Hello. Good morning and welcome to the Meliá Hotels International First Half 2025 Earnings Conference Call. I'm Stéphane Baos, Head of Investor Relations. Our participants will be in listen-only mode. After the presentation, anybody who is interested will have a chance to ask questions so we can resolve any additional doubts. Please note that this event is being recorded. Before we begin, we would like to remind you that our discussion this morning will include forward-looking statements. Actual results could differ from those indicated in the forward-looking statements, and forward-looking statements made today speak only to our expectation as of today. Unless otherwise stated with respect to occupancy, average daily rates, and P&L comments refer to year-over-year change for the comparable period. This morning, as usual, on the call with me today are Gabriel Escarrer, our President and Chief Executive Officer, André Gerondeau, our Chief Operating Officer, Ángel Luis Rodríguez, our Chief Financial Officer, and Juan Ignacio Pardo, our Chief Real Estate and Sustainability Officer. Our President and CEO will provide an overall overview for the company performance. André will then review our second quarter onwards. Following their remarks, we will be happy to take your questions. In any case, the Investor Relations team will be available following this conference call to give you a chance to clarify anything else you might need. You can find our earnings release on our Investor Relations website. Now I'm pleased to turn the call over to Gabriel. Thank you, Stéphane. Good morning, everyone, and thank you for being with us today. I'm pleased to share with you the results of Meliá Hotels International for the first half of 2025, a period that confirms the strength and resilience of our business even in a context with greater uncertainty and geopolitical tensions. In this environment, turning to results for the second quarter and half-year, system-wide RevPAR during the second quarter of the year grew by 5.8% and 4.7% for the semester. As half of the year has already gone by, we are delivering on our guidance. We are confident on achieving an overall year-on-year RevPAR increase in the mid-single-digit range with a balanced contribution of occupancy and price increases. This contribution not only reflects the strength of the tourism sector but also the repositioning of our hotels that we have been carrying out in the last years, upgrading our product and services. Turning to the financials, consolidated revenue, excluding capital gains, for the first half of the year increased by plus 3.1% and plus 4.9% in the second quarter alone, which was particularly strong despite the negative impact of the USD/EUR exchange rate during the second quarter of around minus 5% and temporary challenges in some destinations such as Germany, Cuba, and the closing for renovation purposes of our Paradisus Cancún. These results give us confidence in the potential for further improvement in the coming months. Turning to operating expenses, the increase was of 2.6% for the first half and 3.2% for the second quarter. This increase is in part due to the addition of new hotels under variable lease contracts. First-half EBITDA, excluding capital gains, reached EUR 243.5 million, a 2.5% increase compared to last year. It is worth noting that second-quarter EBITDA increased by 7.5% compared to last year. Regarding margins, we have continued to progress in our efficiency programs, attaining a 28% margin for the second quarter, while first-semester margins stood stable versus last year at 24.7%. I would like to highlight that these margins are being delivered despite the fact that some of our 100% asset-light regions are below our expectations, mainly due to Cuba's performance and the closure of Paradisus Varadero. Also, I recall the restructuring costs that we presented in the first quarter, which also affected margins at the beginning of the year. Net financial result has improved by €22.3 million compared to the first half of 2024 after the significant delivery progress carried out last year. This delivery progress allows us to prepay and refinance part of our debt with attractive financing conditions. Together with the decrease in reference interest rates, we have reduced our bank financing expenses by 40.2%. Profit from associates and JVs stood at €22.6 million compared to €3.5 million last year. This increase was due to a positive impact of €23.9 million generated from capital gains from a sale in a joint venture, partially offset by an impairment of minus €7.6 million in an associate. With all that, group's net profit increased by 72.4%, reaching €88.5 million, with net profit attributable to the parent company also increased by 72.4%, reaching €75.4 million. Turning to the balance sheet, net debt, excluding leases, decreased by EUR 17.5 million in the semester, reaching a total of EUR 755.2 million. This decrease, nevertheless, was concentrated in the second quarter, where operating cash flow surpassed EUR 70 