Firm Profiles – Sol Melia

It began with a dream: “In 1956 At solely 21 years of age, a younger and entrepreneurial Gabriel Escarrer Juliá begins to lease and function his first resort: the Altair Lodge situated within the residential space of Son Armadams (Palma de Mallorca, Spain), the primary 60 rooms of the longer term Sol Meliá.” (2006 Annual report 제안서디자인)

The identical report “opens” with an image during which a pair is strolling on the seashore away from the camera and the place on the identical time knowledgeable is speaking on a cell phone his face flip in direction of the identical camera. This summarizes that the resort business just isn’t solely devoted to leisure but additionally to business. This makes that the group of the lodges is differentiated too. Accommodations require extra refined services in for instance web connections, for the business customers.

In 2006 Sol Melia (with an accent on the a) celebrated it fiftieth anniversary. Hanging reality about this resort chain is the possession: it’s a household business. The chairman is Gabriel Escarrer Juliá (father), Sebastián Escarrer Jaume is “2nd Deputy Chairman and Chief Govt Officer” and Gabriel Juan Escarrer Jaume is Chief Govt Officer. (Annual report 2006).

The geographical distribution of the lodges are primarily concentrated in Europe and Central and South America. There are a couple of exceptions (far east, new York, and so forth).

The lodges of Sol Melia are categorized into two major classes: metropolis lodges (48%) and resorts (52%).

The group of the lodges is split like different lodges in Managed contracts (46%), possession (30%), leased (14%) and franchised (5%).
On this manner and in 2006, the Sol Melia chain served 27,8 million stays it organized about 80,000 rooms and 406 lodges.

The lodges are – in distinction with a sequence like Accor – categorized by “Stars”; 3 stars make up 25%, 4 stars 41% and 5 / de luxe represent 34% of the business.

Though not explicitly talked about the Sol Melia Group makes utilization of loyalty program and membership providers that provide prospects to draw purchasers and to retain buyer loyalty.

As different lodges the group executes a sustainability program. It’s onerous to check the varied program between the resort chains. The 2006 report mentions a 38 liter water discount “per keep” in comparison with the earlier 12 months. Partnerships with Philips to cut back vitality utilization and plenty of different initiatives are talked about on this report.

Information about this firm mentions the truth that the president of the corporate has purchased shares in the course of the first quarter of this 12 months expressing that the shares have fallen an excessive amount of from the historic highs of 2007.

Summarizing among the distinctive traits of this firm:

• A household led business
• Fifty / fifty division between Business Accommodations and Resorts
• Distribution primarily in Europe and (South) America
• Organized by way of: Managed contracts (46%), possession (30%), leased (14%) and franchised (5%).

Hans Bool