Covivio Hotels - 2026 Half-year financial report

Half-year Financial Report 2026 edition

Contents

1. ACTIVITY REPORT AS OF 30 JUNE 2026
   1. Financial Results
   2. Balance Sheet as of 30 June 2026
   3. Risks and uncertainties
   4. Outlook for 2026
   5. Reconciliation tables
2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2026
   1. Condensed consolidated financial statements as of 30 June 2026
   2. Notes to the consolidated financial statements
3. STATUTORY AUDITORS’ REPORT
4. STATEMENT BY THE PERSON RESPONSIBLE

1. MANAGEMENT REPORT AS OF 30 JUNE 2026

RESULTS FOR H1 2026
Strengthening our position in Southern Europe and accelerating hotel transformations

Hotel market: resilient demand in Europe

Following strong momentum in 2025, the European hotel sector continued to grow in 2026, with performance up by +2.2% at the end of May 2026. These results were driven by rising prices and a slight increase in occupancy rates.

As in 2025, hotel performance in Europe is being driven by Southern European countries, particularly Italy and Spain, which are recording the strongest performance, with RevPAR (Revenue Per Available Room) increases of +13.1% and +6.3% respectively. France and the United Kingdom continue to perform well, with growth of around +2.5%. Germany, hampered by a sluggish economic climate, saw a decline of -1.4%.

Hotel investment in Europe reached €4.8 billion in the first quarter of 2026, with strong growth in the UK and Spain compared with the first quarter of 2025 (+€0.7 billion). The hotel sector’s share of total property investment remains at 11%.

Covivio Hotels continues to rebalance its portfolio

€261 million in investments committed in Southern Europe, of which €182 million was acquired in the first half of the year

In April 2026, Covivio Hotels acquired a portfolio of four recently refurbished 4* hotels in Milan, totalling around 900 rooms and located in the city’s prime districts. These assets were acquired as part of a sale-and-leaseback transaction with Invest Hospitality, one of Milan’s leading hotel operators, and are subject to leases combining fixed and variable rents. This acquisition, valued at €217 million, offers a target yield of around 7% and further strengthens Covivio Hotels’ presence in Italy, one of Europe’s most dynamic hotel markets. Following the acquisition of three hotels in the second quarter of 2026, the fourth hotel is expected to be acquired in the first quarter of 2027.

In May 2026, Covivio Hotels also acquired the Tent Torremolinos hotel in Spain, a 440-room property situated on the Costa del Sol, one of Southern Europe’s most dynamic tourist destinations. Situated close to the seafront and M·laga Airport, the hotel benefits from strong leisure demand throughout the year and limited seasonality, with Torremolinos recording 5.4 million overnight stays in 2025. Renovated in 2023, the hotel offers a full range of facilities and is operated by the FERGUS Group under a 20-year fixed-rate lease. This €43.5 million investment offers a guaranteed minimum yield of 7.1% and a target yield of over 8%, including the variable rent.

These acquisitions guarantee high quality standards and modern facilities. The assets will also meet the highest ESG standards (high energy efficiency and low environmental impact). All assets are aligned with the European taxonomy and comply with the emissions targets set by the CRREM for 2030.

The acquisitions in Italy and Spain demonstrate Covivio Hotels’ ability to expand in Southern Europe, through high-potential assets in dynamic leisure destinations, and offer attractive visibility on long-term revenues thanks to average lease terms of around 20 years and target rental yields more than 7%.

€55 million in new disposal commitments over the half-year in Northern Europe

Covivio Hotels has entered new commitments to dispose of assets worth €55 million on a group basis (€58 million on a 100% basis) in the first half of 2026, comprising mainly one asset in Brussels, Belgium, and one asset in Dresden, Germany. These commitments were secured at a premium of +2.5% compared with the values at the end of December 2025.

An acceleration in the transformation of hotels

As a reminder, Covivio Hotels has identified a portfolio of 20 hotels in operation offering strong potential for repositioning and value creation. At the end of June 2026, these hotels represented approximately €860 million in asset value (€641 million on a group basis), and approximately €400 million in committed investments (€284 million attributable to the group). Ultimately, their repositioning is expected to generate nearly €260 million in value creation (€170 million attributable to the group) and increase EBITDA from €51 million to over €103 million (€39 million to €75 million attributable to the group), thereby illustrating its significant growth potential.

Following the launch of five projects in 2025, Covivio Hotels accelerated the roll-out of the programme in the first half of 2026, launching eight new projects representing €109 million in investment (€76 million attributable to the group), €50 million in expected value creation (€31 million attributable to the group) and approximately €13 million in additional EBITDA (€9 million attributable to the group). The target average return on these investments is 12%.

Following the launch in the first quarter of the Mercure Paris Parc des Princes and Novotel Gent Centre projects – comprising the refurbishment of existing guest rooms and a 24-room extension at the Mercure – six new projects were initiated in the second quarter. These include the refurbishment and rebranding of the Novotel Lille Flandres, the Ibis Pantin …glise and the Mercure Saxe Lafayette in Lyon, as well as refurbishment programmes at the Ibis Toulouse Centre and the Ibis Styles Lille Centre. The programme also includes the extension of the Milner York, an iconic hotel situated in the heart of York, one of the UK’s leading heritage and tourist destinations, which benefits from strong demand and a limited supply of upmarket accommodation. The project will add 44 rooms and new meeting spaces, with a target return on investment of 18.5% and an expected value creation of over 11%.

Furthermore, Covivio Hotels has delivered its first project of the year with the reopening of the Mercure Nice Promenade des Anglais. Boasting a prime seafront location and now managed by WiZiU, this asset has already generated over €22 million in value creation and benefits from the expertise of WiZiU, which also operates the adjacent Le MÈridien Nice hotel.

In addition to the projects already underway, seven hotels are due to be repositioned between 2026 and 2029. These assets represent approximately €425 million in portfolio value (€336 million attributable to the group) and will benefit from nearly €218 million in investment (€155 million attributable to the group). Once the works are complete, they are expected to generate around €116 million in value creation (€80 million attributable to the group) and €28 million in EBITDA (€20 million attributable to the group), representing a marginal return on investment of 13%.

