Melia Hotels International 35 Properties (14,781 Rooms) In Cuba Report 97.1% Decline In REVPAR For First Half 2020
/Palma de Mallorca, Spain-based Melia Hotels International S.A. (2019 revenues approximately US$2.3 billion) is the 19th largest hotel company in the world according to Hotelsmag.com and has the largest portfolio of properties and rooms in the Republic of Cuba.
Occupancy
Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. It measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable average daily rate levels as demand for hotel rooms increases or decreases.
Average Room Rate (ARR)
ARR represents hotel room revenue divided by total number of room nights sold for a given period. It measures average room price attained by a hotel. and ARR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ARR is a commonly used performance measure in the industry. and management uses ARR to assess pricing levels that the Company is able to generate by type of customer. as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy. as described above.
Revenue per Available Room (RevPAR)
RevPAR is calculated by dividing hotel room revenue by total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company's performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels: occupancy and ARR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels.
