Interim report
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THIRD QUARTER RESULTS 2026 Paradisus Cancún I Cancún, Mexico
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€ 2,102.9M -98.0M vs year end 2025 € 846.2M +67.6M vs year end 2025 NET DEBT NET DEBT Excluding leases BUSINESS PERFORMANCE • We continued to deliver a positive summer season, supported by solid domestic and international demand. Systemwide RevPAR across our like-for-like portfolio increased by 7.5% in the third quarter. Our operations in Spain were strong, offsetting a weaker performance in Mexico. • Consolidated revenues excluding capital gains increased by 7.7% in the third quarter, supported by the positive summer season and a 3.2% increase in the number of available rooms within the Owned and Leased portfolio. • EBITDA excluding capital gains reached €198.3 M in the third quarter, representing a 4.1% increase compared to 2025. Third-quarter EBITDA reflects a combined negative impact of €5.8 M from the recent reopening of Paradisus Cancún and the refurbishment works at Gran Meliá Don Pepe. In addition, the conversion of INNSiDE New Yo r k from a lease to management resulted in a €3.1 M reduction in EBITDA in Q3. LIQUIDITY AND DEBT MANAGEMENT • As of the end of September, Net Debt stood at €2,102.9 M, a reduction of €98.0 M compared to 2025. Financial Net Debt excluding leases increased by €67.6 M, reaching €846.2 M. During the first nine months of the year, the Group completed acquisitions and acquired equity stakes in hotels already under its operation, alongside the payment of dividends. • The Company remains committed to maintaining a stable leverage ratio within the 2.0x–2.5x range, enabling it to flexibly pursue growth and hotel portfolio repositioning opportunities. • The Group continues to assess rotation opportunities for non-strategic assets with limited cash generation, optimising capital allocation. DEVELOPMENT • The Company continues to advance its growth strategy, targeting at least 40 new hotel signings, representing approximately 8,400 rooms, alongside 24 planned openings that will add more than 3,300 rooms. • This progress is already reflected in the year-to-date figures, with 20 new hotels signed, adding close to 4,500 rooms to the pipeline, and 17 hotels opened to date. OUTLOOK • The Company maintains a positive on-the-books demand position for the remainder of the year, up double digits compared to last year. Longer lead time segments, such as MICE, continue to show resilience, with events scheduled for 2027 also ahead compared to 2026. • We continue to expect high-single-digit RevPAR growth for the year, in line with our guidance, supported by the strong operating performance in Spain, which is partially offsetting a weaker performance in Mexico, where the reopening of Paradisus Cancún coincides with a challenging market environment. Full-year EBITDA will be impacted by the conversion of INNSiDE New Yo r k from a lease to a management contract, which has a €7.4 M effect in the second half. This transaction reduces our fixed-rent exposure and improves the Group’s risk profile, with no impact on cash generation as we continue to earn management fees. 1 THIRD QUARTER RESULTS 2026 € 106.9 REVPAR OL&M 9M +16.5% vs SPLY EBITDA Ex Capital Gains 9M € 443.0M +3.2% vs SPLY EPS 9M € 0.30 -€0.38 vs SPLY € 1,707.0M REVENUES Ex Capital Gains 9M +7.3% vs SPLY EBITDA Ex Capital Gains Q3 € 198.3M +4.1% vs SPLY EPS Q3 € 0.34 +€0.00 vs SPLY € 659.6M REVENUES Ex Capital Gains Q3 +7.7% vs SPLY MELIA.COM* +48.4% Of centralized sales *Considering all Direct Client sources
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2 HOTEL BUSINESS MAIN STATISTICS OWNED, LEASED & MANAGED 74.0% % OCCUPANCY Q3 +7.3pp vs SPLY €134.0 REVPAR Q3 +25.9% vs SPLY €181.1 ARR Q3 +13.5% vs SPLY 66.5% % OCCUPANCY 9M +4.2pp vs SPLY €106.9 REVPAR 9M +16.5% vs SPLY €160.6 ARR 9M +9.2% vs SPLY The third quarter was once again characterized by solid tourism demand across our key markets, supporting another summer season of growth and consolidating structural trends observed in previous years, such as the sale of higher-category rooms. From a regional perspective, Spain continued to perform particularly well during the summer, while performance in the Americas was more mixed: the Dominican Republic continued to benefit from strong tourism demand, in contrast to Mexico, where certain factors related to the perception of safety and the impact of sargassum affected demand growth in the country. Our approach towards the luxury segment continued to deliver particularly strong performance, confirming its relevance within the Company’s strategy thanks to its ability to drive differentiation, strengthen operational resilience and respond to the preferences of travellers who are increasingly focused on experiences. The reported evolution of rates and occupancy reflects the impact of the discontinuation of operations in Cuba. On a like for like basis, RevPAR increased by 7.6% in 9M and by 7.5% in the third quarter. By regions, our performance was as follows: • In Spain, our resort hotels maintained solid performance during the quarter, supported by robust demand across the main feeder markets together with a growing contribution from the direct channel. The Balearic Islands performed particularly well, driven by both improved rates and increased demand, with feeder markets such as Spain, the United Kingdom and the United States showing strength. Menorca delivered an especially positive performance, particularly Meliá Cala Galdana, which achieved high occupancy levels, especially in The Level rooms. Sales of higher category rooms were robust overall, reflecting guests’ appreciation for differentiated experiences and rooms with distinctive attributes. As for our Coast hotels, performance was positive, with growth in both rates and volume. This positive performance was achieved despite the temporary closure of Gran Meliá Don Pepe, one of the assets that contributes most significantly to rate levels during the summer season. • With regard to our city hotels, performance was positive, even during the summer, when leisure destinations typically tend to predominate. Growth was driven by improved quality and mix, with higher rates. This performance was supported by investments in repositioning and product enhancements, new openings and the progressive ramp-up of recently opened hotels, as well as the strong performance of Madrid. The combination of major events, such as the Formula 1 Grand Prix and large scale concerts by world-renowned artists, together with the start of the corporate season in September and the hosting of congresses, was key to achieving these objectives. Other cities with a greater leisure component, such as Málaga, Valencia, Bilbao and Palma, performed better during July and August. From a segment perspective, growth was led by Corporate and Direct Customer, supported by positive rate performance and a greater contribution from specialised agencies and luxury consortia. The MICE segment also performed positively, driven by increased group activity. Q3 PERFORMANCE
