Half Year 2026 Melia Hotels International SA Earnings Call Transcript
Key Points
- Consolidated revenue excluding capital gains increased by 7.1% in H1 2026, with a particularly strong 8.5% growth in Q2, driven by healthy demand and perimeter expansion.
- Underlying revPAR growth was robust, with owned and leased revPAR up 5.1% in H1 on a constant currency and comparable portfolio basis, and system-wide revPAR up 11.7%.
- The company completed its exit from Cuba, recognizing a one-off, non-cash impairment of EUR79 million, which removes a significant source of future earnings volatility.
- Strategic investments in high-quality assets, such as the repositioned Paradisus Cancun and Gran Melia Don Pepe, are expected to unlock over EUR20 million in EBITDA recovery as they return to full operation.
- Development pipeline remains strong with 14 hotel openings and 17 new signings in H1, including a strategic entry into Tunisia, supporting long-term growth despite the Cuba exit.
- On-the-books reservations are up double-digits year-over-year, providing strong visibility and confidence for the remainder of the summer season and full-year guidance.
- The company maintains a disciplined financial profile with net debt reduced by EUR51.7 million in H1 and a clear commitment to keeping leverage below 2.5x, while also planning over EUR100 million in non-core asset disposals.
- Group net profit was significantly impacted by a EUR79 million non-recurring impairment related to the exit from Cuba, dragging reported earnings down to just EUR4.1 million.
- EBITDA margins remained under pressure in H1, with EBITDA growth of only 2.5% despite strong revenue growth, due to temporary closures and higher variable lease costs.
- Performance in Mexico was negatively affected by specific local security-related events, leading to a temporary demand slowdown and impacting regional results.
- The temporary closure of two key owned hotels, Paradisus Cancun and Gran Melia Don Pepe, resulted in a more than EUR20 million EBITDA impact during the semester.
- Operating expenses increased by 7.4% in H1, outpacing revenue growth, partly due to perimeter changes and the addition of variable lease agreements, pressuring profitability.
- Foreign exchange movements created headwinds, negatively affecting both the revenue and cost base of the group during the period.
- Net unit growth will be naturally impacted by the exit from Cuba, with system-wide available rooms decreasing by 5%, which could mask the underlying development momentum.
Good afternoon and welcome to Melia Hotels International first half 2026 webcast. I'm Stephane Baos, Head of Investor Relations. Before we begin. We would like to remind you that our presentation will include forward-looking statements. Actual results could differ from those indicated in our forward-looking statements.
And forward-looking statements met today speak only to our expectations as of today. Unless otherwise state or revPAR, occupancy, average daily rates and P&L comments. Refer to year-over-year changes for the comparable period.
For the purposes of this presentation, our President and Chief Executive Officer, Gabriel Escarrer, together with our Chief Operating Officer, Andre Gerondeau, will walk you through the key highlights and main topics. You can find our earnings release. On our investor relation website at meliahotelsinternational.com. We will now see a short reel with the main KPIs followed by the presentation.
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