What happened? We held a call with Melia IR ahead of the company''s Q3 25 results scheduled on Thursday 30th October (market close) and note that there has been no change to full-year guidance. BNPP Exane View: Overall, more prudent tone than in previous quarters, especially regarding the outlook for Q4 25 and the start of 2026. Q3'' 25 figures continue the trend seen in recent quarters, with positive performance driven by Spanish hotels. All in all, our estimates indicate that the group will generate a FCF of c. EUR89m in Q3 25. Key Highlights: - Spain: OandL hotels delivered low-single digit REVPAR growth YoY in Q3, driven by positive ADR evolution, and stable occupancy (that remained at all-time high levels). OandL REVPAR growth was weighed down by the ramp‑up of newly‑leased properties (JV with Banca March). - EMEA: REVPAR growth was slightly negative YoY in Q3. Results in Europe were negatively impacted by weak performance in Germany and France YoY (Euro Cup and the Olympic games). The UK and Italy posted REVPAR growth, but their contribution to EMEA is lower than that of France and Germany. - America: Positive REVPAR growth of c.2% in USD terms thanks to the positive performance of hotels in Mexico, while REVPAR was flat in the Dominican Republic. That said, the USD depreciation against EUR turned the local‑currency REVPAR growth into a negative figure when expressed in euros. Additionally, the temporary closure of Paradisus Cancun (700 rooms) for renovation continued to impact results in the region. - Q4 Outlook: Still positive on the book data for Q4, though slowing down vs previous quarters. Early indications point out to a flattish REVPAR, slightly positive for EMEA and slightly negative for America. Melia Don Pepe (194 rooms) will be closed for a capacity-expansion project, and construction is expected to last 6-9 months. - Asset sales: No disposals were recorded in Q3.