Fourth quarter, 2011
- RevPAR Like-for-like increased by 3.2% to EUR 62.3 (60.3).
Like-for-like Occupancy was 61.3% (61.2). - Revenue increased by 6.6% or MEUR 13.9 to MEUR 225.6 (211.7).
On a Like-for-like basis Revenue decreased by 0.5%. - EBITDA was MEUR 14.1 (6.9), and EBITDA margin was 6.3% (3.3).
- Loss after tax amounted to MEUR -13.5 (-6.8), negatively impacted by a MEUR 9.9 write-down of fixed assets and a MEUR 8.5 write-down of deferred tax assets.
- Basic and diluted Earnings Per Share amounted to EUR -0.09 (-0.05).
Twelve month ending December, 2011
- RevPAR Like-for-like increased by 3.7% to EUR 65.4 (63.1).
Like-for-like Occupancy was 63.9% (63.6). - Revenue increased by 10.0% or MEUR 78.5 to MEUR 864.2 (785.7).
On a Like-for-like basis Revenue was unchanged. - EBITDA was MEUR 35.1 (31.5), and EBITDA margin was 4.1% (4.0).
- Loss after tax amounted to MEUR -11.9 (-2.7).
- Basic and diluted Earnings Per Share amounted to EUR -0.08 (-0.02).
- Cash flow from operating activities was 14.1 (47.6). Total available cash at the end of the period, including unutilised credit facilities, amounted to MEUR 104.8 (MEUR 129.3 in Dec 2010).
Other developments
- A write-down of fixed assets of MEUR 9.9 combined with a MEUR 8.5 write-down of deferred tax assets was recognised in the quarter, as a result of lowered market growth expectations following an intensified asset management review in light of the continuing financial uncertainty.
- Circa 1,600 new rooms were added into operations in the fourth quarter and ca 5,800 during the year.
- Circa 3,200 rooms were signed in the fourth quarter and ca 9,600 during the year. All of the new rooms signed during the year were managed or franchised.
- The Board of Directors proposes no dividend (EUR 0).
| Fourth quarter | Twelve months | |||
| MEUR | Oct-Dec 11 | Oct-Dec 10 | Jan-Dec 11 | Jan-Dec 10 |
| Revenue | 225.6 | 211.7 | 864.2 | 785.7 |
| EBITDAR | 74.0 | 63.2 | 274.6 | 254.1 |
| EBITDA | 14.1 | 6.9 | 35.1 | 31.5 |
| EBIT | -4.0 | -0.9 | -7.7 | 3.9 |
| Profit/loss after Tax | -13.5 | -6.8 | -11.9 | -2.7 |
| EBITDAR Margin % | 32.8% | 29.9% | 31.8% | 32.3% |
| EBITDA Margin % | 6.3% | 3.3% | 4.1% | 4.0% |
| EBIT Margin % | -1.8% | -0.4% | -0.9% | 0.5% |
Comment from the CEO
| - | Revenue growth and EBITDA improvement, supported by new hotels |
"The hotel market continued to improve in the last quarter of the year. Eastern Europe consistently showed very strong RevPAR growth and the negative trend in the Middle East and North Africa slowed down. However, the deceleration in Western Europe, caused by the instability in the Euro zone, continued during the last three months of the year and remains a concern for the future. As a result, our L/L RevPAR grew by 3.2%, a small improvement on the previous quarter.
Our revenue increased by a healthy 6% in Q4, with almost all of this growth coming from newly opened leased hotels. The new leases, mainly located in the Nordics, performed above expectations and contributed positively to our EBITDA and EBITDA margin. The margin growth was also helped by additional high-margin fee revenue and one-offs in the fourth quarter of last year. Our net result was, however, negatively affected by write-downs of fixed and deferred tax assets relating to our leased hotels in Western Europe, mainly in the UK. These write-downs were the result of revised GDP expectations for the UK and the Euro zone, and also stemmed from a review of our portfolio following a decision to intensify the focus on asset management. At the end of the year, we established a separate Asset Management department to further optimise our current portfolio of leased hotels in terms of increasing profitability and reducing the leverage of the company.
Looking ahead, we will focus on improving profitability, both in absolute terms and relative to the industry. In December, we announced our 'Route 2015' strategy - a raft of initiatives to improve our EBITDA margin by 6 to 8 percentage points by 2015, assuming that market RevPAR growth covers inflation. We aim to achieve this mainly by putting stronger emphasis on revenue generation, together with our partner and brand owner Carlson, through greater and more aligned global synergies. To facilitate this ambition, in January 2012, Carlson and Rezidor announced their collaboration to jointly go to the market and do business together as the 'Carlson Rezidor Hotel Group'".
Kurt Ritter, President & CEO
Financial calendar
Interim Report January-March 2012: 25 April 2012
Annual General Meeting 2012: 25 April 2012
Interim Report January-June 2012: 13 July 2012
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 08h30 Central European Time on 22nd February 2012.
Stockholm 22nd February, 2012
Kurt Ritter
President & CEO
Rezidor Hotel Group AB
Webcast
22nd February 2012 at 15:30 (Central European Time).
Kurt Ritter, President & CEO, Knut Kleiven, Deputy President & CFO and Puneet Chhatwal, EVP & CDO,
will present the report and answer questions.
To participate in the teleconference, please dial:
| Sweden: | +46 (0)8 5352 6408 |
| Sweden toll-free: | 0200 883 440 |
| UK: | +44 (0)20 7784 1036 |
| UK toll-free: | 0800 279 4841 |
| US: | +1 646 254 3360 |
| US toll-free: | 1877 249 9037 |
Confirmation code: 4056497
To follow the webcast, please visit www.rezidor.com
A replay of the conference call will be available one month following the call by dialling +46 (0)8 5051 3897 (Sweden),
+44 (0)20 7111 1244 (UK) and +1 347 366 9565 (US), access code 4056497#.
In Q4 2011 Rezidor opened eight new hotels
For further information, please contact:
Knut Kleiven, Deputy President and Chief Financial Officer
The Rezidor Hotel Group
Avenue du Bourget 44
B-1130 Brussels, Belgium
Tel: + 32 2 702 9200
www.rezidor.com
The full report with tables can be downloaded from the following link:
