• The Group's revenues increased by 9.4% to €980.5M, driven by the recovery in the hotel trade in the third quarter
  • EBITDA increased by 140% to €102.2M, compared to €42.6 last year
  • For the first time in almost 2 years, a quarter with positive ADR (Average Daily Rate)
  • Major increase in RevPar (Revenues per available room) and occupancy over the last 3 months, in all the markets where the Company operates
  • NH Hoteles has committed to sell a number of assets in Europe representing approximately €60M

The adverse situation of the industry in 2009 underwent a major turnaround during the first 9 months of 2010. The third quarter of the year, in particular, has recorded a significant improvement towards recovery in the Group's basic activity. NH Hoteles´ revenues totalled €980.5M, a 9.4% rise, and EBITDA, an indicator of trends in operations at NH Hoteles, reflected both the strong recovery in the market and the remarkable increase in productivity. The Company generated an EBITDA totalling €102.2M, more than double the figure for the same period in 2009, due mainly to an improvement in the hotel business in all the markets where NH Hoteles operates.

The revenues of the hotel business grew by 10.3%, as a result of an increase in occupancy in all the markets over the first 9 months of the year. The increase in occupancy levels, of 12.6% in comparable hotels, meant that RevPar (the ratio that measures the revenues per available room) went up by 9.7%. There were increases in prices for the first time after 7 consecutives quarters, helping towards the increase in RevPar. The major growth in hotel activity compares with a smaller rise in expenses of 4.4%, as a result of the cost-cutting plan kept up by the Company in 2010.

In line with the asset rationalisation and divestment plan the Company set up last year, the Company has commitments and down payments for a number of sales of assets totalling approximately €60M. The hotels being sold are in Europe and are minor non strategic assets for the Group. These transactions are expected to be closed during the fourth quarter of the year. In 2010, NH Hoteles has sold four assets that have brought in cash for the Group totalling €117M.

Moreover, NH Hoteles has cancelled contracts for another 14 hotels in the first 9 months of 2010 as part of its plan for managing loss-making and/or non-strategic assets.