Melia Hotels International : Madrid consolidates its tourism recovery

The city of Madrid broke tourism records in 2015 with more than 11 million visitors, and in the first 10 months of 2016 the number of international tourists grew by 11.8% and spending by 14.9%. These figures confirm the recovery of Madrid and consolidate the positive trend witnessed after the severe tourism recession seen particularly in 2012 and 2013 as a result of the global economic crisis.

For Meliá Hotels International, Madrid is one of the most important destinations in its portfolio, and it currently operates 22 hotels with more than 4,700 rooms in the city. The recovery which began in 2014 reflects the company's efforts to improve and reposition its products and optimize segmentation and revenue management in a period which saw intense price competition in the industry. Together with a growing number of international congresses, all of this has led to an increase in RevPAR (revenue per available room) of up to 30% since 2013, especially due to price increases. The performance of company hotels in 2017 shows a continued upward trend, placing them above RevPar and occupancy figures for the other hotels in the city.

Meliá Hotels International has benefited from its experience in both the urban and resort hotel segments to deploy a 'bleisure' strategy which aims to complement business and leisure travel and optimise occupancy and prices. The company aims to adapt to market trends and the expectations of a new type of hotel guest, creating products with high added value to enhance differentiation in a city with such an abundant supply of hotels, pursuing a positioning strategy in the upscale and premium segments (4 and 5 star hotels).

To achieve this, Meliá Hotels International has allocated more than 32 million euros for hotel renovation and improvements in Madrid over the last four years, showing a commitment to safeguarding the quality of its portfolio in one of the most important European markets. The best example of this is the transformation of the old Ambassador Hotel, an emblematic building in the historical centre of Madrid which has now become the Gran Meliá Palacio de los Duques, with which the company aims to give a new boost to the luxury hotel segment in Madrid, developing high value complementary facilities for guests to enrich their experience in the hotel.

The same was done in 2006 with the recovery of another of Madrid's classic hotels, the Gran Hotel Reina Victoria, which was transformed into the modern ME Madrid, bringing a breath of fresh air to the five-star hotel market and revitalizing traditional standards. A decade later, the ME Madrid has become a benchmark for contemporary hotels, with its 'The Roof' terrace being one of the liveliest meeting places on the Madrid social scene and a reflection of the hotel's integration with the city.

In the upscale segment, Madrid is home to some of the most emblematic Meliá Hotels & Resorts, the company's most well-known and international brand. Meliá Madrid Princesa or Meliá Castilla are two of the company's flagship hotels. The former has managed to capture a growing number of travellers from China in recent years through innovative programmes adapted to their particular needs. The latter, meanwhile, remains a major bastion of business travel and congresses, as well as one of the largest hotels in Europe, with more than 7,000 m2 of meeting space and 915 rooms for up to 1,830 guests.

The urban Innside by Meliá brand is one of the company's fastest growing brands, making its debut in Madrid a few years ago, and bringing the 'bleisure' concept to the capital to add a more experiential component to business travel. The Meliá Hotels International portfolio in Madrid is completed by a significant presence of TRYP by Wyndham hotels, which have also recently seen a major image change adapted to the cosmopolitan profile of the brand. With four hotels on the Gran Vía, the company boasts an excellent position on the main highway in the city centre, with another eight hotels in strategic locations such as train stations or the airport.