Nh improves its net income 76 though still in red numbers

NH Hotel Group has closed the first year of implementation of its strategic plan with an improvement in its net result of 76%, so reducing their losses of 39.8 million euros in the financial year preceding – 9.6 million, as its CEO, Federico González Tejera reported, and its financial managing director, Roberto Chollet. Gonzalez Tejera has also highlighted the improvement of the hotel business, especially in the second half of the year, and the positive behavior in all markets in which they are present, especially Spain and Italy.

In 2014, recurring revenue increased to 1.265,1 million euros, 12.5 million more than in the previous year, and recurrent Ebitda 2.5% to 126.2 million euros; although if they are not taken into account the hotels that have come out of the chain or unfavorable evolution of the exchange rate, revenues would have grown 4% and 10.1% Ebitda.

Operating expenses increased slightly in line with the increase in activity of the group, with the rise of wages based on collective agreements in Central Europe and the costs associated with the implementation of the strategic plan and the reinforcement of operational, commercial, web, revenue management and marketing teams. On the other hand, the company has succeeded in reducing overall lease costs 2.1% thanks to the renegotiation of contracts, mainly in Spain and Italy, and out of contracts with negative contribution.

The evolution of the hotel in 2014 business has been marked by a significant increase in revenues per available room (RevPar) of 3.6% global, which has been enhanced especially in the second half, caused more by the price increases of 1.7% in the whole of the year by the occupation. In fact the increase in income in the fourth quarter occurs primarily via growth in average price, highlighting the months of November and December with an increase of around 5%.

The positive trend of the business and the smooth running of all the initiatives of the strategic plan that the group is carrying out confirm the favourable prospects for 2015, with an estimated Ebitda growth of around 25%, and above 5% in RevPar.

Positive in every market behavior

The last year, as he highlighted Chollet, “has been the first full year in which all markets in which we operate have had a positive behavior”.

, Spain experienced a very favourable with a rise in comparable RevPar of 4.8% in the fourth quarter, mainly thanks to the level of prices of a 3.9 percent growth. Madrid, Valencia and Sevilla continue with important signs of recovery in employment and prices, while Barcelona behaved better in the first half than in the second. 12-month comparable income grow by 5.3%, being remarkable the increase of activity in restoration, which increased by 8.2%.

Italy, for its part, has experienced a last quarter excellent, growing by 6.3% in revenue per available room, based on a 60% rise the price average. The group in Milan’s hotels present good behaviour, with a price index superior to the competition. Throughout the year the comparable income 4.2% better and the Outlook for 2015 are positive.

Benelux business unit achieved a level of slightly higher in the fourth quarter, offsetting the drop in occupancy of events not taking place this year with an increase in prices of 3.7% RevPar. Accumulated income comparable l’exercice increase 1.5% and it is estimated a good development especially in Amsterdam by 2015.

Central Europe, due to the scheduling of conferences and events, has experienced in the last three months of the year very similar to the same period of the previous year. Throughout the year the group in Berlin’s hotels behave far above the competition in price. Comparable revenues grow 1.8% and it is expected that by 2015 the RevPar increase.

The Americas business unit presents, exchange rate in constant currencies, an increase in comparable RevPar for the region of 24.6% in the last quarter, mainly explained by a significant increase in price of 27.8%. Real exchange rate and despite the depreciation suffered by the Argentine currency and its effect on peripheral countries, the number of comparable income grows 2.9%.

By regions, the average price grows at constant rate 11.9% in Mexico and accumulated an increase of 47.1% in Argentina. Prospects are favourable in both markets.


Posted by on Feb 27 2015. Filed under General. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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