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• In EMEA, Germany performed in line with growth expectations, supported by a dynamic calendar of congresses, trade fairs and events during the quarter. These events compressed demand, enabling rate growth while optimising occupancy levels. Frankfurt benefited from major industry and international events, while Munich was supported by solid leisure and group demand, underpinned by the high number of visitors during Oktoberfest. In France, Paris recorded slightly lower activity than last year, in line with trends observed in previous months. Performance continued to be affected by lower demand from certain long-haul markets, as well as the absence of some major congresses held during the same period last year. However, towards the end of the quarter, demand showed a gradual improvement, supported by the recovery in corporate activity and a more favourable calendar of events and shows in Paris. In Italy, the quarter was driven by the performance of Milan, with a particularly favourable events calendar in September, generating higher Group demand towards the end of the quarter. Rome, meanwhile, operated in a more moderate demand environment, particularly in long-haul segments, although Villa Agrippina once again outperformed the market thanks to its positioning in the luxury segment and solid rate performance. In the United Kingdom, performance during the quarter was positive, driven by London’s strong performance, the dynamism of the Corporate, MICE and Direct Customer segments, as well as the recovery in group business. Improved rates and stable occupancy supported growth, while hotels in the North recorded more moderate performance due to a lower contribution from events compared to the previous year. • In America, Mexico showed higher turnover, with the number of available rooms increasing following the reopening of Paradisus Cancún. However, the environment remains challenging, as security related events and the presence of sargassum have negatively affected demand and air capacity, which has shifted towards other destinations in the region. On a positive note, the MICE segment performed well, particularly at Paradisus Los Cabos. In the Dominican Republic, the third quarter maintained the solid trend observed during the first half of the year, with a significant improvement in occupancy driven by strong demand from the United Kingdom, the United States, Canada and Germany. The positive performance of To u r Operators, together with a greater contribution from the Corporate and MICE segments, supported revenue growth during the period. Meliá Punta Cana Beach and Paradisus Grand Cana performed particularly well, continuing to lead the region’s performance thanks to growing demand across their key segments. In the United States, New Yo r k performed very positively, supported by the hosting of 2026 World Cup matches. September is traditionally a period of high activity, driven by the strong demand experienced by the city thanks to the United Nations General Assembly. Growth during these two months offset the lower level of activity recorded in August. In Orlando, performance was more stable in a seasonally more challenging environment. Nevertheless, rates improved thanks to a greater contribution from Groups. • In Asia, activity in China during the quarter was below the levels recorded last year, affected by weaker than expected domestic demand and adverse weather conditions in some key destinations during the summer season. In this context, demand continued to be mainly supported by OTAs and Direct Customer, while the Corporate and MICE segments made a more moderate contribution. In Southeast Asia, the quarter recorded positive performance, driven by strong international demand from Europe, South Korea and Australia, together with solid domestic demand. Vietnam stood out due to the expansion of air connectivity and growth in passenger traffic, while Paradisus Bali continued to contribute significantly to the region’s growth as it progresses through its consolidation process following the reopening and repositioning of the asset. From a segment perspective, The Direct Customer segment grew year on year, while the To u r Operator segment remained the largest contributor 3 HOTEL BUSINESS Q3 PERFORMANCE
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4 Looking ahead to the final part of the year, key operating metrics continue to reflect the strength of tourism demand across our markets. While the macroeconomic environment continues to present a certain degree of uncertainty, particularly given ongoing geopolitical developments, including those in the Middle East, our destinations continue to benefit from a favourable perception in terms of safety, stability and tourism appeal. Nevertheless, the recent episodes of social unrest that have caused temporary disruptions in certain European cities, including Paris and Milan, introduce new factors for the sector to monitor. Although such situations are not unprecedented, they have introduced additional short-term uncertainty in the affected markets. In Spain, the recent tragic railway accident and the resulting disruptions to high-speed rail services will temporarily affect connections between Andalusia and Madrid. To date, our hotels have not experienced any significant incidents arising from these events. However, a slight increase in short-term cancellations has been observed on an isolated basis in the affected markets, although this has not, so far, had a material impact on business performance. In this regard, our on-the-books reservations remain up by double digits above the levels recorded at the same time last year. Paradisus Fuerteventura I Canary Islands, Spain HOTEL BUSINESS OUTLOOK