Results for the first half of 2026: net profit of €143 million

Net profit attributable to the group as of 30 June 2026 stood at €143.1 million, compared with €114.5 million at the end of June 2025, driven by revenue growth and an increase in the value of leased assets, as detailed below.

Appraised values up by +1.0% on a like-for-like basis

As of 30 June 2026, Covivio Hotels held a hotel portfolio valued at €6,259 million (€6,882 million on a 100% basis), characterised by:

• prime locations: the average rating for the ‘geographical location’ of the hotels, as awarded by guests on Booking.com, stands at 8.9 out of 10, and 92% of the portfolio is situated in major European tourist destinations.
• a diversified portfolio in terms of countries (11 countries), segments (32% upmarket hotels, 41% mid-range hotels and 27% budget hotels) and operating partners (19 brands including Accor, Marriott, IHG, Minor and B&B);
• long-term leases averaging 11.5 years with fixed terms.

1 LFL: Like-for-like
2 ED: Excluding duties

The hotel portfolio continued to benefit from favourable market conditions and active management, with values rising by +1.0% on a like-for-like basis.

Southern Europe, including Nice (27% of the hotel portfolio), remained the main driver of growth, with values rising by +2.8% in Spain, +3.2% in Italy and +2.8% in Nice, reflecting the solid fundamentals of the hotel sector.

The average yield on the hotel portfolio stands at 6.2%.

Breakdown of the hotel portfolio as of 30 June 2026 (Group share)

Decrease in equity of €76 million

Covivio Hotels’ equity decreased by €76 million in the first half of 2026; this was mainly due to the payment of a cash dividend (down €237 million), offset by the profit for the period (up €143 million).

Increase in debt following acquisitions

Covivio Hotels’ net debt rose to €2,175 million on a group basis, compared with €1,850 million on 31 December 2025, whilst the debt coverage ratio fell to 1.99% at the end of June 2026 from 2.20% on 31 December 2025. The average maturity of the debt stands at 4.6 years. Covivio Hotels has a strengthened debt coverage ratio of 105.6% at the end of June 2026 (compared with 103.6% at the end of 2025), with a coverage maturity of 4.4 years.

As of 30 June 2026, the LTV (Loan-to-Value) ratio stood at 32.0%, up 3.6 percentage points compared with the end of 2025. This was primarily due to the dividend payment and acquisitions in Southern Europe totalling €178.2 million. The interest coverage ratio (ICR) stood at 8.28x, and the net debt to EBITDA ratio was 7.2x.

As of the end of June 2026, Covivio Hotels had liquidity (including undrawn credit facilities) totalling €387 million.

In its annual review, S&P Global Ratings confirmed Covivio Hotels’ credit rating at BBB+ with a stable outlook, in line with that of Covivio. This confirmation recognises the strength of the company’s operational and financial profile.

Revenue growth: +2.1% on a like-for-like basis

Hotel revenue continued to grow, rising by +3.4% on a reported basis, supported by recent acquisitions, and by +2.1% on a like-for-like basis. It stood at €168.3 million, compared with €162.9 million as of 30 June 2025.

(*) on a like-for-like basis

Fixed revenue (58% of the Group’s share of hotel revenue) rose by +1.2% on a like-for-like basis, reflecting the temporary slowdown in indexation in France, ahead of an expected rebound in indexation from 2027 onwards.

Variable revenue, which accounts for the remaining 42% of hotel revenue, performed better, with growth on a like-for-like basis accelerating to +3.1% in the first half of 2026 compared with +1.9% in the first quarter of 2026. Spain was the main driver of growth, with revenue up +22.8% on a like-for-like basis. Germany also delivered a strong performance, with revenue up by +6.9% on a like-for-like basis, outperforming the market as a whole. In France, revenue rose by +2.0% despite the significant proportion of hotels due for refurbishment. In Belgium, performance continued to be affected by less favourable market conditions and the VAT increase implemented at the start of 2026.

Recurring net profit remained stable at €132 million in the first half of 2026

Recurring net profit (EPRA Earnings) of €132.7 million at the end of June 2026 was virtually unchanged compared with 30 June 2025 (+€0.4 million). On a per-share basis, EPRA Earnings stood at €0.84 (compared with €0.88 last year), impacted by the payment of the scrip dividend in 2025.

EPRA NTA NAV stood at €4,205 million, compared with €4,235 million at the end of 2025, representing €26.6 per share, up 5.0% over 12 months.

EPRA NDV NAV, which considers the fair value measurement of interest rate hedging instruments and fixed-rate debt, stands at €4,025 million, compared with €4,079 million at the end of December 2025, up 4.7% over 12 months. It stands at €25.5 per share.

1.1. Financial results

1.1.1. General Principles

The condensed consolidated half-yearly financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) 34 ‘Interim Financial Reporting’, as adopted by the European Union. The accounting policies and methods applied are the same as those applied on 31 December 2025.

1.1.2. Half-year net income statement

Revenue – Group share

Covivio Hotels’ revenue attributable to the Group stood at €168.8 million for the first half of 2026, up 3.3% compared with June 2025. On a like-for-like basis, fixed hotel rents rose by 1.2%, variable hotel rents by 6.5% and EBITDA from freehold and leasehold hotels by 2.2% compared with June 2025. Overall, variable revenue rose by 3.1% on a like-for-like basis year-on-year, driven by the very strong performance of leased hotels in Southern Europe and freehold hotels in Nice and Lille.

(*) on a like-for-like basis

Operating Profit (Group Share)

Operating profit attributable to the Group stood at €179.4 million as of 30 June 2026, compared with €157.1 million as of 30 June 2025. This increase is mainly attributable to the change in the fair value of investment properties (+€10.8 million) and the rise in rental income linked to acquisitions (+€7.7 million), offset by the decrease in EBITDA from operating properties (-€2.2 million) following the disposal of a hotel in Germany and the change in the business model of another hotel in France.

