Spain’s Meli? Hotels Seeks To Boost Presence, Stature In North America
Despite a portfolio of more than 350 hotels totaling almost 91,000 rooms, Meli? has not been a major player in U.S. corporate travel. The largest share of its hotel portfolio is in Spain, and a significant portion lies in the Caribbean and Latin America. Given its focus on resort properties, its business tends to skew more toward leisure than that of other major hotel chains.
Excluding Puerto Rico, Meli? currently has three hotels in the United States: upscale Meli? properties in Orlando and Atlanta and its midprice Tryp brand?for which it sold franchising rights to Wyndham?in New York. Construction soon will commence on a new property in Midtown Manhattan: a 313-room under its upscale lifestyle Innside brand, with anticipated completion by the end of 2016, said Denis Ebrill, Meli?’s executive vice president of product development in North America.
The Manhattan project came about via a development strategy that is somewhat rare in the hotel industry but has helped Meli? expand in European markets, according to Ebrill. Instead of using franchises or management contracts, the company partners with developers through long-term lease agreements on the properties, adding an extra layer of protection to attract developers, he said.
“It gives a level of comfort to a developer,” Ebrill said. “It provides a guaranteed source of income. They will take some of the development risk, and we essentially will take all of the operating risk.”
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Source: Michael B. Baker (2014). Spain’s Meli? Hotels Seeks To Boost Presence, Stature In North America, Business Travel News http://www.businesstravelnews.com/Hotel-News/Spain-s-Meli%C3%A1-Hotels-Seeks-To-Boost-Presence,-Stature-In-North-America/?ida=Hotel%20Chains&a=btn published Apr 10, 2014. Viewed Apr 15, 2014.