Rezidor Hotel Group: INTERIM REPORT January-March 2016

First Quarter 2016

• Like-for-like ("L/L") RevPAR for leased and managed hotels was up by 1.0%. The growth is due to an increase in average room rate, partly offset by lower occupancy.
   
• Revenue decreased by 4.3% to MEUR 207.0 (216.4). The decrease is mainly due to the conversion of a hotel in Sweden from leased to franchised, the temporary closure of a leased hotel in Belgium, the impact of timing of Easter and the strengthening of the Euro. On a L/L basis Revenue increased by 1.2%.
   
• EBITDA amounted to MEUR -9.2 (-0.7) and the EBITDA margin decreased to -4.4% (-0.3). In addition to the negative impact of the decrease in revenue, EBITDA is effected by higher costs for reservations as well as provisions for bad debts and accruals for central personnel costs. The Easter impact is estimated to ca MEUR -2.0.
   
• EBIT amounted to MEUR -25.0 (-12.4) and the EBIT margin decreased to -12.1% (-5.7). EBIT is further impacted by the cost for the termination of a lease in Norway of MEUR 8.0, partly offset by gain on sale of shares in subsidiaries of MEUR 1.9 and less costs for depreciation and write-downs of net MEUR 2.0.
   
• Loss after tax amounted to MEUR 21.6 (13.4).
   
• Basic and diluted loss per share was EUR 0.13 (0.08).
   
• Cash flow from operating activities amounted to MEUR -1.9 (-7.1).
   
• 1,967 (2,305) new rooms were contracted, 967 (227) new rooms opened and 303 (867) rooms left the system.

Comments from the CEO

Expansion of business activity in an otherwise soft quarter

The first quarter is usually weak, and this year was further impacted by some distressed and challenged markets. Despite this the company has continued to gain market share. Revenue and earnings have been negatively affected by the conversion of a leased hotel to franchised, the closure of a leased hotel for renovation, the less favourable timing of Easter and termination costs for a lease in Norway.

Our asset management efforts to constantly prune the Group's leased estate continued, leading to one-offs impacting our profitability but also resulting in the 25 year extension and full renovation agreement for a flagship in Sweden.

In March, Rezidor announced the entry into the economy segment through the acquisition of a 49% stake of prizeotel, a dynamic, design and tech-savvy  company with currently three operating hotels and one property under development in Germany. This acquisition ideally complements our brand portfolio, now reaching from economy to luxury, and allows us a fast-paced entry into an increasingly attractive sector.

We maintained our strong development momentum and signed 13 hotels with 2,000 rooms out of which some 40% will still open in 2016. Openings amounted to seven hotels with 1,000 rooms and were clearly ahead of last year. The roll-out of our new lifestyle select brand Radisson RED was accelerated further during the first months of the year. We added two projects in the Middle East to the pipeline (growing the EMEA portfolio to a total of five properties) and we just opened the world's first Radisson RED in Brussels, Belgium.

While the overall trading outlook remains solid, we are carefully monitoring developments in some fragile markets and will continue to pursue our focussed long-term strategy driving further margin optimisation and network growth.

Wolfgang M. Neumann, President & CEO

Presentation of the Q1 Results

On April 21, 2016 at 09:00 (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:

Confirmation code: 4865199. For a replay of the conference call please visit www.investor.rezidor.com.

Financial Calendar

Q2 2016 results: July 27, 2016
Q3 2016 results: October 25, 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 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 465 hotels with over 101,000 rooms in operation and under development in 80 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.

This quarterly report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 Central European Time on April 21, 2016.

Stockholm April 21, 2016

Wolfgang M. Neumann
President & CEO
Rezidor Hotel Group AB (publ)

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