- Revenues increase 10.9% to EUR 1,789 million year-to-date
- Enhanced ADR growth of 6.2% and a 1.1 percentage point rise in occupancy
- Recurring EBITDA expands by 11.3% to EUR 498 million in first nine months of 2024
Minor Hotels Europe & Americas announces exceptional financial performance for the first nine months of 2024, posting EUR 1,789 million in revenue, a 10.9% growth over the same period in 2023. This robust increase highlights the company's strategic emphasis on revenue optimization and operational efficiencies.
A pivotal driver of growth, Average Daily Rate (ADR) rose 6.2% year-over-year to EUR 146, with Spain and Central Europe leading performance gains across the portfolio. Revenue Per Available Room (RevPAR) increased by 8% to EUR 101, underscoring Minor Hotels' focused pricing strategy and enhanced demand in high-growth regions.
Strategic Initiatives Fuel EBITDA and Profit Growth
Minor Hotels Europe & Americas recorded a recurring EBITDA increase of 11.3% to EUR 498 million for the year-to-date. Excluding the impact of IFRS 16, EBITDA rose by a remarkable 20% to EUR 296 million, a direct result of disciplined cost management and strategic focus on ADR expansion to counterbalance inflation.
This performance translated into a significant 52% growth in recurring net profit, totaling EUR 141 million. Including non-recurring gains, total net profit increased by 46.3% to EUR 146 million, as the company effectively capitalized on growth opportunities and operational efficiencies.
Third Quarter Results Reinforce Strategic Momentum
The third quarter continued this upward trend with revenues of EUR 644 million, a 10% increase over Q3 2023, driven by a 7.3% rise in ADR to EUR 152. This ADR uplift accounted for 83% of RevPAR growth, with Spain and Central Europe demonstrating particularly strong performance.
Occupancy for Q3 reached 72.3%, surpassing pre-pandemic levels in Southern Europe. Quarterly recurring EBITDA rose by 11.2% to EUR 200 million, achieved through a focused 35% conversion rate, enhanced ADR strategy, and disciplined cost control, yielding a 38.1% rise in Q3 recurring net profit to EUR 75 million.
Strengthened Balance Sheet and Strategic Debt Management
As of September 30, 2024, Minor Hotels Europe & Americas reported net financial debt of EUR 313 million, primarily reflecting a strategic EUR 160 million investment in Minor Brazil Hotels, accounting for 80% of the total acquisition price. Excluding this acquisition, net debt would have decreased by EUR 109 million, underscoring strong organic cash flow generation despite EUR 117 million in strategic capital expenditures.
Liquidity remains robust at EUR 461 million, supported by EUR 153 million in cash and EUR 308 million in available credit lines. The company's strong financial foundation was recognized with credit rating upgrades, as Moody's elevated Minor Hotels Europe & Americas' rating to Ba3 and Fitch upgraded to BB- this year, both with stable outlooks, reflecting solid earnings performance and strengthened financial indicators.
Regional Growth and Strategic Revenue Gains
Between January and September 2024, Minor Hotels saw broad-based regional gains. Spain recorded a 75% occupancy rate and an 11% ADR increase, while Italy and Benelux regions demonstrated steady revenue growth. Central Europe showed an 8% revenue increase, supported by the UEFA Euro 2024 Football Championship, and Latin America, though challenged by economic factors in Argentina, achieved a 3% ADR increase.
About Minor Hotels
Minor Hotels is a global hospitality group operating over 550 hotels, resorts and residences in 56 countries, pursuing its vision of crafting a more passionate and interconnected world. As a hotel owner, operator and investor, Minor Hotels fulfils the needs and desires of today's global travellers through its diverse portfolio of eight hotel brands - Anantara, Avani, Elewana Collection, NH, NH Collection, nhow, Oaks and Tivoli - and a collection of related businesses. Minor Hotels is rapidly accelerating its global growth ambitions, aiming to add more than 200 hotels by the end of 2026.
Minor Hotels is a proud member of the Global Hotel Alliance (GHA), the world's largest alliance of independent hotel brands, and participates in the GHA DISCOVERY loyalty programme.
