Melia Hotels International SA

MAD:MEL

Earnings Call Transcript 2020-Q4

[Operator]

Good morning, and welcome to the Meliá Hotels International Fourth Quarter and Full Year 2020 Earnings Call. [Operator Instructions] Please note that this event is being recorded.I will now turn the call over to Stéphane Baos, Head of Investor Relations. Please go ahead.

[Stephane Baos, Head of Investor Relations]

Thanks, Ed. Welcome to Meliá Fourth Quarter and Full Year 2020 Earnings Call.Before we begin, we would like to remind you that our discussion this morning will include forward-looking statements. Actual results will differ from those indicated in the forward-looking statements. And forward-looking statements made today speak only to our expectations as of today.This morning, as usual, we have Gabriel Escarrer, our Vice President and Chief Executive Officer; André Gerondeau, our Chief Operational Officer; Pilar Dols, our Chief Financial Officer; and Mark Hoddinott, our Chief Real Estate Officer. Gabriel Escarrer will provide an overview of the current operating environment. André will then review our fourth quarter onwards.Following their remarks, we will be happy to take your questions. In any case, the Investor Relations team will be available following this conference call to give you a chance to clarify anything else you might need. You can find our earnings release on our Investor Relations website at Meliáhotelsinternational.com.And now I am pleased to turn the call over to Gabriel.

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Thank you, Stéphane, and good morning, everyone. We certainly appreciate you all joining us today, and I hope that you and all those close to you are safe.2020 was unlike any other year. After the positive results achieved in 2019 in spite of certain difficulties in the Caribbean, but the positive trends that have continued in the first 2 months of the year were halted by the onset of the pandemic in March, placing the travel industry in a state of practical hibernation.Our reaction to the global collapse in demand was exemplary. Firstly, we implemented a rigorous contingency plan to reinforce our resilience and protect our team, our customers and our liquidity while also supporting the social response to the pandemic and, at the same time, reviewing our strategy to anticipate future trends and assess our strengths and prepare for the post-COVID business environment.As a result of these moves, we expect to recover from the pandemic as a stronger, higher-margin business that is even better positioned to deliver performance for our owners and for our shareholders. Despite significant losses, our 2020 results show how we have managed to mitigate the worst impact of the pandemic on our finances, our operations and our people, enhancing our strengths and maximizing our capacity to make the most of the strong recovery we are sure the travel industry will see as soon as things get back to something approaching normal, something which we expect will happen soon.In this context, turning to results for the full year and fourth quarter, consolidated revenues decreased by minus 70.7% compared to 2019. And for the fourth quarter itself, revenues fell by 76.2% compared to the same period last year. One of our greatest and most immediate concerns was cutting operating costs. We have been able to reduce EUR 645 million during the pandemic period, excluding EUR 21 million of asset impairments. The reduction in cost compared to the same period of 2019 was minus 63.3%. This cost reduction has allowed us to compensate by 55% the drop in revenues suffered during said period.On a yearly basis, operating expenses decreased by 48.6%. And in the fourth quarter, savings amounted to 50.9% compared to the same period in the previous year.EBITDA, excluding capital gains, reached minus EUR 130 million. Including the impairment to asset values mentioned previously, this