million. This is an improvement compared to last year, so the cash flow generation remained very robust. It is worth noting that, as we disclosed in our earnings release, we have a one-off cash out of approximately EUR 30 million from a cancellation of an operation carried out previously concerning the sale of 50% stake of a hotel located in Mexico, Puerto Vallarta. Due to the delay of administrative and technical issues, together with our partner, we agreed to cancel the operation and return the total amount. Turning to maturities, our current liquidity position allows us to comfortably meet the short-medium-term debt repayment dates. However, after the refinancing process carried out last year, part of our 2026 and 2027 debt was secured under favorable conditions. Even in today's market, these conditions are still attractive, and therefore we are not planning to repay them in advance. After this deleverage and refinancing process, and after returning to pre-pandemic level ratios or even below, we reaffirm our expectations to maintain a stable leverage ratio. We are flexible to pursue growth and repositioning opportunities that may arise in the future. In fact, subsequent to the end of the first half of the year, the group acquired from Victoria Hotels & Resorts the 50% ownership of the Paradisus Salinas Lanzarote for EUR 36.5 million. We consider the expansion of the Paradisus brand in Europe as strategic, and the transaction allows us to reset the management contract for 30 more years, while maintaining a majority stake in a fully repositioned hotel, yet with upside potential located in a key destination as the Canary Islands. I will now turn the call over to André to talk about our operational performance during the second quarter and forward in more detail. André, please. Thank you, Gabriel, and good morning, everyone. During the first half and second quarter of 2025, the hotel sector has continued to demonstrate resilience in a global environment where uncertainty has increased. However, our destinations continue to benefit from a stable mix of nationalities, segments, and product, which support the upward trend we have been recently witnessing. Our booking pace remains consistent, while on-the-book reservations for the third quarter are positive compared to last year in our resort hotels, so far by over 5%. As already said, system-wide RevPAR has increased by 4.7% in the first half and by 5.8% in the second quarter. The booking pattern has remained stable and solid. This performance has been driven by the dynamism of both international and local tourism, along with the growing preference for differentiated experiences and higher value-added offerings, clearly defined in our luxury and premium properties. Let me remind you that luxury represents approximately 20% of the room inventory and contributes nearly 40% of the revenues. There are, as well, certain areas that still show room for improvement. We are confident that as these recover, our operational metrics will continue to improve. I will further detail by regions. Spain continues to lead our performance with strong results in both resort and urban destinations. The Balearic and Canary Islands benefit from robust demand from both direct clients and tour operators, while our urban hotels in Madrid and Seville saw positive momentum, supported by recent openings and renovations in the premium and luxury segments. In EMEA, performance is overall quite positive, with still some challenges in Germany due to the absence of major events like last year's Euro Cup and relevant music festival and concerts, which were a nationwide event attracting a relevant group base with lower price sensitivity. This quarter, we managed to maintain occupancy. France showed a strong rebound, especially in the MICE and leisure segments compared to last year. The preparation works in infrastructure ahead of the Olympic Games affected last year's second quarter performance, as many segments avoided the city, especially in June. In Italy, Milan performed well thanks to our strong MICE and corporate demand. Gran Meliá Palazzo Cordusio, as previously explained regarding luxury strategy, continued to gain market share and strengthen its positioning as well as Meliá Milano's sta. In Rome, we also saw solid growth, supported by group bookings and events linked to the papal transition. Lastly, in the United Kingdom, London delivered strong results thanks to recurring events and new corporate demand. While performance in other cities was mixed, Northern U.K. keeps a positive pace. In America, performance improved across most hotels, with corporate and tour operations driving growth. In Mexico, the temporary closure of Paradisus Cancún impacted available rooms, affecting the country's revenues. The rest of the hotels performed well, with still MICE being impacted on US companies as they are delaying some events. In the Dominican Republic, strong Easter demand and better air connectivity supported rate growth despite continued weakness in the MICE segment. The