• Average daily rate (ADR) increased 13% to €138 per room in 2023, while revenue per available room (RevPAR) jumped 26% to €94, with occupancy rising seven points to 68%
  • EBITDA in 2023 grows 15% to 596M and exceeds the 2019 figure by 44M
  • Net debt fell €44 million to €264 million thanks to strong cash generation, despite having earmarked €113 million to CapEx and €123 million to the acquisition of a portfolio of five Minor Hotels in Portugal
  • Sector dynamics remain favourable so far in 2024, marked by robust demand and a sustained improvement in international and business travel

Madrid - NH Hotel Group, part of Minor Hotels, reported revenue of €2.16 billion in 2023, a growth of 23% from €1.76 billion recorded in 2022 and 26% more than the €1.72 billion generated in 2019. Reported net profit amounted to €128.1 million, equating to 27.7% annual growth.

In the information submitted to the securities market regulator today, the hotel company underscored that the record growth in the Group’s revenue and profits, was attributable to the upgraded portfolio, cost controls, a 13% increase in ADR to €138 on average last year and a seven-point increase in occupancy to 68%.

In 2023, revenue per available room (RevPAR) averaged €94 per night, marking a growth of 26% from 2022 (RevPAR: €74) and 21% compared to 2019 (like-for-like).

In the fourth quarter of 2023 alone, the company generated €551 million in revenue (€570 million excluding the impact of hyperinflation and devaluation in Argentina), with a year-on-year growth of 10%.

Labour costs increased by 20.6% last year, and operating expenses by 25.6%. The revenue-gross operating profit (GOP) conversion rate was 38%, thanks to disciplined corporate control over operating expenses to curb inflationary pressures.

Elsewhere, lease payments and property taxes increased €75.6 million in 2023 due to the addition of new properties and a higher weight of variable rent formulas.

EBITDA amounted to €596 million in 2023 (€604 million excluding the impact of Argentina), up 15% from 2022 and €44 million higher than in 2019.

NH Hotel Group reported a recurring net profit of €126 million in 2023, €50 million growth or 66.3% from 2022, and €23 million by comparison with 2019.

The hotel operator’s gross financial debt decreased €129 million in 2023, due mainly to the repayment of its remaining €50 million of pandemic ICO loan and of the $50 million loan taken out to refurbish the NH Collection New York Madison Avenue.

At year-end 2023, the Group’s net financial debt stood at €264 million, compared to €308 million a year earlier. This reduction in net debt is the result of a robust operating cash generation, which has allowed the Group to invest €113 million in CapEx last year and invested €123 million to acquire Minor Hotels’ assets in Portugal. NH Hotel Group ended 2023 with €216 million cash.

The Argentine economy, hit by hyperinflation and currency depreciation, slightly eroded NH Hotel Group’s income, profits, and gross operating result in 2023. Excluding those impacts, the Group would have reported revenue of €2.18 billion, EBITDA of €604 million, recurring net profit of €132 million, and total net profit of €134 million.

Sector dynamics are favourable in 2024: demand remains strong in all segments and international and business travellers continue to grow.

Strong growth across all regions driven by better occupancy and high ADRs

Occupancy improved in Southern Europe and both Benelux and Central Europe posted steady improvements.

By business unit, in Spain,Portugal and France, like-for-like revenue increased 17% and 30%, compared to 2022 and 2019, respectively. This is attributed to a solid performance in both primary and secondary cities. Occupancy averaged 73% in Spain, one percentage point below the 2019 equivalent, while ADR was €138.

In Italy, like-for-like revenue registered growth of 19% compared to 2022 and 36% compared to 2019, with Rome and Milan doing considerably better. Italian ADR stands out at €181. Occupancy averaged 67%, in line with 2019.

In Benelux, like-for-like revenue marked growth of 25% versus 2022 and 12% compared to 2019. Amsterdam, Brussels and the conference center hotels registered higher growth rates. In this unit, ADR was €155, while occupancy averaged 66%, which is still five points below the 2019 figure.

In Central Europe, like-for-like revenue increased 17% year-on-year and 10% from 2019 levels, with Düsseldorf, Munich and Frankfurt the best-performing destinations. ADR in the region was €116, while occupancy averaged 66%, down seven points from 2019 levels.

In Latin America, revenue was 12% higher than in 2022 (including the impact of Argentina) and 31% above 2019 levels. Growth was highest in Mexico and Argentina, the latter shaped by hyperinflation and currency trends. Occupancy in the region was seven percentage points above that of 2019, at 67%, while ADR was €85.

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.