Melia Hotels: Feedback call: Stronger top line, EBITDA slightly disappointing. RevPAR guidance upgraded
BUY-Top Picks, Fair Value EUR15 (+40%)
Top-line growth was ahead of expectations with total revenue up 8% at EUR399m (consensus at EUR389m) after RevPAR rose 10.7% (6.8% anticipated). Despite this, EBITDA improved by only 5% to EUR65.5m (in line with consensus) affected by the digital plan (not yet fully detailed) and the ramp-up in new openings under lease contracts. The outlook remains bright especially in Spain and management now expects a mid-to-high single-digit RevPAR increase for 2016, versus mid-single digit previously. Positive.
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