Hotel Revenues Rise & Profitability Soars
16 August 2016 – Expansión
Meliá, Barceló and Grupo Palladium are registering occupancy rates of almost 90% in some of their star destinations and are also achieving double-digit growth rates in terms of tariffs.
The hotel chains are on a roll, with an improvement in sales, occupancy rates and prices this year, and they are getting ready to benefit from the good times that the tourist sector is enjoying to boost their profitability as well. In 2015, Spain broke its record once again in terms of the number of international tourists, with 68 million visits; and all indications show that this year the figure could reach 70 million. (…).
Specifically, Meliá, in line with the data disclosed in its results, forecasts an occupancy rate of almost 80% in Andalucía, where it also expects to see an 11% increase in prices. For the Levante region, the group expects an occupancy rate of 75% and a 10% increase in prices, whilst in Ibiza, it forecasts a 26% increase in occupancy rates and an almost 50% upturn in the average price – due to the repositioning of its hotels on the island. For the Canary Islands, the hotel chain owned by the Escarrer family estimates an occupancy rate of 80% and a price rise of 13%.
This archipelago is also proving fruitful for Barceló. The company expects to close the month of August with full occupancy and a historically high profitability. During the first few weeks of August, the occupancy rate on the islands averaged 90% and average room rates had increased by 12 points.
In the Balearic Islands, the occupancy rates for July and August are in line with last year, but average prices per room have risen by more than 11%. The group highlights its growth in Ibiza, where it will achieve an occupancy rate of 98% in the high season, with a tariff increase of 18%.
For the region of Andalucía, Barceló is maintaining a similar occupancy rate to 2015, with an increase in the price per room of 13%.
Meanwhile, Palladium is forecasting an average occupancy rate for its hotel stock of 88.3%, six percentage points higher than in 2015, with an increase of 10% in the average daily rate (ADR) and in revenues per available room (RevPAR).
Sources at RIU indicate that its business is performing “very well” this season, in line with last summer, when occupancy rates were very high in all of its hotels along the Spanish coast and on the islands. (…).
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake