0.28%
-2.24%
5.49%
1.77%
14.55%
7.79%
-0.62%
AI Spotlight on MEL
Company Description
Meliá Hotels International, S.A. owns, manages, operates, leases, and franchises hotels worldwide.The company operates approximately 380 hotels under the Gran Meliá Hotels & Resorts, Paradisus by Meliá, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, Sol by Meliá, TRYP by Wyndham, and Circle by Melia brand names, as well as Meliá PRO, a platform for B2B clients.It also operates Club Meliá vacation club; develops and operates real estate properties; and engages in the casinos and tour-operator activities.
The company was formerly known as Sol Meliá, S.A. and changed its name to Meliá Hotels International, S.A. in June 2011.Meliá Hotels International, S.A. was founded in 1956 and is based in Palma de Mallorca, Spain.
Market Data
| Last Price | 7.21 |
| Change Percentage | 0.28% |
| Open | 7.2 |
| Previous Close | 7.18 |
| Market Cap ( Millions) | 1586 |
| Volume | 181046 |
| Year High | 8.18 |
| Year Low | 5.89 |
| M A 50 | 7.13 |
| M A 200 | 7.07 |
Financial Ratios
| FCF Yield | 7.56% |
| Dividend Yield | 1.30% |
| ROE | 35.00% |
| Debt / Equity | 404.57% |
| Net Debt / EBIDTA | 442.07% |
| Price To Book | 2.47 |
| Price Earnings Ratio | 8.18 |
| Price To FCF | 13.23 |
| Price To sales | 0.62 |
| EV / EBITDA | 7.36 |
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Hotel Business
Expected Growth : 3.0 %
What the company do ?
Meliá Hotels International, S.A. operates in the hotel business, offering a range of accommodations and services across various brands, including Gran Meliá, Meliá, ME, and Paradisus.
Why we expect these perspectives ?
Meliá Hotels International's 3.0% growth is driven by increasing demand for premium hospitality, strategic expansion in emerging markets, and effective cost management. Additionally, the company's focus on digital transformation, loyalty programs, and experiential offerings enhances customer satisfaction, leading to higher occupancy rates and revenue growth.
Segment n°2 -> Eliminations
Expected Growth : 0.5 %
What the company do ?
Eliminations from Meliá Hotels International, S.A. refer to the removal of non-core assets, such as hotel disposals, to focus on core business and improve profitability.
Why we expect these perspectives ?
Meliá Hotels International's 0.5% growth is driven by strategic cost reductions, improved operational efficiency, and a focus on high-margin business segments. Additionally, the company's efforts to renovate and reposition its hotel portfolio, as well as its expansion into new markets, contribute to its moderate growth.
Segment n°3 -> Hotel Management
Expected Growth : 2.5 %
What the company do ?
Meliá Hotels International's Hotel Management segment offers hotel management services, including operational management, marketing, and sales, to a portfolio of owned, leased, and managed hotels.
Why we expect these perspectives ?
Meliá Hotels International's 2.5% growth in Hotel Management is driven by increasing demand for premium hospitality services, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on digitalization, sustainability, and customer experience enhancement contributes to its growth. Effective cost management and operational efficiencies also support the segment's growth.
Segment n°4 -> Corporate
Expected Growth : 1.5 %
What the company do ?
Meliá Hotels International, S.A. is a Spanish hospitality company that operates a diverse portfolio of hotel brands, including Gran Meliá, Meliá, ME by Meliá, and Paradisus, among others.
Why we expect these perspectives ?
Meliá Hotels International, S.A.'s 1.5% growth is driven by strategic expansion into emerging markets, increasing demand for luxury travel, and effective cost management. The company's focus on digital transformation, loyalty programs, and partnerships with travel companies also contribute to its growth. Additionally, Meliá's diversified portfolio of brands and geographic presence help mitigate risks and capture opportunities in various markets.
Segment n°5 -> Other Business with Hotel Management
Expected Growth : 2.2 %
What the company do ?
Meliá Hotels International's Other Business segment includes hotel management contracts, where the company operates hotels owned by third parties, generating revenue through management fees.
Why we expect these perspectives ?
Meliá Hotels International's Other Business with Hotel Management segment growth of 2.2% is driven by increasing demand for luxury travel, strategic partnerships, and expansion into new markets. Additionally, the company's focus on digitalization, customer experience, and operational efficiency has contributed to revenue growth.
Segment n°6 -> Vacation Club
Expected Growth : 2.8 %
What the company do ?
Meliá's Vacation Club offers a points-based membership program, allowing members to book stays at Meliá hotels and resorts worldwide, with flexibility and exclusive benefits.
