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Meliá Hotels, Cuba’s Largest Foreign Hotel Investor

Meliá Hotels International open its first Cuban hotel, the Sol Palmeras, more than a quarter of a century ago.

Since its opening, Meliá has continued to develop hotels through a successful formula based on joint venture investments with the Cuban government. Today it is the largest foreign hotel operator in Cuba.melia cuba

Last year, at an event to celebrate 25 years of Meliá in Cuba, both the Chairman of Meliá Hotels International, Gabriel Escarrer, and the Vice Chairman and CEO, Gabriel Escarrer Jaume, reiterated their “unwavering commitment to the present and future of the Cuban tourism industry.”

The Cuban authorities recognized Meliá’s “position of honour”  in the history of Cuban tourism, and how much a company which has “always been at the forefront of international tourism development” can contribute to the country as it transition to normal relations with the US.

Today, Meliá has 29 hotels under management in Cuba, 15,500 rooms – representing 21% over the total number of rooms in the island; 5 million stays in 2014 – representing over 27% of the total number of stays in the island; and 3 additional hotels in the pipeline.

In 2015, Meliá set a record year for international expansion, with a pipeline of 62 new hotels at the end of the year, an additional 16,000 rooms. The company sees 2016 continuing with the addition of 20 to 25 new hotel signings, of which three have already been signed in the first quarter. 2016’s performance is the result of years of investment, with 25 hotel openings scheduled between January and December 2016 in 15 different countries. The largest Cuba project in the pipeline is for the Meliá Internacional Varadero – a 924-room resort.

Annual results for 2015: Meliá earned €101.6 million before tax (+79%) thanks to the excellent performance of the hotel business, (+15.1% RevPAR) with a 29% improvement in EBITDA (€293M).

Melia Hotels Cuba
Source: Melia annual report

Here is Cuba’s Q1 2016 Hotel Pipeline

About Meliá Hotels International

Founded in 1956 in Palma de Mallorca (Spain), Meliá Hotels International is one of the largest hotel companies worldwide as well as the absolute leader within the Spanish market, with more than 370 hotels (current portfolio and pipeline) throughout more than 40 countries and 4 continents under the brands: Gran Meliá, Meliá Hotels & Resorts, Paradisus Resorts, ME by Meliá, Innside by Meliá, Tryp by Wyndham and Sol Hoteles. The strategic focus on international growth has allowed Meliá Hotels International to be the first Spanish hotel company with presence in key markets such as China, the Arabian Gulf or the US, as well as maintaining its leadership in traditional markets such as Europe, Latin America or the Caribbean. Its high degree of globalization, a diversified business model, the consistent growth plan supported by strategic alliances with major investors and its commitment to responsible tourism are the major strengths of Meliá Hotels International, being the Spanish Hotel leader in Corporate Reputation (Merco Ranking) and one of the most attractive to work worldwide.

Meliá Hotels, Cuba’s Largest Foreign Hotel Investor was last modified: March 14th, 2016 by Simons Chase