Rezidor Hotel Group

INTERIM REPORT January-March 2014

First Quarter 2014

• Like-for like ("L/L") RevPAR was up by 5.0%.
• Revenue increased by 2.1% and amounted to MEUR 211.4 (207.1). On a L/L basis Revenue increased by 3.6%.
• EBITDA amounted to MEUR -0.8 (-2.8), and the EBITDA margin to -0.4% (-1.4).
• Loss after tax amounted to MEUR -10.3 (-11.2).
• Basic and diluted Earnings Per Share amounted to EUR -0.07 (-0.08).
• Cash flow from operating activities amounted to MEUR -12.4 (-8.4).
• 1,214 new rooms opened and 1,006 new rooms were contracted.
  802 managed rooms were converted to leased.
   

Other

• The Board of Directors has proposed a rights issue of up to ca MEUR 60 to be approved at the Annual General Meeting on April 24, 2014.
   

MEUR	Q1 2014	Q1 2013
Revenue	211.4	207.1
EBITDAR	61.7	58.7
EBITDA	-0.8	-2.8
EBIT	-8.5	-10.0
Loss for the period	-10.3	-11.2
EBITDAR margin, %	29.2%	28.3%
EBITDA margin, %	-0.4%	-1.4%
EBIT margin, %	-4.0%	-4.8%

Comments from the CEO

Q1 results ahead of last year but negatively impacted by the strengthening of the Euro

"Underlying RevPAR trends remain positive with the strongest growth noted in Rest of Western Europe. Like-for-like RevPAR grew by 5.0% and the increase was primarily driven by improvement in average room rates. However, the strengthening of the Euro against Nordic and Eastern European currencies had a negative impact on RevPAR and Revenues.

Revenue grew nevertheless by MEUR 4.3 over last year, helped by two new leases in Copenhagen converted from management contracts, and the timing of Easter. The first quarter is seasonally the weakest of the year and EBITDA amounted to MEUR -0.8 (-2.8). The EBITDA margin increased by 1.0 percentage point to -0.4% and was positively impacted by Easter.

As mentioned in our 2013 full year report, we concluded another asset management transaction in January with annual positive effect on EBITDA of ca MEUR 1.2 as from 2014. 

Looking further into 2014, although the economic and political environment remains uncertain in some markets, forward bookings data is encouraging and we are confident that we will deliver on our Route 2015 targets.

In order to accelerate the execution of key strategic and profitability initiatives, the Board of Directors has proposed to the AGM a rights issue of up to circa MEUR 60. The capital raised from the rights issue will allow Rezidor to capture additional opportunities within asset management, continue to invest in the leased hotels at an accelerated rate and further drive focused growth in emerging markets.