| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | 2211.00 | -65 |
| Graham-Dodd Method | 4179.26 | -34 |
| Graham Formula | 4159.25 | -34 |
Hotel Majestic Cannes (MLHMC.PA) is a luxury hospitality company based in Cannes, France, operating a premier hotel that offers upscale accommodations, fine dining, and exclusive amenities. The property features guest rooms, suites, private pools, fitness centers, water sports activities, and projection rooms, catering to high-end leisure and business travelers. Additionally, the company generates revenue through retail space rentals within the hotel. Positioned in the heart of Cannes—a globally renowned destination for film festivals, business conferences, and tourism—Hotel Majestic Cannes benefits from strong demand in the luxury travel segment. As part of the Consumer Cyclical sector, the company's performance is closely tied to economic cycles and tourism trends. With a market capitalization of approximately €321 million, Hotel Majestic Cannes stands as a niche player in the European luxury lodging market, emphasizing exclusivity and premium service.
Hotel Majestic Cannes presents a specialized investment opportunity in the luxury hospitality sector, with strong profitability metrics, including a net income of €26.1 million and diluted EPS of €422.17. The company operates with minimal debt (€799,739) and maintains a conservative beta (0.041), suggesting low volatility relative to the broader market. However, its lack of dividend payouts and dependence on high-end tourism expose it to economic downturns and seasonal fluctuations. The absence of operating cash flow and capital expenditure data limits deeper financial analysis. Investors seeking exposure to European luxury real estate and hospitality may find value in its niche positioning, but broader market risks and reliance on discretionary spending warrant caution.
Hotel Majestic Cannes competes in the ultra-luxury hotel segment, where differentiation hinges on brand prestige, location, and bespoke guest experiences. Its prime location in Cannes—a hub for international events like the Cannes Film Festival—provides a competitive edge in attracting affluent clientele. The company’s asset-light model (owning and operating a single property) allows for focused operational excellence but limits scalability compared to global chains. Competitors with larger portfolios benefit from diversified revenue streams and loyalty programs, whereas Hotel Majestic relies on its standalone reputation. The lack of disclosed marketing or expansion strategies suggests a reliance on organic demand rather than aggressive growth initiatives. In the luxury segment, service quality and exclusivity are critical; any decline in these areas could erode its market position. The company’s financial health (low debt, high net income) provides stability but may not compensate for its single-property risk in a competitive industry.