Covivio Hotels (COVH) H2 2025 earnings summary

Executive summary

• Achieved strong earnings growth in 2025, exceeding expectations with robust operational and financial performance across all asset classes, including European RevPAR up 1.7% year-over-year, led by Spain (+4.2%) and Italy (+3.8%), while Germany declined (-1.2%).

• Maintained a diversified, high-quality portfolio focused on central European locations, hospitality, and German residential assets, with hotels now representing 10% of the investment market.

• Strategic capital rotation towards core assets and increased hotel exposure, supported by new partnerships, asset conversions, and dynamic hotel investment activity reaching €23 billion (+13% YoY).

• Delivered new hotel openings and major renovations, including The Met in Leeds, with €69 million in asset management work committed in 2025.

• Signed a new 12-year lease with Radisson Hotel Group, expected to boost revenues by over 50% for the asset.

Financial highlights

• Like-for-like rental growth of +3.4% year-over-year, with total revenues up +3.7% at current scope; hotel revenues grew 1.9% like-for-like to €345.8 million.

• Recurring net result per share (Adjusted EPRA Earnings) rose +6.4% to €4.75 per share; recurring net income (EPRA Earnings) increased 5.8% to €273 million; EPRA EPS reached €1.77 (+1.5%).

• Dividend payment increased by +7.1% to €3.75 per share, representing a 7% yield; proposing a €1.50 per share dividend (85% payout), unchanged from 2024.

• Net asset value (EPRA NTA) up +3.9% year-over-year to €82.9 per share; EPRA NTA NAV rose 11% to €4,235 million (€26.8/share).

• Loan-to-value ratio stable at 38.9%, with net debt/EBITDA improved to 10.7x; LTV at 28.4% (down 4.1 pts YoY); net debt reduced by €269 million to €1,850 million.

Outlook and guidance

• 2026 guidance targets ~+4% year-over-year growth in recurring net result per share, with continued focus on portfolio rebalancing, hospitality-led asset management, and ancillary revenue growth.

• Strategic plan aims for further hotel exposure, centrality improvement, and sustainable financial growth, with plans to accelerate development in Southern Europe, including a new €32 million Meininger hotel in Porto and exclusive rights to acquire €300 million in leased hotels in Italy and Spain.

• 2026 growth expected to be driven by demand volumes and customer mix optimization rather than rate increases.