lack of MICE allowed us to increase rates while decreasing occupancy. In Asia, China showed limited progress with weak corporate demand and pricing pressure. However, Southeast Asia, specifically Vietnam, delivered strong growth thanks to improved connectivity and regional demand. Lastly, our operations in Cuba continued with limited growth due to the combination of external and internal factors. While tourist facilities are equipped with backup power systems, international perception has been negatively affected and amplified by social media campaigns. Connectivity with feeder markets has decreased, affecting the arrival of tourists. As far as the outlook, looking ahead for the summer season, it remains positive, particularly in our resort hotels, where, as mentioned, on-the-book reservations are trending above last year's more than 5%. We expect continued growth in RevPAR, supported both by the rate increase and occupancy. Premium room sales and experiences remain a key lever, showing strong momentum. As we anticipated, we are in an environment of a healthy demand normalization and stabilization. Different entities and data providers are showing consistent increases in expected overall tourism volume. Our approach, which we have been following the last years, is to concentrate in quality. We are confident that we have the tools to further capitalize on demand across all segments. Briefly going into regions, Spain leads the way, with strong demand in the Balearic Islands and Canary Islands and strong performance also in main urban destinations. Italy is still quite solid. France trends are positive in spite of the comparison to the Olympics celebrated last year, and the U.K. as well shows positive trends, with London leading growth. Germany, on the other hand, faces a tougher comparison base due to the impact of what we just had mentioned. In the Americas, on a like-for-like basis due to the refurbishment process of Paradisus Cancún, which will become one of the best properties in Cancún with no exception, and in the Dominican Republic, they're expected to grow. MICE segment is still lagging. Overall, the increased connectivity with newer countries provides for greater diversification. The U.S., as feeder market, is performing very strong towards Europe, least so in the Caribbean, specifically the Dominican Republic. Asia continues to recover, with Vietnam and Thailand showing the most promise. Turning to development, in line with capitalizing our leadership in the resort segment and our focus towards new markets, the company signed a total of 20 new hotels until July with more than 3,000 rooms, with the increased objective to reach close to 35 new signatures on a yearly basis and around 8,000 rooms to be added to our pipeline during the year. All our openings are done under our asset-light model, and we are encouraged to see our system growing in the coming years. For 2025, we are expecting a 3.5-unit growth for the year, not considering the exceptional disaffiliation of two properties in Cuba, if so, close to a 3% net unit growth. I will now turn back the call over to Gabriel to summarize the main messages of the call. Thank you, André. As a summary, I would like to highlight the following messages. Our first semester results are strong as our operations remain solid. Excluding capital gains, EBITDA for the semester increased by 2.5%, with margins remaining stable compared to last year. The second quarter ended on an upward trend, with EBITDA increasing by 7.2%, with margins reaching 28%, an improvement of 59 basis points. This has been achieved despite some headwinds, which are mainly the following: the negative evolution of the U.S. dollar compared to the euro affects our revenues in the Caribbean due to the accounting conversion. We have room for improvement in some destinations like Cuba, the Dominican Republic, and Germany, and we closed Paradisus Cancún for renovation purposes affecting revenues in Mexico. Additionally, some of our hotels recently opened are still in a ramp-up period and therefore not still showing their full potential. Now, looking into the near future for the full year 2025, we expect the following. The summer season, which is currently underway, is showing good results and a positive outlook, with on-the-book reservations for our resort hotels 5% ahead of last year. We are refirming our full-year guidance to increase RevPAR in the mid-single-digit range, with a balanced contribution between prices and occupancy. This positive evolution allows us to expect an EBITDA margin improvement for 2025 of around 100 basis points compared to 2024. In terms of development, up to date, we have signed 20 new hotels, all of them under asset-light formulas. We are increasing our objective to sign during the full year at least 35 new properties, adding more than 8,000 rooms to our pipeline. Regarding unit growth for the year, we are expecting a 3.5% increase, not considering the disaffiliation of two properties in Cuba. The debt level and leverage ratios have improved