2025 Half-year financial report

‌1. ACTIVITY REPORT AS OF 30 JUNE 2025

1. ‌Financial results
   1. General principles

      The condensed consolidated half-year financial statements have been prepared in accordance with International Financial Reporting Standard IAS 34 "Interim Financial Reporting", as adopted by the European Union. The rules and methods applied are identical to those used on 31 December 2024.

   2. Half-year net income statement Revenue Group share

      Covivio Hotels' revenue attributable to the Group amounted to €163.4 million for the first half of 2025, up 5.3% compared to June 2024. On a like-for-like basis, fixed hotel rents rose by 6.2%, variable hotel rents by 41.0% and EBITDA from hotels owned by 3.5% compared with June 2024. Overall, variable revenues rose by +8.7% on a like-for-like basis year-on-year, thanks to the very good performance of leased hotels in Southern Europe and freehold hotels in Nice and Lille.

      (In € million)

      Revenues Revenus H1 H1 2024 2024

      100% Group Share

      Revenues H1 2025

      100%

      Revenues Revenues Revenues

      H1 2025

      Q1 2025

      Q2 2025

      Group Share Group Share Group Share

      Lease properties - Variable Lease properties - Fixed Operating properties - EBITDA Total revenues Hotels

      Non-strategic (Retail)

      Total

      35,6

      96,2

      29,6

      161,4

      1,7

      163,1

      35,6

      89,5

      28,7

      153,7

      1,7

      155,4

      16,6

      98,4

      55,6

      170,7

      0,5

      171,2

      16,6

      91,5

      54,8

      162,9

      0,5

      163,4

      6,9

      44,9

      14,0

      65,7

      0,3

      66,0

      9,7

      46,6

      40,8

      97,1

      0,3

      97,4

      Change (%)

      Group share

      -53,3%

      2,3%

      91,1%

      6,0%

      -68,7%

      5,2%

      Change Group share (%) LfL 1

      % of

      revenues

      41,0%

      3,6%

      -3,5%

      5,3%

      1,8%

      5,3%

      10,2%

      56,2%

      33,6%

      100,0%

      n.a.

      n.a.

      1 LfL: Like-for-Like

      Operating profit attributable to the Group

      Operating profit amounted to €157.1 million for the Group's share on 30 June 2025, compared with €153.1 million at 30 June 2024. This slight change is mainly due to the change in the fair value of investment properties (+ €49.7 million), offset by the decrease in rental income (-€18 million) and EBITDA from hotels under management (+€26 million) offset by depreciation and amortisation for the period (-€31 million).

      Financial result, Group share

      Financial income mainly consists of:

      • The cost of net financial debt of €-22.7 million, down €5 million compared with June 2024, in line with the decrease in average debt and its cost;

      • The financial expense on lease liabilities (-€7.8 million), generated by the application of IFRS 16, which requires lease contracts to be restated in the same way as finance leases;

      • The negative change in the fair value of financial assets and liabilities of -€6 million, considering changes in interest rates;

      • Foreign exchange gains of €0.5 million, compared with €0.4 million at 30 June 2024, related to our UK, Polish, Hungarian and Czech portfolios.

   3. EPRA Earnings

      EPRA Earnings amounted to €132.3 million as of 30 June 2025. This represents an increase of 10.8% compared with 2024. EPRA Earnings per share amounted to €0.88 as of 30 June 2025, compared with

      €0.81 as at the same date in 2024, representing an increase of 8.8%.

      
      
      
   4. Consolidated half-year financial position as of 30 June 2025

      The simplified consolidated balance sheet attributable to the group as of 30 June 2025 is as follows :

      
      
      

      Operating properties decreased (-€70.1 million), mainly due to depreciation for the period (-€49.6 million)

      and the reclassification of a hotel in Germany to assets held for sale for -€32.1 million. Investment properties increased slightly (+€12.4 million) over the period, mainly because of:

      • The change in fair value of real estate assets, amounting to €+ 49.7 million,

      • The decline in the value of the pound sterling (-€24.5 million)

      • The reclassification of new commitments on retail properties (-€4 million)

        Assets held for sale also varied due to the disposal of the 2024 commitments and the signing of new 2025 commitments on retail assets and the disposal of a hotel in Germany.

