Meliá Hotels expands inside and outside the market
Melia Hotels, as it happens to the entire tourism sector in general, is still pending, very aware, of what happens with the levels of immunization and the news that are taking place with respect to the global situation of the pandemic. Very uneven by territory, the portents of transatlantic flights and the situation in Europe that will improve based on vaccines, maintains all interest.
So much so that the CEO of the company, Gabriel Escarrer, is very active in social networks to implement measures that help maintain both activity and the idea of overcoming this phase of the pandemic. This past week he joined the initiative of massive screening in pharmacies that Galicia will implement after the State of Alarm, to prevent a lack of control in infections.
Meanwhile, the hotel company continues with the idea of reaching the chain’s 100 open establishments around the world in June and raising the level to 120, as we have already told you, by September. And he also continues with his projects that undoubtedly look to Asia. Vietnam has been one of his constants in the past months. Now they present a new hotel that will be underway in 2025 in China. This is the twelfth project, after six hotels in operation and 6 in the process of opening or construction. The third also, from the INNSiDE brand in Xian.
And is that the improvement of Melia Hotels, inside and outside the market, is in vaccines, with total dependence. At the moment, it exceeds the waiting time, even in the stock market despite the infections and the reluctance about any vaccine. In its stock chart we see how the stock closes at the level of 7 euros per share that has not recovered since last March 16. It also maintains at a good pace the advances, both weekly, in the last 4 days the value recovers 8.12%, and annually with gains of 22.4% since the beginning of the year.
Melia Hotels quote
Investors seem to continue to trust the value, with their expectations for the future and above all, after the determined support this month from Societé Generale that projects un target price for the value of 8.5 euros per share from the previous 7.4 euros, which gives it a potential of 22% with advice that raises to buy from holding the value. The reasons, that Meliá could generate cash again as soon as its occupancy reaches 60% capacity, which could arrive in 2022. They consider that this year will depend on openings and mobility, but they do expect that for next year there is a more pronounced progress in its improvement.
The Investment Strategies premium indicators show us a downward position for Melía Hotels of 6 out of 10 possible points, with a long-term upward trend, a positive slow and fast total moment and also with increasing long-term volume. On the negative side, the medium-term trend that is downward stands out for the value, the medium-term volume that is decreasing and the amplitude range, that is, the volatility of the value, which is increasing in the medium and long term.
According to the technical analyst of Investment Strategies, José Antonio González, at Meliá Hotels “the price struggles to register a support zone around 6.15 euros per share, trying on several occasions to recover its simple moving average of 40 periods or medium term. However, the reduced volume of trading reduces the potential of the movement and invites caution, monitoring the projected support zone from 6.15 / 5.91 euros per share in the future sessions ”.
Meliá Hotels in daily chart with average amplitude range in percentage, MACD oscillator and trading volume
Melia Hotels technical
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