Rezidor Hotel Group
INTERIM REPORT January-September 2014
Third Quarter 2014
- Like-for like ("L/L") RevPAR was up by 3.5%.
- Revenue increased by 5.9% and amounted to MEUR 240.8 (227.4).
On a L/L basis Revenue increased by 2.5%. - EBITDA amounted to MEUR 26.4 (22.8) and the EBITDA margin increased to 11.0% (10.0).
- EBIT amounted to MEUR 17.3 (15.1) and the EBIT margin increased to 7.2% (6.7).
- Profit after tax amounted to MEUR 11.3 (9.7).
- Basic and diluted Earnings per Share were EUR 0.07 (0.07).
- 1,346 new rooms were contracted, 586 new rooms opened and 970 rooms left the system.
Nine months ended September 2014
- L/L RevPAR was up by 3.4%.
- Revenue increased by 2.3% and amounted to MEUR 699.3 (683.5).
On a L/L basis Revenue increased by 1.5%. - EBITDA amounted to MEUR 56.5 (54.9) and the EBITDA margin increased to 8.1% (8.0).
- EBIT amounted to MEUR 30.2 (31.3) and the EBIT margin decreased to 4.3% (4.6).
- Profit after tax amounted to MEUR 15.1 (15.9).
- Basic and diluted Earnings per Share were EUR 0.10 (0.11) and EUR 0.09 (0.11) respectively.
- Cash flow from operating activities amounted to MEUR 23.1 (26.0).
- 4,546 new rooms were contracted, 2,595 new rooms opened and 1,803 rooms left the system.
MEUR | Q3 2014 | Q3 2013 | Jan-Sep 2014 | Jan-Sep 2013 |
Revenue | 240.8 | 227.4 | 699.3 | 683.5 |
EBITDAR | 87.7 | 81.7 | 242.4 | 237.4 |
EBITDA | 26.4 | 22.8 | 56.5 | 54.9 |
EBIT | 17.3 | 15.1 | 30.2 | 31.3 |
Profit for the period | 11.3 | 9.7 | 15.1 | 15.9 |
EBITDAR margin, % | 36.4% | 35.9% | 34.7% | 34.7% |
EBITDA margin, % | 11.0% | 10.0% | 8.1% | 8.0% |
EBIT margin, % | 7.2% | 6.7% | 4.3% | 4.6% |
Comments from the CEO
Continued progress despite turbulent markets
"I am pleased to report a like-for-like RevPAR increase of 3.5% for the third quarter of 2014. The RevPAR growth in the quarter was a result from increased room rates and occupancy. Revenue grew by MEUR 13.4 (5.9%) over last year. In addition to the RevPAR growth, the increase in revenue was mainly related to the conversion of two hotels in Copenhagen from management contracts to leases at the beginning of the year.
Steady progress continues to be made on key strategic initiatives. Rezidor continues to grow on an asset light basis, signing over 1,300 rooms in the quarter. The pipeline of projects has over 19,000 rooms over a broad geographic area.
Both profits and margin performance showed improved results. Despite the current challenges in some of the Emerging Markets, the company generated higher profits from these markets in Q3 this year than during the same period last year. The improvement is a result of growth of the portfolio and our asset light business model. Furthermore, the EBITDA margin in the quarter reached 11% for the first time in a third quarter since 2007.