Paradisus La Perla (Playa del Carmen, Mexico) ME Mallorca (Spain)

Transcription

1 Gran Meliá Rome (Italy) Paradisus La Perla (Playa del Carmen, Mexico) ME London (United Kingdom) ME Mallorca (Spain)

2 Meliá Hotels International Equity Story based on 3 main pillars ME Milan (133) Italy. Opening 2015 Leading Hotel Company Worldwide with 57 years history within an industry with high long-term growth potential * 2 Execution of an Asset Light(er) Strategy Investment Case 3 Debt restructuring & deleveraging programme in place 1 Expertise in Hotel Management (*) According to UNWTO, CAGR between 3-5% depending on the market 2

3 Management expertise underpinned by our strong set of brands Meliá Jamaica (226) Jaimaica. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING PREMIUM 11 hotels 3,390 rooms Traditional luxury with an avant-garde flair. Gran Meliá offers exclusive hotels and resorts for discerning travelers in the world s most desirable destinations Attributes: RedLevel, RedGlove Service, Impressive Architecture, Signature Restaurants Benchmark: St Regis I Park Hyatt I JW Marriott I Intercontinental I Westin I Hyatt 6 hotels 1,378 rooms ME Hotels are meticulously designed to meet the demands of today s most progressive guests who view travel as an extension of their lifestyle Attributes: The Aura, The Clientele, Art & Design, Relevant Technology, F&B Social Epicenters Benchmark: W Hotels I Andaz I Morgans Hotel Group 10 hotels 4,452 rooms An extraordinarily luxurious all-inclusive resort experience in prime oceanfront locations around the world Attributes: Family Concierge, Royal Service, YHI Spa, All Inclusive Benchmark: Sandals I Secrets I Westin I Intercontinental I Royal Hideaway I Dreams I Palace Resorts I Couples Resorts APPENDIX UPSCALE 98 hotels 29,683 rooms With over 90 hotels in top urban and resort destinations worldwide, Meliá Hotels & Resorts represents the passion of Meliá Hotels International, and stands out for its perfect combination of design and service Attributes: The Level, Power Meetings, Culinary Experiences, YHI Spa Benchmark: Hilton I Marriott I Hyatt I Le Meridien I Sheraton 14 hotels 1,864 rooms Each with its own unique architectural personality, sleek rooms and stylish destination bars and restaurants, INNSIDE by Meliá hotels portray a fresh and smart choice for business travelers wanting a touch of lifestyle Attributes: Unique Urban Design Hotels: Efficient, Informal And Smart Service With German Essence Benchmark: Aloft I AC I Radisson Blu I Indigo MIDSCALE 88 hotels 13,771 rooms At TRYP, YOU OWN THE CITY. Over 90 hotels worldwide including Barcelona, Buenos Aires, Madrid, Paris, New York and São Paulo.Own the city Attributes: Own the city, Prime Locations, Premium Breakfast Buffet, Free Internet Benchmark: Novotel I Paradores I AC I Room Mate I Rafael Hoteles I NH I Silken I Abba I Lindner 79 hotels 25,952 rooms Hotels and resorts just footsteps from the beach in the principal tourist destinations of the Mediterranean, Canary Island and the Caribbean, Fresh holiday types- from familyfriendly hotels to the adults-only experience Attributes: Smart & Simple Design; Themed Hotels, Varied Buffets, Activities Benchmark: Iberostar, I Riu I H10 I Barceló I Fiesta Note: As of June

4 enhanced by added value proposals to complete the hotel experience Meliá Paulista (398) Brazil MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Innovating with unique themed resorts experiences Counting on partnerships with leading companies in the F&B industry and teaming up with famous international chefs With Best in Class facilities in Spa & Wellness, Golf and Meeting & Events Upgrading the All Inclusive experience with signature restaurants and revamping the Bar Culture Contributing to the generation of additional revenue by 340+ mn in 2013 (30% over consolidated hotel business revenues) 4

