Minor Hotels Europe and Americas Reach €2.427 Billion Revenue in 2024
Table of Contents
- 1. Minor Hotels Europe and Americas Reach €2.427 Billion Revenue in 2024
- 2. Positive trends in Average Daily Rate and Occupancy Rates
- 3. Strategic Corporate Initiatives Propel EBITDA and Profitability
- 4. Sustained Momentum in Fourth Quarter of 2024
- 5. Strategic Debt Management and Financial Stability
- 6. regional Growth Across Europe and Latin America
- 7. Looking Ahead: positive Outlook for 2025
- 8. What strategic initiatives contributed to Minor Hotels achieving an EBITDA margin of 17% in 2024, maintaining parity with 2019 figures?
- 9. Archyde Interview: Minor Hotels Europe & Americas – A Force to Reckon With in 2024
- 10. Archyde:
- 11. Elena Vesper, COO, Minor Hotels Europe & Americas:
- 12. Archyde:
- 13. Elena Vesper:
- 14. Archyde:
- 15. Elena Vesper:
- 16. Archyde:
- 17. Elena Vesper:
- 18. archyde:
- 19. Elena Vesper:
- 20. Archyde:
- 21. Elena Vesper:
- 22. Archyde:
- 23. Elena Vesper:
Minor Hotels Europe & Americas closed 2024 with outstanding financial success, reporting total revenues of €2,427 million, a 12% increase compared to €2,163 million in 2023. This strong performance reflects the effectiveness of the Group’s strategic focus on optimizing its portfolio, maintaining stringent cost controls, and enhancing operational efficiency.
Positive trends in Average Daily Rate and Occupancy Rates
The group’s strategic emphasis on ADR, coupled with robust demand, resulted in a 4% increase in ADR to €143 per night in the fourth quarter of 2024. Occupancy rates also saw positive momentum, reaching 70%, an increase of 1.5 percentage points compared to the fourth quarter of 2023.
Strategic Corporate Initiatives Propel EBITDA and Profitability
Minor Hotels Europe & Americas’ strategic initiatives have significantly bolstered its profitability. The Group’s reported EBITDA surged by 14% to €680 million in 2024. Excluding the impact of IFRS 16, recurring EBITDA reached €407 million, reflecting a 24.5% increase. The EBITDA margin improved to 17%, two percentage points higher than in 2023, maintaining parity with 2019 figures. This robust performance is attributed to the Group’s dynamic ADR strategy and stringent cost management.
The Group experienced meaningful growth in profitability,with a 67% growth in recurring net profit,reaching €210 million,while total net profit rose by 65% to €212 million.
Sustained Momentum in Fourth Quarter of 2024
Minor Hotels Europe & Americas maintained strong growth momentum in the fourth quarter of 2024, with total revenue increasing to €639 million, reflecting a 16% year-on-year rise. The quarter saw robust performance across both Europe and Latin America, bolstered by the Brazilian portfolio’s positive impact and the Argentine currency’s devaluation in December 2023.
Strategic Debt Management and Financial Stability
Minor Hotels Europe & Americas demonstrated effective financial stewardship by reducing net financial debt by €20 million in 2024, closing the year at €244 million. This achievement is especially noteworthy given the €158 million net upfront payment for Brazilian assets and €154 million in CapEx, underscoring the Group’s strategic focus on portfolio enhancement and IT investments.Liquidity remained robust at €533 million, including €220 million in cash reserves.
In recognition of its sustained financial performance and strong liquidity position,Moody’s upgraded the Group’s corporate rating from ‘B1’ to ‘Ba3’ with a stable outlook on october 1,2024. Similarly, Fitch improved its rating from ‘B’ to ‘BB-‘ during the year, positioning Minor Hotels Europe & Americas’ corporate rating one notch above its pre-pandemic level in 2019.
regional Growth Across Europe and Latin America
Minor Hotels Europe & Americas experienced generalized growth across all regions in 2024. In Europe, Average daily Rates and occupancy rates increased across all countries. Spain recorded a 74% occupancy rate, up by 2 percentage points, alongside a 10% rise in ADR. Italy, Benelux, and Central Europe also witnessed single-digit growth in ADR, coupled with occupancy gains ranging from one to three percentage points.
In Latin America, occupancy rates remained steady, while ADR continued its upward trajectory, reflecting resilient market demand.
Looking Ahead: positive Outlook for 2025
As Minor Hotels Europe & Americas enters 2025, the Group remains well-positioned to leverage its strategic initiatives, strong financial performance, and market adaptability. With continued focus on optimizing its portfolio, enhancing operational efficiency, and maintaining a solid financial foundation, the Group is poised to capitalize on emerging opportunities within the global travel and hospitality landscape.
minor Hotels Europe & americas’ notable revenue growth, strategic debt management, and regional expansion highlight its resilience and adaptability, positioning the Group for continued success in the year ahead.
What strategic initiatives contributed to Minor Hotels achieving an EBITDA margin of 17% in 2024, maintaining parity with 2019 figures?
Archyde Interview: Minor Hotels Europe & Americas – A Force to Reckon With in 2024
Archyde:
We’re delighted to have with us today, Ms. Elena Vesper, the dynamic COO of Minor Hotels Europe & Americas, to discuss the group’s remarkable performance in 2024.
Elena Vesper, COO, Minor Hotels Europe & Americas:
Thank you for having me. I’m excited to share our accomplishments and plans for the future.
Archyde:
Let’s start with the notable €2.427 billion revenue in 2024, up by 12% from 2023. What contributed most to this growth?
Elena Vesper:
I believe our strategic focus on optimizing the portfolio and enhancing operational efficiency played a significant role.Plus, the strong performance in our ADR strategy drove a 4% increase in average daily rates.
Archyde:
Speaking of ADR, the occupancy rates also saw a significant increase of 70%. How did you manage to achieve this?
Elena Vesper:
Our robust demand and a strategic emphasis on ADR were key. We also maintained stringent cost controls,which helped us balance supply and demand effectively.
Archyde:
The EBITDA margin improved to 17%, maintaining parity with 2019 figures. That’s quite commendable given the post-pandemic recovery. Tell us more about the strategic initiatives behind this.
Elena Vesper:
Our dynamic ADR strategy and strict cost management have been crucial. We’ve also made significant investments in IT and the portfolio,which haveyielded impressive results.
archyde:
Minor Hotels also saw a significant reduction in net financial debt and rating upgrades from Moody’s and Fitch. How did you achieve this financial stability?
Elena Vesper:
Effective financial stewardship and a focus on strategic debt management have been instrumental. Despite making substantial net upfront payments and CapEx, we successfully reduced net financial debt by €20 million in 2024.
Archyde:
Looking ahead to 2025, what challenges or opportunities do you see in the global travel and hospitality landscape, and how is Minor Hotels positioning itself?
Elena Vesper:
We expect continued growth and market adaptability. By focusing on optimizing our portfolio, enhancing operational efficiency, and maintaining a solid financial foundation, we’re well-positioned to capitalize on emerging opportunities in the global travel and hospitality scene.
Archyde:
Thank you for sharing your insights, Elena. Your perspective has certainly shed light on Minor Hotels’ impressive 2024 performance and the exciting times ahead.
Elena Vesper:
My pleasure. Thanks for having me.