significantly in the last year. This is reflected in the reduction of banking expenses but also in the improvement of our credit profile. We are certain that our robust cash generation and liquidity available have our medium-long-term repayment schedule well covered. We will remain at a stable leverage ratio compared to last year, having flexibility to pursue growth or repositioning opportunities. Further details on our second quarter and half-year can be found in the earnings release we issued last night. We hope we have been able to explain the situation to your satisfaction. We will now be happy to answer any questions you may have. Please let me remind you that I'm here with André Gerondeau, Ángel Luis Rodríguez, Juan Ignacio Pardo, and Stéphane Baos. Stéphane. Thank you, Gabriel. As previously mentioned, those interested in asking questions will have the opportunity to do so now. To do so, please dial STAR 5 so we can assign you a turn to ask questions. Also, please remember to keep your microphone muted while others are speaking. Now, I pass the turn to Adriaan from UBS. Please go ahead, Adriaan. Hi. Good morning, everyone. Thank you for taking my question. I have three briefs. So first question, if the down margin in the first half has been stable versus last year, and improvement in the second quarter was 59 basis points, as you mentioned, could you please elaborate what gives you confidence that margin will expand by 100 basis points for the full year? And do you refer to EBITDA ex capital gains or including? Second question, I think in the previous call, you gave an estimate of 3%-4% growth in costs for full 2025. However, in the first half of the year, costs rose by 2.6%-2.7%. What are your expectations for the second half and perhaps next year? And finally, question number three. So we saw from Aena results recently that while the international traffic rose 6.5% in the first half, the domestic traffic was broadly flat. What do you make of that, and do you see any impact on Meliá? Thank you. Yeah, yeah. Yeah, good morning. Ángel Luis speaking. Look, on the first two questions, EBITDA margin, I have to recall to you that the first quarter was worse compared to last year due to some restructuring costs, which we commented. So what we are saying is that the second quarter, we have an upward trend. So the margin has been better and compensated the worst effect of the first quarter. And so this upward trend gives us the confidence with some measures that we are setting in the company to control margins at all levels, both in hotels and the corporate offices. So we are fully confident that we will achieve the target. In relation to the cost, very recently, the main effect that has been slightly worse than expected is the collective bargaining agreement in the Balearic Islands and the Canary Islands, which has been closed a couple of weeks ago with an agreement for the next three years, which is slightly worse than expected but gives us stability for the next three years, and we are confident that we will be able to absorb that as well, so basically, yeah, I mean, these management measures that we are taking at all levels give us the confidence that we will be able to achieve the target. Thank you, Ángel Luis Rodríguez. If I may as well, listen, on the other hand, please remind that Q3 is one of the strongest Qs for the company. Performance will definitely increase our margin as well. As far as what Aena has presented on growth, we are seeing a much stronger base of U.S. market and other nationalities coming into our properties, both in the Balearic Islands and in the Canary Islands. Please remind that we have rebranded a number of properties which are having very good performance. In terms of Spain, I think the positioning of Meliá is very strong in the Spanish market, and we have not seen a flat movement in the Spanish market into our properties. On the contrary, they continue to grow. So growth comes from a well-balanced mix of all nationalities, including Spain, to most of our Meliá properties because of the branding and the positioning of the company. I don't know if this answers your questions, Adriaan. Yes, thank you. Thank you very much. Very clear. Thank you. Thank you, Adriaan. Now, we pass the turn to Ignacio Domínguez from JB Capital Markets. Please go ahead, Ignacio. Good morning. Thank you for the presentation and taking our questions. Just one from my side. My question relates to the mid-single-digit increase in RevPAR guidance. What euro/dollar rate is assumed in this guidance? Thank you very much. Good morning. Good morning, Ignacio. This is André again, and thank you for your question. Yes. We are seeing a very strong performance in our premium and luxury portfolio in summer in Spain. Going into the end of September, we are extending the seasonality because of the demand of some group business as well. The repositioning of some of our properties, including the Paradisus brand, the Gran Meliá, and the new properties coming along, has been strong. There is