Intermoney | According to various media reports, Meliã (Buy, P.O. 9.0) has reached an agreement with Dominican entity Grupo Popular for the sale of 25% of two hotels (Paradisus Palma Real Golf & Spa and ZEL Punta Cana) in Punta Cana for €60 million. No further details have been given regarding the price paid compared to the last valuation or how it will affect its bottom line.
Assessment: Positive news, but expected, as it had been announced by the company since the beginning of the year. With this sale, Meliã’s net debt stands at €2,259m (4.2x EBITDA) and pre-IFRSs at €772m (2.24x EBITDA), similar levels to those prior to the pandemic. We reiterate our buy recommendation with a P.O. of €9.0/share.
