Meliá becomes the second largest hotel operator in Vietnam, with a total of 24 hotels and 6,900 rooms

Melia Hotels expands in Southeast Asia

Intermoney | Meliá Hotels International will become one of the major hotel brands in Vietnam, thanks to a new alliance with the country’s largest national hotelier, Vinpearl. Following this agreement, the Spanish hotel group will take over the management of 12 hotels and resorts in the main destinations spread throughout the country. These are already operational and will be integrated into the portfolio during the year. With this move, Melia will become the second hotel chain in Vietnam by number of rooms, after an expansion campaign that began in 1990 with the opening of Meliá Hanoi. The number of hotels operated by the firm in Vietnam will increase to 24, with nearly 6,900 rooms. The 12 hotels included in the alliance with Vinpearl are all 5 stars and will be known as “Meliá Vinpearl”.

Valuation: With these incorporations, Melia continues to demonstrate its intentions to bet on Southeast Asia as a potential vacation destination. Along with the Caribbean and the Mediterranean, Southeast Asia will be at the center of its expansion in the years to come. What else, Melia continues to increase the number of hotels under the management model, in order to improve its margins and profitability. At the same time, he is divesting from the hotels he owns (he has in mind the sale of assets in the Caribbean for Q2’22 for around 200 million euros). Since 2008, the company has reduced the number of owned hotels from 27% to 11.5% currently. We positively evaluate this news for Meliá, as it shows its commitment to the transition to an asset light model (with better margins and profitability). And this focuses on the premium holiday segment, where Meliá wants to position itself as a global leader.

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