        Cash and cash equivalents consist of cash and marketable securities totalling €597 million, in anticipation of the repayment of a bond issue (€350 million) in the second half of the year.

        On the liabilities side, shareholders' equity rose from €3,434 million on 31 December 2024 to €3,499 million at 30 June 2025. This change is mainly due to the impact of:

      • the positive result for the period of €114.5 million

      • the payment of the 2024 dividend of -€222 million, offset by the dedicated capital increase of +183 million, so a net amount of -€39 million

      • the change in the translation reserve of -€11 million

      A detailed explanation of the various items is provided in the notes to the consolidated half-year financial statements.

   5. Debt structure

      As of 30 June 2025, net financial debt amounted to €1,966 million for the group.

      Net financial debt attributable to the Group represents 29.8% of total revalued assets including rights attributable to the Group and 32.1% of total assets excluding rights attributable to the Group, excluding restatement of commitments.

      Debt characteristics

      The average debt rate was 2.28% (compared with 2.33% on 31 December 2024).

      Debt by maturity

      The average maturity of debt was 4.4 years on 30 June 2025, compared with 4.8 years on 31 December 2024.

      Coverage

      As of 30 June 2025, the Group's active hedge coverage ratio was 101.6%.

      The net value of hedging instruments amounted to €90 million for the Group's share as of 30 June 2025. The change in value of hedging instruments over the period had a negative impact of €6.1 million on the Group's share of the income statement due to changes in interest rates.

2. ‌Assets as of 30 June 2025

   Covivio Hotels' assets are valued at €6,501 million, excluding transfer taxes, representing €5,878 million attributable to the group, excluding transfer taxes.

   Covivio Hotels' assets are broken down as follows:

   
   
   

   Values ED 30/06/2025

   Assets, Group Share (In € million) Values ED

   31/12/2024

   ∆ H1 2025

   Yield ED 2024(2)	Yield ED H1 2025(2)
   6,0% 7,0%	6,2% 6,5%
   6,4%	6,4%
   N/A	N/A
   6,4%	6,4%

   LfL(1)

   Hotel lease properties	3 593	3 561	1,4%
   Hotel Operating properties	2 226	2 317	3,7%
   Total Hotels	5 818	5 878	2,3%
   Non-Strategic (Retail)	43	36	-3,3%
   Total Covivio Hotels	5 861	5 914	2,2%
   (1)LfL: Like-for-Like scope. (2)Yield HD: Yield excluding duties .

   On a like-for-like basis, hotel assets rose by 2.3% over the six-month period, driven mainly by assets located in France (+4.7%) and southern Europe (+3.3% in Spain, +2.6% in Italy). This growth is largely attributable to the consolidation of freehold and leasehold assets in France and Belgium, completed at the end of 2024, which resulted in a 10% revaluation of these assets.

   The hotel portfolio has an average yield excluding rights of 6.4% (stable over six months), of which 6.2% is on leased assets and 6.5% on freehold assets.

   Since 2005, Covivio Hotels' portfolio has evolved as follows (in € million):

   
   
   Breakdown of rental income

   Covivio Hotels has high visibility of its future cash flows thanks to long-term fixed leases with tenants who are leaders in their respective sectors and have high credit ratings.

   Annualised rents

   Annualised rental income and revenue from hotels (excluding retail outlets) amounted to €371.9 million as of 30 June 2025, broken down as follows:

   % of rental income

   Number of	Number of	Annualised revenues	Annualised revenues	Annualised revenues	Change
   rooms	assets	H1 2024	H1 2025	H1 2025	(%)

   Geographical breakdown

   (€ million)

