Meliá Hotels International: first half of 2025 results

Meliá Hotels International has presented its results for the first half of 2024, which show the consolidation of the normalized growth rate - around mid-single digits for Average Revenue per Available Room (RevPAR) - which increased by +4.7% compared to the first half of the previous year. The evolution of consolidated revenues in the period (€991.1M, reflecting +3.2%) was possible thanks to the operational indicators in most destinations and despite the impact that the negative evolution of the dollar exchange rate against the euro (-5% during the second quarter) had on the Company's American business.

Along with the favorable performance of hotels in most of Europe, where results have improved compared to the previous year with the exception of Germany, as well as in the main destinations in America despite the persistence of challenges - and in Southeast Asia, the Company highlights the good performance of its hotels, both urban and, above all, vacation, in Spain, where, in addition to the positive situation and growing tourist positioning of the country (which generally favored increases in RevPAR above the rest of the destinations), there is also the positive impact of new openings such as Innside Valdebebas and the repositioning processes of existing hotels such as Paradisus Gran Canaria and Paradisus Salinas, Casa de las Artes The Meliá Collection, Meliá Costa Atlantis or Gran Meliá Victoria, among others.

The Company achieved a consolidated net profit of €88.5M (+72.4% vs. the same period in 2024) and closed the half-year with an EBITDA of €248M (+3.2%), highlighting, on the financial front, the robust generation of Operating Cash of €70Mn. The Company maintains its forecast of ending 2025 with a debt ratio similar to or better than 2024. Meliá continues to focus on a model that combines hotel ownership with low capital-intensive formulas, and a growth that it develops through synergies and alliances with top-tier partners that allow it to leverage its capabilities and management systems while maximizing returns and protecting the balance sheet from excessive leverage; Within this framework, the Company would have closed two transactions in the first half of 2025: on the one hand, the reinforcement of the JV owned 70% by Banca March and 30% by Meliá Hotels International, which acquired two important hotels from other companies (also owned by Meliá), the Innside Bosque in Palma, and the Sol Tenerife, for an amount of €140M, with a neutral impact on the company's cash flow, and on the other hand, the recent acquisition by Meliá Hotels International of 50% of the company that owns the Paradisus Salinas Lanzarote hotel from Victoria Hotels & Resorts, also owned by Meliá.

The evolution of booked reservations, which are +5% higher than the previous year's position for holiday hotels, and the results of the latest Wonder Week promotional campaign, which saw total centralized sales of €79M (9% more than the last similar campaign) and a 4% increase in Average Rates, highly concentrated in the months of July and August, confirm the positive evolution of demand, which remains resilient globally.

This growth also reflects a macro trend toward a preference for premium and luxury products and experiences, to which Meliá is responding by progressively orienting its portfolio toward these segments, having doubled the number of luxury hotels it had in 2019: luxury brands currently represent 15% of the portfolio, and looking to the future, one in three openings (33% of the hotel pipeline) will be luxury. Regarding their performance, the operating contribution of luxury hotels was 30% of the total in 2024, and the Total Revenue per Available Room (TrevPAR) of these hotels in 2024 was 84% higher than midscale brand hotels. Furthermore, premium and luxury customers also have higher repeat business rates and loyalty to the chain. 

Source: Meliá Hotels International.