Financial result – Group share

The financial result consists mainly of:

• The cost of net financial debt of -€20 million, down by €2.6 million compared with June 2025, due to the reduction in average debt and its cost;
• The finance charge on lease liabilities (€-7.7 million), arising from the application of IFRS 16, which requires leases contracts to be restated in the same way as finance leases;
• The negative change in the fair value of financial assets and liabilities of -€3.8 million, reflecting changes in interest rates;
• Foreign exchange gains and losses relating to our UK, Polish, Hungarian and Czech portfolios, amounting to -€0.8 million, compared with +€0.5 million on 30 June 2025.

1.1.3. EPRA Earnings

EPRA Earnings amounted to €132.7 million as of 30 June 2026. This represents an increase of 0.3% compared with 2025. On a per-share basis, EPRA Earnings stood at €0.84 as of 30 June 2026, compared with €0.88 on the same date in 2025, representing a decrease of 4.3%, due to the payment of the stock dividend in 2025.

1.1.4. Consolidated half-yearly statement of financial position as of 30 June 2026

The simplified consolidated balance sheet (Group share) as of 30 June 2026 is as follows:

Operating properties were down (-€66 million), mainly due to depreciation for the period (-€36.6 million) and the change in the business activity of a hotel in France (-€56.5 million), offset by the completion of renovation works (€26.6 million).

Investment properties increased (+€304.6 million) over the period, mainly because of:

• The acquisition of four hotels in Southern Europe for €178.2 million
• The change in the fair value of property assets, amounting to +€60 million,
• The change in the business classification of a hotel from operating properties to lease properties (+€56.5 million),
• The rise in the exchange rates of the pound sterling (+€10.7 million) and the Hungarian forint (+€10.2 million),
• The reclassification of new purchase agreements relating to a hotel in Belgium (–€18.5 million), offset by lapsed purchase agreements for retail premises (–€4 million)

Assets held for sale have also changed because of the signed commitment for a hotel in Belgium worth €18.5 million.

Cash and cash equivalents consist of cash on hand and marketable securities totalling €218 million. This figure has decreased because of acquisitions made during the half-year.

On the liabilities side, equity decreased from €3,691 million on 31 December 2025 to €3,616 million on 30 June 2026. This change is primarily attributable to the impact of:

• the positive result for the period of +€143 million
• the payment of the 2025 cash dividend, amounting to -€237 million
• the change in the currency translation reserve of -€18 million

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

1.1.5. Debt structure

As of 30 June 2026, net financial debt amounted to €2,175 million attributable to the group.

Net financial debt attributable to the group represents 32% of total assets revalued to include duties, on a group basis, and 33.7% of total assets excluding rights, on a group basis, excluding the restatement of commitments.

Debt characteristics

The average interest rate on the debt stands at 1.99% (compared with 2.20% on 31 December 2025).

Debt by maturity

The average maturity of debt is 4.6 years as of 30 June 2026, compared with 4.9 years as of 31 December 2025.

Coverage

As of 30 June 2026, the Group’s active hedging ratio was 105.6%.

The net value of hedging instruments amounted to €84 million attributable to the Group as of 30 June 2026. The change in the value of hedging instruments over the period had a negative impact of -€3.7 million on the net income attributable to the Group, due to changes in interest rates.

1.2. Assets as of 30 June 2026

Covivio Hotels’ portfolio is valued at €6,904 million, excluding stamp duty, representing €6,281 million attributable to the Group.

Covivio Hotels’ portfolio breaks down as follows:

1 LfL: Like-for-Like
2 ED: Excluding duties

On a like-for-like basis, the hotel portfolio rose by +1.0% over six months, driven mainly by Southern Europe (27% of the hotel portfolio), which remained the main driver of growth, with property values rising by +2.8% in Spain, +3.2% in Italy and +2.8% in Nice, reflecting the solid fundamentals of the hotel sector.

The hotel portfolio delivered an average yield excluding duties of 6.2% (stable over the six-month period), comprising 6.1% on leased properties and 6.3% on freehold properties.

France 33%
Germany 20%
UK 13%
Spain 12%
Belgium 7%
Italy 7%
Others 8%
Hotel portfolio by country 30 June 2026 (Group share)

Breakdown of rental income

Covivio Hotels has a high degree of visibility over its future cash flows, given that it has signed long-term fixed-term leases with tenants who are leaders in their respective sectors and possess a high credit rating.

Annualised rents

Annualised rents and income from hotels comprising both the buildings and the business operations total €371.1 million as of 30 June 2026 (excluding non-strategic retail), broken down as follows:

BNP 33%
CBRE 28%
Cushman 21%
BPCE 7%
Savills 11%
MKG 1%
Breakdown by tenant/brand

1.2.1. Lease schedule

The remaining fixed term of the leases has decreased by +0.4 years compared with 31 December 2025, resulting in a remaining fixed term of 11.5 years at the end of June 2025. Rents, by lease expiry date, are broken down as follows:

Asset 30 June 2026 (Group share)

1.2.3. Occupancy rate

The financial occupancy rate measures the ratio of the annualised rent from occupied premises to the annualised rent that would be received if the premises were fully let.

The physical occupancy rate indicates the number of square metres occupied divided by the number of square metres available for letting.

Both rates are stable at 100% for hotels as of 30 June 2026.

1.2.4. EPRA indicators

As of 30 June 2026, the EPRA NTA stood at €4,205 million (or €26.6 per share), representing an increase of 5.0% compared with 30 June 2025. The EPRA NDV stands at €4,025 million (or €25.5 per share), up 4.7% over 12 months.

1.2.5. Related parties

The main transactions between related parties that took place during the first half of 2026 are detailed in paragraph 2.2.7.3 of the notes to the consolidated half-year financial statements.

1.3. Risks and uncertainties

Covivio Hotels invites its readers to refer to Chapter 2 of its 2025 Universal Registration Document (URD), which sets out the main risks and the control measures put in place by the company.

