Spain's Melia Hotels reduced its net loss in the third quarter from the preceding three months and has said that the worst of the crisis is behind it after the coronavirus pandemic nearly stifled global tourism.
The hotel chain has recorded a net loss of €114.5 million for the July-September period after a €279 million loss in April-June. A year ago, it reported a net profit of €62.2 million.
Revenue plunged by 79% to €111.1 million from a year ago, the company said.
"We are confident that the worst of the crisis is behind us, but our key markets continue to be affected by the measures being implemented by governments to combat the pandemic," Melia said.
With governments the world over slapping on new restrictions to curb a second wave of infections, Melia said that China is the only country to approach pre-pandemic levels of activity.
The company said that it expects any recovery to begin earlier in resort and leisure hotels than in city destinations.
Winter Season Focus
In Spain, which accounts for 43% of the group's rooms, Melia will focus squarely on its Canary Island resorts for the winter season, but will close resort hotels in the Balearic Islands and the mainland from the fourth quarter.