Meliá Hotels International, S.A.

Good afternoon and welcome to Meliá Hotels International First Half 2026 webcast. I'm Stephane Baos, Head of Investor Relations. Before we begin, we would like to remind you that our presentation will include forward-looking statements, as our results could differ from those indicated in our forward-looking statements. And forward-looking statements made today Speak only to our expectations as of today. Unless otherwise stated, our RESPAR, occupancy, average daily rates, and P&L comments refer to year-over-year change for the comparable period. For the purposes of this presentation, our President and Chief Executive Officer, Gabriel Escarrer, together with our Chief Operating Officer, André Gerondeau, We walk you through the key highlights and main topics. You can find our earnings release on our investor relations website at mediahotelsinternational.com. We will now see a short reel with the main KPIs, followed by the presentation. André Philippe Gerondeau

Thank you Stephane, good afternoon everyone and welcome once again to Melilla Hotels International's first half 2026 results webcast. We are presenting today solid first half results, demonstrating the strength of our positioning and portfolio in well-established leisure and blessure destinations. This strong execution was delivered despite a highly volatile environment marked by the development of new conflicts which continue to affect sentiment and pose risks to the tourism sector. As an introduction, to frame the results we are presenting today, I would like to highlight four key ideas. Two relate to areas of strength, while the other two reflect dynamics that are important to consider when reviewing the period's performance. First, demand across our consolidated destinations remained strong. Leisure travel trends continue to be healthy, supporting solid operating performance across the majority of our key markets. As a result, we are delivering on our goals set at the beginning of the year across almost all regions, with the exception of Mexico, which was temporarily affected by specific local events, and Cuba. Second, Growth continues to be driven by strong Red Park performance, where we remain the leaders, together with our expansion strategy. Recent acquisitions and the growing contribution from our joint ventures are increasing both the scale and diversification of our earnings base. A specific security-related event affected booking patterns and impacted the performance in Mexico during part of the semester. And finally, we completed the process of totally ceasing operations in Cuba. As a result, the business is now reported as discontinued operations. Before turning to the financials, let me provide some additional context on Cuba, as this is the main factor affecting the group's bottom-line performance during the period. Over recent years, the operating environment in Cuba has become increasingly challenging, driven by a combination of geopolitical and microeconomic factors. These conditions have significantly impacted the country's tourism industry and the operating environment for hotel companies. Against this backdrop, we concluded that exiting the market was the most prudent and responsible course of action. This was by no means an easy decision. Melia has had a presence in Cuba for more than three decades and has played a pioneer role in the development of the country's tourism industry. However, our responsibility is to safeguard the long-term interests of the company and all of our shareholders as we believe that this decision was the right one. As a consequence, and in accordance with applicable accounting standards, the Cuban business is now reported as a discontinued operations. As a result, we recognize a non-recurring impact of approximately minus 79 million euros at the bottom line, largely reflecting the impairment of our remaining exposure This is a non-recurring accounting adjustment with no cash impact. This decision completes our exit from the market and removes a source of volatility. Turning into the financials, For the second quarter and half year in order facilitated year-on-year comparability, the 2025 contribution from the Cuban business has been reclassified. Consolidated revenue excluding capital gains for the first half of the year increased by plus 7.1% and a plus 8.5% in the second quarter alone. which was particularly strong. This is also explained by the perimeter evolution and the strength of our operation in almost all destinations. Operating expenses, the