Minor Hotels Europe & Americas (NHH) Q2 2024 earnings summary

Executive summary

• Strong business and leisure demand in H1 2024 drove RevPAR to €96, up 7.9–8% year-over-year, with ADR contributing most of the growth and occupancy nearing 2019 levels.

• H1 2024 revenue rose 11.5% to €1,145m, with Q2 revenue at €685m, up 10.5% year-over-year.

• Recurring EBITDA (ex-IFRS 16) for H1 was €163m (+22%), with reported EBITDA at €298m (+11%).

• Net recurring profit for H1 2024 was €66m (+71%), and total net profit was €71m (+57%).

• Net financial debt decreased by €24m to €241m, despite €77m in capex, with liquidity at €537m as of June 30, 2024.

Financial highlights

• H1 RevPAR was €96 (+7.9% year-over-year), with ADR at €143 (+6%) and occupancy at 68% (+1.4 p.p.); Q2 RevPAR was €118 (+7%), ADR €161 (+6%), occupancy 73% (+0.4 p.p.).

• H1 recurring EBITDA margin improved to 14.3% (ex-IFRS 16), with gross operating profit margin at 35.6% and recurring EBITDA margin at 26%.

• Net financial debt/EBITDA ratio improved due to deleveraging.

• Available liquidity at end of June was €537m (cash €229m, credit lines €308m).

• H1 net recurring profit was €66m (+71%); total net profit was €71m (+57%).

Outlook and guidance

• Bookings for Q3 are mid- to high-single-digit above 2023, mainly due to higher ADR; optimism remains for the rest of 2024.

• Management expects to continue delivering record results in 2024, supported by strong demand and pricing.