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

Following the risk review, those risks whose level could change in the second half of 2026, due to an increase in their net impact and/or net probability, are set out below. The control measures for these risks (which remain unchanged) are described in the 2025 Risk Management Report (URD 2025), available on the Covivio Hotels website. The other risks remain unchanged at present.

1.3.1. Risks relating to the environment in which Covivio Hotels operates

Adverse developments in the property market: a decrease or stagnation in property values and revenues

Valuations

Covivio Hotels’ total assets at the end of June 2026 (€7.6 billion on a 100% basis – including assets held in partnerships) consist primarily of the appraised value of its properties, which amounts to €7.4 billion (representing over 97%). Consequently, any change in the value of the properties has a direct impact on the balance sheet total.

The value of Covivio Hotels’ property portfolio depends on trends in the property markets in which the company operates. Both rent levels and market prices (and consequently the capitalisation rates used as comparables by valuers) may be subject to fluctuations linked to the economic and financial environment. Covivio Hotels accounts for its investment properties at fair value in accordance with the option provided by IAS 40.

Consequently, a decline in valuation figures is likely to affect the value of Covivio Hotels’ Net Asset Value and, potentially, the valuation of its share price.

In the first half of 2026, the value of the hotel portfolio increased by 1.0% on a like-for-like basis (compared with 2.5% in 2025).

Rising borrowing rates may lead to higher financing costs for investors and potential buyers, which could deter some of them from carrying out property transactions or making acquisitions. This may reduce demand in the market and exert downward pressure on the valuation of Covivio Hotels’ portfolio.

The property market is dynamic and responds to various economic and financial factors. A rise in interest rates may lead to adjustments in capitalisation rates depending on perceived risks and expected returns.

Investors may demand higher returns from to offset increased borrowing costs, which may result in higher capitalisation rates.

It should be noted, however, that the impact of the rise in revenue expected by Covivio Hotels should limit the negative effect of a rise in interest rates.

For information purposes, the table below shows the sensitivity of the valuation of leased assets as of 30 June 2026 to rates of return (corresponding to the standardised annualised rent / appraised value of the assets excluding duties):

(*) Total investment properties, excluding assets under development and right-of-use assets
Decrease in portfolio yield Increase in portfolio yield Data as of 30 June 2026

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

(*) Total investment properties, excluding assets under development and right-of-use assets
Decrease in annualized rents Data as of 30 June 2026 Increase in annualized rents

(*) Change vs Portfolio value as of 30 June 2026

1.3.2. Financial risks

Adverse changes in borrowing rates

Loans

Covivio Hotels could face an increase in its finance costs on its share of unhedged debt and, more generally, find its ability to implement its short- to medium-term investment strategy constrained.

With an average interest rate of 1.99%, Covivio Hotels’ debt stands at €2.2 billion (group share) as of the end of June 2026. Its average active coverage ratio stands at 105.6%.

The breakdown below shows the sensitivity of Covivio Hotels’ half-yearly EPRA Earnings to rising interest rates.

A 25-basis-point increase in the three-month Euribor rate would have a negative impact of -€0.1 million on EPRA Earnings.

A 50-basis-point increase in the three-month Euribor rate would have a negative impact of -€0.2 million on EPRA earnings.

A 100-basis-point increase in the three-month Euribor rate would have a negative impact of -€0.3 million on EPRA Earnings.

Exchange rates

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, given that 13% of its portfolio is located in the United Kingdom.

Breach of bank covenants (LTV, ICR) due to falls in property values and/or income

The risks associated with changes in property values and revenues are detailed in the section on the risk ‘Adverse developments in the property market: fall or stagnation in property values and rents’ (see above).

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

Covivio Hotels’ most restrictive LTV (Loan-to-Value) covenant stands at 60%, with an effective ratio as of 30 June 2026 of 33.9% (bank LTV). Consequently, the company could see a 43.5% decline in the value of its assets before reaching its LTV covenant.

Covivio Hotels’ most restrictive ICR (Interest Coverage Ratio) covenant stands at 200%, with an effective ratio of 828% as of 30 June 2026.

1.4. Outlook for 2026

As a leading player in the European hotel property sector, Covivio Hotels intends to continue its expansion in Southern Europe and the repositioning of its hotels to capitalise on their growth potential.

1.5. Transition tables

1.5.1. Reconciliation tables

1.5.1.1. Portfolio transition table

1.5.1.2. Reconciliation table for EPRA indicators

The fair value of fixed-rate debt is calculated at the risk-free rate, excluding the credit spread.

1.5.1.3. Reconciliation table for rental in

1.5.1.4. Reconciliation table for EPRA Earnings

EPRA Earnings M€ 132,7

1.5.1.5. Profit from hotels under management

2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2026

2.1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2026

2.1.1 STATEMENT OF FINANCIAL POSITION

2.1.2 STATEMENT OF NET INCOME

2.1.3 STATEMENT OF COMPREHENSIVE INCOME

2.1.4 STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

2.1.5 STATEMENT OF CASH FLOWS

2.2. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2.2.1 GENERAL PRINCIPLES

2.2.1.1 Accounting standards

The condensed consolidated financial statements of the Covivio Hotels group as of 30 June 2026 have been prepared in accordance with the international financial reporting standard IAS 34 “Interim Financial Reporting”. As these are condensed financial statements, they do not include all the information required by IFRS and should be read in conjunction with the financial statements of Covivio Hotels for the fiscal year ended 31 December 2025.

The accounts were approved by the Management on 15 July 2026.

• Accounting policies adopted
  The accounting principles applied to the condensed consolidated financial statements as of 30 June 2026 are identical to those used in the consolidated financial statements as of 31 December 2025, with the exception of new standards and amendments whose application is mandatory from 1 January 2026 and which were not applied early by the Group.

The following amendments, which are mandatory as of 1 January 2026, did not have any impact on the Group's consolidated financial statements:

• Amendment to IFRS 7 and IFRS 9 – "Classification and measurement of financial instruments":
  • Derecognition: The amendments specify when a financial asset or liability is to be derecognised.
  • Financial liabilities: They allow liabilities settled through electronic payment systems to be derecognised before the settlement date, under certain conditions.
  • SPPI criterion: They clarify the analysis of the SPPI (Solely Payments of Principal and Interest) criterion for loans related to environmental, social and governance criteria.

