Covivio Hotels (COVH) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with recurring net result up 14% year-over-year, revenue up 10% to €359.8 million, and recurring earnings per share up 6%.

• Net income reached €341.4 million, a turnaround from a prior loss, driven by strong operating performance and positive fair value adjustments.

• Portfolio value increased 3.1% to over €16 billion, with increased hotel exposure and reduced office weighting.

• Upgraded 2025 guidance reflects improved operations, robust balance sheet, and positive market trends.

• Maintained high portfolio quality and diversified exposure across offices, hotels, and German residential assets.

Financial highlights

• Net revenue rose 10% to €362 million; operating income up 12%, operating margin improved to 85%.

• Recurring results increased 14% to €263 million; adjusted EPRA earnings per share up 6% to €2.38.

• NTA per share at €80.4, up 3.5% year-over-year; EPRA NRV per share at €88.2.

• LTV ratio at 39.8%, net debt/EBITDA improved to 10.7x.

• Net income turned positive at €341.4 million, driven by asset fair value gains.

Outlook and guidance

• 2025 recurring net result (Adjusted EPRA Earnings) guidance upgraded to €515 million (+8% year-over-year, €4.64/share).

• Management expects continued rental growth, especially in German residential and hotels, supported by strong market fundamentals.

• LTV policy maintained below 40%, with further improvement in debt metrics expected.

• Guidance assumes sustained operating margin and no impact from further capital recycling.

• Q3 2025 activity update scheduled for October 22, 2025.