Meliá Hotels International (MEL) Q4 2025 earnings summary

Executive summary

• Achieved robust financial performance in 2025, with consolidated net profit of €200.2M and free operational cash flow of €200M, despite major refurbishments and FX headwinds.

• RevPAR grew 5.4% year-over-year, driven by a 3% increase in rates, supported by strong pricing discipline and resilient demand across a balanced geographic footprint.

• EBITDA (excluding capital gains) reached €544.7M, up 2.1% year-over-year, despite ongoing renovations and FX impacts.

• Expansion was selective and high-quality, with 51 new hotels signed and 28 openings, focusing on premium and luxury brands, now 63% of the portfolio and 78% of the pipeline.

• Direct channels now represent nearly 50% of centralized sales, with the loyalty program nearing 19 million members.

Financial highlights

• Consolidated revenues (excluding capital gains) for 2025 were €2,096.5M, up 3.2% year-over-year; group net profit increased 23.6% to €200.2M.

• EBITDA (excluding capital gains) for the year was €544.7M (+2.1%).

• Free cash flow and operating cash flow reached €200M, supporting investments and stable leverage.

• Net financial debt reduced by €35.7M to €2,200.9M; net debt/EBITDA ratio slightly below 2.2x.

• EPS for 2025 was €0.77, up €0.13 from 2024.

Outlook and guidance

• Positive outlook for 2026 with on-the-books reservations up 10% and MICE segment showing strong growth.

• Expecting RevPAR growth in the low to mid-single digits for 2026, supported by robust feeder markets and positive seasonal trends.

• Net unit growth guidance for 2026 is 2%-3%, with at least 30 new hotel openings planned, adding over 4,000 rooms.

• Cost inflation anticipated at 2-3% for 2026, varying by geography.

• Targeting a 30% EBITDA margin by 2027, with ongoing operational and asset-light expansion initiatives.