UBS upgrades Melia Hotels after better-than-expected Q4 results

Melia Hotels International SA

03/03/2026 10:43

** UBS upgrades Spanish hotel chain Melia Hotels MEL.MC to "neutral" from "sell", citing an improved equity story with a focus on margin expansion

** UBS revises its 2026-2027 estimates for the company following "somewhat better-than-expected" Q4 top-line results

** The brokerage also raises price target to 8.60 euros ($9.98), about 10% above Melia's current share price

** Still, UBS says it needs clearer evidence of structural improvement to gain confidence in Melia's ambition to lift EBITDA margins to 30% by 2027

** Melia has limited exposure to the Middle East, as it only has two hotels in the United Arab Emirates, UBS says

** Including today's fall, the stock has dropped around 2.3% YTD

($1 = 0.8620 euros)

(Reporting by Javi West Larrañaga)

((javier.west@thomsonreuters.com; +34 918 35 61 12))