Meliá Hotels International, S.A.

For 2023, consolidated revenues excluding capital gains were €1,929 million, up 14.8% year over year. Post-EBITDA excluding capital gains was €486 million, up 16.2% versus 2022 and 3.3% versus 2019; Gabriel Escarrer said this exceeded the at-least-€475 million target. Full-year owned and leased RevPAR increased 17.3%, and system-wide RevPAR increased 10% (16% excluding the Q1 local-currency devaluation effect). Consolidated 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, and pre-IFRS 16 financial net debt fell €46.7 million to €1,163 million. For 2024, management guided to low double-digit RevPAR growth, at least €500 million of EBITDA excluding capital gains, and not less than 4,500 room openings; it also said the Board will propose resuming the dividend.

Gabriel Escarrer framed 2023 as a year that went from good to better across most regions, driven by solid demand and the company’s premium/luxury positioning. He emphasized that pricing, direct channels, and the mix of leisure and leisure-plus destinations helped Meliá outperform, and he highlighted progress on balance-sheet repair and asset rotation. His tone was constructive and confident, with explicit commitments to achieve at least €500 million of EBITDA in 2024 and to end the year at 2.5x pre-IFRS net debt/EBITDA.

Ángel Luis Rodríguez said the 2024 path to the 2.5x net debt/EBITDA target will come from three sources: the Santander transaction, cash generation from the business, and about €50 million from additional asset rotation. He guided 2024 CapEx to about €100 million in total, including key money, and said the company has already refinanced part of its 2024 and 2025 maturities; €280 million matures this year, with €60 million due in Q1 and an objective to smooth the profile to around €150 million of maturities per year. He also noted liquidity of €330 million at year-end, mortgage debt of approximately €250 million, and fixed-rate debt exposure of 35.5% at end-2023.

Analysts pressed on how Meliá can reach 2.5x net debt/EBITDA while also resuming dividends and keeping CapEx disciplined; management answered that the Santander deal, business cash flow, and roughly €50 million of extra asset rotation should bridge the gap, with CapEx around €100 million. On the Santander structure, management said Santander has no put option against Meliá and that the lease structure was required for the deal. Questions on the 2024 RevPAR outlook and regional drivers were answered with comments that the Americas, Spain, EMEA, and Asia are all contributing, with EMEA helped by the Paris Olympics, a recovery in German corporate and MICE demand, and strong event calendars. Management also clarified that the 4,500-room opening target is net of terminations.