figure will be minus EUR 151.5 million. The company has also negotiated and signed agreements with the owners of some leased hotels with lease agreements, reaching several types of agreements, moratoriums, waivers, et cetera, amounting EUR 29 million. Considering that the company has chosen to not exercise the option to avail the practical experience, that's the option of considering some of these improvements in rentals as negative variable payments for the year, this has not have a positive impact on EBITDA for the year.Based on the evolution of the business affected by the pandemic in the final quarter of the year and the opening months of 2021, the company deemed it necessary to evaluate the provision registered in the first half of the year, resulting in an additional deteriorating of EUR 5.7 million and bringing the total impairment for the year caused by the pandemic to EUR 150 million. For owned assets, the income statement therefore shows a negative impact of minus EUR 80.3 million, of which EUR 21 million is due to investment properties maintained at market value, the only ones affecting EBITDA. EUR 41.5 million come from the properties added most recently and EUR 17.7 million comes from assets in companies valued by the equity method.Regarding the rights of use hotels, the hotels under lease agreements, the company has estimated a recoverable amount by determining the value base on an updated business plan for the period 2020-2030, resulting in an impairment of EUR 70 million. It is important to emphasize that these impairments have an impact on our accounts but have no cash effect at all.We continue to rely on the strength of our asset portfolio in terms of its quality and underlying value. The net loss of the parent company reached minus EUR 595.9 million, including the asset value impairments mentioned previously which amounted to EUR 150 million.On a financial level, faced with the exceptional situational difficulty in forecasting its duration, one of the company's top priorities has been to maintain enough liquidity to allow us to face the coming months with maximum confidence. To preserve our liquidity, we have focused on adjusting and controlling all costs, reducing the amount of CapEx scheduled for the year, canceling dividend payments, obtaining new financing and deferring debt maturities that will have become due during the year. We would also like to highlight that Meliá does not have any debt with financial covenants.At the end of December, the liquidity situation amounts to EUR 316 million. Additionally, I would like to highlight that all of the maturities due for the financial year 2021 have already been refinanced. It is also worth noting that our mortgage debt currently stands at less than EUR 260 million, which represents an insignificant proportion of the value of the company's own properties.During the last quarter of the year, net debt increased by EUR 178 million to EUR 2.603 billion at the end of December, impacted by the addition of a new leased hotel, the Innside Amsterdam. Over this same period, pre-IFRS 16 net financial debt increased by EUR 130 million to EUR 1.255 billion. Monthly cash consumption in the last quarter was around EUR 43 million. For the full year, the increase in net debt pre-IFRS 16 was EUR 661 million, mainly impacted by the final payment of the renegotiated long lease of the Meliá warehouse, the share buyback program, the maintenance CapEx and the impact of COVID-19 on cash generation mainly from the second quarter of the year onwards.To close this chapter, I would like to inform you that the company also continues to analyze other alternative means of reducing debt and increasing liquidity asset sales with the possibility of the long-term management-backed contract. I will now turn the call over to André to talk about our operational performance during the fourth quarter and forwards. André, please?

