NH Hotel Group Boosts EBITDA 36% and Posts a Profit for the First Time Since 2011
The company's return to profitability validates the business plan
After two years investing in repositioning and reinforcement of its organisational, management and communication capabilities, NH Hotel Group heads into year three of its business plan having met the market's growth expectations. Moreover, it expects to top guidance going forward with a larger revenue base, better-positioned hotel portfolio and a significant improvement in perceived quality.
Reported revenue rose 10.3% to €1.395 million, while EBITDA before onerous provision reversal climbed 35.8% higher to €149.5 million; net profit came in at €0.9 million, compared to the €9.6 million loss reported in 2014.
Business and earnings momentum gained traction as the year unfolded driven by the pricing strategy rolled out: Revenues per available room (RevPAR) rose by 11% last year.
The healthy performances posted by the Spanish and Italian business units last year stand out; these markets have benefitted from the execution of the asset repositioning strategy in the initial years of the business plan. Management expects the Benelux and Central Europe business units to perform better in 2016, as the repositioning works began in these markets during the second quarter of 2015.
Implementation of the Group's five-year business plan is tracking ahead of schedule and the scope for outperformance of the initial guidance has increased. At year-end 2015, hotels representing 64% of Group EBITDA were in perfect shape. Once the €237 million repositioning plan has been fully implemented, this figure will rise to 81%.
Assuming moderate economic growth, the outlook for 2016 is very upbeat: thanks to its current strength, the Group is targeting topline growth of 8%, EBITDA of c.€200 million in comparable terms with the previous year, and a leverage ratio of 4.0x (down from 5.6x).
Among the milestones planned for 2016, it is worth highlighting the fact that NH Hotel Group will unveil its growth plans for the Chinese market in March.
About NH Hotel Group, part of Minor Hotels
NH Hotel Group, part of Minor Hotels, is an established multinational hotel operator and a benchmark urban hotel chain in Europe and the Americas, where it runs over 350 hotels. Since 2019, it has been working with Minor Hotels on integrating all of its hotel trademarks under a single corporate umbrella brand with a presence in over 50 countries worldwide. Together they have articulated a portfolio of more than 500 hotels operating under eight brands – Anantara, Avani, Elewana, Oaks, NH Hotels, NH Collection, nhow and Tivoli – which between them provide a broad and diverse spectrum of hotel solutions in touch with the needs and desires of today's global travellers.