Meliá Hotels International (MEL) Q4 2025 earnings summary

Executive summary

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

• Maintained strong pricing discipline, operational momentum, and balanced demand across urban and leisure destinations, with premium locations and direct channels driving performance.

• Expansion focused on premium and luxury brands, now 63% of the portfolio and 78% of the pipeline, with 51 new hotels signed and 28 openings in 2025.

• Recognized as the most sustainable hotel company in Europe and third globally in the sector by the 2026 S&P Global Sustainability Yearbook.

Financial highlights

• Consolidated revenues for 2025 were €2,096.5M (+2.0% YoY) or €2,077.6M (+3.2% YoY) excluding capital gains; EBITDA (ex-capital gains) was €544.7M (+2.1%).

• Net profit increased 23.6% to €200.2M, with attributable net profit up 20.9% to €170.1M.

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

• Net financial result improved by €24M due to lower debt and interest rates; cost of debt reduced to 4.2% from 5.5%.

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

Outlook and guidance

• 2026 RevPAR expected to increase low to mid-single digits, supported by diversified portfolio, robust feeder markets, and upcoming hotel reopenings.

• At least 30 new hotel openings planned for 2026, adding over 4,000 rooms, with focus on top leisure and bleisure destinations.

• Net unit growth guidance for 2026 is 2%-3%, lower than prior year’s guidance, with no major disaffiliations expected except potential impact from Cuba.

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

• Targeting 30% EBITDA margin by 2027, with margin improvement driven by operational optimization, asset-light expansion, and revenue initiatives.