EVT (ASX:EVT) expects a marginal year-on-year increase in fiscal 2026 normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) from its hotels segment, according to a Friday Australian bourse filing.

The company noted that the Easter trading period showed emerging weakness in demand, particularly impacting "drive" destinations, including the Snowy Mountains region of New South Wales.

Meanwhile, the Middle East crisis has had a limited impact to date, the company said. Cancellations from international inbound guests were largely offset by displaced international guests and domestic demand driven by events.

However, signs of softening are emerging in forward demand from international inbound guests, corporate travel, and conference and events, with shorter booking lead times emerging, the company added.

In entertainment, the company anticipates "reasonable" growth in fiscal 2026 from the prior year, assisted by the strong year-to-date result from CineStar in Germany.

However, the result has been impacted by the closure of the Bondi cinema for refurbishment and water damage at the Manukau site in Auckland.

Finally, Thredbo fiscal 2026 normalized EBITDA is expected to range from AU$22 million to AU$23 million, subject to fuel cost impacts on drive tourism and winter weather conditions in June, per the filing.