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Meliá offsets decline in UK hotels to post £38m in net profits

Brexit uncertainty blamed for poor performing UK hotels, but company reports 123 per cent rise in overall profits
03/08/2016

Pictured: Meliá Hotels International says net profit for H1 2016 has doubled from that of last year

Meliá Hotels International (MHI) says it has experienced "double digit decreases" in its UK properties in the first half of 2016, despite earnings across its portfolio doubling that of 2015.


The hotel company, the third largest in Europe, announced it recorded €45 million (£38m) in net profit for the first half of 2016, up from €20.3m (£17m) 12 months ago.


It comes despite profit decline across its UK and French hotels, which it attributed to terrorism and the lead-up to the EU referendum.


In a statement, a spokesperson said: "MHI combatted double digit decreases in United Kingdom hotels, attributed to the impacts of attacks in Paris and Brussels, as well as the uncertainty leading up to the Brexit vote, with a successful sales strategy which led to improved results in the second quarter."


It says while the visibility of the impact of Brexit is still reduced, it points out the weaker pound is already having a positive impact on international incoming visitors.


Resorts in the Mediterranean and Canary Islands had "extraordinary performance" it added, while the group has 60 more hotels (16,600 rooms) in the pipeline. Over the next two years, it plans to open 23 hotels in the European, Middle Eastern and African market (EMEA), including the INNSIDE Frankfurt and INNSIDE Leipzig later this year.


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