increase was of plus 7.4% for the first half and plus 9.3% for the second quarter. This increase is also reflected Perimeter changes. The first half figures reflect the addition of several hotels under variable leases agreements, most of which were incorporated in June 2025, resulting in a plus 10.4 million euros increase. First half EBDA, excluding capital gains, reached plus 244.8 million euros, representing a plus 2.5% increase year on year. This growth was delivered despite higher variable leases costs and the temporary absence of a full contribution from Paradisus Cancun and Gran Meliá Don Pepe. Two of our key owned hotels. The impact on EVDA of these two hotels is more than 20 million euros during this semester. As these hotels progressively return to operation, we expect to recover this contribution and unlock further earnings growth in the coming quarters. With Paradisus Cancun having reopened in April 2026 and Gran Melilla Don Pepe expected to reopen in December 2026. Below EBDA, net financial results improved by plus 4.2 million euros year on year, mainly reflecting a more favorable foreign exchange contribution. Partially offset by non-recurring effects recorded within other financial results last year. Cost of debt remained stable at 4.1%. Profit from associates and joint ventures amounted to $5.1 million during the first half. The year-on-year comparison is largely explained by one of items recorded in the prior year, including a capital gain from the disposal of an asset in the Canary Islands. With all that, and considering that was previously explained regarding the situation in Cuba, profit and loss from continuing operations Stude at 83.5 million euros, decreasing 2% compared to last year. Meanwhile, profit and loss from discontinued operations in Cuba was minus 79.4 million euros, reflecting the accounting impact of receivables, inventories, and Omasi estate impermanence. This is a one-off impact. Consequently, Group's net profit reached 4.1 million euros, affected significantly by the aforementioned situation. Regarding margins, and although margins remain under pressure during both the first and second quarter, this reflects a combination of temporary factors rather than any deterioration in the underlying business. We also continue to face some headwinds from foreign exchange movements, which affected both the revenue and cost base of the group during the period. Driven margin expansion remains a key priority across the group, and we are confident in our ability to steadily progress towards our long-term profitability objectives. Turning to the balance sheet, net debt decreased by 51.7 million during the first half, while net debt excluding leases increased by 65.1 million euros, reflecting the investments made during the period, which I will review in a short moment. With no significant maturities ahead and a comfortable liquidity position, we have both the flexibility and the visibility required to continue investing in the business while maintaining a disciplined financial profile. Turning to investments, during the first half, we continue to deploy capital strategy, focusing on opportunities that strengthen our portfolio. We completed several acquisitions and investments in strategic destinations such as Italy, Spain, and the United States, while increasing our exposure to assets where we already have strong operational expertise and in some cases were previously under lease agreements. Cash on Cash expected returns for these investments reached double-digit numbers. Importantly, these were high-quality assets already in operation and requiring limited additional investment. At the same time, Paradisos Cancun resumed operations in April following its repositioning while the renovation of Gran Melilla Don Pepe remains fully on track. Altogether, these initiatives further strengthen the quality of our portfolio and its future earnings potential. I would like to confirm that we remain fully committed to a disciplined approach to leverage with a clear objective of keeping our net debt to EBITDA ratio below 2.5 times in the years ahead. This discipline reflects the strength of our underlying cash generation, not our reliance on portfolio actions. Separately, as part of our ongoing focus on capital allocation and balance sheet optimization, we continue to review opportunities to dispose of selected non-core assets. I will now turn the call over to André to talk about our operational performance during the second quarter and forward in more detail. Please, André.