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5 HOTEL BUSINESS By regions, our Outlook is as follows: • In Spain, our city hotels are showing a positive trend, pointing to improved rates, supported by a commercial shift towards higher value segments together with an optimization of the channel mix. By city, Barcelona and Madrid benefit from a positive combination of events, allowing for better segmentation and demand compression around event dates. From a calendar perspective, the different public holidays are expected to make a positive contribution, together with the Christmas season, which traditionally generates a significant volume of leisure bookings. Other cities, such as Bilbao and Seville, are benefiting from the traction of the MICE and Corporate segments, respectively. Nevertheless, the outlook for Andalusia could be affected by the recent railway accident on the high- speed line at the end of October. With regard to our resort hotels, the Canary Islands are approaching the end of the year with positive performance and expectations of exceeding the levels recorded last year. La Palma stands out for its favourable performance, driven by the strong contribution from both our Direct Customers and demand from domestic and German tour operators. However, some areas expect to bring forward the end of the season slightly compared to last year, which could partially limit their contribution during the final part of the year. The remaining coastal resort destinations maintain a favourable outlook, supported by a balanced combination of leisure demand and MICE activity, which continues to support occupancy and profitability levels. • In EMEA, Germany has a more moderate growth outlook for the end of the year, due to a challenging comparison base and the absence of several major events held in the previous year. This factor has a more significant impact on cities with greater exposure to this type of customer, such as Frankfurt and Düsseldorf. Cities with a stronger leisure component, such as Munich and Hamburg, are performing better, with solid rate performance. In France, the outlook for the end of the year remains stable, supported mainly by improved occupancy levels, although rate dynamics remain moderate. The growing contribution from certain source markets, continues to put some pressure on rates in the destination. Nevertheless, the recent intensification of social tensions, particularly in the capital, has increased uncertainty surrounding short-term demand trends. To date, no incidents have been recorded at any of our hotels, nor have there been any material impacts on commercial activity. Even so, we have reinforced security and preventive measures to minimise any potential impact on our operations. In Italy, Milan continues to perform particularly well, driven by the strong performance of the MICE segment and corporate and international demand that continues to show strong momentum. Rome, meanwhile, continues to record positive performance, supported by demand associated with events, as well as the strength of direct and travel agency channels. In the United Kingdom, the outlook for the end of the year remains positive, supported by favorable trends in the Direct Customer and MICE segments. Demand has shown solid performance at the start of the quarter. However, performance towards year end will depend to a greater extent on last-minute bookings and the international geopolitical environment. Overall, the market continues to show positive momentum, supported by both demand growth and effective commercial management. • In America, Mexico maintains its growth expectations, supported by the continued progression of Paradisus Cancún. The strength of the MICE segment is helping to offset some temporary volatility in demand. In addition, the longer booking lead times for key holiday periods and the combination of international and domestic customers provide good visibility towards year end. The opening of Zel Cozumel will be one of the main milestones towards the end of the year. In the Dominican Republic, year-end performance is expected to remain in line with the trends observed to date, with broad based improvements across all segments. The stabilisation and progressive ramp-up of part of the portfolio has been key to the country’s performance, which has also partly absorbed some of the demand diverted from Mexico when security related events affected the region. OUTLOOK
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• In the United States, New Yo r k is entering the city’s peak season, characterised by demand activity driven by the Corporate segment and major events taking place in the city, such as Comic Con. Thanks to improved commercial segmentation towards higher-value Direct Customers, rate growth is expected, positioning INNSiDE New Yo r k as the leader of its competitive set. In Orlando, performance is expected to remain in line with the trend observed to date. Nevertheless, certain holidays, such as Halloween, Thanksgiving and the Christmas season, will generate periods of higher demand that are expected to be capitalised on. • In Asia, the outlook for China towards the end of the year remains moderate, in a context characterised by moderate domestic demand and greater caution from the Corporate segment. This environment is resulting in some reluctance to hold larger events, meetings and group business. In this context, while holiday periods should support activity during the final part of the year, visibility remains limited. In Southeast Asia, the outlook for the end of the year remains favourable, particularly following the refurbishment of Paradisus Bali and the positive reception of the product in the region. International demand associated with the winter season and year end leisure travel will continue to support the region’s performance, underpinned by a broad and diversified base of source markets. OUTLOOK HOTEL BUSINESS 6 Gran Meliá Fénix I Madrid, Spain
