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Meliá Hotels International Presentation 2011
Meliá Hotels International Presentation 2011
ME Barcelona (Spain)
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ME Cancn (Mexico)
INVESTMENT CASE Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7
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2010 51% of RevPAR due to prices 2011e Important contribution of prices in RevPAR evolution Hotel EBITDA Margin improviment of +149 bps in 2010 (+214 on like-for-like basis) CAGR 2011-14e +0.6% +1.0% +1.2% +0.3%
The Cost Efficiency Programme during the crisis improved operational margins - ~45% of a total 80 mn savings in 2009 considered to be permanent. Little new capacity coming on stream2 - Low supply growth in terms of number of rooms in core markets.
Dominican Republic Mexico Rest of Europe Spain
coming from an environment where Melias RevPAR and Ebitda has comparatively outstand
19,100
INVESTMENT CASE
20.000
16,800
17,800
18,700
12.990
12,879
7.843
6,153
5,754
3,738
3,835
3,330
3,527
(in million$)
4,696
5,071
11,619
11,032
8,497
10,908
11.691
1,927
1,824
615.1
12
15%
7% 7% 7% 2% -1% -13% -17% -17% -25%
1,982
564.2
596.1
641.7
6% 1%
6%
10% 5%
11% 4% 0%
1,642
(% Change)
RevPAR Evolution
5.60%
8%
6%
9%
-1%
-3%
-15%
-18%
-17%
1,390
19 EBITDA Evolution
2.000 1.500
585 645 552
1,253
949
1,183
1,102
943
1,164
923
582
885
472
480
487
200.5
335
198.1
164.5
166.6
-67
2007
Source: Company websites; Company Annual Reports; Deloitte research Note: RevPar data for 2008 and 2009 not available for Choice Hotels International
2008
274
2009
289
2010
336
(in million$)
436
365
1,798
INVESTMENT CASE Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7
Quarter 3Q11 2Q11 +7.2% +11.5% +13.0% +10.1% +11.9% 5% 10% 15% RevPAR growth +10.0%
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INVESTMENT CASE
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(million Euros) REVENUES EBITDAR EBITDA EBIT EBT Net Profit at.
5.6%
...when excluding capital gains...
13.9%
Note: Capital gains, 9M11: 33.6 mn; 9M10: 93.2 mn
OUTLOOK
Worldwide Resorts likely to lead RevPAR growth along with Gateway Cities
RevPAR9M11: +9.1% (Q3: 10.0%) Cost per stay decreases by 0.2% Underlying Hotel Ebitda margin: 126 bps
INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
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Gran Melia Colon, Seville (189) Refurbished in 2009
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Key European Markets (Germany, Italy, UK, France and other major cities in Europe) LatAm and Caribbean Mediterranean Rim
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Via low capital-intensive formulas: 76% management & franchise, 12% variable lease and 12% property. Reinforcing brands in the Upscale & Premium segments: 85% of the new rooms.
INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
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Wyndham Hotel Group: Largest franchise group worldwide with nearly 7,100 franchised hotels and more than 590,000 rooms. Sale of the Tryp brand to Wyndham Hotel Group for $42.5 Mn (34.7 Mn) and agreement with Wyndham to keep using the Tryp brand over a period of 20 years. Strategic alliance between both Companies to develop the Tryp by Wyndham brand in key international cities, especially across Europe & LatAm. Cooperative operation of the hotels using both central reservations systems and loyalty programs.
- Wyndham Rewards programme involves more than 8 million active members while Meli Hotels International loyalty programme, mas, nearly 2.5 million members.
JIN JIANG: Leading hotel group in China with more than 450 hotels and 74,000 rooms. Long-term partnership encompassing hotel development, marketing & sales, reservations systems and loyalty programmes. Allowing both chains to grow in the market in which the other enjoys competitive advantages through a joint growth strategy in China and Europe. Adaptation of hotel services to the needs of Chinese and European guests, one of the major challenges for both companies.
and mixed ownership formulas in LatAm & Caribbean, i.e. 290K sq mts in Playa del Carmen (Mexico)
2 All-Inclusive Paradisus Resorts in Playa del Carmen (Mexico). 906 hotel rooms including 340 Club Meli units. Opening in November 15 2011.
INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Playa del Carmen (Mexico) Opening in 2011
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PA R A D I S U S L A P E R L A
SHARED AREAS
PA R A D I S U S L A E S M E R A L D A
An exclusive adult only resort featuring Royal Service: - 394 suites, including swim-up suites - 5 restaurants and 4 bars - Large swimming pool - Access to golf courses
Royal Service Junior Suites Deluxe Bathroom
- Convention Center - Exclusive shopping area - YHI SPA - Gaby Club with chill out area
An exclusive family oriented resort featuring Family Concierge: - 512 suites, including swim-up suites - 4 restaurants and 3 bars - Open area Kids Club - Large swimming pool - Access to golf courses
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
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157 rooms & Convention Centre. Total built area of 17,000 sqm. Strategic asset in a key destination, positioning the ME by Meli brand in one of the most important feeder markets. Scheduled to open in Q2 2012. Design-driven & experiencebased hotel with a strategic location alongside Covent Garden & Trafalgar Square Brand-building assetfor future growth of ME by Meli brand through Management, Franchise and JV.
ME Cabo (155)
ME Barcelona (259)
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials
Average interest rate expected in 2011: ~4.5%. Accomplishment of Covenants 1H2011 & confidence in meeting them in 2011. - Net debt / Ebitda < 3.5x (3.49x in 1H2011) - Ebitda / Net Interest > 4.0x (4.99x in 1H2011) Fixed-rate debt increased from 26% in 2008 to 66% in 9M2011.
