Meliá Says Spain Is Winning Summer as Travelers Reroute From Risk

Meliá Hotels International said instability in the Middle East is redirecting summer travel demand toward Spain, southern Europe, and the Caribbean.

These markets are benefiting because they are far from the conflict zone but still easy to reach from major European and North American source markets.

CEO Gabriel Escarrer told shareholders that summer bookings in Spain were already running double digits above last year. The company also expects high-single-digit RevPAR growth in 2026. RevPAR, or revenue per available room, is a key hotel metric that shows how much revenue hotels make from available rooms. It combines occupancy and room rates, so it helps show whether hotels are both filling rooms and keeping prices strong.

Spain is becoming a safe-haven market for summer travel

Spain is well placed to benefit from this shift. It has strong air links, large resort areas, and high awareness among European travelers.

Meliá entered 2026 with solid momentum in Spain. The company reported a 24 percent increase in 2025 profit, supported by stronger luxury room rates. Meliá expected Spanish hotel rates to rise by around 5 percent in 2026, showing that demand is strong enough to support higher prices.

Cuba and Mexico weakened first-quarter results

The stronger summer outlook did not remove pressure from other markets. Cuba was one of the main weak spots. Meliá said the island was affected by fuel supply problems, the US trade embargo, and weaker air connectivity. The company reduced operations during the quarter and ended the period with about 50 percent of its Cuba room capacity open.

Mexico also slowed later in the quarter after a better start to the year. Meliá cited security-related events and air connectivity problems, especially in Puerto Vallarta. Mexico RevPAR fell 4.1 percent, and the company expects the second quarter there to remain more challenging than earlier expected.

Revenue grew, but earnings came under pressure

Meliá’s first-quarter results were mixed. Consolidated revenue rose 3.8 percent year over year to €461.6 million ($543 million). Revenue excluding capital gains increased 4.4 percent, helped by stronger hotel revenue and more available rooms on a like-for-like basis.

Profitability was weaker because some markets faced disruption and costs remained high. EBITDA fell 6.9 percent to €87.9 million ($103.4 million). EBITDA means earnings before interest, taxes, depreciation, and amortization. It is often used in the hotel industry to measure operating performance before financing and accounting costs.

Meliá keeps its 2026 outlook positive but cautious

Meliá still expects a stronger year. The company is targeting at least €565 million ($664.5 million) in EBITDA in 2026, up from about €545 million ($641 million) in 2025. It also expects to improve operating margins by 200 basis points on a like-for-like basis, helped by demand in Spain, Latin America, and parts of Europe.

The Middle East crisis is affecting travel in different ways across regions. While some hotel markets such as Spain and the Caribbean are gaining redirected demand, Dubai International Airport delayed its 100 million-passenger target after March traffic fell 66 percent because of Middle East airspace disruption. That contrast shows how the same geopolitical shock can weaken exposed hubs while strengthening destinations travelers see as safer alternatives.

Photo by Azzedine Rouichi on Unsplash