Covivio Hotels (COVH) H2 2025 earnings summary

Executive summary

• Achieved strong operating and financial performance in 2025, with recurring results per share up 6.4%, dividend up 7.1%, and NAV per share up 4% year-over-year.

• Maintained a diversified, high-quality portfolio focused on central European locations, hospitality, and German residential assets, with strategic capital rotation toward hotels and city center offices.

• Entering a new EPS growth phase, driven by hotel reinforcements, asset management, ancillary revenues, and operated real estate.

• Achieved robust hotel market growth in Southern Europe, with European RevPAR up 1.7% and dynamic investment activity.

• Delivered new hotel openings, major renovations, and signed a 12-year lease with Radisson Hotel Group, expected to boost revenues by over 50% for the asset.

Financial highlights

• Recurring earnings grew by 10% in absolute terms and 6.4% per share, with like-for-like rental growth of 3.4% and total revenues up 3.7%.

• Dividend proposed at €3.75 per share, up 7.1%, representing a 7% yield, to be paid in two installments.

• NAV per share rose 4% to €82.9, with NDV up 5% due to deferred tax benefits.

• Net income (Group share) rose to €308 million, recurring net income (EPRA Earnings) increased 5.8% to €273 million, and EBITDA margin improved by 2 points to 28.3%.

• Loan-to-value ratio stable at 38.9%, net debt/EBITDA improved to 10.7x, and S&P rating confirmed at BBB+ with stable outlook.

Outlook and guidance

• Targeting 4% growth in recurring result per share for 2026, supported by operating performance, asset management, and ancillary revenues.

• 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.

• Guidance includes headwinds from lease indexation and higher financing costs, expected to be transitory.

• Strategic plan aims for further hotel exposure, centrality improvement, and sustainable financial growth.