Meliá Hotels International (MEL) Investor Presentation summary

Company overview and history

• Founded in 1956 in Palma de Mallorca, Meliá Hotels International has grown into the largest hotel group in Spain and a global leader in leisure hospitality, with a strong presence in premium and luxury segments.

• The company operates 357 hotels across 38 countries, with over 93,000 rooms and a pipeline of 71 hotels and 12,883 rooms.

• Key milestones include acquisitions of HOTASA, Meliá, TRYP, and INNSIDE, the launch of brands like ME by Meliá and Paradisus, and a focus on digital transformation and sustainability.

• Meliá is recognized as a Sustainability Yearbook Member 2024 and was named the most sustainable hotel company globally in 2019.

Financial performance

• Q3 2024 consolidated revenues reached €584.1M (+2.7% YoY), with EBITDA at €188.3M (+11.8% YoY) and EPS at €0.34 (+€0.10 YoY).

• For 9M 2024, revenues ex capital gains were €1,541.5M (+4.3% YoY), EBITDA ex capital gains €425.9M (+10.1% YoY), and attributable net profit €118.6M (+23.7% YoY).

• Occupancy rates improved to 64.1% in Q3 2024 and 61.4% for 9M 2024, with ARR and RevPAR at all-time highs.

• Net debt reduced to €2,318.9M, with a focus on returning to pre-Covid Net Debt/EBITDA below 2.5x by year-end 2024.

• Direct channels, including melia.com and loyalty programs, generated nearly 50% of centralized sales.

Brand portfolio and business model

• Meliá's brand portfolio spans luxury (Gran Meliá, The Meliá Collection, ME by Meliá, Paradisus), premium (Meliá Hotels & Resorts, INNSIDE, ZEL), and essential (Sol by Meliá, Affiliated by Meliá) segments.

• The company is shifting towards an asset-light model, focusing on management and franchising for higher ROI.

• Portfolio distribution: 13% luxury, 52% premium, 35% essential brands; 40% of hotels are city-based, 60% resort.

• Management systems include owned, leased, managed, and franchised hotels, with a strong presence in Spain, the Americas, and EMEA.

• MeliáRewards and Meliá PRO loyalty programs have over 15.6 million members and 400,000 companies, driving direct bookings and customer retention.