Meliá Hotels: returns to March level with 14.5% capacity

Meliá Hotels: returns to March level with 14.5% capacity

Melia Hotels has yet to present the results, keeping an eye on the search for balance, which is yet to come. In any case, market experts, as we will now see in detail, highlight its good figures and promising prospects. Nevertheless, last Friday’s session quoted the accounts for the first quarter It closed with a strong correction for the price of 5.5%.

In particular, a loss of half a million euros is presented as a consolidated loss for the month of March Melia Hotels, But this represents an improvement of close to 100% compared to the loss of 59.3 million in the first quarter of 2022. With the full power of the Omicron variant of Covid.

Its revenue grew by 45.9% to 396.1 million euros, With a 26.4% increase in the company’s operating expenses. More than half of the income, about 52%, comes solely from the hotel business. With respect to its EBITDA, it is already returning to positive results, 14.4 million euros are registered. And debt increased by 63.5 million as of March, reaching 2,736.5 million.

With regard to possibilities, the fact is that heThe company expects the upward trend that started a year ago worldwide to continue, With the flexibility shown by the tourism sector. Already for the second quarter they expect to recover to pre-pandemic occupancy levels, which, as they indicate, has already happened in the month of April.

More data moves ahead with Holy Week in Spain With revenue growth of 26.4% compared to 2019 and the recovery of issuers such as China, Japan and Australia after the withdrawal of pandemic restrictions. Regarding the opening of hotels, it is expected to open 30 in 2024.

In its price graph we see that after a continuous decline of 8.3% for its shares yesterday the price improved to about 9.5% in the last four weeks. while maintaining an annual profit of 18%.

Melia Hotel Annual Rates Price

It is maintained for short positions, Slightly lost 0.80% of its capital in early May A bearish bet by Ken Griffin’s fund, Citadel Advisors, valued at €9.5 million.

With regard to recommendations, from Bankinter they indicate that the results are in line with expectations and highlight that good prospects remain for the coming quarters and recommend a buy. A target price of 6.19 euros per share, with which it presents a positive potential of 14.5%.

in the case of already Intermoney chooses to retain value in the portfolio with a TP of 6 Euro per share, With less travel to go to understand that the results are solid, but slightly less than anticipated at the operational level beyond the second quarter of this year. They also indicate that it has little visibility on asset sales, which they estimate is likely to complicate its already strained financial situation.

For Jose Antonio Gonzalez, financial market analyst at Investment Strategies, Melia Hotels “develops a correction or retracement to the area of ​​previous resistance, now support, identified around €5,475/€5,195 per share, the perforation of which could enable a bearish extension For the next rising minimum we identified at €4.57 per share, For its part, we will not begin to appreciate the technical correction until it exceeds €6.61 per share, the current annual maximum.

Melia Hotel with the MACD oscillator and trading volume on the weekly (left) and daily (right) charts

Melia Hotel Technical Value Analysis

The premium strength indicator created by Investment Strategies rates Melia Hotels shares to the downside, from neutral to weak since May 11, with a medium term very weak to value and neutral over the long term. Is. With an operation in which they remain on edge and the Melia Hotels at risk of further technical deterioration.

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