Bankinter | Meliá (MEL) has flagged that the occupancy rates this summer have remained slightly below those of 2019 – an extraordinary year for Spanish tourism. However, there has been a hike in tariffs of “two high digits”, so revenues could beat those registered in the summer of 2019. The company has also expressed optimism with respect to the final quarter of the year. The booking figures reflect a continuing upward trend with respect to 2019.
Bankinter analysis team’s opinion:
Good news. Revenues are recovering pre-Covid levels and the strong rise in prices allows the firm to compensate to a large extent for the hike in costs. Cash generation will also be positive, which will allow Meliá to improve its liquidity and financial position. And it could sell assets to cut debt. We reiterate our BUY recommendation.