These amendments govern the recognition and disclosure requirements relating to so-called ‘nature-dependent’ electricity supply contracts that meet specific criteria. More specifically, these amendments aim to:

• Facilitate the application of the ‘own use’ exemption set out in paragraph 2.4 of IFRS 9 to physically settled contracts (‘Power Purchase Agreements’ or ‘PPAs’) under certain conditions;
• Facilitate the application of hedge accounting to contracts that qualify as derivatives, whether (i) physically settled PPAs that do not meet the conditions to benefit from the ‘own use’ exemption or (ii) contracts without physical delivery (‘Virtual Power Purchase Agreements’ or ‘VPPAs’); and
• Require comprehensive and specific disclosures on ‘nature-dependent’ contracts to which the ‘own use’ exemption is applied.

The amendments below are effective for accounting periods (annual or interim) beginning on or after 1 January 2027. Early application is permitted.

• IFRS 19 – "Subsidiaries with no public disclosure obligation: Disclosures"
  This standard aims to reduce the disclosure requirements in the notes for subsidiaries whose securities or debt are not listed. It is not applicable for the Group.
• Amendment to "IAS 21 – The effect of changes in foreign exchange rates – Lack of Exchangeability".
  The amendment to IAS 21 provides clarification on the translation of financial statements when the presentation currency is hyperinflationary while the functional currency is not. Where an entity with a non-hyperinflationary functional currency presents its financial statements in a hyperinflationary currency, all items (assets, liabilities, equity, income and expenses), including comparatives, must be translated using the closing rate.

Conversely, for foreign subsidiaries whose functional currency is not hyperinflationary but which are consolidated in a hyperinflationary presentation currency (as the parent’s functional currency is itself hyperinflationary), the subsidiary’s comparative amounts must be restated using the general price index in accordance with IAS 29. This amendment aims to improve the comparability of financial information.

• IFRS 18 – Presentation and disclosure in financial statements
  This standard is intended to replace IAS 1 on the presentation of financial statements and to amend, mainly, IAS 7 – Statement of Cash flows and IAS 8 – Accounting policies, changes in accounting estimates and errors.

  This standard aims to:

  • Increase the comparability of the income statement by defining principles relating to their structure and content, in particular through three new categories of expenses and income that complement the existing categories "Tax" and "Discontinued operations": "Operation", "Investment" and "Financing";
  • Improve transparency in the use of certain Alternative Performance Measures in relation to the income statement;
  • Accentuate the relevance of the information disclosed by strengthening the requirements in terms of grouping or details of the information disclosed in the primary statements and notes to the financial statements.

Subject to its adoption by the European Union, the application of IFRS 18 will be mandatory for financial years beginning on or after 1 January 2027, with retrospective basis. The Group does not intend to early adopt in 2026.

However, it has already started assessing the impacts on the primary financial statements, which will drive subsequent changes to the notes to the financial statements. The Group is still awaiting EPRA guidelines to ensure consistent application across the sector.

2.2.1.2 Estimates and judgements

The financial statements have been prepared in accordance with the historical cost convention, except for investment property and certain financial instruments, which were recognised in accordance with the fair value convention. In accordance with the conceptual framework for IFRS, preparation of the financial statements requires making estimates and using assumptions that affect the amounts show in these financial statements.

The significant estimates made by the Covivio Hotels group in preparing the financial statements mainly relate to:

• the valuations used for testing impairment, in particular assessing the recoverable value of goodwill and intangible fixed assets;
• measurement of the fair value measurement of investment properties,
• measurement of the fair value measurement of derivative financial instruments,
• measurement of provisions.

Due to the uncertainties inherent in any valuation process, the Covivio Hotels group reviews its estimates based on regularly updated information. These estimates take into account, where applicable, the financial impacts related to the commitments made by the Group on the effects of climate change (note 2.2.1.3 to the Consolidated Financial Statements). The future results of the transactions in question may differ from these estimates.

In addition to the use of estimates, Group management makes use of judgements to define the appropriate accounting treatment of certain business activities and transactions when the IFRS standards and interpretations in effect do not precisely address the accounting issues involved.

2.2.1.3 Taking into account the effects of climate change

In 2021, Covivio announced a new carbon trajectory and raised its ambitions to achieve a 40% reduction in greenhouse gas emissions by 2030, thus also raising the targets for Covivio Hotels. This objective, which concerns all scopes 1, 2 and 3, covers all activities in Europe and the entire life cycle of assets: materials, construction, restructuring and operation.

Covivio Hotels continued its drive in terms of building certification: the proportion of assets with HQE, BREEAM, Green Key, GSTC or equivalent certification, in operation and/or under construction, reached 99.9% at end 2025. This strategy actively contributes to achieving the new Carbon Trajectory. It is accompanied by a commitment to work hand in hand with its clients to achieve its objectives by relying on its strong partnership.

In addition, in accordance with European regulations, Covivio Hotels has published its eligibility and alignment rates with the European Taxonomy. This information is published in Chapter 3 (Sustainability Report) of the Universal Registration Document - Sustainability Report of Covivio Hotels in accordance with the European Directive on non-financial reporting (CSRD). This chapter details the climate change mitigation plan implemented by the Group.

In terms of financing, Covivio Hotels has established a Green Financing Framework and, in 2023, reclassified all of its outstanding bond issues as green bonds. Each year, Covivio Hotels publishes an impact report to present the performance of the portfolio eligible under the principles set out in this framework. As of year-end 2025, the eligible portfolio amounted to €4.4 billion (€3.6 billion net of external debt), thereby fully covering all of Covivio Hotels' green bonds.

This report is available on the Covivio Hotels website under the Debt section.

The consideration of climate change-related effects did not have a material impact on the judgements made or on the key estimates required for the preparation of the financial statements.

