Rezidor Hotel Group: INTERIM REPORT January-Septem

Third Quarter 2014 * Like-for like ("L/L") RevPAR was up by 3.5%. * Revenue increased by 5.9% and amounted to MEUR 240.8 (227.4). On a L/L basis Revenue increased by 2.5%. * EBITDA amounted to MEUR 26.4 (22.8) and the EBITDA margin increased to 11.0% (10.0). * EBIT amounted to MEUR 17.3 (15.1) and the EBIT margin increased to 7.2% (6.7). * Profit after tax amounted to MEUR 11.3 (9.7). * Basic and diluted Earnings per Share were EUR 0.07 (0.07). * 1,346 new rooms were contracted, 586 new rooms opened and 970 rooms left the system. Nine months ended September 2014 * L/L RevPAR was up by 3.4%. * Revenue increased by 2.3% and amounted to MEUR 699.3 (683.5). On a L/L basis Revenue increased by 1.5%. * EBITDA amounted to MEUR 56.5 (54.9) and the EBITDA margin increased to 8.1% (8.0). * EBIT amounted to MEUR 30.2 (31.3) and the EBIT margin decreased to 4.3% (4.6). * Profit after tax amounted to MEUR 15.1 (15.9). * Basic and diluted Earnings per Share were EUR 0.10 (0.11) and EUR 0.09 (0.11) respectively. * Cash flow from operating activities amounted to MEUR 23.1 (26.0). * 4,546 new rooms were contracted, 2,595 new rooms opened and 1,803 rooms left the system. MEUR Q3 2014 Q3 2013 Jan-Sep 2014 Jan-Sep 2013 ---------------------------------------------------------------- Revenue 240.8 227.4 699.3 683.5 ---------------------------------------------------------------- EBITDAR 87.7 81.7 242.4 237.4 ---------------------------------------------------------------- EBITDA 26.4 22.8 56.5 54.9 ---------------------------------------------------------------- EBIT 17.3 15.1 30.2 31.3 ---------------------------------------------------------------- Profit for the period 11.3 9.7 15.1 15.9 ---------------------------------------------------------------- EBITDAR margin, % 36.4% 35.9% 34.7% 34.7% ---------------------------------------------------------------- EBITDA margin, % 11.0% 10.0% 8.1% 8.0% ---------------------------------------------------------------- EBIT margin, % 7.2% 6.7% 4.3% 4.6% ---------------------------------------------------------------- Comments from the CEO Continued progress despite turbulent markets "I am pleased to report a like-for-like RevPAR increase of 3.5% for the third quarter of 2014. The RevPAR growth in the quarter was a result from increased room rates and occupancy. Revenue grew by MEUR 13.4 (5.9%) over last year. In addition to the RevPAR growth, the increase in revenue was mainly related to the conversion of two hotels in Copenhagen from management contracts to leases at the beginning of the year. Steady progress continues to be made on key strategic initiatives. Rezidor continues to grow on an asset light basis, signing over 1,300 rooms in the quarter. The pipeline of projects has over 19,000 rooms over a broad geographic area. Both profits and margin performance showed improved results. Despite the current challenges in some of the Emerging Markets, the company generated higher profits from these markets in Q3 this year than during the same period last year. The improvement is a result of growth of the portfolio and our asset light business model. Furthermore, the EBITDA margin in the quarter reached 11% for the first time in a third quarter since 2007. The important activity around asset management continues to be a key driver of our Route 2015 turnaround plan. We have restructured two agreements in October that will improve the profitability of the leased portfolio by ca MEUR 3.2 per year as from January 2014. The cost reduction will be reflected in the Q4 results. Together with the two leases that were restructured earlier in the year, we have now secured an EBITDA improvement of ca MEUR 4.6 for the full year 2014. The proceeds from the rights offering earlier this year are largely being deployed in the key Nordic markets for refurbishments. These markets remain core to the company with further growth potential." Wolfgang M. Neumann, President & CEO Presentation of the Q3 Results On October 24, 2014 at 10:00 (Central European Time) a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Wolfgang M. Neumann and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit www.investor.rezidor.com. To access the telephone conference, please dial: Sweden, Local:  +46(0)8 5065 3938 Sweden, Free: 0200 883 440 UK, Local:  +44(0)20 3427 1912 UK, Free: 0800 279 4992 USA, Local: +1 646 254 3362 USA, Free: 1877 280 2342 France, Local: +33(0)1 70 48 01 66 France, Free: 0805 631 579 Confirmation code: 1190368. For a replay of the conference call please visit www.investor.rezidor.com. Financial Calendar Q4 2014 results: February 17, 2015 Q1 2015 results: April 24, 2015 AGM 2015: April 24, 2015 This quarterly report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 Central European Time on October 24, 2014. Stockholm October 24, 2014 Wolfgang M. Neumann President & CEO Rezidor Hotel Group AB For Further Information, Contact Knut Kleiven Deputy President & CFO Tel: +32 2 702 9244 Fax: +32 2 702 9330 knut.kleiven@carlsonrezidor.com Andrea Brandenberger Senior Director Business Development Strategy & Investor Relations Tel: +32 2 702 9237 andrea.brandenberger@carlsonrezidor.com The Rezidor Hotel Group Corporate Office Avenue du Bourget 44 B-1130 Brussels Belgium Tel: +32 2 702 9200 Fax: +32 2 702 9300 Website: www.rezidor.com About the Rezidor Hotel Group The Rezidor Hotel Group currently features a portfolio of 428 hotels with over 95,000 rooms in operation and under development in 71 countries across Europe, the Middle East and Africa. Rezidor operates the core brands Radisson Blu and Park Inn by Radisson. Rezidor is a member of the Carlson Rezidor Hotel Group. For more information, visit www.rezidor.com The full report with tables can be downloaded from the following link: [HUG#1865298]