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2-year maturity extension of 3 syndicated loans through the signature of a Forward Start Facility (FSF) in August 2010 for 252 mn* (see following slide).
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Debt Maturity
450.0 400.0 350.0 300.0 299.5 255.8 (1) 250.0 401.3
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25.8
21.4 2019
18.9 2020
13.1 2021
Note: Not included 283.1 Mn of used revolving credit facilities. (1) Figure includes Preference Share 106.9 Mn
In the current financing environment, Meli Hotels International will focus on maintaining high liquidity levels vs maturities
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Rest of Europe 72 hotels (22%) Spain 157 hotels (45%) MEA 5 hotels (2%)
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Largest hotel group in Spain and 17th company worldwide (1) with 308 hotels and 77,808 rooms(2) in 28 countries
At a glance:
Market cap: 950 Million Euros (3) 1,309 Million US dollars Main Shareholders: Escarrer Family (64.64%), CAM Savings Bank (6.007%); Free-float: 29.353% Member of the FTSE4Good Ibex index
(1) Source: Hotels Magazine 2010 with figures as of December' 09; (2) Up to September 2011; (3) MEL.MC: 5.14 at November 3, 2011 / 184.8 mn shares
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials
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- 50s: First resort in Mallorca-Spain - 60s: Development in Balearic Islands - 70s: Expansion into other major Spanish resorts - 80s: Growth to Spanish cities - 90s: Development in LatAm - 00s: Presence in European gateway cities Acquisition of hotel chains - 1984: Hotasa - 1986: CHM - 1987: Meli hotels - 1999: 8 hotels in Paris - 2000: Tryp - 2007: Innside 32 hotels 11 hotels 22 hotels 60 hotels 11 hotels in Germany
History of product renewal and innovation - 785 mn in refurb from 2001 to 2010. - Modern IT Systems integrated for more professional management - Introduction of state-of-the-art Food & Beverage technology in company resorts - Creation of Hospitality Business Solutions (HBS): Shared Service Centre, provider of back office services to the different Sol Melia Businesses Successfully executed Strategic Plan 2004-07: Financial Strength & Consolidation Successfully executed 2009-2010 Contingency Plan
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
28%
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18% 45%
Spain Rest of EMEA Asia LaTAM
49%
Owned Leased Managed Franchised
41%
CITY
19%
Midscale 53%
36%
34%
11%
Luxury segment
59%
RESORT
(*) 52% Resort / 48% city in owned & leased NOTE: All figures by number of rooms (November 2011)
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INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
47%
CITY
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BUSINESS 44%
LEISURE 56%
18%
GROUPS
26%
INDIVIDUALS
24%
GROUPS
32%
INDIVIDUALS
53%
RESORT
CLIENTS BY REGION OF RESIDENCE
(1) Revenues
2% 2% 3% 2% 3% 3% 3% 11% 9%
32% 17%
Spain Other UK USA Germany Italy France Mexico Russia Canada Venezuela Netherlands
NOTE: figures 2010
13%
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INVESTMENT CASE Business Recovery Valuable Hotel Portfolio Sound Strategy Financials
OUR VISION
We contribute to (sustainable) development of the communities in which we operate and of the people that live on them. Building our legacy.
Create value for our Stakeholders Public Positioning Director Plan RELATION COMMUNICATION PRESENCE EMPLOYEES CUSTOMERS SHAREHOLDERS SUPPLIERS SOCIAL ENVIRONMENT
FTSE4Good IBEX BHC CERTIFICATION
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VISION
GLOBAL COMPACT
GRI REPORT
The Public Positioning Director Plan and the Sustainable Development Plan get measured and evaluated in a yearly basis through Meli Hotels International public commitments.
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This report is a communication made, or approved for communication by Meli Hotels International. It is directed exclusively to eligible counterparties and professional clients. No persons other than an eligible counterparty or a professional client should read or rely on any information in this report. This research report is being distributed by Meli Hotels International, purely as a resource and for general information purposes and only contains general information; therefore, this report does not take account of the specific circumstances, investment objectives, financial position or risk profile of any recipient and should not be relied upon as authoritative or taken in substitution for the exercise of judgement by recipient. Each recipient should consider the appropriateness of any investment decision having regard to their own circumstances, the full range of information available and appropriate professional advice. Each recipient should make their own investment decision regardless of the circumstances mentioned in this report and by obtaining specific specialist advice that may be necessary. The information and opinions, estimates, projections and recommendations in this report have been drafted by SOL MELIA and are based on publicly available information and on sources believed to be reliable and in good faith, but that information has not been verified independently and no representation or warranty, either express or implied, is made as to their accuracy, completeness or correctness. Meli Hotels International may amend, supplement or updated the contents of this report in such form and in such timescales as Meli Hotels International deems appropriate. Meli Hotels International reserves the right to express different or contrary recommendations and opinions. This report does not constitute or from part of, and should not be construed as, any other for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. Meli Hotels International accepts no liability whatsoever for any loss or damage arising from any use of this report or its contents. Investors should bear in mind that past performance or results are no guarantee of future performance or results. Price of securities or instruments or the results of investments may fluctuate against the investors interest and may even lead to the loss of the initial investment. This report is for the use of the addressees only, is supplied to you solely in your capacity as an investment professional or knowledgeable and experienced investor for your information and no part of this document may be (I) copied, reproduced or duplicated by any form or means, (II redistributed or (III) quoted or published, for any purpose, without the prior, written consent of Meli Hotels International. Breach of these restrictions may constitute breach of law in the relevant jurisdictions. Meli Hotels International may distribute reports such as this in hard copy or electronically.
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