Meliá Hotels International: Annual General Meeting and First Quarter 2025 Results Presentation

Meliá Hotels International held its General Shareholders' Meeting today, hours before presenting its first-quarter results to the market. The meeting was held at first call with a quorum of over 80% and obtained overwhelming majority votes on all items submitted to a shareholder vote, including the approval of the Annual Accounts of Meliá Hotels International SA and the Consolidated Group for the 2024 financial year, as well as the Non-Financial Information Statement (NFIS) for the same year.

In addition, the Board of Directors' corporate management for 2024 was approved, as well as the application of the positive result of 2024 of €47,169,096 to offset negative results from previous years, as well as the distribution of a dividend charged to voluntary reserves, in the amount of €0.1436 gross for each share of the company, totaling €31,644,450, which will be paid on July 9, 2025.

Regarding appointments, the Board agreed to re-elect Ms. Carina Szpilka Lázaro as an Independent Director, ratify and re-elect Ms. María Mercedes Escarrer Jaume as an External Proprietary Director, and ratify and re-elect Mr. Cristobal Valdés Guinea as an External Independent Director. Finally, among other resolutions, a long-term remuneration system (from 2025 to 2027) was approved for the executive director, senior management, and other professionals of the Company and its Group, indexed, among other parameters, to the share price.

Main messages for the 2024 financial year:
a) 2024 results and fulfillment of commitments:
At the first General Meeting held after the death of its Founding Chairman, Gabriel Escarrer Juliá, Meliá shareholders and collaborators paid him an emotional tribute, and the Chairman and CEO, Gabriel Escarrer Jaume, took stock of the financial year and emphasized the fulfillment of the commitments made to shareholders at the last General Meeting in 2024.

Meeting the goal of increasing RevPAR (average revenue per available room) by double digits, recording growth of +10.7%, practically doubling the industry average.

Non-capital gains increased by +4.4% to 2.013 billion euros, gradually slowing its growth.

Meliá also more than met the EBITDA target committed to the Board in 2024 (€533.6 million compared to the €525 million committed).

Significant reduction in net financial debt by almost a third (-€391 million), thanks to the generation of net cash (€100 million) and two asset rotation operations for a net value of approximately €300 million.

Advances in distribution and marketing (with the direct channels melia.com and MeliaPro.com growing by 19% and 21% respectively this year, now representing 50% of total centralized sales).

The Company met its goal of recovering its pre-pandemic EBITDA margin, with a figure of 26.5% (+129 basis points), while continuing to improve its customer satisfaction and recommendation (NPS) index, which reached an excellent figure of 59 (6 points higher than the previous year and above the industry average).

In terms of digitalization, Meliá's advances in direct distribution through melia.com and the Meliá App, along with the MeliaRewards loyalty program, foster personalization and optimized revenue per customer, while digital solutions applied to management processes have allowed the Group to gain in effectiveness and efficiency. Furthermore, Meliá was recognized as the leading company in social and environmental innovation in Spain, according to the Spanish Innovation Index.

In terms of sustainability, Meliá once again ranked among the world's most sustainable hotel chains, ranking first in Europe and third internationally according to the prestigious Sustainability Yearbook by Standard & Poor's Global, and recognized as a Top Employer Enterprise in the 10 markets that account for 95% of its workforce.

The Company redistributed €3.363 billion (aggregate revenue from all Group businesses) among its stakeholders, highlighting the €1.389 billion paid to suppliers, the €689.7 billion paid to employees, and the more than €300 million contributed to public administrations via taxes.

Positive share price performance in 2024 (+23.57% by year-end) vs. the Ibex average of +14.78% and the Stoxx Europe 600 Travel & Leisure index, the sector's main benchmark index, of +14.36% in the same period.

The approved dividend distribution of €31.64M represents a percentage of Attributable Profit of 22.5% and a dividend yield of 2.24%, higher than the industry average.

b) Expansion and luxury strategy and repositioning:
Qualitative expansion, with 34 new brands in 2024 with more than 5,000 rooms, and 19 openings with 3,000 rooms, all under asset-light models.

Qualitative growth focused on emerging markets such as Albania, Malta, and Saudi Arabia, as well as established markets such as Thailand and Vietnam in Southeast Asia, and Mexico and the Dominican Republic in the Caribbean.

Continuing the asset repositioning strategy, with more than 40 hotels repositioned in the last two years, representing an investment of €400 million together with its partners, with a significant impact on rate growth compared to 2019, estimated at +70% in the Average Rate for resort hotels, and +40% in urban hotels.

Outstanding luxury and premium segment strategy, with 64% of operating hotels under premium and luxury brands, as well as 78% of hotels included in the current pipeline (signed hotels in the process of opening).

The Group's most innovative brands have been warmly received, such as Innside by Meliá, with 56 hotels open or in the process of opening; The Meliá Collection, with 24 hotels; and Paradisus by Meliá, which, after opening in the Canary Islands, will be arriving in Bali this year following the transformation of the current Meliá Bali.

Thanks to these commitments to brands, quality, and repositioning, the value of Meliá's assets increased to €5.285 billion (+13.88%) compared to 2022.

c) Finally, Gabriel Escarrer also highlighted the three areas where Meliá has consolidated its strategic strengths during the period between 2022 and 2024:

Product: with a better and more renewed hotel portfolio, with 14% more asset value
Solvency: the observed financial discipline allowed the Group to recover a strengthened balance sheet and a healthy leverage ratio, essential to provide flexibility for the Group's growth
Strategy focused on key areas for the future: powerful brands, growing positioning in the luxury and Premium segment, high level of digitalization, commitment and talent of the human team and leadership in sustainability and reputation in the sector.

d) In addition, the President of Meliá also summarized what he called "Levers of future competitiveness," on which the Group is working to build a more profitable and resilient future:

A more manageable, diversified, and asset-right business model that multiplies growth potential and boosts margins.

An improved revenue structure, with a more qualitative RevPAR, facilitated by a greater focus on higher value-added segments, and a greater emphasis on experiences, all of which is enhanced by the Company's personalization strategy in direct channels.

A strategic expansion model that delivers revenue growth and efficiencies of scale.

Source: Meliá Hotels International.