5 and highly recognized within the industry. Meliá Vienna (253) Austria MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING Perceived Quality 82.5% score (+120 bps vs. 2012) RevPAR Penetration Index Above the benchmark in Madrid, Berlin, London, Paris, Milan or Buenos Aires Brand Reputation (Social Media) 81,3% score in Global Reputation Index (+20 bps over 2012) Quality Penetration Index above the competitive set in Gran Meliá, Paradisus, Innside & Meliá brands APPENDIX * Data year end 2013 AWARDS Best Resort in Spain 2012 & 2014 by Conde Nast Traveler Gran Meliá Palacio de Isora European Hospitality Awards , Best Opening of the Year : Me London and Melia Viena respectively International Hotels Awards 2014, Best Hotel in UK : Me London ; Best Golf Resort in Spain : Meliá Villaitana ; Best Hotel Renovation : Me Ibiza Merco 2014: Meliá Hotels International leading tourism Company in Corporate Reputation and in People Management Tripadvisor 2014: Over 70 hotels members of EcoLeaders Top member of the Code 2014 Best CEO of the year in European Hospitality Awards and Best Business Man by Conde Nast Traveler 2014 : Gabriel Escarrer Jaume 5

6 With the support of a Distribution Strategy which generates improvements in profitability Innside Manchester (208) UK. Opening 2015 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Company focused on a Revenue Culture Development of a technological platform to implement revenue procedures Maximization of Average Room Rate (ARR) as a key driver of income Implementation of Yield Management Best Practices Optimize sales channel profitability Positioning in High Growth segments Reinforcing the strategy of Regionalization Focus on exposure to emerging markets Development of Key Partnerships Consolidation of Melia s directs channels as a competitive advantage REAL 2005 BUDGET % e-commerce 12% Direct Client 11% Business Groups (MICE) 19% e-commerce 22% Direct Client 10% Business Groups (MICE) 40% TO 25% Business Travel 31% TO 17% Business Travel 6

7 underpinned by the increasing importance of the centralized channels Innside Wolfsburg (220) Germany. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Main distribution channel 11 interactive websites in 7 languages 95% Direct Customers 212 million Euros contribution in 2013 Commitment: 265 euros in 2014 CAGR ~23% Evolution of sales (in Million ) , , ,

8 and customer knowledge as a key lever for income generation. Innside Düsseldorf Hafen (134) Germany MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX 1. Create a personalized relationship model 2. To improve customer loyalty Relaunch of the new loyalty program 3. Be a leader in social networks 3.9 million members 68% international members 291 mn contribution in 2013 Contributing 65,8% of total sales at melia.com ~30% of total roomnights Reaching higher expending ratios vs other customers (+14%) 8

9 Excellence and maturity in the hotel management Meliá La Defense (369) Paris, France. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX has lead Meliá to outperform results versus the benchmark RevPAR Evolution M % 8.6% 8.9% 6.2% 9.0% 7.9% 4.4% 5.2% 5.6% 3.6% 12,6% * 0% COMPSET: IHG, Accor, M&C, Marriott, Starwood, Hyatt, NH * More than 70% explained by increases in prices Registering 17 consecutive quarters of RevPAR growth allowing the Company to register a good set of underlying results (million Euros) Sep 14 Sep 13 % REVENUES 1, , % EBITDAR % EBITDA % EBIT % Net Profit at % Underlying EBITDA +20% Ebitda margin ex asset rotation +96 bps 9

10 while the Company maintains a positive overall outlook for the near future. Meliá Marina Varadero (529) Cuba MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Excellent results in America maintaining a double digit growth in RevPAR Counting on the incorporation of the Meliá Nassau Beach (Bahamas) in 2013 and the consolidation of the Paradisus Resorts in Playa del Carmen The positive trend of the bookings, up now, anticipate a final quarter for 2014 very positive specially for christmas and year end Spanish resorts contributing with good news Good summer season, increase RevPar fully explained by price increases Positive underlying evolution of the Asian resorts Cities in Europe (ex -Spain) registering positive figures Maintaining healthy rates of growth in the U.K, Germany, Paris and Italy Positive contribution linked to the consolidation of Gran Meliá Roma, Me London and the new incorporations Meliá Vienna and the Innside Düsseldorf Hafen Moderately optimism on the evolution of Spanish cities in view of: The recovery in the individual business and the better performance of the Business Groups and MICE segment The Company remains cautious about Madrid given the situation of hotels near Barajas airport which still penalize its performance Leading to a double digit growth in RevPAR for the full year 2014, more than 66% explained by price. 10

