Melia Hotels International. A growing success story

HSBC helps Meliá Hotels International Improve Working Capital Positions

Founded in Mallorca, Spain, Meliá Hotels International opened its first hotel in 1956. By 2019, they had seven well-known brands and more than 390 hotels in 44 countries on 4 continents – making Meliá the largest hotel company in Spain and one of the largest in the world. When the company decided to expand into Europe, they needed a solution that would simplify their treasury processes and help them better manage cash conversion cycles across all their locations as they grew.

Expanding into Europe

After decades of growing in Spain and Latin America, the company started expanding into Europe at the beginning of the new millennium. “That increased the number of customers, of course,” says Catalina Ramis, Finance & Management Control Vice President for Meliá. “But also buyers and invoices, and consequently our treasury needs.”

From a cash management perspective, when a business moves into other countries financial management can become more complicated and cumbersome. That increasing complexity was becoming a burden for Meliá’s Finance team.

We needed to find a solution that would allow us to manage all this while still continue growing.

Catalina Ramis, Finance & Management Control Vice President for Meliá

Having worked with HSBC since 2001, Meliá turned to HSBC for help due in part to strength of their relationship as well as the bank’s extensive presence and expertise in Europe.

 

 

Increasing efficiencies

HSBC delivered a pan-European bulk invoice discounting programme, which was adapted to Meliá’s high volume of invoices and granular panel of buyers. The tailored Limited Recourse Receivables Discounting solution eliminated the need for the company to report on individual invoices. Instead, reporting is now done in bulk – effectively streamlining Meliá’s financial capabilities as they grow throughout Europe.

A tailored approach

Thanks to close collaboration between Meliá and the bank, the HSBC team in Spain was able to deliver the solution in just 60 days, supporting the financial management of new hotels in over 10 European countries. The result is an improved cash conversion cycle, giving Meliá faster and more flexible access to liquidity, which improves our working capital ratios.

“For us, this has been a complete game changer, freeing up time and resources,” says Gaspar Llabrés, Credit & Insurance Senior Director for Meliá. “Ultimately, this solution allows us to focus on what is important to us: our customers,” he adds. “In the hotel industry, client experience is first and foremost. I would say this is something HSBC has in common with us.” That’s because, he says, the bank worked with the Meliá team from the outset to build a solution that suited their unique needs. “They took the time necessary to get to know the way we operate and our European capabilities, which was crucial to the success of this project.”

HSBC adapted to our needs at all times. This is exactly the kind of tailored approach was exactly what we were looking for.

Catalina Ramis, Finance & Management Control Vice President for Meliá

How can we help today?

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