Minor Hotels Europe & Americas (NHH) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 10.9% year-over-year to €1,789m, with Q3 revenue at €644m, up 10% from Q3 2023.

• Net recurring profit for 9M 2024 was €141m, a 52% increase over 2023, and total net profit reached €146m, up 46.3%.

• Strong business and leisure demand, along with ADR growth, drove revenue and profit increases.

• Moody's and Fitch upgraded corporate ratings in 2024, reflecting robust performance and improved financial metrics.

Financial highlights

• Q3 occupancy was 72.3%, with 9M occupancy at 69.0%, both showing year-over-year improvement and nearing or surpassing pre-pandemic levels in Southern Europe.

• Q3 ADR was €152 (+7.3% vs Q3 2023); 9M ADR was €146 (+6.2% vs 9M 2023); RevPAR for 9M was €101 (+8%).

• Recurring EBITDA (ex-IFRS 16) for 9M was €296m (+20% vs 9M 2023); Q3 recurring EBITDA was €133m (+17.4%).

• Q3 conversion rate reached 35%, supporting EBITDA and profit growth.

• Net recurring profit for 9M was €141.1m (+51.7% vs 9M 2023); total net profit including non-recurring items was €145.8m (+46.3%).

Outlook and guidance

• Record results expected to continue in 2024, supported by strong demand, high operating efficiency, and ADR expansion.

• Strategic focus on disciplined cost management to counter inflation and drive further growth.

• Ambition to add over 200 hotels globally by end of 2026, accelerating expansion plans.

• Upgraded credit ratings and strong liquidity position support future growth and financial flexibility.