11 also shown in Meliá's diversified geographical exposure. Paradisus Papagayo Bay (381) Costa Rica. Opening 2015 Operating profit contribution MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX SPAIN 15% EMEA 24% RESORT: 21% / CITY: -6% ASIA 2% Americas 59% Resorts: 69% / Cities 31% Note: The data above corresponds to the hotel business (under ownership, rental and management) 11

12 An Asset Light(er) Strategy structured around a development plan through low intensive capital formulas Tryp Lisboa Aeropuerto (168) Portugal Main expansion objectives MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX MEXICO MIAMI EUROPE Reinforce presence in main Gateway cities mainly through variable leases Brands: NEW YORK Pipeline: 21 hotels CAPE VERDE UK GERMANY France ITALY ALGERIA TUNISIA MOROCCO EGYPT ASIA Fuel growth in China & Southeast Asia mainly through management contracts Brands: TURKEY JORDAN SAUDI ARABIA Pipeline: 10 hotels QATAR ARAB EMIRATES OMAN CHINA VIETNAM COSTA RICA COLOMBIA THAILAND PHILIPPINES PERU SINGAPORE AMERICAS Consolidate Meliá s presence in main resorts and cities especially Brazil, Colombia, Peru and Chile Widen presence in main US cities mainly NY and Miami Brands: CHILE BRAZIL MIDDLE EAST & AFRICA Spread Network in Arab Gulf Countries, Middle East and North Africa mainly through management contracts Brands: Pipeline: 9 hotels INDONESIA Pipeline: 23 hotels Current Pipeline: 17,677 + rooms (20% room portfolio increase) 63 hotels & resorts Ownership structure: 82% management & franchise; 18% variable leases 99% outside Spain 95% in the Premium and Upscale segment 12

13 enabling Meliá to become a Management Company and owner of specific core assets. Gran Meliá Xi an (419) China. Opening Target MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY Leased 20% Management & Franchise 55% Increasing exposure to management Leased 18% Management & Franchise 67% DEBT RESTRUCTURING Owned 25% Owned 15% APPENDIX Midscale 52% Upscale Segment 36% Premium Segment 12% Strengthening the positioning in the upscale segment Midscale 42% Upscale Segment 45% Premium Segment 13% Rest of EMEA 24% Americas 28% Asia 3% Asia 10% Spain 45% Diversifying the exposure to high growth markets Rest of EMEA 27% Americas 32% Spain 31% (*) Figures by number of rooms up to December

14 Asset rotation strategy, supported by Melia s valuable asset portfolio. Meliá Surabaya (300) Indonesia. Opening 2015 Gross value of Meliá assets 3,151 mn Average price per room 140,314 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX LatAm 16 hotels (6,371 rooms) 5 diverse assets 1 1,129 mn 652 mn unencumbered hotels Europe (ex Spain) Spain 387 mn 1,635 mn 8 hotels (1,461 rooms) 2 35 mn unencumbered hotels 55 hotels3 (18,198 rooms) 7 diverse assets 615 mn unencumbered hotels Valuation determined by Jones Lang LaSalle at October 31st 2011, adjusted by the asset sales done in It does not include lease and management contracts nor the value of the brands. Consolidated mortgages by 544 mn with a Loan to Value (LTV) of 35%. Note: (1) LATAM: The valuation includes 2 hotels where the Company retains a stake equal or below 50%. In those cases, the valuation included has been weighted by the percentage of ownership retained by Meliá. (2) EUROPE: Bis in 2 hotels. (3) SPAIN: Bis in 18 hotels. 14

