Meliá Hotels International (MEL) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 2025, with resilience amid geopolitical and economic uncertainty and mid-single-digit RevPAR growth mainly from higher average rates while maintaining occupancy levels.

• Q2 2025 consolidated revenues reached €545.5M (+4.9% YoY), and H1 2025 revenues were €991.1M (+3.2% YoY), with EBITDA at €248.0M (+3.2% YoY) and net profit up 72.4% to €75.4M.

• Premium and luxury segment renovations and new openings in key cities and resorts contributed to growth, with digital channels accounting for 47.4% of centralized sales and loyalty members exceeding 17M.

• Asset-light growth strategy advanced, with 20 new hotel signings YTD and a target of 35 signings and 25 openings for the year.

• Positive summer outlook, with resort hotel bookings over 5% ahead of last year and continued focus on premium/luxury repositioning and sustainability.

Financial highlights

• Systemwide RevPAR for Q2 2025 was €89.5 (+5.8% YoY), and €83.8 for H1 2025 (+4.7% YoY), with ARR at €139.7 (+4.9% YoY) and occupancy at 60.0% (-0.1pp YoY).

• Net profit rose 72.4% to €88.5M, with parent company net profit also up 72.4% to €75.4M.

• EBITDA margin was 24.7% in H1 and 28% in Q2; bank financing expenses reduced by 40.2% YoY.

• Net debt reduced by €28.2M to €2,208.4M; net debt ex-leases at €755.2M.

• Operating cash flow in Q2 exceeded €70M.

Outlook and guidance

• Full-year guidance for mid-single-digit RevPAR growth and ~100 basis point EBITDA margin improvement reaffirmed.

• Summer season bookings for resort hotels up 5% year-over-year; targeting 3.5% net unit growth for 2025, excluding two Cuba disaffiliations.

• Pipeline target maintained: at least 35 new hotel signings and 25 openings in 2025, with free cash flow for year-end targeted at around €200M, excluding dividends and M&A.