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REAL ESTATE To date, cumulative net capital gains of €2.3 M have been generated, mainly corresponding to the execution of deeds for successive phases of the sale of land and other non-hotel assets. By comparison, the amount recorded in the same period of the previous year was €4.5 M. During the first nine months of the year, the Company continued to make progress in its investment and portfolio optimisation strategy through the selective acquisition of assets and stakes in properties aligned with its profitability and long-term value creation objectives. The main transactions completed during the period, already detailed in previous communications, have strengthened the Group’s exposure to high quality assets in strategic markets. The assets acquired have established operating profiles and do not require significant additional investment, contributing positively through equity-accounted earnings and expected double digit cash-on-cash returns. With regard to the asset repositioning plan, the refurbishment of Paradisus Cancún was completed during the period, with the hotel resuming operations as planned, while the renovation works at Gran Meliá Don Pepe continue to progress in line with the established schedule, both in terms of timing and investment. Gran Meliá Don Pepe is expected to reopen during December. The Company continues to evaluate opportunities to monetise selected non-core and lower-return assets through disposals, partnerships and alternative ownership structures, with the objective of improving capital efficiency, free cash flow generation and shareholder returns. OTHER NON HOTEL BUSINESSES 7 Gran Meliá Villa le Corail I Nha Trang , Vietnam
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REVENUES AND OPERATING EXPENSES: It should be recalled that, following the decision taken by the Group’s subsidiary “Ilha Bela Gestao e Tu r i s m o Lda” during the first half of 2026 to discontinue its operations in Cuba, this business continues to be classified as a discontinued operation in accordance with IFRS 5. Consequently, the comparative figures have been restated for comparison purposes. For the first nine months of the year, the impact classified as profit or loss from discontinued operations amounts to (€79.8 M). Accordingly, the comments below refer to the restated consolidated income statement figures. Consolidated Revenues excluding capital gains, increased by 7.3% in the first nine months of the year compared to last year. This evolution reflects the contribution from recent integrations and the progressive improvement of hotels in the ramp-up phase, partially offset by the impact of the refurbishments at Gran Meliá Don Pepe and Paradisus Cancún, which, despite its recent reopening, was unable to capture the peak season at the beginning of the year. Over the same period, the number of available rooms within the Owned and Leased portfolio increased by 5.0% compared to the previous year. Operating expenses increased by 8.1% compared to the first nine months of the previous year. This performance largely reflects the addition to the Owned and Leased portfolio of several hotels progressively integrated during 2025, which have contributed throughout the first nine months of 2026. With regard to variable rental expenses, costs increased by €11.9 M compared to the same period of the previous year, although most of this increase was concentrated in the first half of the year and was associated with additions to the portfolio. The €1.4 M increase recorded in the third quarter mainly reflects the positive performance of operating activity. In terms of EBITDA margins excluding capital gains, the impact of the aforementioned items, together with hotels in a ramp-up period following repositioning processes that have recently reopened or are pending reopening, such as Gran Meliá Don Pepe, resulted in a 104 basis points decline during the period. EBITDA excluding capital gains stood at €443.0 M, compared to €429.3 M in 2025 (+3.2%).. The lower EBITDA generated during the first nine months as a result of the refurbishment works at Gran Meliá Don Pepe and the refurbishment and subsequent reopening of Paradisus Cancún amounted to -€25.4M. Additionally, the transition of INNSiDE New Yo r k NoMad to management in May 2026 resulted in a further impact of -€4.0 M. 8 INCOME STATEMENT EBITDA 9M €445.3M +2.6% vs SPLY CONSOLIDATED REVENUES 9M €1,709.3M OPERATING EXPENSES 9M €(1,214.0)M EBIT 9M €258.4M +4.3% vs SPLY +7.2% vs SPLY -8.1% vs SPLY FINANCIAL RESULT 9M €(48.1)M +14.1% vs SPLY € 93.5M -47.4% vs SPLY € 67.1M -55.5% vs SPLY CONSOLIDATED NET PROFIT 9M ATTRIBUTABLE NET PROFIT 9M
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The Depreciation and Amortisation line remained broadly stable compared to the same period of the previous year. This performance reflects, on the one hand, an increase in the depreciation of property, plant and equipment resulting from new hotel additions and, on the other, a reduction in the depreciation of right of use assets, mainly explained by changes to lease agreements at hotels such as INNSiDE New Yo r k and Meliá Genova. Operating Profit (EBIT) stood at €258.4 M, up 4.3% compared to 2025. Share of profit from equity-accounted entities amounted to €20.8 M, representing a decrease of €18.4 M vs. 9M2025. For comparison purposes, the result for the first half of 2025 included a €24.1 M capital gain arising from the sale of a stake in a company owning an asset located in the Canary Islands. This effect was partially offset by a €3.8 M increase from new stakes acquired during the year and improved performance from Joint Ventures. In accordance with IFRS 5, the Group’s business in Cuba has been classified as a discontinued operation following the decision to cease operations in the country. Consequently, its results are presented in a single line under “Profit/(Loss) from discontinued operations”, with the Income Statement for the same period of 2025 