Home » America Travel News » How Minor Hotels Europe and Americas Reached Over Two Thousand Million Euro Revenue in 2024 with Strategic Growth and Approx. Six Percent ADR Increase

Saturday, February 22, 2025

Minor Hotels Europe and Americas reports €2,427 million revenue in 2024, up 12 percent, driven by strategic growth, cost control, and efficiency.

Minor Hotels Europe & Americas closed 2024 with remarkable financial success, reporting total revenues of €2,427 million, a 12% increase compared to €2,163 million in 2023. This strong performance underscores the effectiveness of the Group’s strategic focus on optimizing its portfolio, maintaining stringent cost controls, and enhancing operational efficiency.

Positive Trends in Average Daily Rate and Occupancy Rates

The Group’s Average Daily Rate (ADR) demonstrated consistent growth, rising by 5.6% to €145 per night in 2024 from €138 per night in 2023. Meanwhile, the average occupancy rate improved to 69.2%, marking a 1.2 percentage point increase compared to the previous year, though still 0.8 percentage points below pre-pandemic levels in 2019. Notably, European markets experienced upward trends in both ADR and occupancy rates, while Latin American markets remained stable.

Strategic Corporate Initiatives Propel EBITDA and Profitability

Minor Hotels Europe & Americas’ strategic initiatives have significantly bolstered its profitability. The Group’s reported EBITDA surged by 14% to €680 million in 2024. Excluding the impact of IFRS 16, recurring EBITDA reached €407 million, reflecting a 24.5% increase. The EBITDA margin improved to 17%, two percentage points higher than in 2023, maintaining parity with 2019 figures. This robust performance is attributed to the Group’s dynamic ADR strategy and stringent cost management.

The strategic emphasis on profitability resulted in a 67% growth in recurring net profit, reaching €210 million, while total net profit rose by 65% to €212 million. Looking ahead, the Group remains optimistic about 2025, anticipating continued growth in the travel sector despite expectations of moderated growth rates following the exceptional performance of recent years.

Sustained Momentum in Fourth Quarter of 2024

Minor Hotels Europe & Americas maintained strong growth momentum in the fourth quarter of 2024, with total revenue increasing to €639 million, reflecting a 16% year-on-year rise. The quarter saw robust performance across both Europe and Latin America, bolstered by the Brazilian portfolio’s positive impact and the Argentine currency’s devaluation in December 2023.

During this period, the average occupancy rate reached 70%, an increase of 1.5 percentage points compared to the fourth quarter of 2023, while ADR grew by 4% to €143 per night. These gains highlight the continued recovery and growth within the hospitality sector across key regions.

Strategic Debt Management and Financial Stability

Minor Hotels Europe & Americas demonstrated effective financial stewardship by reducing net financial debt by €20 million in 2024, closing the year at €244 million. This achievement is particularly noteworthy given the €158 million net upfront payment for Brazilian assets and €154 million in CapEx, underscoring the Group’s strategic focus on portfolio enhancement and IT investments. Liquidity remained robust at €533 million, including €220 million in cash reserves.

In recognition of its sustained financial performance and strong liquidity position, Moody’s upgraded the Group’s corporate rating from ‘B1’ to ‘Ba3’ with a stable outlook on October 1, 2024. Similarly, Fitch improved its rating from ‘B’ to ‘BB-‘ during the year, positioning Minor Hotels Europe & Americas’ corporate rating one notch above its pre-pandemic level in 2019.

Regional Growth Across Europe and Latin America

Minor Hotels Europe & Americas experienced generalized growth across all regions in 2024. In Europe, Average Daily Rates and occupancy rates increased across all countries. Spain recorded a 74% occupancy rate, up by 2 percentage points, alongside a 10% rise in ADR. Italy, Benelux, and Central Europe also witnessed single-digit growth in ADR, coupled with occupancy gains ranging from one to three percentage points.

In Latin America, occupancy rates remained steady, while ADR continued its upward trajectory, reflecting resilient market demand. These regional gains underscore the Group’s strategic agility in navigating diverse market conditions and its ability to capitalize on growth opportunities across its portfolio.

Looking Ahead: Positive Outlook for 2025

As Minor Hotels Europe & Americas enters 2025, the Group remains well-positioned to leverage its strategic initiatives, strong financial performance, and market adaptability. With continued focus on optimizing its portfolio, enhancing operational efficiency, and maintaining a solid financial foundation, the Group is poised to capitalize on emerging opportunities within the global travel and hospitality landscape.

Minor Hotels Europe & Americas’ impressive revenue growth, strategic debt management, and regional expansion highlight its resilience and adaptability, positioning the Group for continued success in the year ahead.