Renta 4 | Interview with Mr Gabriel Escarrer in Expansión newspaper. Among the comments we highlight:
If good acquisition opportunities arise (holiday segment), Meliã would carry out a capital increase, which would not put pressure on cash flow.
The current situation for Meliá and the sector is one of ‘normalisation’, after several years of strong growth following Covid-19, in which they grew three times faster than the GDP of the countries in which they operate. They expect mid-single-digit growth.
They will continue to seek alliances with family groups with a long-term vision and financial partners, as they have done in recent years: Banca March, Bankinter, Albwardy in the Middle East, Vinpearl in Vietnam, the Zel brand with Rafa Nadal and, recently, Leo Messi’s family office.
He believes there is room for further consolidation in the sector, although he does not see the sector as being as fragmented as before.
Spain remains very competitive despite the sharp rise in prices in recent years (>50% since 2019). They have room to raise prices in Madrid, Barcelona, Mallorca and Ibiza, especially if they reposition their hotels.
In 2025, revenue and EBITDA will grow despite the fact that the Paradisus Cancún hotel is closed until summer 2026 and is the hotel that contributes the most (€85 million in revenue and €22 million in EBITDA). The Don Pepe hotel in Marbella, the second largest contributor (EBITDA €17 million), is also closed for renovations.
Meliã continues to prepare its portfolio to compete in a more demanding market segment, and is comfortable in an environment of €400-600 per night. That is why it has brought the Paradisus brand to Europe and Asia and promoted the Meliã Collection brand.They are confident about the outlook for 2025, pending the publication of the third quarter results (Thursday 30 October) and with good forecasts for the fourth quarter.
Assessment: Positive comments on Meliã’s current performance and future plans and strategy. Although growth has slowed in 2025 after several years of rapid growth, we believe that management is preparing Meliã to compete in a higher-value segment, which, among other things, will enable it to better weather the most unfavourable phases of the cycle.
P/E ratio €8.8. OVERWEIGHT
