• The Group’s revenue jumped 84.2% year-on-year in the third quarter to €273.5 million, compared to €148.4 million in 3Q20 and €215.9 million in 1H21
  • Recurring third-quarter EBITDA was three times that of 3Q20, at €72.9 million
  • All markets sustained growth, especially Southern Europe due to an earlier easing of restrictions: Spain and Italy more than doubled revenues from July to September.
  • Urban tourism and the contribution of the business clients and meetings segments are emerging as differentiating drivers of the Group's recovery. Total average occupancy increased from 42% in July to 55% in September, and has since reached 60% in October.
  • The average daily rate (ADR) rose nearly 20% in 3Q21 to €91, with growth accelerating in September and October, when this metric topped €100.
  • Positive cash flow in 3Q21 and the €106m rights issue drove a €125m reduction in net debt. Total available liquidity stood at €501 million at the September close.

Madrid - Since July, NH Hotel Group has benefitted in particular from the swift recovery in the European hotel business following the lifting of health restrictions. During the third quarter of 2021, Group revenue amounted to €273.5 million, up 78% from the €153.6 million reported in 2Q21 and growth of 84% by comparison with the €148.4 million recorded in 3Q20.

Revenue growth has remained steady month after month, supported by the fact that over 95% of the Group’s hotels are now open as well as by stronger revenue performance in Spain and Italy, which recorded growth of 120% and 127% respectively in the quarter. In September, the Group recorded monthly revenue of over €100 million for the first time since the lockdown (a figure it has since surpassed in October). The revenue recovery is spreading to the major European cities and is beginning to encompass business travellers, corporate events and conferences, very important differential segments for NH.

With this upward trend, Ramón Aragonés, CEO of NH Hotel Group, is confident that the group's recovery will gain momentum in the coming quarters. “After many months without visibility as to when the recovery would kick-off and its intensity, July marked a turning point. The tough measures implemented to control costs, protect liquidity and refinance debt are revealing their real worth today. From here on out, the huge effort put in will allow us to accelerate and lead the sector recovery and define a successful post-pandemic hotel business model. We are already lowering our debt, we have left behind the cash drain due to the significant recovery of our recurring EBITDA and, assuming the health situation normalises, we are poised to revisit our 2019 activity volumes by year-end 2022”.

Total occupancy across the Group’s hotels increased from 42% in July to 55% in September for a quarterly occupancy level of 49%, which is more than twice that of 2Q21 (23%). Southern Europe benefitted from the earlier lifting of restrictions, as is evident in the fact that occupancy rates in September reached 68% in Spain and 61% in Italy. Stronger demand also fuelled a price recovery. The third-quarter average daily rate, or ADR, was €91, up from €78 in 2Q21. It went from €85 in July to €97 a night in September and €103 in October.

Positive cash flow generation in 3Q

Between July and September 2021, recurring EBITDA amounted to €72.9 million, which is over three times the 3Q20 figure of €22.8 million, supported by strict cost control. NH reined in its net loss for the quarter by 61.1% year-on-year to €29.7 million.

In the first nine months of 2021, recurring EBITDA totalled €66.2 million, compared to the -€11.0 million in 9M20. The 9M21 net loss was 40.6% smaller than that of 9M20.

Business reactivation and cost control have enabled a return to positive cash flow generation after capex and debt servicing. As a result, the Group reported a €125 million reduction in net debt in 3Q21, from €703 million as of the June close to €578 million as of September, of which €106 million is attributable to the rights issue closed on 29 September.

During 9M21, capex amounted to €28 million. The Group plans to continue to keep a lid on capex over the coming quarters. As of 30 September 2021, NH had €501 million of available liquidity, of which €270 million correspond to cash and the rest to available credit lines. The rights issue and asset rotation have enabled the Group to reduce gross debt without impacting on liquidity. As a result, in July it was able to reduce the drawdown of its revolving credit facility (RCF) from €236 million to €36 million.

Taken as a whole, the proactive reinforcement of its capital structure (thanks to the fully subscribed rights issue, asset rotation and debt refinancing through to 2026), has substantially increased the Group's capacity to respond to the reactivation of demand in the markets where it operates.

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.

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