Meliá Hotels International (MEL) Q4 2024 earnings summary

Executive summary

• Achieved double-digit RevPAR growth, EBITDA (excluding capital gains) of €533.6M, and regained pre-pandemic leverage ratios, with strong demand in leisure and premium segments and successful hotel repositioning strategies.

• Consolidated revenues (excluding capital gains) rose 4.4% to €2,013M, surpassing 2019 levels, and net profit increased 24.5% to €162M.

• Net debt reduced by €400M to pre-Covid levels, with EBITDA margin improving by 129 bps to 26.5%.

• Expanded footprint with 34 new hotel signings (5,000+ rooms) and 19 openings in 2024; plans for at least 25 signings and 20 openings in 2025.

• Recognized for sustainability and employer reputation, and asset value increased by 13.8% to €5.3B.

Financial highlights

• System-wide RevPAR increased by 10.7% year-over-year, with 75% of growth from price increases.

• Management fees from third parties grew 12.9% to €73.6M, reflecting asset-light expansion.

• Operating expenses rose 3%, with personnel expenses up 4.7% due to extended resort seasons and salary increases.

• Free cash flow after dividends was €100M; asset rotation proceeds totaled €300M.

• Earnings per share for the year at €0.64; dividend paid €0.0935 per share.

Outlook and guidance

• 2025 RevPAR expected to increase in the mid-single digit range, with balanced contribution from occupancy and price.

• Plans to sign at least 25 new hotels and open 20 properties in 2025, aiming for over 100,000 rooms midterm.

• Dividend payout ratio targeted to increase next year.

• Market conditions remain favorable, with stable labor markets, strong business activity, and advanced bookings up 26% in sales and 5.2% in prices.

• Regional outlooks highlight strong urban and resort performance in Spain, growth in EMEA and Americas, and recovery in Asia; Cuba faces continued challenges.