First Quarter 2017
- Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 6.8%. The growth is due to increase in occupancy as well as average room rate.
- Revenue increased by 7.5% to MEUR 222.5 (207.0). The increase is due to the strong like-for-like RevPAR development and two leased hotels re-opened after renovation, partly offset by the exit of four leased hotels and the temporary closure of one leased hotel for renovation. On a L/L basis revenue increased by 9.6%.
- EBITDA amounted to MEUR 2.5 (-9.2) and the EBITDA margin increased to 1.1% (-4.4). In addition to the impact of higher revenue, EBITDA is positively impacted by improved conversion in the like-for-like portfolio as well as the exit of loss-making hotels. The increase due to the above-mentioned factors is partly offset by financial advisor fees of MEUR 2.2 incurred in connection with the public offer on the shares of the company, as well as higher marketing costs of net MEUR 1.2 due to timing of activities.
- EBIT amounted to MEUR -8.2 (-25.0) and the EBIT margin increased to -3.7% (-12.1). The improved EBIT is mainly due to the strong EBITDA. In addition, EBIT was last year impacted by termination costs of MEUR 8.0, partly offset by gain on sale of shares in subsidiaries of MEUR 1.9.
- Loss for the period amounted to MEUR 7.6 (21.6) .
- Basic and diluted loss per share was EUR 0.04 (0.13).
- Cash flow from operating activities amounted to MEUR 2.2 (-1.9).
- 3,178 (1,967) rooms were contracted, 925 (967) rooms opened and 885 (303) rooms left the system.
| MEUR | Q1 2017 | Q1 2016 |
| Revenue | 222.5 | 207.0 |
| EBITDA | 2.5 | -9.2 |
| EBIT | -8.2 | -25.0 |
| Profit/loss for the period | -7.6 | -21.6 |
| EBITDA margin | 1.1% | -4.4% |
| EBIT margin | -3.7% | -12.1% |
Comments from the CEO
The strongest first quarter since 2008
A strong start of the year with first quarter RevPAR growth of 7% for the group and 10% for our leased hotels which was supported by particularly good performance in March due to more favourable timing of Easter. Last year's exits of loss-making hotels also contributed positively to the overall results. Top line growth combined with good conversion made this quarter the strongest first quarter since 2008 underlining the traction in turnaround momentum and margin improvement.
The quarter was equally successful for signings: We contracted almost 3,200 rooms (compared to 2,000 rooms in the first quarter 2016), driven by Eastern Europe and the Middle East and including a 1,500 room Park Inn by Radisson in Makkah, Saudi Arabia. With the signing of our first lease since 2009 we will enter Geneva, Switzerland, one of the strongest hotel markets in Europe, with the Radisson Blu brand.
After the quarter closing, our new majority shareholder, HNA Tourism Group, announced the outcome of the mandatory tender offer. The offer was accepted by shareholders holding ca 19.1% of the outstanding shares. The shares tendered, together with those already held by HNA via Carlson Hotels, comprise to approximately 70.4% of the outstanding shares. We look forward to accelerating our development and growth together with HNA.
Wolfgang M. Neumann, President & CEO
Presentation of the Q1 Results
On April 28, 2017 at 09:00 (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 0660 |
| Belgium, Free | 0800 58032 |
| Sweden, Local: | +46 8 5065 3937 |
| Sweden, Free: | 0200 883 440 |
| UK, Local: | +44 20 3427 0503 |
| UK, Free: | 0800 279 4977 |
| USA, Local: | +1 212 444 0412 |
| USA, Free: | 1877 280 2342 |
| France, Local: | +33 1 76 77 22 25 |
| France, Free: | 0805 631 580 |
| Norway, Local: | +47 2350 0486 |
| Norway, Free: | 800 56054 |
Confirmation code: 6519463. For a replay of the conference call please visit www.investor.rezidor.com .
Financial Calendar
AGM 2017: April 28 Q2 2017 results: July 26 Q3 2017 results: October 25
For Further Information, Contact
Knut Kleiven Deputy President & CFO Tel: +32 2 702 9244 knut.kleiven@carlsonrezidor.com
Andrea Brandenberger Vice President 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 484 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 interim 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 April 28, 2017.
Stockholm, April 28, 2017
The Board of Directors
Rezidor Hotel Group AB (publ)
The full report with tables can be downloaded from the following link:
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