2.2.1.4 Operating segments (IFRS 8)

The operating segments of the Covivio Hotels group are detailed in section 2.2.8.1.

2.2.1.5 IFRS 7 – Reference table

Risk related to changes in the value of the portfolio ß 2.2.2.5
Liquidity risk ß 2.2.2.1
Financial expense sensitivity ß 2.2.2.3
Sensitivity of the fair value of investment properties ß 2.2.5.1.3
Counterparty risk ß 2.2.2.3 and ß 2.2.2.4
Covenants ß 2.2.5.12.7
Exchange rate risk ß 2.2.2.6

2.2.1.6 Conversion method

The financial statements of Covivio Hotels are presented in millions of euros, the euro being the Group's functional and presentation currency. Each Group entity determines its own functional currency. The functional currency corresponds to the currency of the economic environment in which the Company operates its principal activities. All items included in the financial statements of these entities are valued using this functional currency.

Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the transaction date. The assets and liabilities of subsidiaries are translated into euros at the exchange rate prevailing on the reporting date, while income and expenses are translated at the average exchange rate over the period. Exchange differences are recognised in equity.

2.2.2 FINANCIAL RISK MANAGEMENT

The operating and financial activities of the company are exposed to the following risks:

2.2.2.1 Liquidity risk

Liquidity risk is managed in the medium and long term with multi-year cash management plans and, in the short term, by using confirmed and undrawn lines of credit. On 30 June 2026, Covivio Hotels available cash and cash equivalents of €623,2 million, including €381,4 million in confirmed credit lines, €227,9 million in cash and cash equivalents and €13,9 million in granted unused overdraft facilities.

The graph below shows the maturity of borrowing (in € million) including interest expense as of 30 June 2026.

Covivio Hotels Group debt totalled to €2 450,9 million as of 30 June 2026 (see 2.2.5.12).

The interest payable up to the extinguishing of all the debt, estimated based of the outstanding amount as of 30 June 2026 and the average interest rate on debt, totalled €234 million.

Details of debt maturities are provided in note 2.2.5.12.3 and a description of the banking covenants and accelerated payment clauses included in the loan agreements is presented in note 2.2.5.12.7.

2.2.2.2 Interest rate risk

The Group's exposure to the risk of changes in market interest rates is linked to its floating rate and long-term financial debt.

To the extent possible, bank debt is almost systematically hedged by financial instruments (see 2.2.5.12.5).

As of 30 June 2026, after taking interest rate swaps into account, an average of 105.6% of the Group's debt was actively hedged, and the bulk of the remainder was covered by interest rate caps, which resulted in the following sensitivity to changes in interest rate:

• the impact of an increase of 100 bps on the rates at 30 June 2026 is €-0.3 million on the cost of net debt Group Share for 2026;
• the impact of an increase of 50 bps on the rates at 30 June 2026 is €-0.2 million on the cost of debt Group Share for 2026;
• the impact of a decrease of 50 bps on the rates at 30 June 2026 is €0.2 million on the cost of debt, Group Share in 2026.

2.2.2.3 Financial counterparty risk

Given Covivio Hotels Group’s contractual relationship with its financial partners, the company is exposed to counterparty risk. If one its counterparties is not in a position to honour its undertakings, the Group's net income could suffer an adverse effect.

This risk primarily involves the hedging instruments entered into by the Group and which would have to be replaced by a hedging transaction at the current market rate in the event of a default by the counterparty.

The counterparty risk is limited by the fact that the Covivio Hotels group is a borrower, from a structural standpoint. The risk is therefore mainly restricted to the investments made by the Group and to its counterparties in derivative product transactions. The company continually monitors its exposure to financial counterparty risk. The company's policy is to deal only with top-tier counterparties, while diversifying its financial partners and its sources of funding.

Counterparty risk in included in the measurement of cash instruments. As of 30 June 2026, the amount was €-1.6 million, compared with €-2.2 million as of 31 December 2025.

2.2.2.4 Lease counterparty risk

Covivio Hotels Group's rental income is fairly concentrated among a group of principal tenants (Essendi, B&B, IHG, NH, etc.) who generate the bulk of annual rental income.

The Covivio Hotels group is not significantly exposed to the risk of insolvency, since its tenants are selected based on their creditworthiness and the economic prospects of their market segment. The operating and financial performance of the main tenants is regularly reviewed. In addition, tenants grant the Group financial guarantees when leases are signed.

2.2.2.5 Risk related to changes in the value of the portfolio

Changes in the fair value of investments properties are recognised in the income statement. Changes in property values can thus have a material impact on the Group's operating performance.

The investment policy of the Covivio Hotels group seeks to minimise the impact of the various stages of the cycle by choosing investments that:

• with long-term leases and high-quality tenants, to soften the impact of a reduction in market rental income and the resulting decline in real estate prices;
• are located in major European cities.

The holding of real estate assets intended for leasing exposes the Covivio Hotels group to the risk of fluctuation in the value of real estate assets and lease payments.

Despite the uncertainty created by the economic downturn, this exposure is limited to the extent that the rental invoiced are derived from rental agreements, the term and diversification of which mitigate the effects of fluctuations in the rental market.

Rental are based on indices used for rent indexation and the likelihood of significant underperformance clauses being applied to the UK portfolio for the hotels concerned. The proportion of 100% variable leases is no longer significant (<5%), and the majority of the portfolio consists of Guaranteed Minimum Rent and Fixed Rent leases.

The sensitivity of the fair value of investment properties to changes in rental values and/or capitalisation rates is analysed in section 2.2.5.1.3.

2.2.2.6 Currency risk

The Group operates both inside and outside the Euro zone following the acquisition of hotel real estate assets in the United Kingdom, Poland, Czechia and Hungary. The Group protected itself against fluctuations in the pound sterling by financing part of the acquisition in the United Kingdom through a foreign currency loan and by entering into a currency and interest rate swap matured on June 30, 2026. New hedging instruments have been put in place and will take effect in the second half of the year.