[André Philippe Gerondeau, Chief Operating Officer]

Thank you, Gabriel, and good morning, everyone. COVID-19 has impacted our business to an extent we never imagined, making 2020, by far, the most challenging year in our company's history.Full year worldwide RevPAR declined 50%, with average occupancy of just over 35% compared to 65% for full year 2019. Available rooms were reduced by 45% compared with 2019. It is important to note that we're able to keep the drop of ARR under 12% year-round while still being flexible on all channels and segments. This was possible due to the strength of our distribution capabilities. Melia.com represented 51% of our global sales. In many of Caribbean resorts in the Caribbean, this number increased to over 65% during the strong months of the pandemic.In 2020, occupancy and year-over-year RevPAR change showed steady improvement from April through the summer and into the early fall. However, with spike in COVID cases in the fourth quarter, many countries around the world reinstituted strict temporary limitations on traveling and gathering to combat rising virus cases.The restrictions caused by COVID-19 in all regionals have influenced the evolution of the final quarter and have forced us to operate in the context of travel and capacity restrictions at a global scale, affecting both source market and destinations. As a result, we have been highly flexible and agile in closing and reopening hotels according to valuations in demand. Similar situation with year-end overall in the Caribbean and Mexico.China, however, has begun a steady recovery since the second half of last year. Not being the case for some Southeast Asia destinations like Indonesia, Thailand or Myanmar. We believe that to one degree or other, we must be very conscious of last year's situation. I will focus on our vision for the immediate future.So in terms of outlook, with the limited visibility we currently have, as we look to the year ahead, we recognize the similarities between Q4 2020 and Q1 2021.Europe will remain under lockdown for most part of the quarter. Canada as well until the end of April. In the U.S., our #1 feeder market for the Caribbean and Mexico, we had a positive start of the year. However, the announcement of required antigen testing prior to returning to the U.S. clearly stopped the trend.The company was very agile in reacting and immediately offered antigen testing free of charge as well as insurance for all guests. This means that even a 2-week quarantine in our hotels is covered. Along with the Stay Safe with Meliá program, a sense of trust and confidence in our company has allowed us to minimize the impact of cancellations.Having said this, the past few days have led us to remain optimistic but cautious on our expectations for Q2 and more so for Q3.Our 2 top feeder markets. The recent U.K. announcement for travel to restart on May 17 had a positive impact in our last 3 days' reservation pace, up 53% from the previous week and with our key partners confirming the trend and defining the time frame to restart operation. This gives the market a sense of clarity when booking their holidays to the Mediterranean resorts, making Spain the most relevant.Our vision throughout this year, limited intercontinental travel. So Europe for Europe, America for America and Asia for Asia will remain the trend.The top feeder market for the Caribbean and Mexico resorts, the U.S., with its fast-paced vaccination process, over 1.5 million doses a day, has started to show signs of recovery. Flight searches show an increase of 43% from Mexico and 21% for Punta Cana in the past 7 days. As of today, our centralized on the book sales show a year-over-year increase of 11% for these markets.In Europe, we will see a positive pace in the next few weeks as, obviously, February last year, the pandemic had not shown its worst impact.As a general global trend, there is a slow pace for miles business, most of it being postponed. We show positive signs and a fair volume of RFPs, request for proposals, for 2022. However, we see some demand for smaller leisure and incentive groups in our resorts, which we believe will be the trend for the following months. The company has prepared tailored programs to cater to this market.There are no signs of pickup for corporate business in the immediate future. We, however, expect to recuperate some pace between Q3 and Q4. The company has been exploring new opportunities mainly in the workation segment.Relevant to mention that the company's portfolio is comprised of 60% resorts and 40% urban hotels. Within this 40%, over half are locating what we call pleasure destination, thus limiting our exposure to pure corporate markets. We definitely believe that resort and leisure business will come back sooner than any other segments. Meliá's portfolio is very well distributed in this regard.Currently, over 55% of our hotels are open, excluding the closed seasonal hotels. And we expect the staggered opening of an additional 100 hotels by the end of June.As previously mentioned, the company has protected its great integrity and will continue to do so, reinforcing the digital evolution of our distribution efforts. The company's strategy will continue to focus on delivering personalized experiences for our guests, strengthening our offering of high-end resorts with open spaces, wellness and destination-based experiences and the trust in Stay Safe with Meliá program as this is what our customers are telling us they value. This will be the driver for recuperating RevPAR during the coming months, emphasizing our melia.com promotional strategy hand-in-hand with our commercial partners.As far as development regarding international expansion, activity has also been affected by the pandemic with works being delayed on some projects. Hotel openings have also been rescheduled. The company now estimates between 15 to 20 new openings in 2021. This pipeline is partner is located in the main leisure capitals in Europe, Middle East and Southeast Asia, which continues to represent an important part of our development.The most relevant opening of the year took place in Dubai with the opening of one of the company's flagships hotels in the Middle East, the ME Dubai, designed by the world-renowned architect, Zaha Hadid.I will now turn back the call over to Gabriel to summarize the main messages of the call.

