Meliá Hotels International (MEL) Investor Presentation summary

Company overview and history

• Founded in 1956 in Palma de Mallorca, Meliá Hotels International has grown through acquisitions and brand launches, becoming Spain's largest hotel group and a global leader in leisure hospitality.

• Operates 355 hotels in 38 countries, with over 92,500 rooms and a pipeline of 71 hotels and 13,496 rooms.

• Recognized as the #1 leisure group worldwide, #1 in Spain, #3 in Europe, and #19 globally by number of rooms.

• Over 45,000 employees, with 46.6% female staff and a strong focus on training and diversity.

• Member of the Sustainability Yearbook 2024 and awarded as the Most Sustainable Hotel Company by SAM in 2019.

Financial performance

• Q2 2024 consolidated revenues reached €520.0M (+1.2% YoY), with EBITDA at €142.4M (+1.3% YoY) and EPS at €0.16.

• H1 2024 revenues ex-capital gains were €957.4M (+5.2% YoY), EBITDA ex-capital gains €237.7M (+8.8% YoY), and attributable net profit €43.7M (+2.9% YoY).

• Occupancy rates improved to 60.1% in H1 2024 (+3.5pp YoY), with ARR at €133.2 (+6.6% YoY) and RevPAR at €80.0 (+13.2% YoY).

• Net debt reduced to €2,382.5M, with a focus on returning Net Debt/EBITDA to pre-Covid levels below 2.5x by year-end 2024.

• EBITDA and RevPAR have surpassed 2019 pre-pandemic levels, reflecting strong recovery and pricing improvements.

Business model and strategy

• Operates a hybrid model between REIT and hospitality, with a shift towards asset-light management and franchising for higher ROI.

• Portfolio distribution: 13% owned, 15% franchise, 51% management, 2% leased; pipeline focused on management (81%) and franchise (17%).

• Strong direct sales channels, with over 50% of centralized sales through melia.com and loyalty programs.

• MeliáRewards loyalty program has over 15.6 million members, driving 81% of direct sales bookings.

• Focus on digitalization, sustainability, and targeting high-end resorts and "bleisure" (business + leisure) segments.