Meliá Hotels International (MEL) Q2 2024 earnings summary

Executive summary

• Achieved strong first half results in 2024, driven by robust tourism demand, digitalization, asset repositioning, and focus on premium and luxury segments.

• Fully recovered pre-pandemic occupancy levels in leisure, business, and corporate segments by Q2.

• Double-digit RevPAR growth (+11.7% in Q2, +13.2% H1) and consolidated revenues of €957.4M (+5.2% vs. prior year).

• EBITDA excluding capital gains rose 8.8% to €237.7M, with margin improvement of 80 bps.

• Net financial debt reduced by €271.6M to €892.1M, targeting Net Debt/EBITDA below 2.5x by year-end.

Financial highlights

• H1 consolidated revenues: €960.1M (+5.5% vs. prior year); Q2 revenues: €520.0M (+1.2%).

• H1 EBITDA: €240.3M (+10.0%); EBIT: €117.6M (+27.7%).

• Attributable net profit: €43.7M (+2.9%); Group net profit: €51.4M (+11.2%).

• EPS H1: €0.20 (+€0.01); Q2: €0.16 (-€0.03).

• Operating expenses up 4.6% due to higher occupancy and season anticipation.

Outlook and guidance

• Positive summer season expected, especially for Spanish resorts and Americas, with double-digit growth in bookings and rates.

• Guidance maintained for low double-digit RevPAR growth and EBITDA of at least €525M for 2024.

• Net unit room growth of 4% expected, all under asset-light models, with expansion in Mexico, Albania, Malta, and Saudi Arabia.

• Asset rotation and further debt reduction planned in H2, with additional €60M in asset sales targeted.