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Thank you, André. To end, I would like to highlight the following messages. COVID-19 has impacted our business to an extent we never imagined, making 2020, by far, the most challenging year in our 65-year company history.In terms of outlook, as we look to the year ahead, we remain optimistic that accelerating vaccine distribution will lead to easing government restriction and unlock pent-up travel demand. We expect a more pronounced recovery from May driven by increased leisure demand. As leaders in resort hotels, we are in the best possible position to benefit from a rapid recovery in the industry.We would like to reiterate our strong commitment that one of the company's top priorities is to maintain sufficient liquidity to allow us to face the coming months with greater confidence. The company also continues to analyze other alternative means of reducing debt and increasing liquidity as asset sales with the possibility of the long-term management-backed contract.With our culture to reinvent ourselves, Meliá committed itself to use this operational lockdown to question everything as a matter of principle, reset the business model and adapt its strategy to the complex post-COVID environment, thus achieving a significant competitive advantage to benefit from the growth opportunities the future will bring to strong and recognized brands such as ours.Thanks to our loyal customer base, our direct channels -- our direct sales channels and systems, our know-how and economies of scales among other values. I can assure you that we shall emerge from this pandemic as a stronger, higher-margin business that is even better positioned to deliver performance for our owners and for our shareholders.Throughout 2020, we also remain focused on our corporate responsibility and our commitment to ESG initiatives. We are proud to contribute to our communities. And we are honored to be named as one of the global industry leaders in the Corporate Sustainability Assessment made by Standard & Poor's Global for the third year in a row, which places the company in the Silver Class category in its 2021 Sustainability Yearbook.Our strength and brand strategy in recent years, combined with our optimized management systems, allow us to look forward to significant organic growth over the coming months, becoming a safe harbor for smaller hotel chains and independent, which require sales support, digital capacity, recognized brands, efficient systems, a major base of loyal customers and the economies of scales required to face the highly competitive post-COVID environment.Along these lines, Meliá has relaunched its franchise model and created a new Affiliated by Meliá program to respond to the needs of the post-COVID business environment and support its selective and strategic expansion. Further details on fourth quarter and full year can be found in the earnings release we issued last night.We hope we've been able to explain the situation to your satisfaction. We will now be happy to answer any questions you may have. Please let me remind you that I'm here with André Gerondeau, Pilar Dols, Mark Hoddinott and Stéphane Baos. Operator, please.

[Operator]

[Operator Instructions] The first question comes from Simon LeChipre from Stifel.

[Simon LeChipre, Analyst]

Three, if I may. First of all, looking to the summer season and assuming travel restrictions are lifted and we actually see a strong demand coming back on the leisure side, how should we think about your pricing strategy and your potential pricing power? Could we assume that prices would be back to the level of 2019?And secondly, in terms of your strategy regarding liquidity and debt reduction, you mentioned you are notably looking at potential asset disposals. Can you discuss this topic a little bit more? What sort of assets could you potentially sell? And what do you see in terms of appetite from the market for these kind of assets?And lastly, looking to the cost cutting you have done during the crisis, how much of this savings you expect could be permanent? And as a result, do you expect it to drive margins over the midterm above the pre-crisis level?

[André Philippe Gerondeau, Chief Operating Officer]

Simon, this is André. And to your first question regarding pricing, I'm not certain we will see the levels of 2019 immediately in summer 2021. What we will see is a reduction or hold in the ADR. And for summer season, some of our resorts will have -- I would say, high-end resorts will have the same pricing level than 2019. For the rest of the resorts, there will be fierce competition. So we will hold the ADR as much as possible. So we will recuperate some of the pricing. But I don't think that before 2022, we will achieve the 2019 pricing to be fair.As you realize in 2020, we had a drop of less than 12% in the ADR. So even we had this huge decrease in RevPAR, we were able to sustain quality RevPAR through sustaining rate. This will be the case this summer as well.

[Mark Maurice Hoddinott, Chief Real Estate Officer]

Simon, it's Mark Hoddinott speaking. Regarding your question on asset disposals, asset disposal is one of the alternatives that we are looking at in terms of improving debt levels. In terms of the possible nature of those, the -- probably the possible amount would be something between EUR 150 million to EUR 200 million. And they -- mainly, the assets would probably be Spanish assets and assets that have the ability to have upside from renovations to be done as well, which will be part of the value proposition for any operation.

