NH Hoteles profit rises by 22%

Spanish hotel chain NH Hoteles has said that its first-half net profit rose 22% compared with the same period in 2005, following the buyout of several minority shareholders.
NH Hoteles consolidated its recovery over the first half of the year, with its net profits going up by 39.4% and operating profits up by 27.6%, to €80.2M. Total revenues from hotels grew by 13.1% to €497.11M.

Revenues, Revpar (revenue per available room) and EBITDA at all the Business Units are continuing their major upward push. The Revpar at comparable hotels was up by 12.35%, after occupancy rates increased by 3.78%, to 67%, and average prices moved up by 8.26%, to €79.2. It should be pointed out that the improvement has speeded up towards the end of the six-month period. Thus, as the Revpar at comparable hotels in Europe recorded a 7.3% increase to April, the increase to June was 11.5%.

Worthy of note is the trend in Germany, where recovery has consolidated and a positive EBITDA of €2.81M has been recorded. Revenues in Germany totaled €102.32M, a 12.5% increase, and the Revpar went up by 15.97%, driven mainly by a 13% increase in average prices, to €65.9.

In Spain NH Hoteles is continuing to improve its performance, with increases in revenues at comparable hotels of 6,6% and a 16.2% rise in EBITDA. Comparable Revpar in Spain grew by 8.9% and the average price rose by 5.65%.

Benelux recorded a 12.6% improvement in revenues and a 32% increase in EBITDA in comparable hotels, as Revpar went up by 13%. Revenues at the business unit of Switzerland, Austria, Hungary and Romania went up by 12% and EBITDA by 209.6%. The Revpar in these countries grew by 10.5%. In Italy, revenues are up by 13.4% and EBITDA by 39.4%. Revpar has improved 17.23%, boosted by a 12.75% increase in the average price to €91.32.

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p>Latin America recorded a 23% improvement in comparable revenues and a 27.2% rise in comparable EBITDA. The Revpar at this business unit rose by 25.5% in comparable terms, after getting the average price to go up by 19.3%.
 
The consolidated net profits of NH Hoteles for the first 6 months of the year totaled €21.15M, 22% more than recorded for the first six months of 2005. The chain’s revenues totaled €508.4M in all, and increase of 10.8%, and EBITDA amounted to €83.60M, up by 18.4%. The results of the hotel business have absorbed Sotogrande’s lower contribution, caused mainly by scheduling.

Revenues from Sotogrande’s property business totaled €11.27M and EBITDA €3.41M. Sotogrande’s schedule of sales means that major revenues are expected to come in towards the end of the year. Confirmed sales yet to be recorded in the accounts totaled €93.1M with an estimated margin of €40.2M. Another point worth mentioned are the new prospects for the property business now that the opening of Gibraltar airport has been announced.

The accompanying tables give a picture of business trends for the first six months of 2006, compared to the first six months of last year.
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