Melia Hotels InternationalXMAD:MEL -0.89%72 Gross Margin % is 58.02% as of Mar. 2026, which is 4% below its 10-year median of 60.52. GuruFocus rates XMAD:MEL with a GF Score™ of 72/100 and a GF Value™ of €7.40 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 793 Travel & Leisure companies, Melia Hotels International ranks better than 78.69% on this metric.
Melia Hotels International (XMAD:MEL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Melia Hotels International had a gross margin of 58.02% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Melia Hotels International Gross Margin % Related Terms
Melia Hotels International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XMAD:MEL vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Melia Hotels International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Melia Hotels International Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melia Hotels International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Melia Hotels International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Melia Hotels International (XMAD:MEL) has a Gross Margin % of 58.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Melia Hotels International and its competitors. This is near median its historical median of 60.52. Over the past decade, Melia Hotels International's Gross Margin % has ranged from 35.47 to 66.70. According to the industry distribution chart, Melia Hotels International ranks #169 out of 793 companies in the Travel & Leisure industry, placing it in the top 21.3%.
Is Melia Hotels International's Gross Margin % too high?
Melia Hotels International's current Gross Margin % of 58.02% is near median its 10-year median of 60.52. Over the past 10 years, this metric has ranged from a low of 35.47 to a high of 66.70. The Travel & Leisure industry median Gross Margin % is 44.02. Melia Hotels International's value of 58.02% is 31.8% above this industry median. Based on the distribution chart, Melia Hotels International ranks #169 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Melia Hotels International has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Melia Hotels International's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Melia Hotels International ranks #169 out of 793 companies for Gross Margin %. This places Melia Hotels International in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 44.02. Melia Hotels International's value of 58.02% is 31.8% above this benchmark. Historically, Melia Hotels International's own Gross Margin % has ranged from 35.47 to 66.70 over the past decade. While the company's 10-year median is 60.52 vs. the industry median of 44.02, Melia Hotels International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melia Hotels International's current Gross Margin % of 58.02% is 31.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Melia Hotels International and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melia Hotels International's current Gross Margin % is 58.02%, which is near median its own 10-year median of 60.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melia Hotels International stock overvalued right now?
Based on GuruFocus' analysis, Melia Hotels International (XMAD:MEL) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.40, compared to a current price of €12.27 — trading 65.8% above its estimated fair value. The current Gross Margin % is 58.02%, which is near median its 10-year median of 60.52 and 31.8% above the Travel & Leisure industry median of 44.02. Melia Hotels International's overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Melia Hotels International (XMAD:MEL), the current Gross Margin % is 58.02% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melia Hotels International (XMAD:MEL) Overvalued in 2026?
Based on GuruFocus' analysis, Melia Hotels International stock appears to be overvalued.
The current stock price of €12.27 is trading 65.8% above its estimated GF Value™ of €7.40.
GuruFocus considers Melia Hotels International to be Significantly Overvalued.
Key valuation signals for XMAD:MEL:
Gross Margin %: 58.02% (near median its 10-year median of 60.52)
GF Value™: €7.40 vs. price of €12.27 (65.8% above fair value)
Industry Position: 31.8% above the Travel & Leisure median (#169 of 793)
No single metric tells the full story. See the XMAD:MEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melia Hotels International SA is mainly engaged in tourism-related activities, specifically the management and operation of hotels owned by the Group under ownership, lease, management, or franchise arrangements, as well as activities related to vacation club operations. Its reportable segments are Hotel Business, which includes the operating activities of owned and leased hotels and additional hotel business activities such as casinos and tour operators; Hotel Management, which involves the operation of hotels under management or franchise arrangements; and Real Estate, which includes real estate development and operation. The Company operates mainly in Spain, Latin America, the rest of Europe, and Asia.
72GF Score
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