Meliá Hotels International, S.A.

Consolidated revenues excluding capital gains were €1,929 million in 2023, up 14.8% year over year. Full-year owned and leased RevPAR increased 17.3%, and system-wide RevPAR rose 10% year over year, or 16% excluding the Q1 local-currency devaluation effect in Cuba. EBITDA excluding capital gains was €486 million, up 16.2% versus 2022 and 3.3% versus 2019, exceeding the at-least-€475 million target. Net profit attributable to the parent company was €117.7 million, up €7 million year over year. Net debt fell €59.9 million to €2,613 million; pre-IFRS 16 financial net debt fell €46.7 million to €1,163 million. Liquidity ended the year at €330 million, and mortgage debt was about €250 million, implying a 27.4% loan-to-value. For 2024, management guided to low double-digit RevPAR growth, at least €500 million of EBITDA excluding capital gains, net debt-to-EBITDA of 2.5x pre-IFRS by year-end, and not less than 4,500 net new rooms. CapEx was guided at about €100 million for the year, including maintenance, investment, and key money. The Santander transaction is worth €300 million and expected to be received in April; management also expects about €50 million from additional asset rotation in 2024.

Gabriel Escarrer framed 2023 as a year that went from good to better, driven by premium/luxury positioning, strong leisure demand, and pricing power. He emphasized that the business hit its EBITDA goal early, improved debt metrics, and has enough momentum to set a new 2024 objective of at least €500 million of EBITDA and a return to pre-COVID leverage levels by year-end. His tone was constructive and confident, with repeated references to balance-sheet strengthening, asset value realization, and the intention to resume dividends.

Ángel Luis Rodríguez focused on the balance sheet, cash flow, and capital allocation. He said the path to the 2.5x net debt-to-EBITDA target will come from the Santander transaction, business cash flow, and roughly €50 million of additional asset rotation, and he guided 2024 CapEx at about €100 million all-in, including key money. He also clarified that the Santander deal includes no put option against Meliá, that the group has €280 million maturing this year with €60 million due in Q1, and that management is working to smooth maturities toward about €150 million per year.

Analysts pressed on how Meliá can reach 2.5x leverage while also resuming dividends, how much of 2024 cash generation is assumed, and whether the €4,500 room growth target is net of terminations. Management said the cash plan combines the Santander deal, business cash flow, and about €50 million of additional asset rotation; it also said the 4,500 rooms figure is net of terminations. On the Santander structure, management said there is no put option for Santander and the lease structure was required to make the transaction work. Analysts also asked why EBITDA growth guidance is lower than RevPAR growth; management explained that 2024 will not have some 2023 lease-related income and about €10 million of EBITDA from those assets.