strong demand in France for our collection products and the opening of some new properties. We believe also that Mexico will be recovering some of its business and then in the rest of Europe as well. So that's what allowed us to perceive that some of our properties will still have an opportunity to grow. I don't know if this answers your question, Ignacio. Okay. Thank you very much. You're welcome. Thank you, Ignacio. Now, the turn to Guilherme Sampaio from CaixaBank. Please go ahead, Guilherme. Hello. Thank you for taking my questions. Good morning. So, three from me. The first one related to this balance between the Caribbean and Spain, US feeder traffic redirection. Should we think about Q2 constant currency RevPAR trends as a good reference for the second half expectations? I mean, in terms of balance, you have a balance for the year. Or should we think that these structural actions that you're undertaking to improve performance in the Caribbean could balance some growth normalization in Spain? This is the first question. The second question is relatively simple. I would like to have some additional color on your cash flow expectations for the year, namely after these investments that you've been undertaking. And the third question, it's a bit more related to capital allocation strategy following this guidance of maintaining leverage stable going forward. Should we expect new investments in these JVs or minority stakes acquisition from existing JVs or fully owned hotels disposition? How are you expecting to allocate capital in the next coming quarters and years? And in this context, I'd like to know if there's any call option or any more informal expectation for any party for the repurchase of the hotels within the Victoria JV. Thank you. Hello, Guilherme. This is André again. I want to make sure I understood your question, but I think it relates to the situation of the U.S. generating business. We have a dual vision of this. On the one hand, all revenues for the business generated from the U.S. today, it's going about 50% is coming to Europe and about 50% is coming to the Caribbean. So there are mixed signals right now for the summer. Europe is very, very strong. So people are traveling to Europe. The U.S. market is traveling to Europe. And at the same time, the positioning and the products that we have in different either leisure urban destinations like Rome, Milan, Paris, London, or Spanish resorts, which are now having far more connectivity directly from the U.S., it's very, very strong. It is true that apparently local business in the U.S., for what we've seen in terms of RevPAR growth of the American companies within the U.S., has slowed down. However, for the Caribbean, we still have expectations that things will be picking up for the end of the year. And specifically, as we enter the winter season, which, as you know, it's a strong season for us as of November, and we see now some demand going into the Caribbean, increased demand and increased demand in the MICE business. Our expectations for the U.S. market is that it will be far stronger than it has been in summer for the winter season in the Caribbean. I'm not sure if that answers your first question, but I will pass on to Ángel Luis Rodríguez regarding the cash flow on the second question. Yeah. Hello, Guilherme. On the cash flow, the strength of the business and the discipline and the reduction in financial expenses that we have mentioned and witnessed in this first semester encourages us to target for around €200 million of free cash flow at year-end. As for the third question, for Ignacio Pardo speaking, Meliá continues to be committed to a model that combines hotel ownership with low-capital-intensive formulas. Road to be developed should be done through synergies with an alliance with our existing top-tier partners to allow us to value our capabilities and management systems. That's our main objective while maximizing returns and preserving the balance sheet from excessive leverage. It's within this framework that the operation that you mentioned was conceived and executed. The company closed two operations in the first half of 2025. On the one hand, the strengthening of the JV that we have with Banca March, with 70% owned by them and 30% by us, that acquired two important hotels, the INNSiDE Palma Bosque in Palma and the Sol Tenerife from other companies, also owned by Sol Meliá, for an amount of EUR 140 million that had a neutral impact on the company's cash. And on the other hand, the recent acquisition by Meliá Hotels International of the 50% of the company owning the Paradisus Salinas Lanzarote from the company Victoria Hotels & Resorts, in which Meliá already owns, as you may know, a minority stake of 7.5%. So also helping us extending our management agreements for 30 years with a lock-up for a long-term period. That's the kind of agreement that we want to reach and agree with the existing partners. Any possible investment should not stress our balance sheet and should take into account the full commitment