15 Twofold Financial Strategy focused on debt restructuring and progressive deleveraging Meliá Danang (150) Vietnam. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX 1. Debt maturities restructuring Objective: Lengthening part of debt maturities 2013 achievements: Issue of 250 mn convertible bond with maturity 2018 at 4.5% interest rate Prepayment of 312 mn covenant-bearing syndicated loans with maturity 2013 and 2014 Additional refinancing: signature of new mortgages together with some bilateral loans The Company aims to reduce the average cost of debt which reached 5.5% in Deleveraging the balance sheet Deploy the cash generation and the asset sales to reduce indebtedness Disposal of assets of a minimum of million in 2014 Meliá does not have a strong expansionary investment budget for the current year Possible impact in 2014 linked to the conversion of the Convertible Notes 1,097 Mn Net Debt up to Sep 14 ( 61 Mn vs Dec 13) 15

16 ensuring a comfortable liquidity position. ME Dubai (95) Gulf Arab Emirates. Opening 2015 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Cash and short-term deposits 508 million up to June 2014 Debt Maturity SCHEDULE September Conv Bond S. Bond Conv Bond In 2014 should be considered the possible impact linked to the conversion of the Convertible Notes ( 200 Mn)

17 Appendix Meliá Zanzibar (Zanzibar, Tanzania) 17

18 Meliá Hotels International is a hotel company with a global reach TRYP Belo Horizonte (151) Brazil. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX The 19th company worldwide 2 with presence in 30 countries Leading resort hotel Company worldwide 3rd largest Hotel Group in Europe 1 Ranking Company Rooms Hotels 1 Intercontinental 675,982 4,602 2 Accor 450,487 3,516 3 Meliá Hotels International 1 90, Louvre Hotels Group 87,509 1,099 5 NH Hoteles 58, At a glance: Market cap 3 : 1,510 Million Euros Main Shareholders: Escarrer Family: 61.7%; Free-float: 38.3% Listed on the Spanish Stock Exchange since 1996 Member of the FTSE4Good Ibex index since 2008 (1) Source: Hotels Magazine August 2013 with figures as of December 12; (2) Up to December 2012 (3) Market cap: November 14th 2014 ( 8.17) 18

19 built through 57 years of growth, consolidation & innovation Meliá Jinan (230) China MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING First resort in Mallorca (Spain) Expansion into other major Spanish resorts Development in LatAm Seeking shared growth: Wyndham, Jin Jiang, Greenland Alliances APPENDIX 50 s 70 s 90 s > s 80 s Development in Balearic Islands Growth in Spanish cities through the acquisition of Hotasa, CHM, Meliá Hoteles First international hotel (Bali) Presence in European gateway cities (London, Milan, Paris) Adquisition of Tryp and Innside brands 19

20 in which the Company has set up a balanced portfolio TRYP Itaboraí (272) Brazil. Opening 2015 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX In terms of location LatAm 29% Spain 45% Rest of Europe 21% MEA 2% Asia 3% Ensuring a healthy balance between cities and resorts Resort 61% CITY 39% near 75% rooms in Prime Location With a wide scope of brands covering different segments Managed under 4 different formulas 18% Upscale Segment 39% Leased 24% Franchised 7% Managed 46% Midscale Segment 50% 31% Luxury Segment 11% Owned 23% Note: all figures by number of rooms (December 2013) 20

21 contributing to the diversification and strength of the Company ME Ibiza Spain. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX As reflected by our diversified customer segmentation Business 41% 14% GROUPS Leisure 59% 24% GROUPS 27% INDIVIDUALS 35% INDIVIDUALS With a wide range of nationalities SPAIN 21% UNITED KINGDOM 13% GERMANY 11% UNITED STATES 9% BRAZIL 5% RUSSIAN FEDERATION 4% MEXICO 3% ITALY 3% FRANCE 3% CANADA 2% BELGIUM 2% NETHERLANDS 2% OTHER 23% 100% Note: Revenues segmentation (2013) Note: % Room nights (2013) 21

