Minor Hotels Europe & Americas highlighted the growth of the Brazilian market and the impact of the devaluation of the Argentine peso in December 2023 as key factors in the region. It also managed to reduce its net financial debt by 20 million euros, bringing it to 244 million at the end of the year. 'Market performance remains strong, but we must anticipate a normalization in the pace of expansion following the last few years of strong recovery,' the company notes in its financial report.
With over 560 hotels in 58 countries, Minor Hotels continues to focus on its global expansion and plans to add more than 280 hotels to its portfolio before 2027. Recurring EBITDA increased by 14% to reach 680 million euros, consolidating a positive trend that has led the company to recover pre-pandemic profitability levels.
Average daily rate (ADR) increased by 5.6% in 2024, rising from 138 to 145 euros per night, while the average annual occupancy stood at 69.2%, an increase of 1.2 percentage points compared to 2023. Although levels are still 0.8 percentage points below those of 2019, the company highlights that demand has remained strong, especially in European markets, where hotel rates have followed an upward trajectory.
In Latin America, ADR continued its upward trend, while occupancy remained stable. These improvements position the company a level above its 2019 rating and reflect confidence in its capacity for sustainable growth.
Looking ahead to 2025, Minor Hotels Europe & Americas remains optimistic, albeit cautiously, regarding a potential moderation in the growth rates of the tourism sector. Despite strategic investments in Brazil and technology, the company managed to maintain solid liquidity of 533 million euros. Financial performance led Moody's and Fitch to upgrade the group's credit rating in 2024.
This performance has been driven by a strategy focused on portfolio optimization, cost control, and operational efficiency, according to the company's financial report. The group's recurring net profit skyrocketed by 67%, reaching 210 million euros, while total net profit grew by 65%, amounting to 212 million euros.
Minor Hotels Europe & Americas (MHEA), a division of the global hotel group Minor Hotels, closed 2024 with revenues of 2,427 million euros, representing a 12% increase compared to the 2,163 million euros reported in 2023. Moody's upgraded the rating from 'B1' to 'Ba3' with a stable outlook, while Fitch raised it from 'B' to 'BB-.'
