Industry Update
Press Release18 May 2020

NH Hotel Group Reports First Quarter Results And Prepares For A Progressive Reopening

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NH Hotel Group

- Measures implemented during the COVID-19 period and reopening strategy -

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  • The uncertainty generated by COVID-19 at the beginning of the year accelerated the implementation of strict contingency plans to minimize operating expenses through temporary adjustments of personnel, reduction of supply costs, suspension of investments in marketing and renegotiation of rents
  • In addition, NH Hotel Group has activated various measures aimed at preserving and strengthening its liquidity to meet operational needs in the coming months, most notably the reduction of investment in hotel maintenance and repositioning, the drawdown of credit lines, the cancellation of the proposed dividend from 2019 profits and the signing in May of a syndicated loan of €225 million with maturity in 2023. As a result, the Group has a liquidity of over €675 million
  • Since the beginning of May, the Group has reopened its sales channels and reservation systems, and plans a progressive reopening of hotels in the main cities, initially concentrating the demand of each destination in those establishments that allow the optimisation of resources and profitability
  • The Company has completely redesigned the customer experience to ensure that safety and social distancing requirements are met at its facilities and is collaborating with SGS in the implementation of a protocol of measures and assessments that will allow the reopening of hotels with maximum guarantees of hygiene and disinfection

- First-quarter 2020 evolution -

  • As a result of the unprecedented scenario that has forced the temporary closure of hotels in all geographies since March, revenues in the first quarter decreased by -20.8% to €279.4 million, thus interrupting the growth trend of the first two months of the year where they grew by +8%
  • Despite the implementation of contingency plans since March - the impact of which will be more visible during the second quarter - the Group's reported recurring EBITDA(1) fell -€52.6 million to €30.9 million and the total net result stands at -€57.2 million, compared to -€14.7 million for the same period in 2019
  • The isolation around the world and particularly in Europe, which continues in the second quarter, has led the Company to temporarily close nearly 95% of its hotels, keeping a minimum portfolio open at the disposal of the authorities and making numerous donations to collaborate in the management of the health and social crisis

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About NH Hotel Group

NH Hotel Group (www.nh-hotels.com) is a consolidated multinational operator and one of the leading urban hotel companies in Europe and America, where it operates more than 360 hotels. Since 2019 the Company has been working with Minor Hotels to integrate their hotel brands under a single corporate umbrella with a presence in over 50 countries worldwide. This way, a portfolio of more than 500 hotels has been articulated around eight brands: NH Hotels, NH Collection, nhow, Tivoli, Anantara, Avani, Elewana and Oaks, which complete a wide and diverse range of hotel propositions connected to the needs and desires of today's global travellers.

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