Thank you Gabriel. Good afternoon everyone. Let me now provide some additional detail on the operational performance across our regions, where we continue to see healthy demand trends and solid execution across most of our key destinations. While geopolitical tensions in the Middle East have increased uncertainty, our exposure to mature and well-diversified destination has allowed us to navigate the situation without any meaningful impact on demand or operations. Own and lease red bar increased by 0.2% in Q2 and 1.3% in the first half. Growth was stronger on a consistent currency and comparable portfolio basis, reaching 3.1 in Q2 and 5.1 in the first half. This underlying strength was reflected in our luxury brands in Spain and EMA, where Redbar delivered a comfortable mid-single-digit increase. Also, Our operations in Dominican Republic were particularly strong, achieving double-digit ref bar increase in the period. Looking at system-wide ref bar, growth was 14.2 in Q2 and 11.7 for the first half. This includes an uplift derived due to our exit from Cuba. Excluding this effect, System-wide ref bar growth would have been 5.8 in Q2 and 5.6 for the first half. Available rooms during the first half increased by 6.1% in our owned and leased portfolio, while system-wide available rooms decreased by 5%. The decline at system-wide level was primarily driven by the progressive reduction of our exposure to Cuba and the subsequent cease of operations in line with our previous market communications and as disclosed in today's H1 earnings release. Media.com and our direct channels remain a key competitive advantage. They represented almost 48% of our centralized sales during the period, supporting both demand generation and customer loyalty, combined with diversification of our source markets. This provides greater resilience, commercial flexibility, and an increasingly valuable platform for both total REF PAR growth and value creation for owners of managed hotels. By regions, The performance over system-wide portfolio for the semester was as follows. Starting with Spain Urban, performance remained positive in the first half, mainly driven by rate growth and portfolio maturity. Madrid continues with a solid trend, especially in luxury and premium hotels, while Barcelona improved towards the end of the semester. Other cities have also benefited from recent openings, renovations, and repositioning initiatives. REF PAR increased by 8.9 in the second quarter and 6.7 in the semester. In Spain resorts, training remained very healthy across the semester. The Canary Islands continue to be our strongest contributor. While the Balearic Islands delivered growth in both rates and occupancy. Direct customers and tour operators were the main drivers of demand, complemented by the continued strong momentum of Club Milia. It is also worth noting that these results were achieved despite the temporary closure of Gran Milia Don Pepe for renovation works. Breath power increased by 7.3% in the second quarter and 4.6% In the semester. Across EMEA, results were generally positive. Although performance varied by market, Italy delivered an excellent performance supported by strong demand in Milan and the continued strength of the luxury segment in Rome, while the UK also recorded healthy growth led by London and the MICE segment. On the other hand, Germany faced a more demanding comparison due to the absence of major events that benefited the prior year, while France experienced some temporary pressure from disruptions linked to the Middle East conflict and air connectivity. Southeast Asia once again stood out as one of the strongest growth regions, benefiting from healthy leisure demand, improved connectivity, and a more diversified mix of source markets, particularly in Vietnam, Thailand, and Indonesia. China continued its gradual recovery, with occupancy improving, although pricing conditions remained competitive. Relevant to note, the positive performance of the rebranded Paradisus Bali, a key differentiator of media in the region with high potential for development. Turning to the Americas, performance in the Dominican Republic remained particularly strong throughout the semester. Demand trends were healthy, occupancy levels remained robust, and the contribution from our key assets continued to grow, supported by the diversification of the source markets and the strength of the destination tourism fundamentals, benefiting to some extent from displaced demand from other destinations. Looking at Mexico, the start of the year was positive, although demand was temporarily affected by specific local events during part of the semester. Our commercial teams reacted quickly, focusing on direct channels and profitable business. It is also worth noting that these events coincided with the reopening period of Paradisos Cancun. As the hotel is in its ramp-up period, this naturally limited the impact on the region during the semester, while leaving us with a significantly stronger product and a much better starting point for future performance. Before reviewing the outlook by region, let me highlight that we continue to see a supportive demand environment across most of our markets. Despite the geopolitical uncertainty that remains present in the background, the summer season is developing positively, supported by strong booking levels, healthy last-minute demand, and the strength of our positioning in established and highly resilient destinations. We strongly believe that our brand strategy is a key contributor to the strong performance in Spain and EMA, together with