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Introduction & Market Context
Minor Hotels Europe & Americas SA (BME:NHH) presented its H1 2025 results on July 23, showcasing solid performance across key metrics despite challenging year-over-year comparisons. The company, which operates hotel brands including Anantara, NH Collection, and Tivoli, reported balanced growth in both occupancy and average daily rates (ADR) while significantly improving its financial position through debt reduction.
The hotel group’s shares closed at €6.46 on the presentation day, near its 52-week high of €6.48, reflecting investor confidence in the company’s performance and strategy.
Quarterly Performance Highlights
Minor Hotels reported strong revenue growth for both Q2 and H1 2025, with balanced contributions from occupancy improvements and higher room rates across most regions.
As shown in the following chart of quarterly performance metrics, Q2 2025 saw occupancy reach 74.3% (+1.4 percentage points year-over-year), while ADR grew to €165 (+2.1%). This drove a 3.7% revenue increase to €711 million and a 2.5% improvement in recurring EBITDA to €235 million:
For the first half of 2025, the company achieved even stronger results, with total revenue reaching €1,206 million, representing a 5.4% increase over H1 2024. This growth came despite a €19 million negative currency effect, primarily offset by like-for-like growth of 4.1% (€37 million) and positive contributions from refurbishments and portfolio changes.
The following chart illustrates the components driving H1 2025 revenue growth:
RevPAR (Revenue Per Available Room) – a key hotel industry metric – increased by 5.9% to €102 in H1 2025, with ADR contributing 55% of this growth. The company’s occupancy levels have now surpassed pre-pandemic (2019) figures, particularly in Southern European countries where occupancy is 2.8 percentage points above 2019 levels.
Detailed Financial Analysis
Minor Hotels’ financial performance showed improvements across all major metrics. The company’s geographical diversification proved beneficial, with all regions contributing positively to revenue growth on a like-for-like basis.
The following chart breaks down revenue growth by region, highlighting particularly strong performance in Latin America (+10.5%) and Benelux (+7.4%):
This revenue growth translated into improved profitability, with Gross Operating Profit increasing by 6.1% to €431.7 million and recurring EBITDA growing by 6.3% to €316.8 million in H1 2025. Net recurring profit showed an impressive 30.2% increase to €86.1 million, benefiting from significantly lower interest expenses (-84.7%).
CEO Gonzalo Aguilar noted the company’s strong performance: "Our H1 2025 results demonstrate the resilience and strength of our business model, with balanced growth across all regions and significant improvements in our financial position."
Strategic Debt Management
A standout achievement in the first half of 2025 was Minor Hotels’ substantial reduction in net financial debt, which decreased from €244 million in December 2024 to €114 million by June 2025. This improvement was driven by strong operating cash flow (€145 million) and successful asset rotation (€85 million), as illustrated in the following bridge chart:
The company further strengthened its financial position through strategic debt refinancing, which extended debt maturities and reduced interest costs. As shown in the following slide, the refinancing reduced gross debt from €458 million to €258 million, extended the average tenor from 1.2 years to 4.3 years, and lowered the average cost from 4.0% to 3.8%:
This refinancing included the full redemption of €400 million in 2026 Senior Secured Notes on July 2, 2025, demonstrating the company’s proactive approach to debt management.
Forward-Looking Statements
Looking ahead, Minor Hotels expressed confidence in continued positive performance for Q3 2025, despite facing challenging comparisons with the previous year’s strong events calendar, which included the UEFA Euro 2024 tournament.
The company’s solid H1 results, coupled with its improved financial position and reduced debt levels, provide a strong foundation for sustainable growth. Management highlighted that occupancy levels now exceeding pre-pandemic figures across its portfolio indicate robust underlying demand for its hotel offerings.
While specific guidance wasn’t provided, the company’s strategic focus on balanced growth through both ADR improvements and occupancy gains, combined with continued financial discipline, suggests Minor Hotels is well-positioned to maintain its positive trajectory through the remainder of 2025.
Full presentation:
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