Minor Hotels Europe & Americas today announced exceptional financial results for the first nine months of 2024, with revenues of €1,789 million, representing growth of 10.9% compared to the same period in 2023.
This strong increase demonstrates the company's strategic emphasis on revenue optimization and operational efficiency.
The key driver of growth, the average daily rate (ADR), increased by 6.2% year-on-year to €146, with Spain and Central Europe leading the way across the portfolio. Revenue per available room (RevPAR) increased by 8% to €101, underlining the effectiveness of Minor Hotels’ pricing strategy and the increase in demand in the fastest-growing regions.
Strategic initiatives drive EBITDA and earnings growth
Minor Hotels Europe & Americas reported recurring EBITDA growth of 11.3% to €498 million in the first nine months of the year. Excluding the impact of IFRS 16, EBITDA increased by a significant 20% to €296 million, a direct result of disciplined cost management and a strategic focus on increasing ADR to counter inflation.
These results have in turn brought about a significant 52% increase in recurring net profit, which amounted to €141 million. Including non-recurring activity, total net profit increased by 46.3% to €146 million, as the company effectively took advantage of growth opportunities and operational efficiencies.
Third quarter results reinforce strategic momentum
The third quarter continued this upward trend with revenues of €644 million, 10% more than in the same quarter of 2023, driven by a 7.3% increase in ADR to €152. This increase in ADR contributed 83% to RevPAR growth, with particularly strong performance in Spain and Central Europe.
Occupancy in the third quarter reached 72.3%, which is above pre-pandemic levels in Southern Europe. Recurring EBITDA for the quarter increased by 11.2% to €200 million, thanks to a 35% conversion rate, an improved ADR strategy and disciplined cost control, which in turn led to a 38.1% increase in recurring net profit for the third quarter to €75 million.
Strengthening the balance sheet and strategic debt management
As of 30 September 2024, Minor Hotels Europe & Americas recorded net financial debt of €313 million, mainly due to a €160 million strategic investment in Minor Brazil Hotels, representing 80% of the total acquisition price. Excluding this acquisition, net debt would have decreased by €109 million, underlining the strong organic cash generation despite the €117 million of strategic CapEx invested during the period.
Liquidity remains strong at €461 million, supported by €153 million in cash and €308 million in available credit lines. The company's strong financial foundation has been recognised with credit rating upgrades, with Moody's upgrading Minor Hotels Europe & Americas to Ba3 and Fitch upgrading to BB- this year, both with stable outlooks, reflecting strong earnings performance and strengthening financial indicators.
Regional growth and strategic revenue growth
Between January and September 2024, Minor Hotels recorded broad-based regional gains. Spain had a 75% occupancy rate and an 11% increase in ADR, while the Italy and Benelux regions showed steady revenue growth. Central Europe recorded an 8% revenue increase, supported by the UEFA Euro 2024 Football Championship, and Latin America, although affected by economic factors in Argentina, achieved a 3% increase in average daily rate.
Source: Minor Hotels.