UBS ups Melia to 'buy' as positive momentum builds
** UBS upgrades Melia MEL.MC to "buy" from "sell", saying Spain's largest hotel chain is building positive momentum with strong RevPAR, upward margin pressure and deleveraging
** The brokerage expects continued RevPAR growth and strong start to the year in Spain, after Melia posted 10% growth in the country for 2023 driven by post-COVID travel recovery
** Despite inflationary headwinds, margins are expected improve from 2023 levels, as subsiding cost pressures and new savings measures help Melia exercise cost discipline, UBS says
** It also expects Melia to deleverage quicker than it has guided, as the management wants to improve liquidity and cut debt through cash flow generation and asset sales
** Five out of 13 analysts rate the Melia stock "strong buy" or "buy", seven "hold" and one "strong sell"
Reporting by Tiago Brandao
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