Meliá’s Upmarket Bet Pays Off in Spain. Cuba Is Another Story
Summary
Meliá Hotels' strategy in Spain showcases the potential of premium branding and revenue growth, with net profit rising significantly in 2025. Projections for 2026 anticipate continued growth in RevPAR. However, the company's performance in Cuba underscores the vulnerability of the hospitality sector to external factors and market instability.
Key Insights
- •Net profit rose 23.6% year-over-year to over €200 million in 2025.
- •Management projected 2026 revenue per available room (RevPAR) “growth in the low- to mid- single-digit range for the year.”
Action Items
- ✓Review your current pricing strategy and compare it to RevPAR trends in your local market.Effort: lowImpact: medium
Common Mistakes
- ⚠Failing to account for external shocks such as political and economic instability in your revenue projections can lead to losses.
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