Report
Javier Hombria
EUR 20.00 For Business Accounts Only

MELIÁ: A tough 2019 ahead (Bankinter Securities)

We are still buyers because current prices offer a good entry point for a company that is well-managed, has the right strategy to deal with lodging platforms, and offers significant discount to its intrinsic value. Since late last summer the stock has declined by –23%, far more than the next twelve-month EPS estimate (–10.2%), with Meliá trading at the lowest multiple of the past ten years. Regarding margin of safety, we are buying its hotels plus the brand at a significant discount. Adjusting the latest asset appraisal valued for net financial debt and the potential tax bill, we come up with a net net asset valuation per share of €13.91/share, implying a –40% discount to current prices.

Underlying
Melia Hotels International S.A.

Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.

Provider
Bankinter S.A.
Bankinter S.A.

Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.

Analysts
Javier Hombria

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