What weight does Asia currently have within Meliá’s business and how do you expect it to evolve in the coming years?
We currently have about 50 operational hotels in Asia Pacific and more than 10 projects in the expansion pipeline that will be incorporated in the next two years, in the countries in which we are present, plus some archipelagos in the Indian Ocean such as the Maldives and Seychelles. In most cases, these are hotels under management, a growth model with great potential and with which we feel very comfortable on this continent.
Southeast Asia is one of the fastest growing regions in world tourism. What role does it play in the company’s expansion strategy?
Firstly, Meliá Hotels has the double competitive advantage of its long presence in Southeast Asia (since 1984) and the «learning curve that we have followed, together with a shared conception of hospitality and service, and with our capacity to manage our own and third-party hotels. On the other hand, Asia is key for Meliá’s expansion because it is one of the main tourist regions in the world, with immense demographic and economic potential, both in terms of market internal as tourist issuing markets.
Which Asian markets do you consider strategic (Thailand, Vietnam, Indonesia, China, etc.) and why?
China is a strategic market due to its unique combination of scale, influence and innovation. Its domestic market is of extraordinary magnitude and, at the same time, the country has established itself as the world’s main source of international travelers. Understanding Chinese consumer behavior is not only essential to success within the country, but also to capturing demand throughout Asia and globally.
In addition to China, Vietnam is one of the most strategic markets for Meliá in Asia, with 22 hotels currently in operation – representing approximately half of our regional portfolio – and plans to add at least five more in the next five years. The country is on an accelerated growth trajectory, with international arrivals forecast to increase by around 25%, reaching between 22 and 23 million in 2025, positioning it among the fastest growing tourist destinations in Southeast Asia. At the same time, Thailand remains the region’s top destination, and we see significant potential there as well. «Meliá already operates six hotels in highly sought-after locations such as Bangkok, Koh Samui and Phuket, and we are strongly focusing our development on expanding our presence in the country in the coming years.»
What are the main risks they face in Asia: local competition, regulation, geopolitics, labor costs, currency…?
Along with the opportunities, operating in China entails significant challenges, such as local competition and the unique technological ecosystem, which forces foreign companies to make heavy initial investments in order to integrate into it.
Regulation is another determining factor: policies change rapidly and legislation often leaves room for interpretation, requiring companies to be flexible, proactive and have adequate protection mechanisms. Geopolitics is also a decisive factor: diplomatic tensions, visa restrictions or trade agreements can immediately alter tourist flows and investor confidence. And at the operational level, labor costs in large cities have grown, while competition to attract and retain qualified talent is increasingly intense.
In Asia, the way to manage these risks involves deep cultural integration, the search for local partners, the ability to adapt quickly to regulations and a firm commitment to people and innovation.
How does Meliá manage diversification to prevent the volatility of a specific country from excessively affecting results?
At a general level, the Company’s strategy has always prioritized diversification, both geographically, brand, business, and of course, nationalities or “sending markets.” This is essential, in a sector with systemic or destination-related risks, such as natural disasters, climate change, etc. and also exposed to specific crises in a destination, which in this way can be compensated by other markets.
Luxury and experience tourism is growing strongly. How is Meliá positioned in this segment compared to other large international groups?
At Meliá we have been promoting a determined strategy for several years in the luxury segment, which already represents 15% of our portfolio and will reach 34% of our global pipeline. In Asia-Pacific, where we are present in key destinations such as Indonesia, Vietnam, Malaysia, Thailand, China, Myanmar and Laos, our commitment to luxury is increasingly visible and 82% of our portfolio in the region already corresponds to the luxury and premium segments, consolidating Meliá as one of the best positioned international groups in this high-value market.
What are Meliá’s investment priorities in the coming years: geographic expansion, digitalization, sustainability or brand repositioning?
All of them are present in our Strategic Plan, but we must keep in mind that our vision of the property is what we call “asset right«, that is, combining strategic and high-value property assets, with third-party properties under Management, rental and franchise formulas. Where we have dedicated great effort and focus is to the asset repositioning strategy, in line with the luxury strategy, with an investment of more than 350 Mn between 2025 and 2026, together with our partners.
As far as digitalization is concerned, it has always been a priority, but having been pioneers and having a significant learning curve, we would have already made the largest investments, although we must always continue investing in improvements, innovation and updating. In terms of sustainability, as I told you, we have a very important focus, it is a transversal lever for the entire Company’s strategy, and without a doubt Travel For Good It is an essential investment for the present and the future