Rezidor Hotel Group: INTERIM REPORT January-June 2015


Second Quarter 2015

  • Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 4.9%. The growth is due to an increase in average room rate as well as higher occupancy.
  • Revenue increased by 6.8% to MEUR 263.8 (247.1). The increase is mainly due to the positive RevPAR development and the weakening of the Euro. On a L/L basis Revenue increased by 4.7%.
  • EBITDA amounted to MEUR 33.6 (30.8) and the EBITDA margin increased to 12.7% (12.5). The earnings were positively impacted by the good RevPAR development and lower net costs for the hotel closed for renovation in Lyon in France, however partly off-set by changes in bad debts provisions, increased central costs and higher marketing costs.
  • EBIT amounted to MEUR 23.0 (21.4) and the EBIT margin was 8.7% (8.7). The increase in EBITDA has been partly off-set by higher depreciation costs, reflecting the increase in investments, hence an unchanged EBIT margin.
  • Profit after tax amounted to MEUR 15.4 (14.1).
  • Basic and diluted earnings per share were EUR 0.09 (0.09).
  • 2,466 (2,194) new rooms were contracted, 1,202 (795) new rooms opened and 285 (415) rooms left the system.


Half Year 2015

  • L/L RevPAR was up by 3.5%.
  • Revenue increased by 4.7% to MEUR 480.2 (458.5). On a L/L basis Revenue increased by 2.7%.
  • EBITDA amounted to MEUR 32.8 (30.1) and the EBITDA margin increased to 6.8% (6.6).
  • EBIT amounted to MEUR 10.6 (12.9) and the EBIT margin decreased to 2.2% (2.8).
  • Profit after tax amounted to MEUR 2.0 (3.8).
  • Basic and diluted earnings per share were EUR 0.01 (0.03).
  • Cash flow from operating activities amounted to MEUR 22.6 (0.8).
  • 4,771 (3,200) new rooms were contracted, 1,429 (2,009) new rooms opened and 1,152 (833) rooms left the system.

MEUR Q2 2015 Q2 2014 H1 2015 H1 2014
Revenue 263.8 247.1 480.2 458.5
EBITDA 33.6 30.8 32.8 30.1
EBIT 23.0 21.4 10.6 12.9
Profit for the period 15.4 14.1 2.0 3.8
EBITDA margin, % 12.7% 12.5% 6.8% 6.6%
EBIT margin, % 8.7% 8.7% 2.2% 2.8%

Comments from the CEO

Solid RevPAR development and a good quarter for signings

"RevPAR recovery continued during the second quarter of 2015 and culminated in a strong month of June, driven by Eastern European countries outside Russia and by mature Western European markets. However, weak RevPAR development in some of the countries in the Middle East and the difficult business climate in Norway still impacted the results.

We made strong progress in pursuit of our growth strategy: achievements included the 25 years contract extension for one of the Group's most profitable leases in Norway, and the signing of a total of 15 new projects with almost 2,500 rooms under management and franchise agreements. Most of these hotels are situated in emerging markets and focus countries and scheduled to open within the next 12 months.

Q2 signings featured the first Radisson Red in EMEA: the Radisson Red V&A Waterfront Cape Town - located at one of Africa's premier sites and opening in late 2016 - marked the roll-out start of our new lifestyle select brand. We see strong interest in the market, and will drive the development of Radisson Red through flexible business models together with experienced partners.

We also continued to make progress on our profit improvement initiatives as evidenced by the strong performance in operating cash flow. At the same time, we further drove our investment programme supported by the 2014 rights issue, and have launched an accelerated Capex deployment that will result in almost 8,000 refurbished rooms in the Nordics and Rest of Western Europe by the end of 2017."

Wolfgang M. Neumann, President & CEO

Presentation of the Q2 Results

On July 23, 2015 at 10:00 (Central European Time) a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Wolfgang M. Neumann and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit www.investor.rezidor.com.

To access the telephone conference, please dial:
   
Belgium, Local +32 (0)2 400 6864
Belgium, Free 0800 58032
Sweden, Local: +46(0)8 5065 3938
Sweden, Free: 0200 883 440
UK, Local:  +44(0)20 3427 1918
UK, Free: 0800 279 5004
USA, Local: +1 646 254 3366
USA, Free: 1877 280 2342
France, Local: +33(0)1 76 77 22 29
France, Free: 0805 631 580

Confirmation code: 6030506. For a replay of the conference call please visit www.investor.rezidor.com.

Financial Calendar

Q3 2015 results: October 22, 2015
Q4 2015 results: February 16, 2016
Q1 2016 results: April 21, 2016

For Further Information, Contact

Knut Kleiven
Deputy President & CFO
Tel: +32 2 702 9244
Fax: +32 2 702 9330
knut.kleiven@carlsonrezidor.com

Andrea Brandenberger
Senior Director
Business Development Strategy & Investor Relations
Tel: +32 2 702 9237
andrea.brandenberger@carlsonrezidor.com

The Rezidor Hotel Group Corporate Office
Avenue du Bourget 44
B-1130 Brussels
Belgium
Tel: +32 2 702 9200
Fax: +32 2 702 9300

Website: www.rezidor.com

About the Rezidor Hotel Group

The Rezidor Hotel Group is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson. In February 2014, Rezidor announced together with Carlson the launch of two additional brands; Radisson Red, an upscale "lifestyle select" brand inspired by the millennial lifestyle, and Quorvus Collection, a new generation of distinctive five star hotels.

The portfolio consists of 446 hotels with over 98,000 rooms in operation and under development in 77 countries across Europe, the Middle East and Africa.

Rezidor's strategy is to grow with management and franchise contracts and only selectively with leases. The strategy is also to further expand in the emerging markets.

Rezidor is a member of the Carlson Rezidor Hotel Group.
For more information, visit www.rezidor.com.

The full report with tables can be downloaded from the following link:


Attachments

Rezidors Interim Report January-June 2015