Covivio Hotels (COVH) H1 2026 earnings summary

Executive summary

• Achieved 2.2% like-for-like revenue growth and maintained a 97% occupancy rate in H1 2026, with net profit attributable to the group reaching €143.1 million, up from €114.5 million in H1 2025.

• Earnings growth was driven by active asset management, portfolio rebalancing toward hotels and centrally located assets, and strong operational performance across all segments.

• Strategic focus on increasing hotel exposure, especially in Southern Europe, with major acquisitions in Italy and Spain totaling over €261 million.

• Accelerated hotel transformation projects, launching eight new initiatives in H1 2026 targeting value creation and EBITDA growth.

• Ancillary revenue streams and asset management fees are scaling, supporting recurring income.

Financial highlights

• Group share revenues reached €349 million in H1 2026; recurring net result (EPRA Earnings) was €282 million, up 7% year-over-year (€2.55 per share).

• Net profit rose to €143.1 million as of June 30, 2026, with hotel revenues up 3.4% on a current basis and 2.1% like-for-like, totaling €168.3 million.

• Net asset value (EPRA NTA) per share increased 1.6% to €84.2; EPRA NTA at €4,205 million (€26.6/share), up 5% year-over-year.

• LTV at 38.6% (some entities at 32.0%), net debt/EBITDA at 10.5x or 7.2x, cost of debt hedged at 85% and average interest rate at 1.99%.

• Asset management and development margins are growing, with €26 million margin booked in H1 and €35 million expected for the year.

Outlook and guidance

• 2026 guidance confirmed for 4% growth in recurring net result per share; guidance considered conservative due to H1 margin recognition and expected higher interest rates in H2.

• Continued expansion in Southern Europe and repositioning of hotels to capture further growth, with long-term leases and high-quality assets providing resilience.

• European hotel sector expected to outperform economic growth, supported by resilient leisure demand and favorable booking trends.