this trend, it is crucial to find a solution to the air problem, which is estimated to be approximately 20% compared to the same period last year. Some countries such as the United Kingdom, Belgium, or Argentina have completely canceled their connections with the destination, while other regions have significantly reduced their capacity.
Consolidated Revenues in the first quarter increased by 1.0% compared to the first quarter of 2024. Excluding capital gains, the increase is 0.8%. On a comparative basis, 2024 had one more day of operation due to the leap year, affecting the number of available rooms in the period. From an operational standpoint, performance remains solid, showing a 6.5% increase in RevPar for our owned and leased hotels. However, the unfavorable evolution in the Cuba region has affected third parties fees revenues in our Management model, which have been reduced by approximately €5M.”
