Old NH is growing strongly and could once again surpass Meliá in revenue and EBITDA | Companies

This year promises to be the best year in history for Minor Hotels Europa & Americas (formerly NH). If 2023 was already the year in which revenues exceeded 2,000 million euros for the first time and reached their profit ceiling with a net result of 129 million, then the virtuous cycle that tourism entered in 2024 suggests that they will be exceeded. both. The company justified these historical records with a combination of rising rates and occupancy. The average room price was €138 per room per night, and occupancy increased by seven points to 68% of total beds.

This upward trend continued into the first three quarters of 2024 (average rate increased by 6.2% per annum to €146 and occupancy increased by 1.1% to 69% of total beds), with a subsequent positive impact on profit and loss statement. In the January to September period, revenue rose 11% to €1.789 million, recurring gross operating profit (EBITDA) rose 11.3% to €498.1 million and recurring net profit rose 52% to €141.1 million.

These good results bring us closer to being able to repeat Meliá’s surprise for the second year in a row in both revenue and operating profit (EBITDA). A leading position that she occupied until 2011 and which she managed to regain only in 2023. Last year it closed with revenue of 2.163 million (Meliá reached 1.928 million) and EBITDA of 596 million (486.5 million from the hotel company in Escarrera). ).

The big unresolved problem of the old NH is the sharp increase in debt. In the first nine months, liabilities increased by €313 million to €2.321 million as a result of the acquisition of Minor’s business in Brazil (nine hotels). “Excluding this acquisition, net debt would have decreased by EUR 109 million, highlighting the strong organic cash generation despite EUR 117 million of strategic investments invested during the period,” the results presentation highlights.

Minor Hotels Europe & Americas reduces the weight of this increase in debt and impacts the company’s financial solvency. “The company’s strong financial fundamentals have been recognized by credit rating upgrades, with Moody’s upgrading Minor Hotels Europe & Americas to Ba3 and Fitch upgrading it to BB- this year, both with stable outlooks reflecting strong earnings performance and strengthening financial performance.