Meliá Hotels International (MEL) Q2 2026 earnings summary

Executive summary

• Delivered solid first-half 2026 results with robust leisure demand and strong performance in Spain, EMEA, and the Caribbean, despite geopolitical volatility and challenges in Mexico and Cuba.

• Ceased operations in Cuba, resulting in a non-recurring impairment of €79–79.4M and classification as discontinued operations, significantly impacting net profit.

• Growth was driven by strong RevPAR, portfolio expansion, and contributions from joint ventures and recent acquisitions.

• Diversification, destination quality, and premium brand strength contributed to resilience and future growth.

Financial highlights

• Consolidated revenue (excluding capital gains) rose 7.1% year-over-year in H1 2026 to €1,047.4M; EBITDA (excluding capital gains) reached €244.8M, up 2.5% year-over-year.

• EBIT increased 3.1% to €125.0M; net profit was €4.1M or -€7.5M depending on impairment treatment.

• Operating expenses increased 7.4% in H1, reflecting perimeter changes and new variable lease agreements.

• Net financial results improved by €4.2M year-over-year; cost of debt stable at 4.1%.

• Net debt stood at €2,149.2M, down €51.7M from FY2025; net debt excluding leases increased by €65.1M due to investments.

Outlook and guidance

• Full-year guidance reaffirmed: high single-digit RevPAR growth at constant currency, 200 bps operational margin improvement, and at least €565M EBITDA.

• On-the-books reservations and summer bookings are up double digits year-over-year, supporting a positive outlook.

• Targeting at least 40 new hotel signings and gross unit growth around 5%, with net impacted by Cuba exit.

• Committed to maintaining net debt/EBITDA below 2.5x.