Tuesday, July 29, 2025
In the first half of 2025, Minor Hotels Europe & Americas demonstrated a remarkable financial performance, achieving €1.206 billion in revenue, a 5% increase compared to the €1.145 billion recorded during the same period in 2024. The company’s strong growth was largely driven by a combination of strategic portfolio expansion, organic growth, and robust demand from both the business and leisure travel sectors. This performance highlights the resilience and effective operational management of Minor Hotels, even amid a challenging global economic environment.
Key Highlights:
Total revenues of €1.206 billion, up 5% YoY.€61 million growth in revenues, with €21 million from portfolio changes.Organic growth driven by sustained demand and operational efficiencies.Increased average daily rate (ADR) and revenue per available room (RevPAR).
The growth trajectory reflects Minor Hotels’ commitment to enhancing its portfolio through strategic acquisitions and hotel openings while leveraging existing assets to maximize returns. As the travel industry continues its post-pandemic recovery, Minor Hotels has capitalized on rising demand, improved occupancy, and better pricing strategies. This strong performance places the company in a favorable position for the second half of 2025.
Portfolio Expansion and Organic Growth Drive Revenue Increase
In the first half of 2025, Minor Hotels continued to expand its portfolio across Europe and the Americas, contributing significantly to its revenue growth. Approximately 34% of the €61 million increase in revenue was attributed to portfolio changes, including new hotel acquisitions and openings. On a like-for-like basis, excluding the effects of currency fluctuations and portfolio changes, revenue growth was 4%.
The positive growth trend was further supported by the company’s commitment to capitalizing on high-demand markets, particularly in Southern Europe. The travel sector’s steady recovery, especially within the business and leisure segments, enabled Minor Hotels to leverage its existing network of hotels while simultaneously tapping into new regions for expansion.
Strengthened Financial Metrics and Profitability
Minor Hotels Europe & Americas’ solid financial performance in H1 2025 is underpinned by a series of positive profitability metrics.
EBITDA Growth: The company reported a recurring EBITDA of €317 million, up 6% from €298 million in H1 2024. This growth reflects effective cost management and operational efficiency.Gross Operating Profit (EBITDAR): €432 million, showing an increase of 6% compared to the same period last year.Net Profit: The company achieved a net profit of €112 million, a significant 58% increase compared to €71 million in H1 2024.
This sharp rise in net profit was bolstered by non-recurring gains of €26 million, primarily due to the sale of hotels in Portugal and Germany. Excluding these one-time gains, Minor Hotels’ recurring net profit was €86 million, which still represents a solid 30% year-on-year increase. The company’s ability to improve profitability, even in a saturated market, demonstrates its resilience and ability to drive value across its assets.
Second-Quarter Performance and Outlook for 2025
In Q2 2025, Minor Hotels Europe & Americas continued to show its strength, with revenue for the quarter totaling €711 million, up 4% from €685 million in Q2 2024. The portfolio changes accounted for 32% of this growth, further cementing the company’s strategy of leveraging new properties to drive higher revenues.
Looking ahead, Minor Hotels is optimistic about the outlook for the second half of 2025. With current market trends showing sustained demand, particularly in Southern Europe, the company is confident in its ability to maintain momentum. The rise in both occupancy rates and ADR (Average Daily Rate) is expected to continue, providing further opportunities for revenue growth.
Strengthened Balance Sheet and Capital Management
A key aspect of Minor Hotels’ success in 2025 has been its focus on improving its balance sheet. As of June 30, 2025, the company significantly reduced its net financial debt to €114 million, down from €244 million at the end of 2024. This reduction was driven by the sale of assets, strong operating cash flows, and capital expenditures of €78 million during the period.
The company also made significant strides in managing its debt obligations by redeeming €400 million in senior secured bonds due in 2026. This was achieved through available cash and a €200 million long-term loan secured earlier in the year. Additionally, Minor Hotels replaced its €242 million revolving credit facility with a new €200 million facility, further strengthening its financial position.
This strategic capital management has not only reduced financial risk but also positioned the company for further growth. The improved liquidity, totaling €669 million, ensures that Minor Hotels remains well-capitalized to take advantage of new opportunities in the market.
Strategic Focus and Future Growth Plans
Looking forward to the second half of 2025 and beyond, Minor Hotels Europe & Americas is focused on driving value-enhancing growth, particularly in premium brands and high-performing assets. The company plans to continue its expansion efforts across Europe and the Americas, with a keen focus on Southern European markets where demand remains strong.
The company also remains committed to maintaining efficient cost controls and optimizing its portfolio. By targeting strategic acquisitions and hotel openings in key markets, Minor Hotels aims to continue its upward trajectory in revenue and profitability. As the global travel market evolves, Minor Hotels is poised to adapt to changing trends and deliver exceptional value to its stakeholders.
Conclusion
Minor Hotels Europe & Americas has demonstrated remarkable resilience and financial strength in H1 2025, achieving solid revenue growth, profitability, and strategic portfolio expansion. With a focus on operational efficiency, continued investment in high-performing assets, and strong market demand across Europe and the Americas, Minor Hotels is set to continue its success throughout the remainder of 2025 and beyond. The company’s solid financial position, bolstered by strategic debt management and capital optimization, ensures that it remains well-placed to navigate the evolving landscape of the global tourism and hospitality industry.
As Minor Hotels continues its focus on value-enhancing growth, it remains an industry leader in driving innovation and sustainable success in the competitive tourism and hospitality market. The company’s robust financial performance and strategic outlook position it for continued leadership in the hospitality sector across Europe and the Americas.
