Minor Hotels Europe & Americas | 58% Increase in Net Profit

 

Minor Hotels Europe & Americas in the first half of 2024 recorded an increase in revenues moving from €1.027 million achieved in the previous year in the same period to € 1.145 million this year, which means an increment of 11.5%.

ADR, the average daily rate grew to €143 per night in the first half of 2024, an increase of 5.6% compared to the €135 recorded in the same period in 2023, with an improvement in occupancy of 1.5 p.p.

In the first six months of the current year, the hotel group's net profit was € 71 million, which means 57.4% more than the €45 million achieved in the first half of 2023.

ADR contributed 70% to the 8% increase in RevPar revenues per available room that rose from €90 per night in the first six months of 2023 to €96 in the same period this year.

Average occuoancy was 67.6% in the first half of 2024 with a growth on a basis of 1.4 percentage points.

The recent positive increase in activity continued in the second quarter of 2024 with revenues of € 685 million in the same period, recording a growth of 10.5% compared to the previous year.

In the second quarter, ADR increased by 6.4% to €161, while occupancy was 72.9%.

Very significant figures come from strong demand in the business and leisure segments combined with the discipline of operating costs that pushed EBITDA in the first six months to € 298 million, with an increase of 11.4% compared to the previous year.

Excluding the accounting impact of IFRS, recurring EBITDA in the first six months of the year was € 163 million, an increase of 22.2%.

In the publication submitted to the National Securities Market Commission, Minor Hotels Europe & Americas announced that the strength of demand in the first six months of the year, alongside favorable business dynamics, predicts another sequence of record results in 2024.

A relevant figure is also how Minor Hotels Europe & Americas was able to significantly reduce its net debt by € 24 million in the first half of 2024 to € 241 million despite the usual seasonal weakness in the first quarter and the € 77 million equity investment made in the period.

The liquidity of the Bangok-based hotel group remains very solid, quantified as of June 30, 2024 at € 537 million of which € 229 million in cash and the remaining € 308 million of available credit lines.

In April 2024, Fitch upgraded the group's corporate credit rating from B to BB-, with a stable outlook meaning a twofold improvement reflecting record 2023 earnings, a sharp deleveraging and cash flow generation.

Regarding the aspect by region, comparable revenues in Spain increased by 14% year-on-year in the first six months of 2024, thanks to very strong results in all regions, with Madrid proving to be the fastest-growing urban destination.

The average occupancy recorded was 74% in the current period, a figure that is identified in a growth of two percentage points while the average rate increased by 9%. to € 146.

In other geographical areas as Italy comparable revenues grew by 4% in the first half of 2024, with a very significant figure linked to how Venice and secondary cities outperformed the main Italian cities, Rome and Milan, where growth was more moderate after excellent flows with extraordinary results in 2023.

Occupancy remained at 67%, which means one percentage point more than the previous year, while ADR reached an average of € 185 per night with a growth of 5%.

Moving to Central Europe comparable revenues grew by 9% with a remarkable performance in all destinations where occupancy improved by 3 percentage points to 65% with ADR increasing by 6% to € 123.

In the Benelux, the geographical area corresponding to Belgium, the Netherlands and Luxembourg comparable revenues were 6% higher than in the first six months of 2023 thanks to strong results achieved in Brussels and secondary cities and hotels with conference centres.

Average occupancy in this European area improved by two percentage points to 66% while ADR quantified similar indices remaining stable at €156.

In Latin America there are very interesting data with real exchange rates Comparable term revenues increased by 10% year-on-year with leading destinations such as Mexico and Colombia being the best performing markets with an ADR that increased by 8% to € 86 while occupancy was 63%.

Link https://www.expreso.info/index.php/noticias/hoteles/101611_minor_hotels_europe_americas_incrementa_un_58_el_beneficio_neto

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