restated for comparison purposes. The comparative Balance Sheet has not been restated. The breakdown of results from discontinued operations is as follows: The impact from discontinued operations corresponds to the recognition of impairments related to the operating activity and the import business in Cuba, which has now been fully discontinued. Taking these impacts into account, Consolidated Profit amounted to €93.5 M, compared to €177.7 M in the same period of the previous year. ATTRIBUTABLE NET PROFIT stood at €67.1 M, representing a 55.5% decrease compared to the same period of the previous year, impacted by the aforementioned discontinuation of operations in Cuba. In summary, the underlying business continues to deliver solid growth, led by Spain and supported by rate performance, customer mix and demand. EBITDA growth is temporarily impacted by repositioning projects and changes in operating models, while Mexico remains the main area of weakness. These effects should be considered separately from the performance of the underlying business. At the same time, Meliá retains financial flexibility and continues to rotate capital towards higher-return assets and contracts. 9 INCOME STATEMENT (Thousand €) 9M 2026 9M 2025 Result from continuing operations 173,306 171,879 Result from discontinued operations (79,821) 5,841 Consolidated result 93,485 177,720
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10 INCOME STATEMENT % growth Q3 26 vs Q3 25 Q3 2026 Q3 2025 (Million Euros) 9M 2026 9M 2025 % growth 9M 26 vs 9M 25 Revenues split 0.0 776.9 740.0 Total HOTELS 1,977.7 1,893.9 0.0 0.0 187.8 188.3 Management Model 416.1 429.6 0.0 0.0 565.5 531.7 Hotel Business Owned & Leased 1,487.3 1,398.5 0.0 0.0 23.6 20.0 Other Hotel Business 74.3 65.8 0.0 0.0 1.6 0.1 Real Estate Revenues 10.9 13.0 0.0 0.0 45.9 39.5 Overheads 121.1 100.3 0.0 0.0 824.4 779.6 Total Revenues Aggregated 2,109.7 2,007.3 0.0 0.0 -164.8 -166.9 Eliminations on consolidation -400.4 -412.1 0.0 7.7% 659.6 612.7 T otal Consolidated Revenues 1,709.3 1,595.2 7.2% 0.0% -57.6 -42.1 Raw Materials -153.8 -134.7 0.0% 0.0% -182.1 -168.2 Personnel expenses -513.4 -464.8 0.0% 0.0% -201.4 -193.2 Other operating expenses -546.9 -523.8 0.0% -9.3% -441.1 -403.5 Total Operating Expenses -1,214.0 -1,123.3 -8.1% 4.4% 218.5 209.2 EBITDAR 495.3 471.9 5.0% 0.0% -20.2 -18.8 Rental expenses -49.9 -38.1 0.0% 4.1% 198.3 190.5 EBITDA 445.3 433.8 2.6% 0.0% -28.4 -28.1 Depreciation and amortisation -81.3 -76.4 0.0% 0.0% -36.5 -36.1 Depreciation and amortisation (ROU) -105.7 -109.8 0.0% 5.6% 133.4 126.3 EBIT (OPERATING PROFIT) 258.4 247.6 4.3% 0.0% -10.6 -11.2 Financial Expense -33.1 -32.8 0.0% 0.0% -9.4 -9.9 Rental Financial Expense -29.2 -30.0 0.0% 0.0% 1.8 4.3 Other Financial Results 8.6 18.2 0.0% 0.0% 1.6 -3.5 Exchange Rate Differences 5.7 -11.3 0.0% 18.0% -16.5 -20.2 Total financial profit/(loss) -48.1 -55.9 14.1% 0.0% 15.7 10.2 Profit / (loss) from Associates and JV 20.8 39.1 0.0% 13.9% 132.5 116.3 Profit before taxes and minorities 231.1 230.8 0.1% 0.0% -42.7 -29.6 Taxes -57.8 -58.9 0.0% 3.6% 89.8 86.7 Profit/(loss) from continuing operations 173.3 171.9 0.8% 0.0% -0.4 2.5 Profit/(loss) from discontinued operations -79.8 5.8 0.0% 0.2% 89.4 89.2 Group net profit/(loss) 93.5 177.7 -47.4% 0.0% 14.7 13.7 Minorities 26.4 26.9 0.0% -1.0% 74.6 75.4 Profit/(loss) of the parent company 67.1 150.9 -55.5%
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FINANCIAL RESULTS FINANCIAL RESULTS, LIQUIDITY & DEBT Net Financial Result improved by €7.9 M compared to the first nine months of 2025. The main improvement was recorded in exchange rates differences, with a positive impact of €17.0 M arising from the performance of the different currencies to which the Group is exposed. Other financial results decreased by €9.6 M, mainly due to the €10.7 M impact from the integration in 2025 of a subsidiary operating an amusement park located in the Dominican Republic. At the end of September, Net Debt stood at €2,102.9M, which represents a reduction of €98.0M during the first nine months of the year. Over the same period, Net Debt excluding leases increased by €67.6M, reaching €846.2M. Operating cash generation during the third quarter exceeded €100 M, increasing by approximately €10 M compared to the previous year. However, during the period, payments were made under various items, including dividend payments to shareholders (€38.3 M), dividend payments to minority shareholders and investments related to asset improvement works (€21.2 M). Additionally, a payment of €18.6 M was made in Mexico in relation to tax matters, representing an extraordinary impact during the period. This amount had been fully provisioned for in the Consolidated Balance Sheet. The Company remains committed to maintaining a stable level of leverage in order to preserve the flexibility required to pursue growth opportunities and the repositioning of its hotel portfolio. FINANCIAL EXPENSE 9M € (33.1)M -€0.3M vs SPLY RENTAL FINANCIAL EXPENSES 9M € (29.2)M +€0.8M vs SPLY OTHER FINANCIAL RESULTS 9M € 8.6M -€9.6M vs SPLY EXCHANGE RATES DIFFERENCES 9M € 5.7M +€17.0M vs SPLY FINANCIAL RESULT 9M € (48.1M) +€7.9M vs SPLY LIQUIDITY & DEBT TOTAL NET DEBT DECREASE 9M € (98.0)M NET DEBT Excluding leases € 846.2MNET DEBT Excluding Leases INCREASE 9M € 67.6 M €2,102.9M NET DEBT 11
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With regard to the maturity profile, the Club Deal signed in February enabled us to extend maturities and strengthen our overall debt profile. In addition, approximately 50% of our debt is currently under fixed interest rates through hedging instruments contracted on favourable terms, providing greater visibility and stability over financial costs while maintaining a balanced position in the current interest rate environment. FINANCIAL RESULTS, LIQUIDITY & DEBT DEBT MATURITY PROFILE (€ millions): Excluding commercial papers and credit lines. 12 Meliá la Palma I Islas Canarias, Spain 5,1 17,6 48,2 50,7 368,1 415,5 52,5 - 2026 2027 2028 2029 2030 >5 years Bank loans & others Capital Markets
