Meliá Hotels International (MEL) Q2 2025 earnings summary

Executive summary

• H1 2025 delivered strong operational and financial results, with consolidated revenue up 3.2% to €991.1M and Q2 revenue up 4.9% to €545.5M, despite FX and regional headwinds.

• System-wide RevPAR grew 5.8% in Q2 and 4.7% for H1, mainly from higher average rates while maintaining occupancy.

• EBITDA (ex-capital gains) reached €248.0M for H1 (+3.2% YoY) and €152.6M for Q2 (+7.2% YoY); net profit rose 72.4% YoY to €88.5M, with attributable net profit at €75.4M.

• Premium and luxury segment renovations, new openings, and digital channels (over 47% of centralized sales) contributed to growth.

• Asset-light strategy advanced with 20 new hotel signings YTD, targeting 35 signings and 25 openings in 2025.

Financial highlights

• System-wide RevPAR for Q2 was €89.5 (+5.8% YoY); H1 RevPAR was €83.8 (+4.7% YoY); ARR for H1 was €139.7 (+4.9% YoY); occupancy for H1 was 60.0% (-0.1pp YoY).

• EBITDA margin for Q2 reached 28% (+59 bps YoY); H1 margin was 24.7% (stable YoY).

• Net debt reduced by €28.2M to €2,208.4M; net debt ex-leases at €755.2M, with strong operating cash flow in Q2 (>€70M).

• Bank financing expenses down 40.2% YoY; debt split 45% fixed, 55% variable; average financing cost 5.53% in 2024.

• EPS for H1 was €0.34 (+€0.14 YoY); Q2 EPS was €0.31 (+€0.15 YoY).

Outlook and guidance

• Full-year guidance reaffirmed: mid-single-digit RevPAR growth, balanced between price and occupancy, and 100 bps EBITDA margin improvement in 2025.

• Summer season bookings for resort hotels are 5% ahead of last year.

• Pipeline includes over 70 hotels and 12,954 rooms, with at least 35 new signings and 25 openings targeted for 2025.

• Free cash flow for 2025 targeted at ~€200M, excluding dividends and M&A.

• Continued focus on digitalization, operational efficiency, and asset-light growth.