Occupancy has stabilised in Q4 while rates continued to decrease
Comment from the CEO
"Occupancy reached 2008 levels in Q4, but rates continued to decrease. With
limited visibility, it is still too early to assume this is the start of a
recovery. We therefore continue to be prudent in preserving cash and controlling
costs. The cost reduction programme has delivered according to plan. With annual
savings of MEUR 32 in operational costs and additional reductions of
approximately MEUR 4 in central costs, we have established a new level of fixed
costs, ensuring that Rezidor will be well positioned when market conditions
improve.
Perhaps the most significant accomplishment in 2009, however, was the record
number of openings adding more than 7,000 rooms to the system. Of these new
rooms, 87% were managed or franchised, thereby further reducing long-term risk
to the company. Rezidor will continue to seek similar profitable growth
opportunities in management contracts and in new, emerging markets."Kurt Ritter,
President & CEO.
Fourth quarter, 2009
* RevPAR like-for-like decreased by 10.6% to EUR 61.9 (69.2). Like-for-like
occupancy was 61.4% (61.7).
* Revenue decreased by 3.9% or MEUR 7.6 to MEUR 186.0 (193.6). On a
like-for-like basis Revenue decreased by 7.2%.
* EBITDA was MEUR 9.7 (13.6), and EBITDA margin was 5.2% (7.0).
* Loss after tax amounted to MEUR -0.3 (1.2).
* Basic and diluted Earnings Per Share amounted to EUR 0.00 (0.01).
Twelve months ending December, 2009
* RevPAR like-for-like decreased by 16.4% to EUR 62.9 (75.3). Like-for-like
occupancy was 62.1% (66.4).
* Revenue decreased by 13.7% or MEUR 107.7 to MEUR 677.2 (784.9). On a
like-for-like basis Revenue decreased by 13.6%.
* EBITDA was MEUR 4.9 (70.9), and EBITDA margin was 0.7% (9.0).
* Loss after tax amounted to MEUR -28.2 (26.1).
* Basic and diluted Earnings Per Share amounted to EUR -0.19 (0.18).
* Cash flow from operating activities amounted to MEUR -6.1 (61.9). Total
available liquidity at the end of the period, including unutilised credit
facilities, amounted to MEUR to 91.8 (123.9). Net debt/cash amounted to MEUR
-7.5 (18.2).
Other developments
* Rezidor opened ca 2,200 rooms in the fourth quarter, of which 85% were
managed or franchised. Three hotels, representing ca 370 rooms, left the
system. In 2009, Rezidor opened ca 7,100 rooms, of which 87% were managed or
franchised. 11 hotels, representing ca 1,100 rooms, left the system.
* Rezidor signed 9 contracts for new hotels in the fourth quarter representing
ca 1,900 rooms. In 2009, Rezidor signed 39 contracts for new hotels,
totaling ca 7,800 rooms. 95% of the new rooms contracted during the year
were managed or franchised.
* The cost savings plan generated net savings in operational costs of MEUR 10
in the quarter and MEUR 32 during the year and, in addition, reductions of
central costs of approximately MEUR 4 during the year.
* The Board of Directors proposes no dividend (EUR 0.00).
Selected financial data, MEUR Oct-Dec 09 Oct-Dec 08 Jan-Dec 09 Jan-Dec 08
---------------------------------------------------------------------------
Revenue 186.0 193.6 677.2 784.9
EBITDAR 61.4 64.1 210.1 275.7
EBITDA 9.7 13.6 4.9 70.9
EBIT 2.0 5.3 (25.0) 42.9
Profit/(loss) after Tax (0.3) 1.2 (28.2) 26.1
EBITDAR Margin % 33.0% 33.1% 31.0% 35.1%
EBITDA Margin % 5.2% 7.0% 0.7% 9.0%
EBIT Margin % 1.1% 2.7% (3.7)% 5.5%
---------------------------------------------------------------------------
Financial calendar
Interim Report January-March 2010: 16 April 2010
Interim Report January-June 2010: 23 July 2010
Interim Report January-September 2010: 29 October 2010
This quartely 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 11th February 2010.
Stockholm 11th February, 2010
Kurt Ritter
President & CEO
Rezidor Hotel Group AB
Webcast
11th February 2010 at 15:30
Kurt Ritter, President & CEO, Knut Kleiven, Deputy President & CFO and Puneet
Chhatwal, Chief Development Officer, will present the report and answer
questions on 11th February 2010 at 15:30 (Central European Time).
To participate in the teleconference, please dial:
Sweden: +46 8 505 204 24
Sweden toll-free: 0200 896 377
UK: +44 203 023 4416
US: +1 646 843 4608
US toll-free: 1 866 966 5335
To follow the webcast, please visitwww.rezidor.com <http://www.rezidor.com>
<http://www.rezidor.com/>
A replay of the conference call will be available one month following the call
by dialling
+44 208 196 1998 (UK) and +1 866 583 1035 (US), access code 195424#.
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 <http://www.rezidor.com>
<http://www.rezidor.com/> <http://www.rezidor.com>
The full report with tables can be downloaded from the following link:
[HUG#1383204]
