Fourth Quarter 2016
- Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 2.4%. The growth is mainly due to an increase in occupancy.
- Revenue decreased by 4.8% to MEUR 243.1 (255.4). The positive impact of the like-for-like RevPAR development has been offset by the exit of four leases, the temporary closure of one leased hotel for renovation and the strengthening of the Euro. In addition, one-off fee revenue related to terminated and renegotiated agreements was MEUR 4.0 higher last year. On a L/L basis revenue increased by 4.3%.
- EBITDA amounted to MEUR 23.1 (32.5) and the EBITDA margin decreased to 9.5% (12.7). In addition to the decrease in revenue, EBITDA is negatively impacted by higher costs for sales & marketing and bad debts. Also, last year's numbers were positively impacted by the revaluation of the investment in Beijing of MEUR 2.8.
- EBIT amounted to MEUR -10.3 (22.3) and the EBIT margin decreased to -4.2% (8.7). EBIT is negatively impacted by termination costs of MEUR 18.3 (1.1), due to the strategic exit of six hotel leases in the UK, and higher costs for depreciation and write downs of fixed assets of MEUR 4.5.
- Profit for the period amounted to MEUR 16.9 (14.3) , positively impacted by the capitalisation of tax assets of MEUR 22.3 (net).
- Basic and diluted earnings per share were EUR 0.10 (0.08).
- 1,789 (865) rooms were contracted, 907 (1,375) rooms opened and 408 (981) rooms left the system.
Twelve months ended December 2016
- L/L RevPAR for leased and managed hotels was up by 3.2%.
- Revenue decreased by 3.6% to MEUR 961.2 (997.0). On a L/L basis revenue increased by 3.8%.
- EBITDA amounted to MEUR 79.3 (101.1) and the EBITDA margin decreased to 8.3% (10.1).
- EBIT amounted to MEUR 3.0 (57.3) and the EBIT margin decreased to 0.3% (5.7).
- Profit for the period amounted to MEUR 26.4 (34.2).
- Basic and diluted earnings per share were EUR 0.15 (0.20).
- Cash flow from operating activities amounted to MEUR 34.2 (85.8).
- 8,200 (7,936) rooms were contracted, 3,585 (4,152) rooms opened and 1,655 (2,133) rooms left the system.
- The Board of Directors proposes, in line with the dividend policy, a dividend of EUR 0.05 (0.07) per share.
| MEUR | Q4 2016 | Q4 2015 | FY 2016 | FY 2015 |
| Revenue | 243.1 | 255.4 | 961.2 | 997.0 |
| EBITDA | 23.1 | 32.5 | 79.3 | 101.1 |
| EBIT | -10.3 | 22.3 | 3.0 | 57.3 |
| Profit for the period | 16.9 | 14.3 | 26.4 | 34.2 |
| EBITDA margin, % | 9.5 | 12.7 | 8.3 | 10.1 |
| EBIT margin, % | -4.2 | 8.7 | 0.3 | 5.7 |
Comments from the CEO Further asset management transactions and sustainable tax strategy lay foundation for profitability improvements
2016 was a turbulent year for the hospitality industry and our company, and Q4 was no different. L/L Revenue increased by 3.8% in 2016 and 4.3% in the quarter with many markets trading at new peak levels. However, increased volatility related to terrorist attacks and the lower oil price negatively affected some key countries. While we continued to gain market share for the fifth consecutive year, results have been impacted by these external factors.
During 2016, we continued to pursue our long-term asset management strategy. In Q4, we announced the exit from six unprofitable lease agreements in the UK in 2017. The terminations brought the number of successfully closed asset management transactions in 2016 to 15. Over the past five years, Rezidor's portfolio optimisation initiatives have yielded €17m EBITDA contribution and 1.8% uplift in EBITDA margin.
In response to OECD and EU initiatives, we have adopted a sustainable tax strategy which led to capitalization of previously unrecognized tax losses. This will lead to a more normalized tax rate in the future and lifted our net results for 2016 to €26.4m.
In Q4 we signed 12 hotels with 1,800 rooms - underlining the strong growth momentum achieved in 2016 with 45 new hotels and 8,200 rooms. In the quarter we also opened four hotels with 900 rooms. Throughout the year we opened 18 hotels and 3,600 rooms and expanded our geographic reach in Africa with openings in Morocco, Ivory Coast, Togo and Rwanda.
With the completion of the acquisition of Carlson Hotels in early December 2016, HNA Tourism Group became Rezidor's new majority shareholder (51.3%) - and announced its mandatory public offer to the minority shareholders on December 22, which is currently under evaluation by Rezidor's Board of Directors. The Rezidor team welcomes HNA Tourism Group as the new majority shareholder and looks forward to further accelerating the growth of the company together.
Wolfgang M. Neumann, President & CEO
Presentation of the Q4 Results On February 10, 2017 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 +32 2 404 0662 Belgium, Free 0800 58033 Sweden, Local: +46 8 5065 3936 Sweden, Free: 0200 883 440 UK, Local: +44 20 3427 1901 UK, Free: 0800 279 5736 USA, Local: +1 646 254 3360 USA, Free: 1877 280 2342 France, Local: +33 1 76 77 22 30 France, Free: 0805 631 580 Norway, Local: +47 2316 2729 Norway, Free: 800 56053
Confirmation code: 4571567.
For a replay of the conference call please visit www.investor.rezidor.com .
Financial Calendar
Annual Report 2016: March 24, 2017 Q1 2017 results: April 28, 2017 AGM 2017: April 28, 2017 Q2 2017 results: July 26, 2017 Q3 2017 results: October 25, 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 Hotels 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. Rezidor also holds 49% in prizeotel, a young hotel chain in the economy segment. The portfolio consists of 483 hotels with over 105,000 rooms in operation and under development in 82 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 .
This year-end 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 February 10, 2017.
Stockholm, February 10, 2017
The Board of Directors
Rezidor Hotel Group AB (publ)
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