Second Quarter 2016
- Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 4.0%. The growth is mainly due to an increase in average room rate.
- Revenue decreased by 1.5% to MEUR 259.8 (263.8). The positive impact of the like-for-like RevPAR development has been offset by the strengthening of the Euro and the conversion of a hotel in Sweden from leased to franchise. On a L/L basis revenue increased by 4.0%.
- EBITDA amounted to MEUR 36.4 (33.6) and the EBITDA margin increased to 14.0% (12.7). In addition to the positive impact of the increase in like-for-like revenue, EBITDA is positively impacted by a good flow-through in the leased portfolio and lower costs for bad debts in the fee business.
- EBIT amounted to MEUR 22.0 (23.0) and the EBIT margin decreased to 8.5% (8.7). EBIT is negatively impacted by termination costs related to a loss making leased hotel in Norway of MEUR 2.7 as well as higher costs for depreciation and write-downs of MEUR 1.2.
- Profit for the period amounted to MEUR 16.2 (15.4).
- Basic and diluted earnings per share were EUR 0.10 (0.09) and EUR 0.09 (0.09) respectively.
- 2,565 (2,466) new rooms were contracted, 1,419 (1,202) new rooms opened and 429 (285) rooms left the system.
Half Year 2016
- L/L RevPAR for leased and managed hotels was up by 2.7%.
- Revenue decreased by 2.8% to MEUR 466.8 (480.2). On a L/L basis revenue increased by 2.7%.
- EBITDA amounted to MEUR 27.2 (32.8) and the EBITDA margin decreased to 5.8% (6.8).
- EBIT amounted to MEUR -3.0 (10.6) and the EBIT margin decreased to -0.6% (2.2).
- Profit/loss for the period amounted to MEUR -5.4 (2.0).
- Basic and diluted earnings per share were EUR -0.03 (0.01).
- Cash flow from operating activities amounted to MEUR 16.8 (22.6).
- 4,532 (4,771) new rooms were contracted, 2,386 (1,429) new rooms opened and 732 (1,152) rooms left the system.
| MEUR | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 |
| Revenue | 259.8 | 263.8 | 466.8 | 480.2 |
| EBITDA | 36.4 | 33.6 | 27.2 | 32.8 |
| EBIT | 22.0 | 23.0 | -3.0 | 10.6 |
| Profit/loss for the period | 16.2 | 15.4 | -5.4 | 2.0 |
| EBITDA margin, % | 14.0 | 12.7 | 5.8 | 6.8 |
| EBIT margin, % | 8.5 | 8.7 | -0.6 | 2.2 |
Comments from the CEO
Margin expansion continued despite challenging external environment
Despite the challenging external environment in some EMEA destinations, Rezidor expanded the EBITDA margin by 1.3 pp to 14.0% versus last year and continued to gain market share. Like-for-like RevPAR increased by 4.0% and good flow through was achieved, especially in the leased portfolio.
The depressed oil price continued to affect key markets like Norway, as well as markets such as Saudi Arabia, Russia and Nigeria. Belgium entered into a downturn following the terror attacks in March and France continued to be weak, as well as other important leisure destinations like Turkey. On the other hand, Sweden, Denmark, Germany and Ireland posted good performances.
Due to these uncertain conditions, we remain focused on containment of overhead costs and additional procurement savings while fully protecting the guest experience at our hotels. In line with our commitment to high safety and security standards, we further expanded our partnership with Safehotels Alliance for independent third party certification of our properties. More than 110 Rezidor hotels across EMEA have now gained certification which will further mitigate risk for both our guests and colleagues.
Despite the difficulties in many countries, we accelerated our pipeline delivery reaching an operating portfolio of 80,000 rooms for the first time. Africa has been particularly strong in this quarter with the opening of our first hotels in Lomé, Togo, and Marrakech, Morocco. In Brussels, Belgium, we launched the world's first Radisson RED - our new lifestyle select brand that is well received in the market. New hotel signings also showed good momentum and were in line with our asset-light strategy concentrating on fee-based business.
We continue to carefully monitor the environment and pursue our long-term strategy of constantly optimising margins and growing our network.
Wolfgang M. Neumann, President & CEO
Presentation of the Q2 Results
On July 27, 2016 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:
| Belgium, Local Belgium, Free Sweden, Local: Sweden, Free: UK, Local: UK, Free: USA, Local: USA, Free: France, Local: France, Free: Norway, Local: Norway, Free: | +32 2 402 3092 0800 58033 +46 8 5065 3938 0200 883 440 +44 20 3427 1906 0800 279 4992 +1 646 254 3367 1877 280 2296 +33 1 76 77 22 26 0805 631 580 +47 2 316 27 71 800 56053 |
Confirmation code: 4241988. For a replay of the conference call please visit www.investor.rezidor.com .
Financial Calendar
Q3 2016 results: October 25, 2016 Q4 2016 results: February 10, 2017 Q1 2017 results: April 28, 2017
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 is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson. In 2014, Rezidor announced together with Carlson the launch of two additional brands; Radisson RED, an upscale "lifestyle select" brand inspired by the millennial lifestyle, and Quorvus Collection, a new generation of distinctive five star hotels.
The portfolio consists of 469 hotels with over 102,000 rooms in operation and under development in 81 countries across Europe, the Middle East and Africa.
Rezidor's strategy is to grow with management and franchise contracts and only selectively with leases. The strategy is also to further expand in the emerging markets.
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#2030847
