Melia Hotels InternationalXMAD:MEL -0.89%72 Interest Coverage is 1.05 as of Mar. 2026, which is 69% below its 10-year median of 3.41. 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 609 Travel & Leisure companies, Melia Hotels International ranks worse than 59.44% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Melia Hotels International's
Operating Income
for the
three
months ended in Mar. 2026 was €23 Mil. Melia Hotels International's Interest Expense for the
three
months ended in Mar. 2026 was €-22 Mil.
Melia Hotels International's interest coverage for the quarter that ended in Mar. 2026 was 1.05.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Melia Hotels International SA interest coverage is 3.63, which is low.
The historical rank and industry rank for Melia Hotels International's Interest Coverage or its related term are showing as below:
XMAD:MEL'
s Interest Coverage Range Over the Past 10 Years
Min: 2.06 Med: 3.41 Max: 7.25
Current: 3.63
XMAD:MEL's Interest Coverage is ranked worse than 59.44% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs XMAD:MEL: 3.63
Melia Hotels International (XMAD:MEL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Melia Hotels International Interest Coverage Related Terms
Melia Hotels International Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Melia Hotels International Interest Coverage Chart
XMAD:MEL vs MAR, HLT, H: Interest Coverage Comparison
For the Lodging subindustry, Melia Hotels International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melia Hotels International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Melia Hotels International's Interest Coverage falls into.
Melia Hotels International Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Melia Hotels International (XMAD:MEL) has a Interest Coverage of 1.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Melia Hotels International and its competitors. This is 69% below median its historical median of 3.41. Over the past decade, Melia Hotels International's Interest Coverage has ranged from 2.06 to 7.25. According to the industry distribution chart, Melia Hotels International ranks #362 out of 609 companies in the Travel & Leisure industry, placing it in the top 59.4%.
Is Melia Hotels International's Interest Coverage too high?
Melia Hotels International's current Interest Coverage of 1.05 is 69% below median its 10-year median of 3.41. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 7.25. The Travel & Leisure industry median Interest Coverage is 5.35. Melia Hotels International's value of 1.05 is 80.4% below this industry median. Based on the distribution chart, Melia Hotels International ranks #362 out of 609 companies in the Travel & Leisure industry, which is below the industry midpoint. 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 Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Melia Hotels International ranks #362 out of 609 companies for Interest Coverage. This places Melia Hotels International in the lower half of its industry. The industry median Interest Coverage is 5.35. Melia Hotels International's value of 1.05 is 80.4% below this benchmark. Historically, Melia Hotels International's own Interest Coverage has ranged from 2.06 to 7.25 over the past decade. While the company's 10-year median is 3.41 vs. the industry median of 5.35, Melia Hotels International has consistently been below 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 Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melia Hotels International's current Interest Coverage of 1.05 is 80.4% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Melia Hotels International and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melia Hotels International's current Interest Coverage is 1.05, which is 69% below median its own 10-year median of 3.41. 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 Interest Coverage is 1.05, which is 69% below median its 10-year median of 3.41 and 80.4% below the Travel & Leisure industry median of 5.35. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Melia Hotels International (XMAD:MEL), the current Interest Coverage is 1.05 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:
Interest Coverage: 1.05 (69% below median its 10-year median of 3.41)
GF Value™: €7.40 vs. price of €12.27 (65.8% above fair value)
Industry Position: 80.4% below the Travel & Leisure median (#362 of 609)
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
Get the complete analysis for XMAD:MEL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XMAD:MEL has been successfully added to your 