   			Group share	100%	Group share
   Paris	3 046	11	35,8	22,1	15,3	-57,3%	4%
   Inner suburbs	1 366	5	5,8	8,0	2,8	-51,9%	1%
   Outer suburbs	3 210	31	11,4	15,6	11,0	-3,1%	3%
   Total Paris Region	7 622	47	53,0	45,7	29,1	-45,1%	8%
   Major regional cities	3 560	34	26,9	19,0	13,8	-48,7%	4%
   Other French Regions	3 680	54	8,8	12,4	7,2	-18,1%	2%
   Total France	14 862	135	88,8	77,1	50,1	-43,5%	13%
   Germany	5 760	51	34,6	34,3	33,4	-3,5%	9%
   United Kingdom	1 826	9	35,7	38,7	38,7	8,3%	10%
   Spain	3 114	16	42,1	43,2	43,2	2,7%	12%
   Belgium	1 265	5	17,0	10,8	10,8	-36,7%	3%
   Other	2 285	13	44,5	46,3	46,3	4,1%	12%
   Total Hotel - Lease properties	29 112	229	262,7	250,5	222,6	-15,3%	60%
   France	5 107	33	19,6	84,5	76,4	289,4%	20%
   Germany	3 184	7	40,3	45,8	43,4	7,7%	12%
   Other	2 091	14	17,7	30,7	29,5	66,2%	8%
   Total Hotels - Operating properties	10 382	54	77,7	161,0	149,3	92,3%	40%
   Total Hotels	39 494	283	340,4	411,5	371,9	9,3%	100%
   Non-strategic (retail)	0	36	1,6	1,3	1,3	-21,5%	0%
   Total	39 494	319	342,0	412,7	373,1	9,1%	100%

   % of rental income

   Annualised Annualised revenues revenues

   H1 2025 H1 2025

   100% Group share

1. 1. Lease maturity schedule

      The firm residual term of leases decreased by 0.3 years compared to 31 December 2024, representing a firm residual term of 10.7 years at the end of June 2025.

      Rents, by lease expiry date, are broken down as follows:

      (In € million, Group share)	By lease end date (1st break)	% of total	By lease end date	% of total
      2025	0,0	0%	0,0	0%
      2026	14,9	7%	0,0	0%
      2027	3,2	1%	0,0	0%
      2028	5,1	2%	7,7	3%
      2029	2,7	1%	8,5	4%
      2030	2,1	1%	20,1	9%
      2031	31,0	14%	11,8	5%
      2032	9,7	4%	11,2	5%
      2033	10,5	5%	6,8	3%
      2034	6,8	3%	33,5	15%
      Beyond	136,5	61%	122,9	55%
      Total Hotels in lease	222,6	100%	222,6	100%
      Non-strategic (Retail)	1,3		1,3

   2. Summary of the experts' work

      As of 30 June 2025, the breakdown of the portfolio value (group share) between the real estate experts is as follows:

      
      
      

      Assets

      30 June 2025 PdG

   3. Occupancy rate

      The financial occupancy rate measures the ratio between the annualised rent for occupied premises and the annualised rent if the premises were fully let.

      The physical occupancy rate indicates the number of square metres occupied in relation to the number of square metres available for letting.

      Both rates are stable at 100% for hotels as of 30 June 2025.

2. ‌EPRA indicators

   As of 30 June 2025, EPRA NTA stood at €4,006 million (€25.4 per share), down 1.5% compared with 31 December 2024. EPRA NDV stood at €3,843 million (€24.3 per share), down 2.3% over six months.

   
   
   
   
   
   
3. ‌Related companies

   The main transactions between related parties during the first half of 2025 are detailed in section 2.2.7.3 of the notes to the consolidated half-year financial statements.

4. ‌Risks and uncertainties

   Covivio Hotels invites readers to refer to Chapter 2 of its 2024 Universal Registration Document (URD), which identifies the main risks and control measures implemented by the company.

   Risks are rated based on a combined analysis of their potential negative impact (on the company's valuation, results, image and/or business continuity) and their probability of occurrence. Once quantified, the gross impact and probability are adjusted for the control measures in place to determine the net risk.

   Following the risk review, those risks whose level could change in the second half of 2025, through an increase in their net impact and/or net probability, are presented below. The measures to control these risks (unchanged) are described in the 2024 URD available on the Covivio Hotels website. The other risks are unchanged at present.