Irene Fernández
VP PR & Communications
Minor Hotels Europe & Americas, NH, NH Collection, nhow & Tivoli
ai.fernandez@minor-hotels.com
+34 619 267 690
- Enhanced ADR growth of 6.2% and a 1.1 percentage point rise in occupancy
- Recurring EBITDA expands by 11.3% to EUR 498 million in first nine months of 2024
Minor Hotels Europe & Americas announces exceptional financial performance for the first nine months of 2024, posting EUR 1,789 million in revenue, a 10.9% growth over the same period in 2023. This robust increase highlights the company's strategic emphasis on revenue optimization and operational efficiencies.
A pivotal driver of growth, Average Daily Rate (ADR) rose 6.2% year-over-year to EUR 146, with Spain and Central Europe leading performance gains across the portfolio. Revenue Per Available Room (RevPAR) increased by 8% to EUR 101, underscoring Minor Hotels' focused pricing strategy and enhanced demand in high-growth regions.
Strategic Initiatives Fuel EBITDA and Profit Growth
Minor Hotels Europe & Americas recorded a recurring EBITDA increase of 11.3% to EUR 498 million for the year-to-date. Excluding the impact of IFRS 16, EBITDA rose by a remarkable 20% to EUR 296 million, a direct result of disciplined cost management and strategic focus on ADR expansion to counterbalance inflation.
This performance translated into a significant 52% growth in recurring net profit, totaling EUR 141 million. Including non-recurring gains, total net profit increased by 46.3% to EUR 146 million, as the company effectively capitalized on growth opportunities and operational efficiencies.
Third Quarter Results Reinforce Strategic Momentum
The third quarter continued this upward trend with revenues of EUR 644 million, a 10% increase over Q3 2023, driven by a 7.3% rise in ADR to EUR 152. This ADR uplift accounted for 83% of RevPAR growth, with Spain and Central Europe demonstrating particularly strong performance.
Occupancy for Q3 reached 72.3%, surpassing pre-pandemic levels in Southern Europe. Quarterly recurring EBITDA rose by 11.2% to EUR 200 million, achieved through a focused 35% conversion rate, enhanced ADR strategy, and disciplined cost control, yielding a 38.1% rise in Q3 recurring net profit to EUR 75 million.
Strengthened Balance Sheet and Strategic Debt Management
As of September 30, 2024, Minor Hotels Europe & Americas reported net financial debt of EUR 313 million, primarily reflecting a strategic EUR 160 million investment in Minor Brazil Hotels, accounting for 80% of the total acquisition price. Excluding this acquisition, net debt would have decreased by EUR 109 million, underscoring strong organic cash flow generation despite EUR 117 million in strategic capital expenditures.
Liquidity remains robust at EUR 461 million, supported by EUR 153 million in cash and EUR 308 million in available credit lines. The company's strong financial foundation was recognized with credit rating upgrades, as Moody's elevated Minor Hotels Europe & Americas' rating to Ba3 and Fitch upgraded to BB- this year, both with stable outlooks, reflecting solid earnings performance and strengthened financial indicators.
Regional Growth and Strategic Revenue Gains
Between January and September 2024, Minor Hotels saw broad-based regional gains. Spain recorded a 75% occupancy rate and an 11% ADR increase, while Italy and Benelux regions demonstrated steady revenue growth. Central Europe showed an 8% revenue increase, supported by the UEFA Euro 2024 Football Championship, and Latin America, though challenged by economic factors in Argentina, achieved a 3% ADR increase.
About Minor Hotels
Minor Hotels is a global hospitality group operating over 550 hotels, resorts and residences in 56 countries, pursuing its vision of crafting a more passionate and interconnected world. As a hotel owner, operator and investor, Minor Hotels fulfils the needs and desires of today's global travellers through its diverse portfolio of eight hotel brands - Anantara, Avani, Elewana Collection, NH, NH Collection, nhow, Oaks and Tivoli - and a collection of related businesses. Minor Hotels is rapidly accelerating its global growth ambitions, aiming to add more than 200 hotels by the end of 2026.
Minor Hotels is a proud member of the Global Hotel Alliance (GHA), the world's largest alliance of independent hotel brands, and participates in the GHA DISCOVERY loyalty programme.
Irene Fernández
VP PR & Communications
Minor Hotels Europe & Americas, NH, NH Collection, nhow & Tivoli
ai.fernandez@minor-hotels.com
+34 619 267 690
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