Melia reports RevPAR slump at UK hotels
The Spanish group – which owns brands including ME and Innside – saw net profits rise to €45m (£38m) up to June, a 123 per cent increase year-on-year.
It comes despite a slump in growth in the UK, which the company blamed on the EU referendum and safety fears following terrorist attacks in Europe.
However, Melia was optimistic that profits would improve in the second half of the year.
The company said in a statement: “In the UK visibility regarding the impact of Brexit is still reduced. Although there have been a small number of cancellations of groups and business trips directly related to the financial sector, at the same time the market is beginning to see the positive impact of the depreciation of the pound on incoming tourism to the UK.”
It marks a stark contrast to the same period last year, when Melia reported a ‘very positive’ UK performance with RevPAR growth exceeding 15 per cent at its ME London hotel and over five per cent at the Melia White House in the capital.
The group – which celebrates its 60th anniversary this year – currently operates three UK hotels in London and one in Manchester.
In 2015 it announced plans to open two further properties in Glasgow and Birmingham under its premium Innside brand.
Melia operates more than 350 hotels in 40 countries.
