Rezidor restructures three lease agreements and terminates one unprofitable contract
ET | Source:Rezidor Hotel Group AB
Concluding a year of successful Asset Management activities, The Rezidor Hotel
Group has signed four agreements in Q4 2013 to further improve the profitability
of the leased portfolio. Combined with results from 2012, when Rezidor exited
from nine unprofitable leases, these transactions - all related to assets in
Europe - have resulted in significant rent reductions for Rezidor, and have
increased the company's EBITDA margin by ca. 1 pp as from 2013.
Two of the restructured lease contracts had an impact on the Q4 2013 results
(one of which was signed in October 2013 and announced in Rezidor's latest
interim report). Combined, they led to a €3.6 million 2013 EBITDA increase, and
these rent reductions will continue to apply in the coming years.
The other restructured lease will take effect from January 2014. This is
forecasted to generate an additional €1.7 million in EBITDA in 2014 and
One additional loss-making agreement will be terminated in December 2014. Once
effective, it will further increase the EBITDA by approximately €0.5 million
annually in addition to significant CapEx savings. This termination was secured
through an upfront payment of €1.9 million, which was accounted for in Q4 2013.
"These profit-enhancing deals were achieved through direct negotiations with the
respective landlords. This demonstrates our ability to find mutually-beneficial
solutions with our partners to reduce our rent levels and increase our margins",
commented Wolfgang M. Neumann, President & CEO of Rezidor.
Accelerated and effective Asset Management - especially in Central Europe, the
UK and the Nordics - is an essential part of Rezidor's turnaround plan Route
2015. It was launched in December 2011, targets an increase of the group's
EBITDA margin of 6-8% by 2015, and includes Revenue Generation activities, fee
based growth with a focus on Emerging Markets, cost saving initiatives, and
Asset Management projects.
About The Rezidor Hotel Group
The Rezidor Hotel Group is one of the most dynamic hotel companies in the world
and a member of the Carlson Rezidor Hotel Group. The group features a portfolio
of more than 430 hotels in operation and under development with 95,000 rooms in
more than 70 countries.
Rezidor operates the core brands Radisson Blu and Park Inn by Radisson in
Europe, the Middle East and Africa (EMEA), along with the Club Carlson loyalty
programme for frequent hotel guests. Under a worldwide licence agreement with
the iconic Italian fashion house Missoni Rezidor operates and develops the
lifestyle brand Hotel Missoni. Rezidor has an industry-leading Responsible
Business Programme and was awarded one the World's Most Ethical Companies by the
US think tank Ethisphere.
In November 2006, Rezidor was listed on the Stockholm Stock Exchange. Carlson, a
privately held global hospitality and travel company, based in Minneapolis
(USA), is the majority shareholder.
The corporate support office of The Rezidor Hotel Group is based in Brussels,
Ebba Vassallo, Director Investor Relations, Ebba.Vassallo@CarlsonRezidor.com
Christiane Reiter, Senior Director Corporate Communication,
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