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Introduction & Market Context
Minor Hotels Europe & Americas SA (BME:NHH) reported solid first-quarter results for 2025, with revenue growth across all regions and a return to profitability. The hotel operator, which manages brands including Anantara, NH Hotels, and Tivoli, presented its Q1 2025 results on May 12, highlighting strong performance metrics that signal continued recovery in the hospitality sector.
The company’s shares closed at €6.30 on May 30, near its 52-week high of €6.36, reflecting investor confidence in the company’s strategic direction and financial performance.
Quarterly Performance Highlights
Minor Hotels reported revenues of €496 million in Q1 2025, representing an 8% increase compared to the same period in 2024. This growth was driven by both improved operational performance and strategic portfolio changes.
As shown in the following chart of key performance indicators, the company saw improvements across all major metrics:
Occupancy reached 64.2% in Q1 2025, an increase of 2.1 percentage points year-over-year, though still slightly below 2019 pre-pandemic levels. Average Daily Rate (ADR) grew by 5.1% to €127, contributing 59% of the total RevPAR growth. The company’s recurring EBITDA showed particularly strong improvement, reaching €12 million (excluding IFRS 16 impacts), compared to just €2 million in Q1 2024.
CEO Gonzalo Aguilar highlighted the company’s strong start to the year:
Detailed Financial Analysis
Revenue growth was broad-based across all regions, with particularly strong performance in Spain (+7% like-for-like) and Italy (+6% like-for-like). Portfolio changes, including additions in Brazil and Vienna, contributed €13 million or 36% of the total revenue growth.
The following chart breaks down the revenue progression from Q1 2024 to Q1 2025:
RevPAR (Revenue Per Available Room) grew by 8.6% to €82, with both ADR and occupancy contributing to this improvement. Excluding perimeter changes, RevPAR still showed healthy growth of 5.1%.
Regional performance varied, with Spain achieving the highest occupancy rate at 70% (+2 percentage points year-over-year), while Latin America saw the strongest ADR growth at 26%, primarily driven by the Brazil portfolio:
The company’s profitability metrics showed significant improvement, with Gross Operating Profit increasing by 13.2% to €132.2 million and recurring EBITDA growing by 18.8% to €81.8 million. Most notably, the company reported a net profit of €3.6 million, compared to a loss of €22.2 million in Q1 2024, though this improvement was partially due to gains from asset disposals.
Strategic Initiatives
Minor Hotels continued its focus on strengthening its balance sheet during the quarter. Net financial debt decreased to €207 million as of March 31, 2025, down from €244 million at the end of 2024. This reduction was primarily driven by €84 million in proceeds from asset disposals, which more than offset the €43 million in capital expenditures during the quarter.
The following chart illustrates the movement in net financial debt:
The company’s improved financial position has been recognized by credit rating agencies, with Fitch revising its outlook to positive while affirming its ’BB-’ rating, and Moody’s upgrading the company to ’Ba3’ from ’B1’ with a stable outlook.
Minor Hotels also announced significant debt refinancing initiatives, including a new €200 million bank term loan and a €200 million revolving credit facility. These new instruments will be used to redeem the €400 million 2026 Senior Secured Notes, extending the company’s debt maturity profile and reducing gross debt:
Forward-Looking Statements
Looking ahead, Minor Hotels indicated that Q2 trends are in line with expectations, though the company did not provide specific guidance for the remainder of 2025. The company’s strong liquidity position of €580 million (€255 million in cash and €325 million in available credit lines) provides financial flexibility for future investments and to navigate any potential market volatility.
The continued improvement in occupancy rates, particularly in Southern European countries where levels are now 3 percentage points above 2019, suggests that the recovery in the hospitality sector remains on track despite ongoing economic uncertainties in some markets.
With its strengthened balance sheet, improved credit ratings, and solid operational performance across all regions, Minor Hotels appears well-positioned to capitalize on growth opportunities in the European and Americas hospitality markets through 2025 and beyond.
Full presentation:
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