   1. Risks related to the environment in which Covivio Hotels operates Unfavourable developments in the real estate market: decline or stagnation in values and revenues Values

      Covivio Hotels' total assets at the end of June 2025 (€7.2 billion on a consolidated basis) mainly consist of the appraised value of its properties, which amounts to €6.5 billion (more than 91%). As such, any change in the value of the properties has a direct impact on the balance sheet total.

      The value of Covivio Hotels' assets depends on changes in the property markets in which the company operates. Both rent levels and market prices (and therefore the capitalisation rates used as comparable by experts) may be subject to fluctuations linked to the economic and financial environment. Covivio Hotels recognises its investment properties at fair value in accordance with the option offered by IAS 40.

      As such, a decrease in appraisal values is likely to affect the value of Covivio Hotels' Net Asset Value and, potentially, its share price.

      In the first half of 2025, the value of the hotel portfolio changed on a like-for-like basis by+ 2.3% (compared with +1.5% in 2024).

      Higher borrowing rates may increase financing costs for investors and potential buyers, which may discourage some of them from entering into real estate transactions or making acquisitions. This could reduce market demand and put downward pressure on the valuation of Covivio Hotels' assets.

      The real estate market is dynamic and reacts to various economic and financial factors. An increase in interest rates may lead to adjustments in capitalisation rates based on risk perceptions and expected returns. Investors may demand higher returns to offset increased borrowing costs, which may result in higher capitalisation rates.

      However, it should be noted that the impact of the increase in revenue expected by Covivio Hotels should limit the negative effect of a rise in rates.

      For information purposes, the table below shows the sensitivity of the valuation of leasehold assets as of 30 June 2025 to yield rates (corresponding to the annualised normative rent/appraisal value of assets excluding duties):

      Decrease in capitalisation rate

      Data as of

      Increase in capitalisation rate

      	1 point	0.75 point	0.5 point	0.25 point	30/06/2025	0.25 point	0.5 point	0.75 point	1 point
      Capitalisation rate	5,2%	5,5%	5,7%	6,0%	6,2%	6,5%	6,7%	7,0%	7,2%
      Portfolio value (in €M ) *	4 452	4 250	4 064	3 895	3 739	3 595	3 461	3 338	3 222
      Variation in value (in €M )	714	511	326	156		-144	-277	-401	-516
      Variation (in %)	19,1%	13,7%	8,7%	4,2%		-3,9%	-7,4%	-10,7%	-13,8%

      * Total investment properties, excluding development portfolio and rights of use.

      The sensitivity of covenants to changes in appraised values is presented in section 1.5.2 "Financial risks".

      Income

      European tourism was very buoyant in the first half of the year, with average prices and occupancy rates continuing to rise in line with (or even exceeding) 2024 levels. Revenues for the first half of the year amounted to €163.4 million for the group's share (+5.3% on a like-for-like basis vs H1 2024). Nevertheless, the company remains sensitive to its share of variable revenues (assets whose rents are likely to vary according to hotel turnover, as well as rents for hotels owned under leasehold agreements), which represented 50% of its revenues on 30 June 2025.

      Therefore, in the event of a deterioration in the economic environment, Covivio Hotels could, in addition to a decline in revenue, suffer value adjustments that could be amplified by interest rate increases.

      The Company also benefits from long-term fixed-term leases, which means it has little exposure to vacancy risk over the next few years.

      The table below shows the sensitivity of the fair value of investment properties to changes in rents. The capitalisation rate is constant at 6.2% (share of group data).

      Decrease in annualised rents

      Data as of

      Increase in annualised rents

      	10,0%	7,5%	5,0%	2,5%	30/06/2025	2,5%	5,0%	7,5%	10,0%
      Annualised rents	210	216	222	227	233	239	245	251	257
      Portfolio value (in €M ) *	3 365	3 458	3 552	3 645	3 739	3 832	3 926	4 019	4 113
      Variation in value (in €M )	-374	-280	-187	-93		93	187	280	374
      Variation (in %)	-10,0%	-7,5%	-5,0%	-2,5%		2,5%	5,0%	7,5%	10,0%

      * Total investment properties, excluding development portfolio and rights of use.

