What happened? We held a call with Melia IR ahead of the company''s Q2 25 results scheduled on Wednesday 30th July (market close) and note that there has been no change to full-year guidance. BNPP Exane View: Following the call, we maintain our optimistic view on the stock thanks to the solid performance and outlook of Spanish leisure hotels. However, we also acknowledge some concerns stemming from the performance in the Caribbean, although we view these issues as more temporary. All in all, our estimates indicate that the group will generate an FCF of c. EUR55m in Q2 25. Highlights are as follow: - Spain: Mid-single digit REVPAR growth YoY in Q2, driven by positive ADR evolution, while occupancy levels remained stable at c.75%. Results in Spain were also positively influenced by an increase in available rooms, thanks to the JV deal closed with Banca March, and the timing of Easter week, which fell within Q2. - EMEA: REVPAR growth was relatively flat YoY in Q2. Results in Europe were negatively affected by weak performance in Germany (REVPAR c. -7%) compared to the previous year, due to the impact of the 2024 Euro Cup. Other countries performed reasonably well, with pricing remaining in line YoY and moderate increases in occupancy. - America: Negative REVPAR growth of 2-3% due to the underperformance of the MICE business, currency depreciation (EUR/USD), and the temporary closure of Paradisus Cancun (700 rooms) for renovation. Mexico performed slightly better than hotels in the Dominican Republic and has not been significantly affected by Sargassum. - Outlook: Booking data for 3Q-4Q 2025 remains in positive territory, driven by the strong performance of Spain, which continues to show 6-7% on the book''s growth, EMEA shows moderate gains YoY, while America shows flattish on the books growth YoY and remains impacted by the USD depreciation. - Asset sales: During Q2, Melia Hotels International signed an agreement with Banca March to form a new joint...