Balanced Outlook for Melia Hotels International: Strong Q2 Performance with Cautious Future Guidance Supports Hold Rating

In a report released today, Jaina Mistry from Jefferies maintained a Hold rating on MELIA HOTELS INTERNATIONAL, with a price target of €7.50.

Jaina Mistry’s rating is based on a combination of factors that reflect both positive and cautious elements in Melia Hotels International’s recent performance and outlook. The company reported a strong second quarter with a notable increase in net profit, primarily driven by its associates and joint ventures, and a slight beat on sales and EBITDA. Despite these positive results, the full-year RevPAR guidance remains unchanged, indicating a cautious approach to future growth expectations.
Additionally, while current trading for the third quarter appears promising with no signs of a slowdown, Melia’s valuation, trading at a lower multiple compared to its historical average, suggests a balanced view of its potential upside. This combination of solid current performance but unchanged future guidance, along with its current trading valuation, supports the Hold rating, as it reflects a wait-and-see approach to how these factors will play out in the coming quarters.