[André Philippe Gerondeau, Chief Operating Officer]

In terms of -- thank you, Mark. In terms of the third question, we foresee at least between 200 and 250 basis points to remain as part of our strategy as we have launched a new organizational model throughout the company as well as all of our back office transactional and digital strategy, which should support our system fee as well throughout. So 200 to 250 basis points should remain once stabilized.We hope this answered your question, Simon.

[Operator]

Our next question comes from Andre Juillard from Deutsche Bank.

[Andre Juillard, Research Analyst]

First question is correlated to the one of the initial ones on the cost-cutting plan and the cash burn. You've mentioned that the cash burn in Q4 on a monthly basis was EUR 43 million. What do you expect on Q1 and the beginning of 2021? First question.Second question, on the asset disposal. So you mentioned that you are expecting to sell for EUR 150 million to EUR 200 million assets. But could you quantify, if possible, the potential capital gain you are expecting from such a disposal and that this -- is this amount the maximum? Or could you consider some more disposal?And at last, considering that you were mentioning that asset disposal was one possibility to reduce debt, it implies that you could be ready to consider some alternatives mentioning right issue or convertible bond?

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

André?

[André Philippe Gerondeau, Chief Operating Officer]

Regarding the cash burn, as we say that the operation is going to be similar to the Q4 2020. The cash burn is going to be around EUR 43 million, EUR 45 million per month. Okay?

[Andre Juillard, Research Analyst]

Okay.

[André Philippe Gerondeau, Chief Operating Officer]

And the idea is in the second quarter to improve and then -- to start improving in the second quarter. Then we go ahead with your question about the assets.

[Mark Maurice Hoddinott, Chief Real Estate Officer]

Yes. And in terms of the follow-up question regarding asset disposals, yes. To reiterate, it is one of the alternatives we're looking at. And therefore, I say this every time, we've been -- we're not able to say or to know what the impact would be on capital gain. And the range that we have been looking at is, as I said, EUR 150 million to EUR 200 million.

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Okay. Thank you, Mark. Then the other -- sorry?

[Andre Juillard, Research Analyst]

Yes. Sorry to interrupt you. In terms of timing, can you give us an idea for the asset disposal?

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

During the second quarter, along the second quarter could be --it's not anytime or anything timely. We're working on the way.Okay. Then about the other possibility that we could face from the point of view to review the debt, honestly, right now we are doing only the possibility to see the sale of the assets. We are not contemplating the right-of-use or any capital increase for this peer. Is that okay?

[Andre Juillard, Research Analyst]

Yes, yes. Maybe one follow-up question. We have seen that some governments in Europe were putting in place some help. Did you have -- I'm sure that you had some discussions with the Spanish government. Could you give us some more color about potential helps that have been decided or that are discussed at the moment?

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

I know that the President of the Spanish government announced 2 years -- 2 days ago that there was a plan for the tourism of EUR 11 billion. But no details have been given. So they said that it will be even soon. I don't know if it's going to be in the next 2 weeks. But no, there is no detail.

[Operator]

Our next question comes from Iñigo Egusquiza from Kepler.

[Iñigo Egusquiza, Analyst]

Thanks for taking my questions. Most of them have been already answered. But just a follow-up on the liquidity and net debt. I have just a question on what is more or less the level of net debt that you as a company, as a management thinks is a good level to run the company? Because making more or less the numbers and assuming that Stéphane was mentioning the cash burn is going to be in Q1 similar to Q4, this would put net debt end of March around EUR 1.4 billion, if I have done the numbers right. I don't know what's the level that you have in mind. I mean the rotation obviously would help. But I don't know if this level of debt is still a bit high.

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Iñigo, It's a tough question. And as you can imagine -- I'm sorry, this is Gabriel Escarrer speaking. We believe that the comparable levels were previous to pre-COVID 19. So our aim is to bring it back, this pre-IFRS 16 number, to around the EUR 600 million that we had in 2019. When this could happen depends not only on the asset rotation but as well on the outlook for the business in the next coming 2 years. So it's hard to do but it's our aim to recover back these levels of what we have previously to COVID-19.

