Meliá Hotels International (MEL) Investor presentation summary

Market context and valuation challenges

• Gradual recovery post-Covid-19 with regional and segment variations, and ongoing impacts from the war in Ukraine, inflation, and energy market volatility.

• Slight increase in interest rates has raised capital costs and affected real estate valuations.

• Strong recovery in international tourism in 2023 and evolving traveler preferences are influencing asset values.

• ESG criteria are increasingly relevant in investment and valuation decisions.

• Market conditions as of December 2024 show greater global economic stability but with uncertainties in key markets.

Valuation methodology and criteria

• Discounted Cash Flow (DCF) method used, projecting net benefits over 10 years and discounting to present value.

• Capital expenditures (Capex) are incorporated into cash flows to reflect planned investments.

• Valuations are based on CBRE's business forecasts, commercial history, Capex, and supply-demand changes.

• For non-hotel assets, detailed rental, area, and inventory data are used; land is valued using the residual method.

• ME London valued under a vacant possession scenario, with regional differences in buyer's cost treatment.

Portfolio valuation and performance

• Total portfolio valuation increased to €5.285 billion in 2024, up 13.88% from 2022.

• Number of assets rose to 91, with average value per room up 11.97% to €265,850.

• Owned assets total 65, valued at €4.724 billion, with Spain, EMEA, and Latam as key regions.

• Joint ventures and equity method assets add €561 million, mainly in Spain and America.

• Portfolio yields and discount rates reflect submarket positioning and investment sentiment as of December 2024.