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,…
Link Securities| Gabriel Escarrer, CEO of Meliã International, said the company operates a record 110,000 rooms worldwide, digital portal Bolsamania.com reported yesterday. Meliã’s hotel occupancy is the highest in its history. The company will also add capacity in Vietnam, Italy, Cuba, Seychelles and Montenegro and will start operations in Albania and Tanzania in 2023. Additionally, the hotel chain has raised its bookings to 30% above 2019 and expects margins to…
Bankinter | Meliá’s CEO said in an interview with a local media outlet that one of the group’s big goals is to cut its net financial debt to less than half in a period of two-three years. This would mean trimming it to below 650 million euros from the 1.271 billion currently (excluding leases). To do this, it forecasts that demand will remain strong, at levels close to those of 2019…
Bankinter | Meliá has offered some guidelines for the next few years, for the first time since the pandemic. It will recover pre-Covid revenue levels in 2023, with an improvement in margins of 300 bp from 2024. This clearly beats our estimates. The CEO of Meliá forecasts closing 2022 with EBITDA of over 400 million euros, excluding capital gains. In 2023, the group will recover pre-Covid revenues (1.8 billion euros…
Bankinter | The Q1 2022 results reflect a greater impact from inflation on costs. For that reason we are lowering our estimates (-6% at EBIDTA level) and target price -5% to 7,76 euros/share. That said, we believe that the share price has over-reacted (down 10% since the publication of results). So it’s a good opportunity to take positions in the stock. The news flow will improve in the coming months….
Bankinter | The big Spanish hotel chains foresee occupancy levels this Easter week beating those prior to the virus. They all coincide in that the outlook is optimistic, despite the uncertainty fuelled by the conflict and escalating fuel prices. And in the majority of cases, they are are confident of exceeding or being very clost to pre-Covid levels during the Easter break. In some case, bookings are up 15% on…
Renta 4 | Consultancy STR and Cushman & Wakefield have carried out a study on the hotel sector in Spain, comparing estimates for 2021e with the figures for 2019. Revenue per room (RevPar) in 2021e will be around 43% of the 2019 level, mainly due to the decline in occupancy (-43,4 pp vs 2019 to 36%) as prices would remain around 2019 levels. At Renta 4 Banco we expect less of a…
According to the China Tourism Academy, more than 90% of hotels and tourist attractions in the country have reopened along with around 60% of travel agencies after containing the pandemic. Against this backdrop, Meliá Hotels has resumed work on an expansion plan which aims to double its presence in China within two years, from 5 to 10 hotels in operation. The reactivation of the domestic market have encouraged the company to open an ultra-luxury urban resort in Chengdu this week.
The Spanish hotel chain announced a single dividend payment for 2018 of 0.183 euros/share (+8.9% vs 2017; in line with what was expected), date ex date 5 July and date of payment 9 July. Yield 2.2%.
Santander | To adopt a more optimistic view of the price, we would like to see Meliá increasing its debt exposure to the dollar and solves its profitability problems in leased assets.