Meliá Hotels International (MEL) Q3 2024 earnings summary

Executive summary

• Third consecutive year of positive summer season, with strong performance in main resort and bleisure destinations; systemwide RevPAR up 10.7% in Q3, driven mainly by rate increases.

• Consolidated revenues excluding capital gains rose 2.7% in Q3 and 4.3% for the nine months year-over-year; EBITDA margin improved by 262 bps in Q3 to 32.2%.

• Net debt reduced by €294.2M YTD to €2,318.9M; pre-IFRS16 net debt at €832.2M, with a target to end 2024 with Net Debt/EBITDA (pre-IFRS16) below 2.5x.

• Positive booking trends continue, especially in Spain and EMEA, while Caribbean demand slows due to US election effects.

• 30 hotels signed YTD, all under asset-light formulas; aim to double presence in Mexico in two years and expand in Albania, Malta, Saudi Arabia, Argentina, Vietnam, and Spain.

Financial highlights

• Q3 revenues (ex-capital gains): €584.1M, up 2.7% vs Q3 2023; 9M revenues: €1,541.5M, up 4.3% vs SPLY.

• Q3 EBITDA (ex-capital gains): €188.3M, up 11.8% vs Q3 2023; 9M EBITDA: €425.9M, up 10.1% vs SPLY.

• Q3 EPS: €0.34 (+€0.10 vs Q3 2023); 9M EPS: €0.54 (+€0.10 vs SPLY).

• 9M attributable net profit: €118.6M, up 23.7% year-over-year.

• 9M operating expenses: €1,086.3M, up 2.9% year-over-year; EBITDA margin up 146 bps to 27.8% for 9M.

Outlook and guidance

• Positive pace in bookings, with Spain and EMEA leading growth; MICE segment bookings for 2025 up 13% vs prior year.

• Caribbean demand softening due to US election; Mexico expects lower group/event demand and rate pressure.

• Forecast for 2024: EBITDA (ex-capital gains) of at least €525M and low double-digit RevPAR growth.

• No significant impact from geopolitical tensions in main destinations; year-end expected to consolidate growth.