Minor Hotels Europe & Americas Achieves 58% Growth in Net Profit to €71 million in 1H24

Revenue increased 11.5% in the first half to €1.15 billion, driven by growth of 5.6% in the ADR and a 1.4pp improvement in occupancy

Reported EBITDA increased 11.4% to €298 million

Madrid, 23 July 2024: Minor Hotels Europe & Americas generated revenue of €1.15 billion in the first six months of 2024, representing a year-on-year growth of 11.5% from the €1.03 billion reported in 1H23. During the same period, the company’s net profit totalled €71 million, up 57.4% from the €45 million reported in the first half of 2023.

The average daily rate (ADR) rose to €143 in the first half of the year, up 5.6% from the €135 recorded in the same period last year. As a result, the ADR contributed 70% of the growth of 8% in revenue per available room (RevPAR), which increased from €90 per night between January and June 2023 to €96 in the first half of this year. Occupancy averaged 67.6% in the first half of 2024, year-on-year growth of 1.4 percentage points.

The recent favourable business momentum continued in the second quarter of 2024, resulting in revenue of €685 million, year-on-year growth of 10.5%. The ADR increased by 6.4% in the second quarter, to €161, while occupancy averaged 72.9%.

Strong demand in both the business and leisure travel segments, coupled with disciplined operating costs, drove first-half EBITDA to €298 million, year-on-year growth of 11.4%. Excluding the accounting impact of IFRS 16, recurring first-half EBITDA totalled €163 million, growth of 22.2%. In a notice filed with the Spanish Securities Market Commission today, Minor Hotels Europe & Americas announced that the strength of demand in the first six months of the year, together with favourable business dynamics, foreshadow another set of record earnings in 2024.

Minor Hotels Europe & Americas was able to reduce its net debt by €24 million in the first half of the year to €241 million, despite the seasonal weakness typical of the first quarter and capital expenditure of €77 million in the first half.

Corporate liquidity remains solid, at €537 million as of 30 June 2024: €229 million of cash and €308 million of undrawn credit lines. In April 2024, Fitch raised the corporate credit rating assigned to the company from B to BB-, with a stable outlook, a two-notch improvement reflecting the record earnings in 2023, sharp deleveraging and cash flow generation.

All regions strong

By region, like-for-like revenue in Spain increased by 14% year-on-year in the first half of 2024, underpinned by very solid performance across all regions. Madrid was the fastest-growing city destination. Occupancy averaged 74% in this period, marking growth of two percentage points, while the ADR increased by 9% to €146.

In Italy, like-for-like revenue increased by 4% in the first six months, with Venice and the secondary cities outperforming the main cities, Milan and Rome, where growth was more moderate following extraordinary performances in 2023. Occupancy was at 67%, one percentage point increase year-on-year with the ADR 5% higher at €185.

In Central Europe, like-for-like revenue registered growth of 9%, with all destinations reporting strong evolution. Occupancy improved by three percentage points, to 65%, while the ADR climbed 6% to €123.

In Benelux, like-for-like revenue was 6% higher than in the first half of 2023, driven by strong performances in Brussels, the secondary cities and the convention centre hotels. Average occupancy improved by two percentage points, to 66%, while the ADR held steady at €156.

Lastly, in Latin America, at real exchange rates, like-for-like revenue increased by 10% year-on-year, driven by Mexico and Columbia, which were the best-performing markets. ADR increased by 8%, to €86, and occupancy averaged 63%.