MADRID (Reuters) - Spain's largest hotel chain Melia posted on Thursday an 8% rise in 2023 net profit to 130.1 million euros ($141 million), beating analysts' expectations, after adding premium rooms at resorts to benefit from record tourism sales.
Analysts, on average, had expected net income of 104 million euros for the second consecutive year of profits at the Mallorca-based company after COVID-19 pandemic losses.
Revenue grew 15% to 1.92 billion euros ($2.07 billion) with the opening of 12 new hotels in Europe and Asia and as higher-end room rates increased.
Melia expects tourism to remain strong this year, it said in a statement. Sales for the Easter holidays, considered the first indicator of the upcoming high season, are 10% better than in 2023.
First-quarter bookings rose 30% from the year-ago period, with the Canary Islands, Cape Verde, the Dominican Republic and Mexico being strongest markets.
Melia's luxury hotels unit accounted for a quarter of total 2023 revenues, with average room income 18.3% higher than a year earlier, it said.
The group has said it plans to classify eight out of 10 of its hotels as "luxury" in the next two years, up from the current 66% share of its portfolio, since the high-end market allows the company to increase prices faster.
Melia returned to profit in 2022 with a net profit of 111 million euros after two years of losses.
Melia's shares have risen 10.57% this year, partly due to the sale of stakes in its hotel portfolio to lenders such as Banco Santander (BME:SAN) and the sovereign wealth fund Abu Dhabi Investment Authority.
($1 = 0.9254 euros)