Impact of a decrease in the GBP/EUR exchange rate on shareholders’ equity

2.2.2.7 Risk related to changes in the value of shares and bonds

The Group is exposed to risks for two categories of shares (see ß 2.2.5.2.2 and ß 2.2.5.3.2):

• available-for-sale securities measured at fair value. This fair value is the market price when the securities are traded on a regulated market;
• securities of companies consolidated using the equity method are measured at their value in use. The value in use is determined based on independent assessments of the real estate assets and financial instruments.

The Covivio Hotels Group issued bonds in July and November 2021 for € 599 million bond, followed by a new €500 million bond issue in May 2024, the main characteristics of which are described in section 2.2.5.12.4.

2.2.2.8 Marketing risk for properties under development

The Group is involved in property development. As such, it is exposed to various risks, in particular risks related to construction costs, late delivery and the marketing of assets. There were no building projects under development as of 30 June 2026.

2.2.2.9 Risks related to geopolitical tensions

The Group is closely monitoring the evolving geopolitical situation in the Middle East. As of the balance sheet date, the conflict in Iran has not had a material impact on the Group's activities, assets, financial position, results, or outlook.

2.2.2.10 Tax environment

The Group does not observe any major changes in the tax environment in France or in other countries.

Regarding the international tax reform known as "Pillar Two," which aims to guarantee a minimum effective tax rate of 15%, OECD guidelines for addressing the specificities of national REIT regimes are still pending. However, the 2026 Finance Law excluded listed real estate investment companies and exempt subsidiaries with at least 95% ownership from the Pillar Two framework.

In this context, no Pillar 2 tax was recorded for SIICs, SOCIMIs, UK REITs, and REICs in Portugal as of June 30, 2026.

2.2.2.10.1 Tax risks

Due to the complexity and formalism that characterise the tax environment in which Covivio Hotels conducts its activities, the Group is exposed to tax risks. After consulting our advisors, if a tax treatment presents a risk of adjustment, a provision is then made.

There is no provisioned tax risk on 30 June 2026, for which the effects would be likely to significantly affect Covivio Hotels’ results or financial position.

2.2.2.10.2 Deferred taxes

The impact of deferred taxation is mainly related to investments for which the SIIC regime does not apply (Germany, Belgium, Spain, Hungary, Ireland, Italy, the Netherlands, Portugal, Czechia and the United Kingdom). In Spain, all Spanish companies have opted for the SOCIMI regime exemption. However, there is deferred tax liabilities related to assets held by companies prior to their option for the SOCIMI regime.

The deferred tax is mainly due to the recognition of the fair value of foreign assets and the Murs et Fonds activity (rate in Germany: 10.55%; rate in France: 25.83%). It should be noted that hotel activities are taxed in Germany at a rate ranging from 30.18% to 32.28% and that deferred tax liabilities for this activity have therefore been recognised at these rates.

In the United Kingdom, nine out of twelve companies have opted for the UK REIT exemption regime with effect from 1 January 2024. There is therefore no longer any deferred tax on this part of the assets.

Concerning Portugal, Portmurs—the company holding the Da Balaia asset—was converted into a corporate income tax‑exempt vehicle, subject to the REIC regime, effective January 1, 2025.

2.2.3 SCOPE OF CONSOLIDATION

2.2.3.1 Accounting principles relating to the scope of consolidation

✓ Consolidated subsidiaries and structured entities – IFRS 10
These financial statements include the financial statements of Covivio Hotels and the financial statements of the entities (including structured entities) it controls and its subsidiaries.

The Covivio Hotels group has control when it:

• has power over the issuing entity;
• is exposed to, or is entitled to, variable returns due to its ties with the issuing entity;
• has the ability to exercise its power in such a manner as to affect the amount of returns that it receives.

The Covivio Hotels group must reassess whether it controls the issuing entity when facts and circumstances indicate that one or more of the three factors of control listed above have changed.

A structured entity is an entity structured in such a way that the voting rights or similar rights do not represent the determining factor in establishing control of the entity; this is particularly the case when the voting rights only involve administrative tasks and the relevant business activities are governed by contractual agreements.

If the group does not hold a majority of the voting rights in an issuing entity to determine the power exercised over an entity, it analyses whether it has sufficient rights to unilaterally manage the relevant activities of the issuing entity. The group takes into consideration any facts and circumstances when it evaluates whether the voting rights it holds in the issuing entity are sufficient to confer power to the Group, including the following:

• the number of voting rights held by the Group compared to the number of rights held respectively by the other holders of voting rights and their distribution;
• the potential voting rights held by the Group, other holders of voting rights or other parties;
• the rights under other contractual agreements;
• the other facts and circumstances, where applicable, which indicate that the Group has, or does not have, the ability to manage relevant business activities at the moment when decisions are to be made, including voting patterns during previous shareholders' meetings.

Subsidiaries and structured entities are consolidated using the full consolidation method.

✓ Equity affiliates – IAS 28
An entity affiliate is an entity in which the Group has significant influence. Significant influence is the power to participate in decision related to the financial and operating policy of an issuing entity without, however, exercising control or joint control over those policies.

The results, assets and liabilities of equity affiliates are accounted in these consolidated accounts according to the equity method.

✓ Partnership (joint control) – IFRS 11
Joint control means the contractual agreement to share the control exercised over a company, which only exists in the event where the decisions concerning relevant business activities require the unanimous consent of the parties sharing control.

✓ Joint ventures
A joint venture is a partnership in which the parties that exercise joint control over the operation have rights to its net assets.

The results, assets and liabilities of joint ventures are accounted for in these consolidated financial statements using the equity method.

✓ Joint operations
A joint operation is a partnership in which the parties that exercise joint control over the operation have rights to the assets and obligations for the liabilities relating to it. These parties are called joint operators.

A joint operator must recognise the following items in respect of its interest in the joint operation:

• its assets, including its proportionate share of jointly held assets, if any;
• its liabilities, including its share of jointly assumed liabilities, if any;
• the revenue it has earned from the sale of its share of the output generated by the joint operation;
• its share of the proceeds from the sale of the output generated by the joint activity;
• the expenses it has incurred, including its share of jointly incurred expenses, if any.

