• Sol signals Spanish city recovery

Sol Melia is predicting that a recovery at its Spanish city hotels during the first quarter of this year is set to continue for the rest of the year.

The company reported that revpar in Spanish city properties was up 8.3%, year-on-year, helping the European city division to report a rise of 8.2%.

A gradual absorption of oversupply in Spain has enabled Sol to increase its rates 4.9% in Spanish cities while occupancies have risen 3.2%. The resulting revpar hike is above the industry trend, added Sol.

The strongest city was Barcelona, where revpar was up 21%. But both Seville, up 14%, and Madrid, up 11%, were also strong. Elsewhere in Europe, Sol said Milan, London and Paris were strong.

The European resort division took a pasting, largely due to the timing of the Easter holiday. Revpar was down 9.0%.

The strongest division was the Americas where revpar was up 11%. Projects in Puerto Rico and the Dominican Republic helped the rise. Underlying EBITDA was up 23% to Eu57.5m. Reported EBITDA fell slightly due to asset sales, including the Vista Sol Aparthotel. The company reiterated that it expects to sell about Eu100m of assets in the current year.

Share →