Hold Rating Maintained for Melia Hotels International Amid Mixed Financial Signals and Growth Concerns

Analyst Jaina Mistry of Jefferies maintained a Hold rating on MELIA HOTELS INTERNATIONAL (0MKO – Research Report), retaining the price target of €7.50.

Jaina Mistry’s rating is based on several factors influencing Melia Hotels International’s current financial performance and future outlook. The company’s first-quarter revenues surpassed expectations, yet the EBITDA fell short, indicating some operational challenges. Additionally, the RevPAR was negatively impacted by performance in Cuba, although there was strength in other regions. Despite a positive outlook commentary and an increased target for hotel openings in 2025, the company’s pipeline is declining, which suggests potential future growth limitations.
Furthermore, Melia Hotels International is trading at a lower EV/EBITDA multiple compared to its historical average, which might reflect investor caution. The company’s net income and EPS also came in below expectations, and the net debt remains high. These mixed signals, along with macroeconomic volatility, have led Jaina Mistry to maintain a Hold rating, suggesting that investors may want to wait for clearer signs of consistent growth before making more aggressive investment decisions.