22 Meliá Hotels International, much more than a leading Company ME Mallorca Spain. Opening 2014 MANAGEMENT EXPERTISE ASSET LIGHTER STRATEGY DEBT RESTRUCTURING APPENDIX Employees Forming part of an ethical and integrating company that retains and develops talent Customers Offering quality and innovative experiences Society Environment Suppliers Boosting the economic prosperity of the communities Owners employees from more than 120 nations 82.5% of customer satisfaction Increasing the value of their business with excellence and responsibility Shareholders Offering sustainable investment in a responsible company Protecting children and social groups under risk Preserving the environment and monitoring the impact of our business 94% of the global portfolio is made up of local providers 400 owners interact with Meliá Hotel International > 630 M revenues from hotels with Sustainable Tourism Certification > children and young people benefited by our social activities -7,2% CO 2 e emissions per stay Meliá Hotels International contributes to the suitable development of the stakeholders 1st Hotel Company included in the FTSE4Good IBEX (2008) 1st Hotel Company in Spain and 4th in the CDP * Ranking 1st Hotel Company in the MERCO Ranking 64 hotels with TripAdvisor GreenLeaders distinction * Carbon Disclosure Project 22

23 Representative Hotels Innside Madrid Genova (Spain) 23

24 24 Gran Meliá Roma I Italy

25 25 Gran Meliá Roma I Italy

26 26 Gran Meliá Palacio de Isora I Tenerife, Spain

27 27 Gran Meliá Palacio de Isora I Tenerife, Spain

28 28 ME London I United Kingdom

29 29 ME London I United Kingdom

30 30 ME Cabo I Mexico

31 31 ME Cabo I Mexico

32 32 Meliá Nassau Beach I Nassau, Bahamas

33 33 Meliá Nassau Beach I Nassau, Bahamas

34 34 Meliá Dubai I United Arab Emirates

35 35 Meliá Dubai I United Arab Emirates

36 36 Innside Frankfurt Eurotheum I Germany

37 37 Innside Frankfurt Eurotheum I Germany

38 38 Innside Madrid Luchana 22 I Spain

39 39 Innside Madrid Luchana 22 I Spain

40 40 TRYP São Paulo Higienópolis I Brazil

41 41 TRYP São Paulo Higienópolis I Brazil

42 42 Sol Wave House I Majorca, Spain

43 43 Sol Wave House I Majorca, Spain

44 This report is a communication made, or approved for communication by Meliá Hotels International. It is directed exclusively to eligible counterparties and professional clients. No persons other than an eligible counterparty or a professional client should read or rely on any information in this report. This research report is being distributed by Meliá Hotels International, purely as a resource and for general information purposes and only contains general information; therefore, this report does not take account of the specific circumstances, investment objectives, financial position or risk profile of any recipient and should not be relied upon as authoritative or taken in substitution for the exercise of judgement by recipient. Each recipient should consider the appropriateness of any investment decision having regard to their own circumstances, the full range of information available and appropriate professional advice. Each recipient should make their own investment decision regardless of the circumstances mentioned in this report and by obtaining specific specialist advice that may be necessary. The information and opinions, estimates, projections and recommendations in this report have been drafted by Meliá Hotels International and are based on publicly available information and on sources believed to be reliable and in good faith, but that information has not been verified independently and no representation or warranty, either express or implied, is made as to their accuracy, completeness or correctness. Meliá Hotels International may amend, supplement or updated the contents of this report in such form and in such timescales as Meliá Hotels International deems appropriate. Meliá Hotels International reserves the right to express different or contrary recommendations and opinions. This report does not constitute or from part of, and should not be construed as, any other for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. Meliá Hotels International accepts no liability whatsoever for any loss or damage arising from any use of this report or its contents. Investors should bear in mind that past performance or results are no guarantee of future performance or results. Price of securities or instruments or the results of investments may fluctuate against the investor s interest and may even lead to the loss of the initial investment. This report is for the use of the addressees only, is supplied to you solely in your capacity as an investment professional or knowledgeable and experienced investor for your information and no part of this document may be (I) copied, reproduced or duplicated by any form or means, (II redistributed or (III) quoted or published, for any purpose, without the prior, written consent of Meliá Hotels International. Breach of these restrictions may constitute breach of law in the relevant jurisdictions. Meliá Hotels International may distribute reports such as this in hard copy or electronically. 44