[Operator]

Our next question comes from Fernando Abril from Alantra.

[Fernando Abril-Martorell]

Just a follow-up on the hotel disposals. How are you seeing the Spanish market? There have been only a few transactions today. But I would like to know your view on it and how is -- how are prices are evolving.And then second question on the -- I would like to know your views on potential M&A in the industry? There have been some of your peers talking about it. But I don't know your view on it and if you could act as a consolidator.

[André Philippe Gerondeau, Chief Operating Officer]

Fernando, thanks for your question, another tough question. Now in terms of the market, there is -- I mean there is a number that we made there. There's liquidity and interest in the market. Obviously, when we go through these changes in the cycle, then there's capital -- I mean the opportunity for capital, which is -- some of it is looking for high return and looking for -- at the moment, there's the expectation to have -- to find good transactions. And I'd say that the issue that we are seeing is that, obviously, as owners of real estate, we actually have waited to see as much as possible how much the -- how quickly the recovery can occur and therefore use alternative methods rather than sales of assets.And therefore, probably at the moment in the market, we're not -- we haven't seen many transactions because there's still a gap in expectations of owners. We just want to see how the alternatives, I should say, alternative measures then help can get them through.We think that it will be a very interesting semester to see in the next 6 months because -- especially in the resort sector where, obviously, the speed at which the resort properties can recover in line with, obviously, the sanitary advance, vaccination, travel, availability to travel, then that's going to have a big impact on some of the resort hotel owners, I would say, going into the third and fourth quarter this year.

[Fernando Abril-Martorell]

Sorry. If I can, then I will ask some follow-up questions on the first one. Sorry.

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Okay. So Fernando, so coming back to your second question regarding the consolidation that hopefully will be taking place in the industry. I'm sure the companies that have a strong brand, a strong distribution system, strong digitalization and strong balance sheets are the ones that will benefit from this consolidation process and probably will lead this consolidation process.I'm sure that there's going to be some movements in the resort segment mainly -- not only in Spain but as well in the Mediterranean. You should take into account that the number of hotels affiliated to hotel chains in the resort world in Spain is less than 15%. So with the problem that the 2 operators and some intermediaries are facing nowadays, I'm sure that there is plenty of opportunities for these independent hotels, companies for this -- medium hotel companies to join forces with big companies in -- like Meliá and others that can help them to increase their -- mainly revenues because probably the revenues won't come in the short term through operators.So coming back to your question, I'm sure there are going to be opportunities but not only for mergers and acquisitions but as well from organic growth.

[Fernando Abril-Martorell]

Okay. And just a quick follow-up. So I guess from the first question that the market is -- will be still quite mute for the European segment and then this -- I should suggest that the asset disposal that you are considering for the first half of the year should be in the lesser in the resort segment?

[André Philippe Gerondeau, Chief Operating Officer]

The -- I'd say in terms of the possible asset disposal for us, it would be a mix, maybe more leaning towards leisure than to urban but it would be a mix. And I think that the difference is that when you've mentioned this in terms of the investment market and the difference between the city and the resort is that in the city, profit is -- there's probably a greater separation between ownership and operation.And therefore, maybe it's more of -- there are financial investors in many of the properties, whereas in the resort market, they're generally their owner operators. And therefore, that's when it becomes more complex because there's both the issue of if it's an asset sale with a desire to retain the management of the operation or whether they could be prepossession sales.So that's why I think in the resort market, it's going to take a bit more time because, normally, the assets are linked to the same operating company as the owner, whereas I think that the -- in the 50 markets, it's more of a pure investment market. And then I think we will see more, as you said, pure investment decisions not linked to kind of the goodwill and the business side of the decision-making.