the improved results in Dominican Republic. With this in mind, we're optimistic regarding Mexico's recovery going forward. Focus on our luxury and premium properties has allowed for further Red Park growth across these brands. All the design of personalized experiences such as private boat events in Ibiza, Menorca and Mallorca, wellness programs and F&B offerings with recognized partners and beach clubs among others, has contributed to higher guest satisfaction and stronger brand affinity. Examples of this, to name a few, the strong reposition of our Mi brand with the opening of Mi Málaga, Mi Marbella, and Mi Lisbon, and the evolution of our Grand Meliá and Meliá Collection portfolio. All of these efforts are translating into the steady improvement of our NPS scores. At the same time, the renewal of our top employer certification once again validates the strength of our culture and the quality of our teams. We strongly believe that talent has become one of the most important levers in our industry and a key enabler of the personalized service, attention to detail, and memorable experiences for our guests. Our own book reservations remain ahead of last year. By double-digit, giving us good visibility for the quarter, combined with a favorable events calendar in several markets. This supports our confidence for the remainder of the summer season. Briefly by region, Spain continues to show very positive momentum across both resort and urban destinations. In our resort portfolio, Strong in the Books demand is complemented by healthy last-minute bookings. With the Canary and Balearic Islands performing well. In our urban hotels, growth continues to be supported by recent additions to the portfolio, repositioned assets, and strong direct customer performance. Across EVA, trends remain supportive overall. Italy continues to benefit from a favorable events calendar in Milan and resilient luxury demand in Rome. The UK is showing positive momentum, supported by major sporting events and corporate activity, while Germany should benefit from a strong September events calendar. France remains more moderate in the near term, although we expect some improvements as corporate activities resume after the summer period. In the Americas, Mexico continues to operate in a volatile environment, with demand remaining highly booking window sensitive. Our focus remains on direct channels and active revenue management, while the reopening of Paradisus Cancun progressively strengthens the destination positioning. In the Dominican Republic, demand remains strong across all segments. Thank you very much. Development remains a key pillar of our growth strategy. We continue to add high-quality projects, mainly under asset-like structures, reinforcing our presence in strategic destinations and supporting our long-term growth. Until July, we opened 14 hotels, adding about 2,000 rooms to the portfolio. While our team signed 17 new projects, adding over 3,800 rooms to the pipeline. Among the highlights, our entry into Tunisia stands out. The entry into the country was made possible through strategic partnership. This collaboration will allow us to progressively build a platform of up to 3,000 rooms in one of the most promising leisure destinations in the Mediterranean, increasing the depth of our portfolio. However, while our vision for gross unit growth remains around 5%, net unit growth reported figure will naturally be impacted by the exit from Cuba. This does not reflect a slowdown in our development activity, but rather a strategic portfolio decision. Our growth strategy remains firmly focused on high-quality assets, stronger destination, and opportunities that enhance the long-term value of the portfolio. Let me briefly comment on some of the most relevant openings we've had in the semester. In addition to the previously mentioned Paradisus Valley, A particularly important milestone was the reopening of Paradisos Cancun following its comprehensive transformation. This landmark investment has significantly elevated the resort's positioning and guest experience, reinforcing its leadership within the luxury segment. Having resumed operations in April, we expect the property to progressively unlock its full earnings potential. Becoming an increasingly meaningful contributor to growth from 2027 onwards. Another highlight during the period was the opening of Inside Mexico Roma Norte, strengthening our presence in one of the most dynamic urban markets in the Americas and reinforcing our commitment to the fast-growing pleasure segment. This opening further diversifies our footprint in one of the group's most important markets. Holiday World Resort in Benalmádena reinforces our leadership in the Costa del Sol, adding 900 rooms to a high-quality family-oriented resort complex, operated under affiliation by Meliá. It represents the type of partnership we're looking for, strong assets and leading destinations with significant growth potential through our brands and commercial platform. In addition, in the Andalusian region, Particularly noteworthy are the openings of Mi Málaga and Hacienda del Mar, Emilia Collection Hotel in Estepona. We were also pleased to celebrate the opening of Zelle Fuerteventura for the first Zelle property in the Canary Islands and another important milestone of expansion of the brand. The hotel strengthens our position in premium leisure destinations and forms part of our vision to create a unique well-being hub together with Paradiso's Fuerteventura. I will now turn back the call over to Gabriel to summarize the main messages of the call.