Minor Hotels Europe & Americas Reports Net Recurring Profits of EUR210 Million in 2024

The Average Daily Rate (ADR) continued its upward trend, closing 2024 with a 5.6% increase, from EUR138 per night in 2023 to EUR145 per night in 2024. Average occupancy for the year stood at 69.2%, up 1.2 percentage points from 2023, but still 0.8 percentage point below 2019 like for like levels. ADR and occupancy rates followed an upward trajectory across European markets and remained stable in Latin America.

Corporate Strategy Continues to Drive EBITDA and Profitability

Minor Hotels Europe & Americas boosted its reported EBITDA by 14% in 2024, reaching EUR680 million. Excluding the impact of IFRS 16, recurring EBITDA stood at EUR407 million, up by 24.5% and with a 17% margin, two percentage points higher than in 2023 and on par with 2019, implying a 30% conversion ratio, explained by a strong ADR strategy and the Group’s cost control measures

These strategic measures contributed to a 67% increase in recurring net profit, reaching EUR210 million. Total net profit came in at EUR212 million, up by 65% from the previous year. The Group expects a positive 2025, as the travel sector continues to expand, though it is cautious as growth rates may moderate following the strong performance of recent years.

Sustained Growth in the Fourth Quarter

Total revenue for Q4 2024 rose to EUR639 million, reflecting a 16% year-on-year increase. Growth remained robust across both Europe and Latin America, positively impacted by the Brazilian portfolio and Argentina’s currency devaluation in December 2023. Between October and December 2024, average occupancy reached 70%, up 1.5 percentage points from Q4 2023, while ADR increased by 4% to EUR143 per night.

Strengthened Balance Sheet and Strategic Debt Management 

The company reduced its net financial debt by EUR20 million in 2024, bringing it down to EUR244 million by year-end. This was achieved despite a net initial payment of EUR158 million for Brazilian assets and an additional EUR154 million in ordinary CapEx., as the Company has prioritized repositioning and IT investments starting in 2024 to continue improving the existing portfolio during coming years. Liquidity at year-end stood at EUR533 million, including EUR220 million in cash.

On 1 October 2024, Moody’s upgraded the Group’s corporate rating from “B1” to “Ba3” with a stable outlook, due to ongoing robust performance, sustained improvement in key metrics, and ample liquidity. Fitch also raised its rating from “B” to “BB-” in 2024. With these upgrades, MHEA´s corporate rating now stands one level above its 2019 rating.

Broad-Based Regional Growth

All business units within the company recorded higher ADR and occupancy improved in all European countries. In Spain, occupancy reached 74% (+2 p.p.), while ADR grew by 10%. Italy, the Benelux, and Central Europe also saw single-digit ADR increases and occupancy gains from one to three percentage points. In Latin America, occupancy remained steady, while ADR is on a growth trajectory.