The joint venture recognises the assets, liabilities, income and expenses relating to its interests in a joint operation in accordance with the IFRS standards applicable to those assets, liabilities, income and expenses.

No company in the group is considered a joint operation.

2.2.3.2 Change in holding rate and change in consolidation method

None.

2.2.3.3 List of consolidated companies

Additions and disposals are presented in the table below at the beginning or end of each business segment.

The registered office of the parent company Covivio Hotels and its main fully consolidated French subsidiaries are located at Rue de Madrid – 75008 Paris. The registered office of its main Luxembourg subsidiaries is located at 21 avenue de la gare, L-1611 Luxembourg.

There are 198 companies in the Covivio Hotels Group, including 158 fully consolidated companies and 40 equity affiliates.

2.2.3.4 Assessment of control

✓ OPCI FonciËre B2 HÙtel Invest (consolidated structured entity)

OPCI FonciËre B2 HÙtel Invest, 50,20% owned by Covivio Hotels as of 30 June 2026, is fully consolidated. Governance decisions at the OPCI are taken by a majority of the six members of the Board of Directors (Covivio Hotels has three representatives, including the Chairman, who has a casting vote in the event of a tie).

Considering the rule of governance that grant Covivio Hotels powers giving it the ability to affect asset yields, the company is fully consolidated.

2.2.4 SIGNIFICANT EVENTS DURING THE PERIOD

The significant events during the period are as follows:

2.2.4.1 Macroeconomic environment

• ✓ Continued recovery in the European hotel market
  In the first half of 2026, the European real estate investment market continued the recovery initiated in 2025, within a still selective environment.

  In the hotel segment, operating performance remained strong, supported by resilient leisure and business demand. Investment activity continued to focus on prime, well-located and secured assets, while secondary assets remained less liquid. The stabilisation followed by the gradual easing of financing conditions contributed to a progressive recovery in investment volumes and the restart of certain transactions.

• ✓ Inflation
  The first half of 2026 took place in a context of moderate inflation and relative economic stability, despite geopolitical tensions that led to one-off volatility in energy markets. The effect of this volatility remains limited for Covivio Groupe, due to contractual mechanisms for indexing rents and reinvoicing energy costs to tenants. Moreover, the tensions over construction materials costs remain under control and are integrated into the Group’s investment policy as well as the budgetary monitoring of development operations.
• ✓ Interest rates
  Following the significant increase in interest rates observed in 2022 and 2023, a phase of stabilisation followed by gradual easing began in 2025.

  In the first half of 2026, long-term rates remained broadly stable, while short-term rates (3-month Euribor), which have been declining since mid-2024, continued to decrease.

  Covivio Hotels’ interest rate risk management policy (see Note 2.2.2.2) enables the Group to limit its exposure to fluctuations in interest rates on its variable-rate debt.

2.2.4.2 Business update

The first half of 2026 was marked by a generally positive momentum, with rental income continuing to grow.

The Group acquired three hotels in Italy for €138.2 million and one hotel in Spain for €43.5 million.

2.2.4.3 Asset disposals

During the period, the Covivio Hotels Group completed the disposal of two retail assets in France for €2,3 million (compared with an appraised value of €2,2 million as of 31 December 2025).

Assets under promise to sell comprise three retail assets and one hotel for €19,3 million.

2.2.4.4 Financing and reimbursement

Covivio Hotels secured the refinancing of two hotels in Germany for €22 million with a 10-year maturity. In addition, a €100 million long-term corporate loan with a 7-year maturity was secured. The Group also issued €193 million of commercial paper.

3. STATUTORY AUDITORS’ REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION

Covivio Hotels
Period from 1 January to 30 June 2026
Statutory Auditors’ Report on the Half-Yearly Financial Information

To the Shareholders,

In compliance with the assignment entrusted to us by your Shareholders' Meetings and in accordance with the requirements of Article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

• the review of the accompanying condensed half-yearly consolidated financial statements of Covivio Hotels, for the period from January 1, 2026 to June 30, 2026,
• the verification of the information presented in the half-yearly management report.

These condensed half-yearly consolidated financial statements are the responsibility of the Management. Our role is to express a conclusion on these financial statements based on our review.

1. Conclusion on the Financial Statements

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 – standard of the IFRSs as adopted by the European Union applicable to interim financial information.

KPMG SA
Tour EQHO
2 Avenue Gambetta
CS 60055
92066 Paris La DÈfense Cedex
S.A. au capital de € 5 497 100
775 726 417 R.C.S. Nanterre

ERNST & YOUNG et Autres
Tour First - TSA 14444
92037 Paris-La DÈfense cedex
S.A.S. ‡ capital variable
438 476 913 R.C.S. Nanterre

2. Specific Verification

We have also verified the information presented in the half-yearly management report on the condensed half-yearly consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.

Paris-La Défense, 29 July 2026
The Statutory Auditors
French original signed by
KPMG S.A. ERNST & YOUNG et Autres
Sandie Tzinmann Jean-Roch Varon Pierre Lejeune

4. CERTIFICATION BY THE PERSON RESPONSIBLE

STATEMENT OF THE PERSON RESPONSIBLE FOR THE DOCUMENT

I hereby certify, to the best of my knowledge, that the condensed financial statements for the past half year have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, financial position and results of the company and of all consolidated companies, and that the accompanying half-year management report presents a true and fair view of the significant events that have occurred during the first six months of the financial year, their impact on the financial statements, the main transactions between related parties and a description of the main risks and uncertainties for the remaining six months of the financial year.

Paris, 30 July 2026,
Monsieur Tugdual Millet
PrÈsident de COVIVIO HOTELS GESTION
GÈrant commanditÈ
Personne responsable de l’information financière

SiËge social : 10 rue de Madrid – 75008 Paris
RCS Paris 955 515 895 – TÈl. : 01 58 97 50 00
Société en commandite par actions au capital de 631 961 248 €
www.covivio-hotels.fr