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.

• EBITDA excluding capital gains rose 2.1% year-over-year to €544.7M, supported by operational momentum and lower financing costs.

• 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.

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

• 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, 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%).

• Net financial result improved by €24M due to lower debt and interest rates; average cost of debt reduced to 4.20% from 5.53%.

• Major refurbishments included Paradisus Cancún (€25M) and Gran Meliá Don Pepe (€40M), with reopenings scheduled for 2026.

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

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.

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

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

• Targeting 30% EBITDA margin by 2027, with improvements driven by operational efficiency and asset-light expansion.