Covivio Hotels (COVH) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with recurring net result up 10% and ongoing portfolio transformation across hotels, offices, and German residential segments.

• Portfolio value stabilized in H2 2024 (+0.2%), with a 98.5% environmental certification rate and 97.2% occupancy.

• Major asset swap with AccorInvest, consolidating 43 operating companies and transferring 16 property companies, strengthening presence in key European tourist areas.

• Expanded portfolio with €81 million acquisition in Tenerife and completed four hotel renovations, supporting value creation.

• Recurring net results per share stabilized at €4.47 despite increased share count.

Financial highlights

• Net revenue grew 6% to €686 million; recurring net result up 10% to €477.4 million.

• Dividend proposed at €3.50 per share, up 6%, returning to full cash payout.

• LTV reduced to 38.9%; net debt/EBITDA improved to 11.4x; cost of debt at 1.71% with 94% hedged.

• EPRA NTA per share at €79.8 at year-end, up 3% from H1 2024.

• Liquidity of €2.5 billion covers all debt maturities until June 2027.

Outlook and guidance

• 2025 guidance: recurring net result to grow 4% to €495 million; EPS stable at €4.47.

• Three priorities: reinforce portfolio quality, extract growth from existing assets, and expand operated real estate offer.

• Indexation assumption for 2025 is 2%.

• Focus on further strengthening presence in Southern Europe and optimizing asset management.