      Increase in capitalisation rates

      0,50% 1,0%

      Portfolio Portfolio

      Decrease in rents Variation* Variation*

      	(in €M )		(in €M )
      -5%	3 274	-12%	3 035	-19%
      -10%	3 088	-17%	2 848	-24%

      * Variation compared to the portfolio at 30 June 2025.

      The impact of changes in value on the Company's covenants is presented in section 1.5.2 "Financial risks".

   2. Financial risks

      Unfavourable changes in interest rates (borrowing and exchange rates)

      Loans

      Covivio Hotels could experience an increase in its financial expenses on its share of unhedged debt and, more generally, see its ability to implement its short/medium-term investment strategy limited.

      With an average rate of 2.28%, Covivio Hotels' debt amounted to €2.1 billion at the end of June 2025. Its average active coverage ratio stood at 101.6%.

      The following table shows the sensitivity of Covivio Hotels' EPRA Earnings to interest rate increases.

      A 25 bps increase in the three-month Euribor rate would have an impact of -€0.3 million on EPRA Earnings. A 50 bps increase in the three-month Euribor rate would have an impact of -€0.5 million on EPRA Earnings. A 100 bps increase in the three-month Euribor rate would have an impact of -€1.0 million on EPRA Earnings.

      Change

      A change in the exchange rate between the pound sterling and the euro could have a negative impact on Covivio Hotels' results and more specifically on the amount of rent received, as 13% of its assets are located in the United Kingdom.

      Breach of bank covenants (LTV, ICR) linked to declines in value and/or income

      The risks related to changes in values and revenues are detailed in the sections on the risk "Unfavourable developments in the real estate market: decline or stagnation in values and rents" (see above).

      In the event of a breach of a covenant, Covivio Hotels would theoretically have to repay its entire debt. In practice, however, this risk appears unlikely, as banks generally prefer to renegotiate the existing financial terms with the borrowers concerned, as was seen during the 2008 financial crisis.

      Covivio Hotels' most restrictive LTV (Loan to Value) covenant is 60% for an effective ratio of 32.1% as of 30 June 2025 (bank LTV). This means that the company could suffer a 46% decline in the value of its assets before reaching its LTV covenant.

      Covivio Hotels' most restrictive ICR (Interest Coverage Ratio) covenant is 200%, with an effective ratio of 809% as of 30 June 2025.

5. ‌Outlook for 2025

   A leading player in European hotel real estate, Covivio Hotels is pursuing its strategy of growth and portfolio optimisation by actively enhancing the value of its existing assets through dynamic and targeted management.

6. ‌Transition tables
   1. Transition tables

      1. Portfolio transition table

         Portfolio (as of 30/06/2025)	5 914 M€
         Use rights on investment properties	+ 239 M€
         Use rights on operating properties	+ 45 M€
         Equity affiliates > 30%	- 156 M€
         Non-accrued goodwill of operating property assets	- 383 M€
         Real Estate Assets Group Share	5 659 M€
         The companies's fully consolidated non-controlling interest	+ 270 M€
         100% Real estate assets - IFRS accounts	5 929 M€

      2. EPRA indicator transition table

         Shareholders' equity Group - IFRS Accounts	3 499 M€
         Fair value of operating property assets net of deferred taxes	+ 296 M€
         Non optimised transfer rights	331 M€
         Fair value of financial instruments	- 90 M€
         Defered tax (including IFRS adjustments)	+ 290 M€
         EPRA NRV	4 326 M€
         Non-optimised transfer rights	-283 M€
         Goodwill and intangibles assets*	- 1 M€
         Deferred tax on non-core assets	- 36 M€
         EPRA NTA	4 006 M€
         Optimisation of the transfer rights	- 48 M€
         Intangibles assets	+ 1 M€
         Fair value of fixed-rate debt net (excluding credit spread) of deferred taxes	+ 49 M€
         Fair value of financial instruments	+ 90 M€
         Deferred taxes	- 254 M€
         EPRA NDV	3 843 M€

         The fair value of fixed-rate debt is measured at the risk-free rate and excluding credit spreads.

      3. Rents transition table