Melia Hotels: RS management: Current valuation that is not reflecting underlying positive trend
Melia Hotels: (BUY, Fair Value EUR14,6 (+25%))RS management: Current valuation that is not reflecting underlying positive trend
Despite underlying positive trends, the share's valuation is under pressure due to negative currency moves especially the strength of the EUR vs. USD. However, at constant currency, management again confirmed its expectation of a mid-single digit RevPAR increase for the coming months notably driven by Spain and France. 2018e EBITDA margin is still expected to improve by 150bp at the current EUR/USD exchange rate. Short term positive catalysts could come from the upcoming owned & leased asset valuation (to be released with H1 results end of July), which should highlight NAV above the current share price by 20%. Buy confirmed.
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®.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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