The hotel will operate under the Gran Melia brand and is due to open in 2015. After the opening of the Melia Dubai in 2012, the company remains committed to this rapidly growing market.
PALMA DE MALLORCA – Melia Hotels International, one of the largest hotel companies worldwide, recently announced in its quarterly report a continued and intense commitment to grow at a rate of around one hotel every 3 weeks, both in consolidated markets and particularly in emerging markets. In 2013 the company has opened new markets in Latin America, Europe and the Middle East, with hotels such as the Gran Melia Riyadh in Saudi Arabia announced, which is already under construction and will open in 24 months time.
The Founder and Chairman of Melia Hotels International, Gabriel Escarrer, made this announcement at the Group’s Annual Shareholders Meeting today in Palma de Mallorca (Spain), highlighting the growth strategy of a company which now operates in 39 countries. The Chairman specifically emphasized the success of the recently opened Paradisus Resorts in Playa del Carmen (Mexico) and the ME London hotel in the heart of London, as well as the Gran Melia Rome, as examples of the Company’s international positioning in the luxury segment, in which the new Gran Melia Riyadh will add another milestone.
The new Gran Melia Riyadh will be housed in a very modern glass building in a privileged urban location in the so-called Cairo Square in the heart of the Saudi capital. The building dominates the parks that give the city its name (“place of gardens and trees”) and is surrounded by shopping centres and government ministries and offices.
The hotel will initially provide 252 rooms, several restaurants, a Spa and Wellness centre, and a convention centre measuring approximately 2,500 m2. Melia will take an active role in the final design through a technical assistance agreement reached with the owner, thus allowing the company to ensure compliance with the high standards demanded by the luxury Gran Melia brand, already home to such important city hotels as the Gran Melia Rome Villa Agrippina and the Gran Melia Fenix in Madrid, or unique resorts such as the Gran Melia Palacio de Isora in Tenerife or the Gran Melia Puerto Rico, amongst others.
For Gabriel Escarrer, who personally attended the announcement event in Riyadh, “Saudi Arabia is a fantastic location for the luxury hotel industry, and our Gran Melia brand will exceed the expectations of discerning, contemporary Arab business and leisure travellers thanks to its powerful service culture based around the Red Glove Service, a fusion of the globally recognised Red Carpet and White Glove service concepts.
“After the success – continues Escarrer- of a project such as the Gran Melia Rome, the Gran Melia Riyadh is another sign of our firm commitment to consolidate the Gran Melia brand internationally and to further enhance our presence in a market in which we began in 2012 with the opening of the Melia Dubai, and we would like to thank the hotel owners very much for their confidence in us. It is a huge honour for us to sign our 1st hotel in Saudi Arabia with Al Ajlan Group, a family Company with a long and impeccable track record, like Melia Hotels International, and I’m sure we shall achieve a very fruitful cooperation and synergies by combining their wide experience in the market with our know-how in the International hospitality industry”.
Regarding the 2012 financial results and the general performance of the Company, Gabriel Escarrer explained to the Company’s shareholders that the better competitive evolution of Melia (RevPAR – Revenue per Average Room- increased by 7.9%) is largely due to 5 key management factors:
- The Company’s globalization strategy, with hotels in 39 countries so far and 95% of the current pipeline outside Spain, where the crisis still persists
- A two-track approach that has allow the Group to keep growing at a steady pace in the most dynamic markets whilst following a strict contingency plan in Spain and weaker markets.
- A combination of brand strength and positioning, unique hotels, and a sales strategy that has enabled sustained RevPAR growth of 7.9% in 2012, almost entirely through price improvements.
- Market confidence in the Melia Business model, shown in the increase in the share value in 2012, the successful recent bond issue, and the fruitful relationship with investors and owners from around the world.
- The talent management, corporate social responsibility and sustainability that drive a Company with strong values, a high degree of motivation and the creation of a valuable pool of talent to support the international growth of the Company.
Escarrer concluded by assuring shareholders that Melia Hotels International is facing the coming years from a strong position at the corporate level, and that the Group will continue to grow and become more and more global. The Chairman showed his satisfaction for joining a market with the potential of Saudi Arabia, because, as he said: “Our vocation as hoteliers leads us to diversify and be present wherever the business is and wherever our customers are”.
Photo caption: Meliá Dubai
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