Intermoney | The hotel chain has once again posted very solid results, more or less in line with our estimates at the high end, but slightly better in terms of margins and at the low end. All the markets in which it operates continue to show great strength, with the exception of Cuba and Germany, with a 6% increase in RevPar for the quarter (4.7% from price and 1.3% from occupancy), despite the maintenance shutdown of Paradisus Cancún, one of its largest owned hotels. Net debt was reduced to €2.208 billion (3.6x EBITDA) and pre-IFRS debt to €755 million (1.8x), which, together with the fall in interest rates, allowed them to reduce their financial costs by 60% year-on-year. They maintain their outlook for the full year as they do not see any slowdown in demand. On-book reservations remain above last year’s levels. They expect a mid-single-digit increase in RevPar and a 100 bp increase in EBITDA margin compared to 2024.
• Revenue of €547 million, up 5.1% year-on-year. In line with our estimates of €540 million and the consensus of €538 million, with a greater contribution from the management model (25%), while the ownership model has been affected by the closure of Paradisus Cancún for renovation. The comparison with Q2 was positive, as Easter fell in April. On the downside, the depreciation of the dollar affected their business in the US.
• EBITDA of €154 million, up 8% year-on-year, although the margin improved by 73 bps to 28.1%. Slightly better than our estimates (€149 million) and the consensus (€145 million). The 6% improvement in RevPar allowed them to offset the increase in costs due to an increase in rental contracts.
• Profit of €69 million, up 90% year-on-year. Well above our estimates (€45 million) and the consensus (€43 million). Benefited by the positive impact of €23.9 million from a capital gain generated on the sale of a stake in a company that owns an asset and the sharp reduction in financial costs of 60%, due to the reduction in debt and lower interest rates. This quarter, pre-IFRS debt was reduced to €755 million and leverage was reduced to 1.8x pre-IFRS EBITDA.
In Q2 2025, they achieved an ARR of €143 (up 4.7% year-on-year) and occupancy of 62.6% (up 0.6 p.p.), with RevPar growing by 5.8% to €89.5.
Outlook for 2025: Current on-the-books reservations are up 5% on the same date last year. RevPar is expected to grow by mid-single digits for the year as a whole, with a balanced contribution from occupancy and price, thanks mainly to the recovery in the Caribbean, which had a somewhat weaker end to the year due to the effect of the US elections. They expect to open at least 15 hotels before the end of the year, most of them in the Mediterranean. We reiterate our BUY recommendation with a target price of €9/share.
Results were once again very solid, exceeding our estimates at the operating level, thanks to the strength of all the destinations where Meliá operates, which has enabled it to continue improving RevPar by +6%. In addition, debt reduction, together with lower interest rates, is easing pressure on net profit and enabling it to improve by 30% (excluding capital gains). The outlook remains positive and none of its markets are showing signs of a slowdown, so we expect to see further improvements in the coming quarters. We reiterate our BUY recommendation, with a target price of €9.