[Operator]

Our next question comes from Ivan San Félix from Renta 4.

[Ivan San Félix]

I hope you and your families are doing well. I have a first question on the recovery by geographies in late second quarter and third quarter. I'm thinking maybe the Spanish resorts and Asia should be the markets that recover the fastest. Maybe -- I think that maybe the Caribbean is not peak season by May, June. Is that right?And then I had a question on asset sales but that's been answered. But Gabriel mentioned that the debt maturities for 2021 have been refinanced. Is that -- so the whole EUR 150 million that mature this year have already been financed. It's just I'm trying to figure out how the cash flow generation will be for the year.

[André Philippe Gerondeau, Chief Operating Officer]

Thank you. And this is André, if I may. I think that, absolutely, Spanish resorts will start to recover first. I think that what we've seen is the trend of the Anglo-Saxon countries being advanced in vaccination process and recovery. So when you look at the U.K., which is our #1 feeder market for our Spanish resorts, there is an evolution there.Maybe summer will start a bit later. Last year, we only had 6 weeks of summer. Obviously, this year, our expectation is to go between 12% and 16% and maybe a late summer will happen. So there is stronger demand for Q3, mainly August, September. And we think it's going to probably extend to, at some point, October.At the same point -- at the same time, sorry, in the U.S., from the U.S. market being the #1 feeder market for Mexico and the Caribbean, we would probably see an early winter. So we expect that between Q3 and Q4, the ramp-up period will consolidate going into a stronger winter season for the Caribbean, which is really the opportunity is coming into the end of '21, '22 to have a regular winter season for next year in the Caribbean.

[Stephane Baos, Head of Investor Relations]

Okay. Ivan, this is Stéphane speaking. Regarding the maturity that we have for this year, 2021, pay attention to the release that we make a mistake and the first maturity is 2021, not 2020. And the total amount is EUR 198 million -- or EUR 195 million for 2021. It's a small mistake that I have already solved.Okay. Regarding the renewals that we have done, we have already signed some forward-starting facilities for the big majority of all -- the majority or all the maturities that we have in '22 and Q1. Then as we said, that's already solved this problem for this year.

[Operator]

Our next question comes from Bruno de La Rochebrochard from Bryan Garnier.

[Bruno de La Rochebrochard, Equity Research Analyst]

Yes. Just a follow-up regarding bookings. You are seeing a strong increase in bookings due to mainly new U.K. borders opening. This is an increase of 53% from previous weeks. but this is from, let's say, something close to 0. Would it be possible to quantify the amount, let's say, in terms of revenue, for example? And are you seeing something similar from other feeder markets?

[Gabriel Juan Escarrer Jaume, Executive Vice President & CEO]

Thank you, Bruno. In terms of what we just mentioned regarding the increase of 53%, this is specific to the U.K. market into the summer bookings for the past 3 days. Why do we say the past 3 days? It's because this is when the U.K. government announced that as of May 17, restrictions will be lifted. So to give you a sense of number, from an average of EUR 3.5 million, we went to EUR 5 million in terms of booking reservations. That's the number.Now we will see how it continues to evolve. It's very early to say. So we expect this to be the trend moving into the Q3.What we've seen is that potentially, probably some of Germany has -- instead of considering Spain a high-risk destination is now a medium risk destination. So we expect to see some sort of movement from the German market.But for us, in summer, please remember that between Spain, the local market, and the U.K. market, we generate over 60%, 65% of our business. Then there are some trends from the Russian/Ukrainian market moving forward as well. So this is why we have a cautious but optimistic outlook. Now it's still too soon to tell. This is just recently for the past week.

[Stephane Baos, Head of Investor Relations]

Thank you very much for your attention and your time. We hope that we have been helpful here. Please do not hesitate to contact our Investor Relations department for any further questions you might have.Thank you very much and have a good day. Bye-bye.

[Operator]

This concludes today's conference call. Thank you all for dialing in. And you may now disconnect your lines.