Melia Hotels has signed a deal to take over eight properties in Cuba, all of them outside of the capital Havana.
The additions will add 931 new rooms in Cienfuegos, Trinidad and Camaguey from November 1, with complete control given over to Melia by January 1 next year. The additions, which will operate under the Meliá, Sol by Meliá, and Innside by Meliá brands, will bring a much-needed boost to the country’s range of quality accommodation.
The need for more properties was underlined by Melia’s performance in Cuba. It said rates at the Melia Cohiba and Melia Habana, both in the capital, had risen by “up to 30%” year on year in the first three months of 2017 as US travellers continued to visit for the first time and air connections from the US continued to grow.
Melia’s home country of Spain was another big growth area, with an average 12.5% increase in revenue per room. Two key developments are the Calviá Beach hotel in Magaluf, which adds new meetings facilities in the destination, and the new Palau de Congress Convention Centre and Palma Bay Hotel in Mallorca.
Gabriel Escarrer Jaume, Meliá Hotels International vice president and chief executive, said: “The performance in Spain (+12.5%) in the weakest quarter of the year points towards a positive high season, which Meliá will continue to use to strengthen its products through extensive investments in the renovation and repositioning of hotels.”
Meliá earned €20.4 million in the first quarter of 2017, 8% less than in the same period of 2016. Revenue, at €420.3 million, increased by 5% and earnings before tax improved 3%. The results reflect the late Easter this year, which will have a positive impact on the second quarter.