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Performance MHI 9M +30.93% Performance IBEX-35 9M +12.24% Performance Stoxx Europe 600 Travel & Leisure 9M -1.00% 13 MELIÁ IN THE STOCK MARKET STOCK MARKET Source: Bloomberg. Note: Meliá’s shares are listed on the Ibex Medium-Cap and FTSE4Good Ibex Index. Max: €12.44 19/06/2026 Min: €7.36 21/01/2026 Q1 2026 Q2 2026 Q3 2026 Q4 2026 2026 Average daily volume (thousand shares) 446.33 436.29 226.64 367.16 Meliá Performance 20.83% 26.96% -14.65% 30.93% Ibex 35 Performance -1.49% 14.21% -0.23% 12.24% sep-26 sep-25 Number of shares (million) 220.4 220.4 Average daily volume (thousands shares) 367.2 308.6 Maximum share price (euros) 12.44 8.20 Minimum share price (euros) 7.36 5.92 Last price (euros) 10.37 7.41 Market capitalization (million euros) 2,285.5 1,632.1 Dividend per share (euros) 0.1763 0.1463 0 2 4 6 8 10 12 14 0 200.000 400.000 600.000 800.000 1.000.000 1.200.000 1.400.000
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APPENDIX Gran Meliá Colón I Sevilla, Spain
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15 HOTEL BUSINESS FINANCIAL INDICATORS (million €) 9M 2026 9M 2025 % 9M 2026 9M 2025 % OWNED & LEASED HOTELS €M €M change MANAGEMENT MODEL €M €M change Total aggregated Revenues 1,487.3 1,398.5 6.3% Total Management Model Revenues 416.1 429.6 -3.1% Owned 661.9 656.9 0.8% Third Parties Fees 55.4 46.5 19.1% Leased 825.4 741.6 11.3% Owned & Leased Fees 83.4 78.9 5.6% Of which Room Revenues 1,032.1 967.6 6.7% Other Revenues 277.4 304.2 -8.8% Owned 401.2 396.3 1.3% Total EBITDA Management Model 126.5 125.1 1.1% Leased 630.8 571.3 10.4% Total EBIT Management Model 124.8 122.4 1.9% EBITDAR Split 396.4 385.5 2.8% Owned 147.8 166.8 -11.4% Leased 248.6 218.7 13.7% EBITDA Split 346.7 347.6 -0.3% 9M 2026 9M 2025 % Owned 147.8 166.8 -11.4% OTHER HOTEL BUSINESS €M €M change Leased 198.9 180.8 10.0% Revenues 74.3 65.8 13.0% EBIT Split 178.4 179.0 -0.3% EBITDAR 1.2 1.3 -10.1% Owned 95.1 115.7 -17.8% EBITDA 0.9 1.1 -20.5% Leased 83.3 63.3 31.6% EBIT 0.0 0.4 -105.2% MAIN STATISTICS 9M OWNED & LEASED OWNED, LEASED & MANAGED Occup. ARR RevPAR Occup. ARR RevPAR % Chg pts. € Chg % € Chg % % Chg pts. € Chg % € Chg % TOTAL HOTELS 71.9% 0.6 177.9 0.7% 127.9 1.6% 66.5% 4.2 160.6 9.2% 106.9 16.5% América 61.3% -0.3 146.9 -9.0% 90.1 -9.5% 59.7% 0.5 150.3 -1.6% 89.7 -0.7% EMEA 72.2% 0.7 187.0 4.8% 135.1 5.9% 69.8% 0.3 187.7 1.4% 133.3 3.5% Spain 76.3% 0.6 183.8 1.4% 140.2 2.2% 76.4% 1.3 179.1 4.5% 136.9 6.3% Cuba 28.8% -11.4 102.1 34.1% 29.4 -3.9% Asia 61.0% 6.8 79.4 -1.0% 44.9 3.6% *Rooms Available 9M: 8,067.9k (vs 7,681.7k in 9M 2025 in O & L // 17,527.6k 9M 2026 (vs 19,069.0k in 9M 2025) in O, L &M. *Rooms Available in Cuba 9M: 1.263,0k (vs 3.493,6k in 9M 2025) in O, L & M. MAIN STATISTICS 9M (Like for Like) OWNED & LEASED OWNED, LEASED & MANAGED Occup. ARR RevPAR Occup. ARR RevPAR % Chg pts. € Chg % € Chg % % Chg pts. € Chg % € Chg % TOTAL HOTELS 74.6% 1.0 178.8 2.6% 133.4 4.1% 69.5% 2.3 155.9 4.0% 108.4 7.6% América 69.1% 4.2 163.2 -0.7% 112.8 5.8% 63.5% 2.9 159.9 3.7% 101.5 8.6% EMEA 72.7% 0.1 179.0 3.0% 130.2 3.2% 71.3% 0.4 187.7 4.0% 133.3 4.1% Spain 79.0% 0.0 185.8 3.9% 146.8 3.9% 76.7% 0.5 175.4 5.1% 134.5 5.8% Asia 61.1% 6.2 86.0 9.3% 52.6 21.6%
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16 FINANCIAL INDICATORS BY AREA 9M 2026 AVAILABLE ROOMS (thousands) OWNED & LEASED OWNED, LEASED & MANAGEMENT 9M 2026 9M 2025 9M 2026 9M 2025 AMERICA 1,751.2 1,726.2 2,782.0 2,692.2 EMEA 2,211.2 2,221.0 2,832.5 2,742.5 SPAIN 4,105.5 3,734.6 7,549.1 7,095.7 CUBA 0.0 0.0 1,263.0 3,493.6 ASIA 0.0 0.0 3,100.9 3,045.0 TOTAL 8,067.9 7,681.7 17,527.6 19,069.0 FINANCIAL INDICATORS BY AREA (million €) OWNED & LEASED HOTELS MANAGEMENT MODEL Total aggregated Revenues Of which Room Revenues EBITDAR EBITDA EBIT Third Parties Fees Owned & Leased Fees Other Revenues € % change € % change € % change € % change € % change € % change € % change € % change AMERICA 321.1 -6.3% 157.9 -8.2% 52.9 -28.5% 50.6 -29.7% 23.8 -41.5% 6.0 33.7% 16.2 -8.8% 2.5 0.2% Owned 301.4 -3.9% 141.3 -4.1% 45.2 -28.6% 45.2 -28.6% 19.0 -50.7% Leased 19.8 -31.8% 16.6 -32.7% 7.7 -27.8% 5.4 -37.6% 4.8 120.0% EMEA 377.4 5.3% 298.7 5.4% 101.6 10.6% 98.0 9.7% 39.0 75.4% 6.1 27.5% 21.6 7.2% 0.7 -79.5% Owned 95.5 9.2% 79.8 10.6% 28.9 15.2% 28.9 15.2% 16.8 35.9% Leased 281.9 4.0% 218.9 3.7% 72.7 8.9% 69.1 7.5% 22.1 125.1% SPAIN 788.7 13.1% 575.5 12.3% 241.9 10.1% 198.1 6.4% 115.6 -0.4% 33.2 9.4% 45.6 11.1% 11.6 131.5% Owned 265.0 3.6% 180.2 1.9% 73.7 -6.0% 73.7 -6.0% 59.3 -8.5% Leased 523.7 18.6% 395.4 17.8% 168.2 19.1% 124.4 15.3% 56.3 9.8% CUBA ASIA 10.1 0.0% 0.0% 1.4 365.5% TOTAL 1,487.3 6.3% 1,032.1 6.7% 396.4 2.8% 346.7 -0.3% 178.4 -0.3% 55.4 19.1% 83.4 5.6% 16.2 53.0%
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17 Meliá Ho Tram VietnamMeliá Hoi An BUSINESS SEGMENTATION & EXCHANGE RATES 9M 2026 EXCHANGE RATES Q3 2026 EXCHANGE RATES 9M 2026 9M 2025 9M 2026 VS 9M 2025 1 foreign currency = X€ Average Rate Average Rate % change Sterling (GBP) 1.1578 1.1761 -1.56% American Dollar (USD) 0.8610 0.8946 -3.76% Q3 2026 Q3 2025 Q3 2026 VS Q3 2025 1 foreign currency = X€ Average Rate Average Rate % change Sterling (GBP) 1.1680 1.1544 +1.18% American Dollar (USD) 0.8689 0.8557 +1.54% SEGMENTATION (Million €) 9M 2026 Total Hotels Real Estate Overheads Total Aggregated Eliminations on Consolidation Total Consolidated Revenues 1,977.7 10.9 121.1 2,109.7 (400.4) 1,709.3 Expenses 1,453.6 6.3 154.5 1,614.5 (400.4) 1,214.0 EBITDAR 524.1 4.6 (33.4) 495.3 0.0 495.3 Rentals 49.9 0.0 0.0 49.9 0.0 49.9 EBITDA 474.2 4.6 (33.4) 445.3 0.0 445.3 D&A 65.7 2.6 13.0 81.3 0.0 81.3 D&A (ROU) 105.2 0.3 0.1 105.7 0.0 105.7 EBIT 303.2 1.7 (46.5) 258.4 0.0 258.4 9M 2025 Total Hotels Real Estate Overheads Total Aggregated Eliminations on Consolidation Total Consolidated Revenues 1,893.9 13.0 100.3 2,007.3 (412.1) 1,595.2 Expenses 1,381.9 7.4 146.1 1,535.4 (412.1) 1,123.3 EBITDAR 512.0 5.7 (45.8) 471.9 0.0 471.9 Rentals 38.1 0.0 0.0 38.1 0.0 38.1 EBITDA 473.9 5.7 (45.8) 433.8 0.0 433.8 D&A 62.7 1.1 12.5 76.4 0.0 76.4 D&A (ROU) 109.3 0.3 0.1 109.8 0.0 109.8 EBIT 301.9 4.2 (58.4) 247.6 0.0 247.6
