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MELIA HOTELS INTERNATIONAL (ES:MEL)
BME:MEL
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MELIA HOTELS INTERNATIONAL (MEL) AI Stock Analysis

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ES:MEL

MELIA HOTELS INTERNATIONAL

(BME:MEL)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
€8.50
▲(15.18% Upside)
MELIA HOTELS' strong financial performance, characterized by revenue growth and improved profitability, is the primary driver of its stock score. The technical analysis suggests neutral momentum, while the valuation indicates potential undervaluation. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates the company's successful recovery and expansion efforts, enhancing its market position and long-term viability.
Margin Improvement
Improved margins reflect enhanced operational efficiency and cost management, which contribute to sustained profitability and competitive advantage.
Cash Flow Generation
Robust cash flow generation supports financial flexibility, enabling strategic investments and debt reduction, thus strengthening the company's financial health.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.
Equity Ratio
While improving, a relatively low equity ratio suggests reliance on debt financing, which could impact long-term financial stability if not managed carefully.
Pandemic Recovery
Despite recovery, reliance on travel and tourism makes the company vulnerable to future disruptions, potentially affecting long-term growth and stability.

MELIA HOTELS INTERNATIONAL (MEL) vs. iShares MSCI Spain ETF (EWP)

MELIA HOTELS INTERNATIONAL Business Overview & Revenue Model

Company DescriptionMeliá 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.
How the Company Makes MoneyMELIA HOTELS INTERNATIONAL generates revenue primarily through its hotel operations, which include room sales, food and beverage services, and event hosting. Key revenue streams include direct bookings through its website and mobile app, as well as partnerships with online travel agencies and corporate clients. Additionally, the company benefits from loyalty programs that encourage repeat business and increase customer retention. Significant partnerships with travel agencies and tour operators also contribute to its earnings, while the company's strategic focus on expanding its global presence through new hotel openings and acquisitions further enhances its revenue potential.

MELIA HOTELS INTERNATIONAL Financial Statement Overview

Summary
MELIA HOTELS has demonstrated strong financial recovery with significant revenue growth and improved profit margins. The balance sheet shows increased equity and financial stability despite high leverage, and cash flow statements indicate robust cash generation and liquidity.
Income Statement
82
Very Positive
MELIA HOTELS demonstrated strong revenue growth of 4% from 2023 to 2024, with a notable recovery from pandemic lows. Gross profit margin improved significantly, reaching 89.9%, and the net profit margin increased to 7% in 2024. The EBIT and EBITDA margins are healthy at 16.6% and 28.4% respectively, indicating strong operational efficiency. The company has recovered well from negative margins during the pandemic era.
Balance Sheet
75
Positive
The debt-to-equity ratio stands at 3.22, indicating a high leverage position, but there's been an increase in stockholders' equity by 47.8% from 2023 to 2024, showcasing improved financial stability. Return on Equity was 18.5% in 2024, reflecting efficient use of equity to generate profits. The equity ratio improved to 16.5%, indicating a strengthening capital structure.
Cash Flow
78
Positive
Free cash flow grew by 22.9% from 2023 to 2024, indicating strong cash generation. The operating cash flow to net income ratio was 2.97, highlighting robust cash earnings. The free cash flow to net income ratio stands at 2.4, reflecting a solid ability to convert profits into cash. Overall, cash flow improvements signal a strong liquidity position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.09B2.01B1.93B1.68B827.21M528.40M
Gross Profit1.89B1.80B1.03B1.50B735.62M469.53M
EBITDA604.39M568.59M515.37M520.96M144.47M-279.92M
Net Income172.31M140.63M117.73M110.69M-192.90M-595.93M
Balance Sheet
Total Assets4.69B4.58B4.44B4.35B4.21B4.07B
Cash, Cash Equivalents and Short-Term Investments303.06M174.99M186.82M168.95M100.56M104.79M
Total Debt2.51B2.44B2.81B2.83B2.95B2.71B
Total Liabilities3.57B3.51B3.87B3.90B3.89B3.57B
Stockholders Equity797.43M758.17M512.94M413.19M303.35M475.33M
Cash Flow
Free Cash Flow0.00338.21M275.00M380.80M48.38M-302.19M
Operating Cash Flow0.00417.43M397.22M493.00M126.85M-250.40M
Investing Cash Flow0.00-66.90M-118.82M-133.09M87.52M-68.04M
Financing Cash Flow0.00-343.35M-260.16M-297.39M-232.97M98.42M

MELIA HOTELS INTERNATIONAL Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.38
Price Trends
50DMA
7.62
Negative
100DMA
7.53
Negative
200DMA
7.09
Positive
Market Momentum
MACD
-0.06
Negative
RSI
48.09
Neutral
STOCH
82.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MEL, the sentiment is Neutral. The current price of 7.38 is above the 20-day moving average (MA) of 7.35, below the 50-day MA of 7.62, and above the 200-day MA of 7.09, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 82.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:MEL.

MELIA HOTELS INTERNATIONAL Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€1.62B9.4023.93%1.94%3.31%44.82%
8.95%64.16%
$13.29B17.4210.03%0.93%7.13%-12.93%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:MEL
MELIA HOTELS INTERNATIONAL
7.39
0.82
12.51%
ES:NHH
NH Hotel Group S.A
6.50
2.23
52.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025