Second Quarter 2017
- Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 4.0%. The growth is due to increase in both occupancy and average room rate.
- Revenue decreased by 2.2% to MEUR 254.1 (259.8). The decrease is mainly due to the exit of four leased hotels last year, the temporary closure of one leased hotel for renovation and the strengthening of the Euro, partly offset by positive L/L RevPAR development and the re-opening of two leased hotels after renovation. On a L/L basis revenue increased by 2.6%.
- EBITDA amounted to MEUR 28.4 (36.4) and the EBITDA margin decreased to 11.2% (14.0). EBITDA is negatively impacted by higher central costs of MEUR 4.6 (mainly of a one-off nature) and higher bad debt costs of MEUR 1.2, as well as softer conversion in the lease L/L portfolio.
- EBIT amounted to MEUR 6.3 (22.0) and the EBIT margin decreased to 2.5% (8.5). In addition to the negative EBITDA development, EBIT is impacted by MEUR 8.6 higher costs for write-downs of fixed assets.
- Profit/loss for the period amounted to MEUR 3.6 (16.2) .
- Basic and diluted earnings per share was EUR 0.02 (0.10) and EUR 0.02 (0.09) respectively.
- 1,666 (2,565) rooms were contracted, 1,397 (1,419) rooms opened and 1,314 (429) rooms left the system.
- On May 4, the Board of Directors appointed Federico González-Tejera as President & CEO of the Rezidor Hotel Group, succeeding Wolfgang M. Neumann who has resigned as CEO. Neumann will remain on the Board as a non-executive director.
Half year 2017
- L/L RevPAR for leased and managed hotels was up by 5.4%.
- Revenue increased by 2.1% to MEUR 476.6 (466.8). On a L/L basis revenue increased by 5.4%.
- EBITDA amounted to MEUR 30.9 (27.2) and the EBITDA margin increased to 6.5% (5.8).
- EBIT amounted to MEUR -1.9 (-3.0) and the EBIT margin increased to -0.4% (-0.6).
- Profit/loss for the period amounted to MEUR -4.0 (-5.4) .
- Basic and diluted earnings per share was EUR -0.02 (-0.03).
- Cash flow from operating activities amounted to MEUR 24.1 (16.8).
- 4,844 (4,532) rooms were contracted, 2,322 (2,386) rooms opened and 2,199 (732) rooms left the system.
| MEUR | Q2 2017 | Q2 2016 | Change | % | H1 2017 | H1 2016 | Change | % |
| Revenue | 254.1 | 259.8 | -5.7 | -2.2% | 476.6 | 466.8 | 9.8 | 2.1% |
| EBITDA | 28.4 | 36.4 | -8.0 | -22.0% | 30.9 | 27.2 | 3.7 | 13.6% |
| EBIT | 6.3 | 22.0 | -15.7 | -71.4% | -1.9 | -3.0 | 1.1 | 36.7% |
| Profit/loss for the period | 3.6 | 16.2 | -12.6 | -77.8% | -4.0 | -5.4 | 1.4 | 25.9% |
| EBITDA margin | 11.2% | 14.0% | -2.8 pp | 6.5% | 5.8% | 0.7 pp | ||
| EBIT margin | 2.5% | 8.5% | -6.0 pp | -0.4% | -0.6% | 0.2 pp |
Comments from the CEO
Launch of works on 5-year strategy plan under new executive leadership
During the second quarter of 2017, Rezidor's positive RevPAR performance from the first quarter continued. Overall RevPAR was up 4%, driven by solid business in most European countries. However, as expected and already mentioned in our Q1 report, the timing of Easter had a negative impact on our results. We have also recognised costs of a one-off nature, which has led to that we deliver results below last year.
Q2 also saw a change in executive management at Rezidor: At the Annual General Meeting in April, the company's new Board of Directors was elected and is chaired by our new majority owner HNA Tourism Group. In May, I took over the position as President & Chief Executive Officer. I am energized by the potential of the company, and excited to build on Rezidor's achievements to further strengthen the group's profile and profitability.
We have started to work on a comprehensive and holistic 5-year strategy plan that will be presented to the Board in October 2017 for a launch in January 2018. The plan analysis covers our operations and asset management, brands and products, commercial and IT areas, talent and culture. It is also aligned with our partner Carlson to capture global revenue and brand opportunities, in order to reach our joint target of becoming one of the world's leading hotel companies by constantly adding value for our guests, owners, team members and shareholders.
At this preliminary stage, the opportunities going forward look significant. Following the Board's approval of the 5-year plan, we intend to share the core components with the investor relations community at an Investor Day in Q4 2017.
Federico González-Tejera, President & CEO
Presentation of the Q2 Results
On July 26, 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, Federico González-Tejera 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 2 620 0138 |
| Belgium, Free | 0800 58033 |
| Sweden, Local: | +46 8 5033 6538 |
| Sweden, Free: | 0200 883 440 |
| UK, Local: | +44 20 3427 1916 |
| UK, Free: | 0800 279 5004 |
| USA, Local: | +1 646 254 3364 |
| USA, Free: | 1877 280 2296 |
| France, Local: | +33 1 70 48 01 66 |
| France, Free: | 0805 631 580 |
| Norway, Local: | +47 2350 0486 |
| Norway, Free: | 800 56053 |
Confirmation code: 4257238. For a replay of the conference call please visit www.investor.rezidor.com .
Financial Calendar
Q3 2017 results: October 25 Q4 2017 results: February 21
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 480 hotels with over 106,000 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 .
This half-year 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 July 26, 2017.
The full report with tables can be downloaded from the following link:
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