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18 MAIN STATISTICS BY BRAND & COUNTRY 9M 2026 MAIN STATISTICS BY BRAND OWNED & LEASED OWNED, LEASED & MANAGED Occup. ARR RevPAR Occup. ARR RevPAR % Chg pts. € Chg % € Chg % % Chg pts. € Chg % € Chg % Paradisus 61.6% -0.9 185.5 -3.8% 114.3 -5.2% 54.8% 9.3 186.3 6.4% 102.0 28.2% ME by Melia 64.3% 2.7 437.5 2.1% 281.2 6.5% 60.0% 1.4 371.1 6.9% 222.8 9.4% The Meliá Collection 69.0% 0.6 284.1 -14.1% 195.9 -13.4% 61.8% 3.0 314.6 -6.8% 194.6 -2.0% Gran Meliá 68.5% 1.2 417.3 4.6% 285.7 6.5% 60.9% 0.3 314.5 3.1% 191.5 3.6% Meliá 70.4% 1.9 175.8 2.9% 123.8 5.7% 64.6% 5.8 152.2 12.6% 98.3 23.8% Innside 76.6% -0.3 149.8 1.0% 114.8 0.7% 74.3% 0.8 143.6 4.1% 106.7 5.3% Sol 82.8% -2.1 112.6 0.9% 93.2 -1.6% 77.5% 1.1 118.2 11.1% 91.6 12.7% Affiliated by Meliá 71.6% 1.1 130.9 -0.7% 93.7 0.8% 65.0% 0.8 108.1 -4.0% 70.3 -2.9% Total 71.9% 0.6 177.9 0.7% 127.9 1.6% 66.5% 4.2 160.6 9.2% 106.9 16.5% MAIN STATISTICS BY MAIN COUNTRIES OWNED & LEASED OWNED, LEASED & MANAGED Occup. ARR RevPAR Occup. ARR RevPAR % Chg pts. € Chg % € Chg % % Chg pts. € Chg % € Chg % AMERICA 61.3% -0.3 146.9 -9.0% 90.1 -9.5% 50.1% 1.6 141.6 21.2% 70.9 25.2% Dominican Republic 76.8% 10.2 146.5 -5.4% 112.6 9.0% 76.8% 10.2 146.5 -5.4% 112.6 9.0% Mexico 55.6% -8.0 161.3 -5.7% 89.6 -17.6% 55.7% -7.3 157.3 -5.9% 87.7 -16.8% USA 81.4% -4.8 148.4 -16.8% 120.8 -21.4% 84.9% -1.3 182.3 2.2% 154.7 0.6% Venezuela 15.5% -1.1 100.7 -12.7% 15.6 -18.3% 15.5% -1.1 100.7 -12.7% 15.6 -18.3% Cuba 28.8% -11.4 102.1 34.1% 29.4 -3.9% Brazil 53.9% -1.2 125.1 9.2% 67.4 6.8% ASIA 60.7% 6.5 92.2 10.9% 56.0 24.2% Indonesia 57.5% 6.8 97.0 71.2% 55.7 94.0% China 60.8% -2.2 70.4 0.8% 42.8 -2.7% Vietnam 59.7% 8.8 85.6 9.2% 51.1 28.0% EUROPE 74.8% 0.7 184.9 2.6% 138.4 3.6% 75.0% 1.2 181.9 4.7% 136.4 6.5% Austria 68.5% 2.2 184.4 -4.7% 126.3 -1.5% 68.5% 2.2 184.4 -4.7% 126.3 -1.5% Germany 69.0% -0.4 131.7 3.5% 90.9 3.0% 69.0% -0.4 131.7 3.5% 90.9 3.0% France 78.4% 1.4 209.3 -2.0% 164.2 -0.2% 78.4% 1.4 209.3 -2.0% 164.2 -0.2% United Kingdom 77.3% 1.1 197.9 2.0% 153.0 3.5% 77.4% 1.5 200.2 1.9% 155.1 3.9% Italy 70.3% 2.6 403.8 15.8% 284.0 20.2% 69.3% 2.0 378.0 12.9% 261.8 16.2% SPAIN 76.3% 0.6 183.8 1.4% 140.2 2.2% 76.4% 1.3 179.9 4.4% 137.5 6.3% Urban 73.5% 0.6 200.9 5.6% 147.6 6.5% 72.8% 1.2 194.9 6.6% 141.9 8.4% Resorts 78.8% 0.4 169.8 -2.0% 133.7 -1.6% 78.9% 1.1 170.6 3.5% 134.6 5.0% TOTAL 71.9% 0.6 177.9 0.7% 127.9 1.6% 66.5% 4.2 160.6 9.2% 106.9 16.5%
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19 PORTFOLIO & PIPELINE Innside Braga Centro I Braga, Portugal Openings between 01/01/2026 – 30/09/2026 HOTEL COUNTRY/ CITY CONTRACT ROOMS REGION CUSCO LA PACCHA Peru / Cuzco Leased 167 AMERICA GRANADA PALACE Spain / Granada Franchise 107 SPAIN PRESIDENT BUDAPEST Hungary / Budapest Franchise 152 EMEA HOLIDAY WORLD VILLAGE Spain / Málaga -Benalmádena Management 360 SPAIN HOLIDAY WORLD POLYNESIA Spain / Málaga -Benalmádena Management 328 SPAIN HOLIDAY WORLD RIWO Spain / Málaga -Benalmádena Management 148 SPAIN CASAMAÏA APARTMENTS Spain / Málaga -Benalmádena Management 28 SPAIN CRETE ELOUNDA Greece / Crete - Elounda Franchise 85 EMEA AURONZO DOLOMITES Italy / Auronzo di Cadore Franchise 53 EMEA MÉXICO ROMA NORTE Mexico / Mexico City Management 91 AMERICA EL MANSOUR MAHDIA Tunisia / Mahdia Management 307 SPAIN BUGIBBA Malta / Bugibba Management 86 EMEA CASA AZURE Malta / Gozo Management 17 EMEA RECOLETOS Spain / Valladolid Leased 80 SPAIN AUREA NHA TRANG Vietnam / Nha Trang Management 207 ASIA PACIFIC RESIDENZA CARDINALE Italy / Milan Management 28 EMEA PALAZZO GIUSEPPE Malta / Gozo Management 16 EMEA Disaffiliations between 01/01/2026 – 30/09/2026 HOTEL COUNTRY/CITY CONTRACT ROOMS REGION MELILLA PUERTO Spain / Melilla Management 139 SPAIN OCEAN HOUSE COSTA DEL SOL Spain / Torremolinos - Malaga Franchise 373 SPAIN CAYO SANTA MARIA Cuba / Caibarien Management 300 CUBA BUENAVISTA Cuba / Caibarien Management 105 CUBA LAS DUNAS Cuba / Caibarien Management 925 CUBA M. CAYO SANTA MARIA Cuba / Caibarien Management 358 CUBA PRINCESA DEL MAR Cuba / Varadero Management 630 CUBA RIO DE ORO Cuba / Holguin Management 354 CUBA VARADERO Cuba / Varadero Management 806 CUBA SOL VARADERO BEACH Cuba / Varadero Management 356 CUBA CARIBE BEACH Cuba / Varadero Management 391 CUBA RIO DE LUNA Y MARES Cuba / Holguin Management 464 CUBA PENINSULA VARADERO Cuba / Varadero Management 581 CUBA JARDINES DEL REY Cuba / Cayo Coco Management 1176 CUBA LOS CAYOS Cuba / Caibarien Management 802 CUBA HABANA CATEDRAL Cuba / Havana Management 50 CUBA BRISTOL HABANA VIEJA Cuba / Havana Management 162 CUBA SAPA MOUNTAIN RESORT Vietnam / Sapa Management 77 ASIA PACIFIC CAYO COCO Cuba / Morón - Ciego de Ávila Management 250 CUBA COHIBA Cuba / Havana Management 462 CUBA HABANA Cuba / Havana Management 395 CUBA LAS AMERICAS Cuba / Varadero · Matanzas Management 340 CUBA LAS ANTILLAS Cuba / Varadero · Matanzas Management 350 CUBA SANTIAGO DE CUBA Cuba / Santiago de Cuba Management 302 CUBA VARADERO Cuba / Varadero · Matanzas Management 490 CUBA CAYO COCO Cuba / Morón - Ciego de Ávila Management 270 CUBA PALMERAS Cuba / Varadero · Matanzas Management 604 CUBA T. HABANA LIBRE Cuba / Havana Management 572 CUBA T. CAYO COCO Cuba / Morón - Ciego de Ávila Management 508 CUBA HOTEL LA UNION Cuba / Cienfuegos Management 49 CUBA SAN CARLOS Cuba / Cienfuegos Management 56 CUBA HOTEL JAGUA Cuba / Cienfuegos Management 173 CUBA INTERNACIONAL VARADERO Cuba / Varadero Management 946 CUBA SEVILLA HABANA Cuba / Havana Management 60 CUBA TRINIDAD PENINSULA Cuba / Trinidad Management 200 CUBA COSTA REY Cuba / Cayo Coco Management 566 CUBA PUERTOLLANO Spain / Puertollano Owned 38 SPAIN
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20 PORTFOLIO & PIPELINE Hotels 362 Rooms 82,559 PORTFOLIO PIPELINE New Hotels +77 +16,963 Rooms +20.5% Portfolio by contract ( % rooms) Portfolio by area (% rooms) Pipeline by area (% rooms) Pipeline by contracts (% rooms) * * % of Pipeline openings over operative portfolio Gran Meliá Arusha| Arusha, Tanzania
