Covivio Hotels (COVH) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with ongoing portfolio transformation, reinforced hotel exposure, and growth across hotels, offices, and German residential segments.

• Portfolio value stabilized in H2 2024 (+0.2%), with a 98.5% environmental certification rate and 97.2% occupancy.

• Recurring net result up 10% year-over-year, supported by dynamic asset rotation, investments, and robust market fundamentals.

• Completed a major €800 million consolidation transaction with AccorInvest, strengthening presence in key European tourist areas.

• Expanded portfolio with an €81 million acquisition in Tenerife and completed four hotel renovations, supporting value creation.

Financial highlights

• Group share revenues rose 5% to €680 million, with like-for-like revenue growth of 6.7% in 2024; recurring net result up 10% to €477.4 million.

• Adjusted EPRA earnings per share stable at €4.47 due to higher share count; proposed dividend of €3.50 per share, up 6% year-over-year.

• EPRA NTA per share at €79.8 at year-end, up 3% from H1 2024 but down 5% from FY 2023.

• LTV ratio improved to 38.9% (-190bps), net debt/EBITDA reduced to 11.4x.

• Covivio Hotels: Revenue reached €334.6 million, up 7.2% like-for-like; recurring net income (EPRA Earnings) rose to €258.1 million (+8.1%).

Outlook and guidance

• 2025 recurring net result (Adjusted EPRA Earnings) guidance at €495 million, +4% year-over-year, with stable EPS at €4.47.

• Focus on portfolio rebalancing, extracting growth from office-to-hotel/residential conversions, and deploying operated real estate offers.

• Plans to continue development and asset management to unlock portfolio potential in 2025, with emphasis on Southern Europe.