for the company to keep our current leverage ratio. Is okay? Yes, sorry. Guillerme? Yeah, could I just ask about the call option or any expectation for any party for the repurchase of the hotels within Victoria JV? No, not under the present scenario. Okay. Thank you. Thank you. Thank you, Guilherme. Now, we pass the turn to Fernando Abril from Alantra. Hi, Fernando. Please go ahead. Hello. Yeah. Hello, Esteban and team. Thank you very much for taking my questions. Kind of follow-ups, most of them. So first, on the Ángel Luis, you've mentioned € 200 million free cash flow expectation for this year. What is included here? I don't know if dividend, so this is excluding dividends and M&A investments, maybe. I don't know if you can comment a little bit more on this. Second, on EMEA, I've seen some slight EBITDA margin and EBITDA year-on-year decline. I don't know if you can also elaborate here on EMEA margins. And also, last, do you expect more investments, M&A investments, or asset rotation going into the second half? Thank you. Hi, Fernando. Ángel Luis Rodríguez, concerning the cash flow, you're absolutely right. That is deducting lease payments, taxes, interest, and maintenance CapEx. So it does exclude dividends and M&A. Yeah. Okay. Sorry, Fernando. This is André again. Listen, on the margins for EMEA, the whole impact comes from Germany, with the performance better in Italy, U.K., and France. The challenges remain in Germany for both the reasons we explained. One is a like-for-like versus the events we had last year. And secondly, there are some cities in Germany which are very corporate or automotive-related, which are struggling. But in terms of RevPAR growth, in terms of performance of the properties, cost control, you should see an improvement moving forward. Okay. As for the M&A opportunities, as you know, the market is in very good conditions nowadays. But any opportunity, any growth opportunity that we can identify will be developed through the existing vehicles with our partners and the existing synergies and alliance that we have with our existing top-tier partners. Is okay, Fernando? Yeah. Well, and so I guess no asset sales in mind in the near term, right? Correct. Okay. That's right. Okay. Thank you. Thank you, Fernando. Now, the turn to Ricardo Benevides from Santander. Please go ahead, Ricardo. Hi all. Thank you for taking my questions. So starting off, I'd like to ask you if you could give us more clarity on the EBITDA margin guidance of plus 100 basis points this year. I understand that this is excluding any FX impact. What I would like to know is, could you give us some further takeaways from the sensitivity to FX, mainly the depreciation of the U.S. dollar? And on my second question, what I would like to ask is also regarding M&A, but not regarding properties. You're doing quite an impressive effort in your organic asset-light pipeline. What I would like to know is, are there any asset-light operator targets that you could be considering right now or just taking a look at? That's all my questions. Thank you. Hi, Ricardo. Ángel Luis Rodríguez speaking. Look, regarding the FX, first half includes the impact of the variations of the dollar against euro. The effect has been pretty much offset. During the first quarter, the dollar favored our accounting. In the second quarter, it has been the opposite, but it has been balanced. In our calculations, any variation in ascent of the exchange rate dollar-euro impacts on a yearly basis around €4 million in revenues, €1 million in EBITDA, and €1 basis point in margins. That's the whole year. It's not linear, but it's not a big deal. In the last days, there has been a correction. We were struggling a little bit over the last few weeks, but now there seems to be a correction. And to finalize this point, I have to recall you that this is a pure accounting impact. It does not affect cash, really. If I may add, Ricardo, this is Gabriel Escarrer. Regarding the demand of the U.S. market to Europe, it's stronger than ever. Actually, we are achieving close to 6%-7% increase of the U.S. clientele to our hotels all over Europe compared to last year. Taking into account the exchange rate, the dollar-to-euro is quite good. Okay. If I may, Ricardo, André again, regarding what we're looking in our development strategy, we always have a vision of organic and strategic growth. There is no specific target right now in terms of an operator or another management company. However, we're active in looking at opportunities to manage multi-property partners to work with, but no specific operator that we're looking at at this point. Is okay, Ricardo? Yes, perfectly. Thank you. Okay. Then we didn't see any other questions. Then thank you. Thank you very much for your attention and your time. That's done. We hope that we have been helpful. Please do not hesitate to contact our investor relations department for any further questions you might have. Thank you and enjoy your summer. Thank you. Bye-bye. Thank you. Bye. Thank you, everybody. Thank you.