Why we expect these perspectives ?
Meliá Hotels International's Vacation Club growth is driven by increasing demand for luxury vacation experiences, strategic partnerships, and expansion into new markets. The 2.8% growth rate is also attributed to the company's focus on digital transformation, loyalty programs, and personalized services, which enhance customer satisfaction and retention.
Segment n°7 -> Real Estate
Expected Growth : 1.8 %
What the company do ?
Meliá Hotels International's Real Estate segment manages and develops properties, offering a unique investment opportunity in the hospitality industry.
Why we expect these perspectives ?
Meliá Hotels International's 1.8% growth in Real Estate is driven by increasing demand for luxury vacation homes, strategic partnerships with leading developers, and expansion into high-growth markets such as the Middle East and Asia. Additionally, the company's focus on sustainable and eco-friendly developments, as well as its strong brand reputation, contribute to its steady growth.
Meliá Hotels International, S.A. Products
| Product Range | What is it ? |
|---|---|
| Hotel Rooms | Meliá Hotels International offers a wide range of hotel rooms across its various brands, catering to different customer segments and preferences. |
| Meeting and Event Spaces | The company provides state-of-the-art meeting and event spaces, equipped with modern amenities and catering services, ideal for conferences, weddings, and other events. |
| Food and Beverage Services | Meliá Hotels International offers a diverse range of dining options, from fine dining restaurants to casual bars and cafes, serving international and local cuisine. |
| Spa and Wellness Services | The company's hotels feature luxurious spas and wellness centers, offering massages, treatments, and fitness facilities to promote relaxation and rejuvenation. |
| Vacation Club Memberships | Meliá Hotels International offers vacation club memberships, providing members with access to exclusive benefits, discounts, and priority reservations. |
| Wedding and Honeymoon Packages | The company offers customized wedding and honeymoon packages, including romantic getaways, ceremony planning, and special amenities. |
Meliá Hotels International, S.A.'s Porter Forces
Threat Of Substitutes
Meliá Hotels International, S.A. faces moderate threat from substitutes, as customers have various accommodation options, including Airbnb, hostels, and vacation rentals. However, the company's strong brand reputation and loyalty program help to mitigate this threat.
Bargaining Power Of Customers
Meliá Hotels International, S.A. faces high bargaining power from customers, who have numerous options and can easily compare prices and services online. The company must maintain competitive pricing and high-quality services to retain customers.
Bargaining Power Of Suppliers
Meliá Hotels International, S.A. has relatively low bargaining power from suppliers, as it is a large company with significant purchasing power. This allows the company to negotiate favorable contracts with suppliers.
Threat Of New Entrants
Meliá Hotels International, S.A. faces moderate threat from new entrants, as the hotel industry has relatively high barriers to entry, including significant capital requirements and regulatory hurdles. However, new entrants can still disrupt the market with innovative business models.
Intensity Of Rivalry
Meliá Hotels International, S.A. operates in a highly competitive industry, with many established players and a high level of rivalry. The company must differentiate itself through its brand, services, and customer experience to maintain market share.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 74.08% |
| Debt Cost | 5.65% |
| Equity Weight | 25.92% |
| Equity Cost | 13.11% |
| WACC | 7.59% |
| Leverage | 285.74% |
Meliá Hotels International, S.A. : Quality Control
Meliá Hotels International, S.A. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| VAC.PA | Pierre et Vacances SA, through its subsidiaries, engages in the holiday accommodation and holiday property investment business in Europe and internationally. It operates through two segments, Property Development and Tourism. … |
| PPH.L | PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in the Netherlands, Germany, Hungary, Serbia, Italy, Austria, and the United Kingdom. It owns and … |
| DAL.L | Dalata Hotel Group plc owns and operates hotels under the Maldron Hotels and Clayton Hotels brand names in Dublin, Regional Ireland, and United Kingdom. The company operates three-star and four-star … |
| NHH.MC | NH Hotel Group, S.A. operates hotels in Spain, Benelux, Italy, Germany, Latin America, and internationally. As of December 31, 2021, the company operated 353 hotels and 55,063 rooms in 30 … |
| SHOT.ST | Scandic Hotels Group AB (publ), together with its subsidiaries, operates and franchises hotels in Sweden, Norway, Finland, Denmark, Germany, Poland, and other European Countries. The company operates hotels under the … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Scandic Hotels
A-Score
1-Year Total Return ->
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Meliá Hotels
A-Score
1-Year Total Return ->
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Dalata Hotel
A-Score
1-Year Total Return ->
4
Pierre et Vacances
A-Score
1-Year Total Return ->
5
PPHE Hotel Group
A-Score
1-Year Total Return ->
6
