Minor Hotels Europe & Americas (NHH) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong demand, with revenues rising to €496m, up 8% year-over-year, driven by organic growth and portfolio changes contributing 36% of the increase.

• RevPAR grew 8.6% to €82, with occupancy at 64% (+2.1 p.p. vs Q1 2024) and ADR up 5.1% to €127; all regions posted occupancy and ADR gains.

• Net Recurring Loss improved to €22m (from €30m loss in Q1 2024), while Total Net Profit reached €4m, aided by the disposal of two hotels.

• Liquidity at quarter-end: €580m (€255m cash, €325m undrawn credit lines); net financial debt reduced to €207m, mainly due to asset disposals.

• Margin expansion and improved leverage supported by asset disposals and strong demand.

Financial highlights

• Total revenue: €496m (+7.8% vs Q1 2024); LFL revenue up 5.5% at constant FX.

• Reported EBITDA: €81.8m (+19% vs Q1 2024); Recurring EBITDA (ex-IFRS 16): €12.4m (+€10.6m), with a 30% conversion rate.

• Gross Operating Profit (GOP/EBITDAR): €132m (+13% vs Q1 2024), 43% flow through ratio.

• Net recurring loss improved to €22m from €30.4m; total net profit was €3.6m, up from a €22.2m loss in Q1 2024.

• Non-recurring items of €25.6m mainly from asset disposals.

Outlook and guidance

• Q2 demand trends remain in line with expectations, with no material change observed post-Q1.

• Fitch revised outlook to positive and affirmed 'BB-' rating in March 2025, citing strong performance and deleveraging.

• Management expects continued strong performance and further deleveraging in 2025.