Melia's Bold Move: Addressing Spain's Housing Crisis in Tourism Hotspots

Melia, a Spanish hotel chain, is purchasing properties to house seasonal workers amidst a housing crisis that threatens Spain's tourism industry. With a rise in short-term tourist rentals, acquiring workforce housing becomes crucial for Melia to retain talent as rising rents outpace wages. The situation reveals broader challenges in Spain's housing and tourism sectors.

Spanish hotel chain Melia is taking unprecedented steps to address a housing crisis affecting the tourism industry. The company is purchasing property to provide accommodation for seasonal workers who struggle to afford rents in popular tourist destinations, CEO Gabriel Escarrer disclosed.

Melia, known as Spain's largest hotel chain, has acquired a former hostel on Menorca. Plans for further acquisitions in Ibiza, Mallorca, and the Canary Islands are underway to secure workforce housing during peak seasons. Escarrer highlighted soaring short-term tourist rentals as a primary challenge, making rental apartments elusive for seasonal employees.

The crisis, linked to a decline in new home constructions post-2012 and skyrocketing short-term rentals, poses risks for labor shortages in Spain's tourism sector. While Melia's approach is not feasible for all hotel owners, the move aims to safeguard talent retention amid a landscape where wages struggle to keep pace with rising rental costs.

(With inputs from agencies.)