Covivio Hotels SCA

Latest Results (20.05.2026):

Covivio Hotels SCA — results for Q2 2025 (H1 2025): the company reported solid first-half 2025 performance with like-for-like revenue growth, higher recurring earnings and a stronger balance sheet. H1 highlights include +5.3% LfL revenue growth, EPRA Earnings up to €132.3m (+10.7% y/y), an increase in portfolio values on a like-for-like basis (+2.3%) and a lower net debt position with a conservative LTV of 29.8% as of 30 June 2025.

Revenues and recurring earnings

Group-share total revenues were €163.4m in H1 2025 (hotel revenues €162.9m), +5.3% on a like‑for‑like basis. EPRA Earnings (recurring net result) rose to €132.3m (+10.7% y/y) and EPRA Earnings per share were €0.88 (+8.8%). Operating profit (group share) was €157.1m.

Portfolio valuation and activity

The hotel real estate portfolio (group share) was valued at €5,878m (€6,501m at 100%) with a like‑for‑like increase of +2.3% over six months. The group signed disposal agreements totaling €60m (group share) in H1 2025 and reported average portfolio yield (excl. transfer taxes) of 6.4%.

Balance sheet, equity and NAV

Shareholders' equity increased by €183m in H1 2025, partly due to a dividend-in-shares operation (82.3% subscription). EPRA NTA stood at €4,006m (€25.4/share). EPRA NDV was reported at €3,843m (€24.3/share).

Debt, liquidity and credit metrics

Net financial debt fell to €1,966m (group share) with an average cost of debt of 2.28% and average maturity of 4.4 years. Loan‑to‑Value was 29.8% and net liquidity (including undrawn lines) was €958m. Interest coverage ratio (ICR) was ~8.1x and net debt/EBITDA ~6.4x. S&P confirmed a BBB+ rating with stable outlook.

Capital actions and shares

Covivio Hotels issued 9,848,860 new shares following the dividend-in-shares; total shares outstanding rose to 157,990,312. The dividend-in-shares limited cash outflow (cash balance used ~€39m).

Operational developments

Notable contract activity: a new 12‑year variable-with‑minimum lease with Radisson Hotel Group at Roissy CDG (305 rooms) converting an asset from management to lease — management expects revenues for this asset to rise by more than 50% versus 2024 after the transition.

Outlook and risks

Management highlights continued improvement in the European hotel market (RevPAR gains, notably in Southern Europe) and reiterates a strategy of portfolio optimisation. Key risks flagged include sensitivity to yield and revenue fluctuations and interest rate movements, but covenants remain comfortable (most restrictive bank LTV covenant at 60% vs. effective ~32.1% bank LTV).