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21 PORTFOLIO & PIPELINE Meliá Hotels International Investor relations T eam Contact details: Stéphane Baos stephane.baos@melia.com +34 971 22 45 81 Agustín Carro agustin.carro@melia.com +34 871 20 43 50 CURRENT PORTFOLIO & PIPELINE CURRENT PORTFOLIO PIPELINE YTD 2026 2025 2026 2027 2028 Onwards Pipeline TOTAL H R H R H R H R H R H R H R H R AMERICA 42 11,870 40 11,405 5 964 7 1,463 2 821 14 3,248 56 15,118 Owned 16 6,782 16 6,577 16 6,782 Leased 2 440 2 586 2 440 Management 20 4,223 18 3,819 1 230 4 720 2 821 7 1,771 27 5,994 Franchised 4 425 4 423 4 734 3 743 7 1,477 11 1,902 CUBA 34 14,053 Management 34 14,053 EMEA 117 21,598 110 21,127 2 147 17 2,614 8 1,332 13 2,847 40 6,940 157 28,538 Owned 8 1,495 7 1,396 8 1,495 Leased 35 6,634 36 6,736 35 6,634 Management 23 2,459 19 2,280 1 86 9 1,488 7 1,136 11 2,581 28 5,291 51 7,750 Franchised 51 11,010 48 10,715 1 61 8 1,126 1 196 2 266 12 1,649 63 12,659 SPAIN 157 37,269 153 36,638 2 207 5 914 2 808 2 743 11 2,672 168 39,941 Owned 15 4,211 16 4,258 15 4,211 Leased 55 13,161 54 13,079 1 171 1 191 2 362 57 13,523 Management 59 14,929 55 13,895 1 36 2 608 2 808 2 743 7 2,195 66 17,124 Franchised 28 4,968 28 5,406 2 115 2 115 30 5,083 ASIA PACIFIC 46 11,822 46 11,689 3 722 2 424 7 2,957 12 4,103 58 15,925 Management 46 11,822 46 11,689 3 722 2 424 7 2,957 12 4,103 58 15,925 TOTAL OWNED HOTELS 39 12,488 39 12,231 39 12,488 TOTAL LEASED HOTELS 92 20,235 92 20,401 1 171 1 191 2 362 94 20,597 TOTAL MANAGEMENT HOTELS 148 33,433 172 45,736 5 844 12 2,326 15 3,088 22 7,102 54 13,360 202 46,793 TOTAL FRANCHISED HOTELS 83 16,403 80 16,544 1 61 14 1,975 4 939 2 266 21 3,241 104 19,644 TOTAL MELIÁ HOTELS INT. 362 82,559 383 94,912 7 1,076 27 4,492 19 4,027 24 7,368 77 16,963 439 99,522
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22 GLOSSARY EBITDA and EBITDAR EBITDA (Earnings Before Interest expense, Taxes and Depreciation and Amortization): Earnings before interest, taxes, depreciation and amortization. Its usefulness is to provide an estimate of the net cash flow from operating activities. EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortization, and Rent): Earnings before interest, taxes, depreciation, amortization and hotel rent. Its usefulness lies in allowing comparability between the hotel business units operated by the Group, regardless of the structure through which the operating rights have been acquired (ownership or rental). EBITDA and EBITDAR excluding capital gains EBITDA and EBITDAR excluding capital gains: The purpose of this indicator is to provide a measure of the Company's operating results that does not include certain results of the real estate segment, mainly related to changes in the fair value of real estate investments and asset turnover. For the calculation of EBITDA and EBITDAR excluding capital gains, both revenues and expenses related to these activities are excluded, resulting in Income excluding capital gains, a measure used for the calculation of margins excluding capital gains. EBITDA and EBITDAR margins excluding capital gains The EBITDAR margin is obtained dividing EBITDAR by total revenues, excluding any capital gains that may have been generated by asset sales at the revenue level. On the other hand, the EBITDA margin excluding capital gains is obtained dividing EBITDA excluding capital gains by total revenues, excluding any capital gains that may have been generated at the revenue level from asset sales. Net Debt Net Debt, presented herein, is a financial measure that the Company uses to evaluate its financial leverage. Net Debt is calculated as long-term debt, including current maturities, plus short-term debt; reduced by cash and cash equivalents. Net Debt may not be comparable to a similarly titled measure of other companies. Net Debt to EBITDA Ratio Net debt to EBITDA ratio, presented herein, is a financial measure and is included as it is frequently used by securities analysts, investors and other interested parties to compare the financial condition of companies. Net Debt to EBITDA ratio may not be comparable to a similarly titled measure of other companies. Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. It measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable average daily rate levels as demand for hotel rooms increases or decreases. Average Room Rate (ARR) ARR represents hotel room revenue divided by total number of room nights sold for a given period. It measures average room price attained by a hotel, and ARR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ARR is a commonly used performance measure in the industry, and management uses ARR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above. Revenue per Available Room (RevPAR) RevPAR is calculated by dividing hotel room revenue by total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company's performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels: occupancy and ARR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels. Flow Through Flow Through is a financial measure calculated by dividing EBITDA changes by Revenues changes for a given period. Flow Through is an indicator related with margins and indicates, in percentage, the portion of the increase in income flows to EBITDA.
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23 GLOSSARY Like for like We present certain hotel operating indicators, including RevPAR, Average Daily Rate (ADR) and occupancy, on a like-for-like basis. This term compares the performance of the same set of hotels across the periods presented. We believe that like-for-like analysis provides useful information on business performance, as it removes the impact of changes in the portfolio from our operating results. Like-for-like figures are also presented on a currency neutral basis, meaning that current-period results are translated at the prior period’s exchange rates, so that the comparison is not affected by exchange rate fluctuations. We consider like-for-like hotels to be those that have been open and operating under one of our brands since 1 January of the previous year and that, in neither the current nor the comparative period: (i) have undergone significant refurbishments, repositionings or expansions; (ii) have changed their operating model (owned, leased, managed or franchised); (iii) have suffered material damage or significant business disruptions; or (iv) do not have comparable results for other reasons. Hotels that have exited the portfolio, including disposals resulting from the asset rotation strategy and contract expirations, are excluded from both periods.