NH Hoteles sees boost in profits

The hotel business of NH Hoteles has improved significantly in 2006. Net profit are up by 30.6% over the previous year, to €45.9M.This has been achieved as a result of a 13.4% increase in hotel revenues, to €1,021.57M. Improved occupancy rates and an 8.7% increase in the ADR (average price) have helped sales to grow.

The EBITDA of the hotel business to December totalled €161.80M, 27.2% higher than in 2005.

The hotel chain’s sales increased up to €1,090M and the net profit of the consolidated group remained steady at €62.45M. Net earnings were diluted by a lower contribution of revenues from Sotogrande, explained by the sale of that a large plot was sold in 2005. 

In Germany, EBITDA has continued its strong growth in comparable hotels and reached €7.43M compared to a €2.26M loss for the previous year, boosted by growing demand and by the management effort of maximising ADR and controlling the leasing costs of 14 hotels. The figure recorded for revenues at comparable hotels in Germany was €198.02M, up by 12% on the previous year. During 2006 the Revpar improved by 12% at comparable hotels in Germany.

Highlight is the strong recovery in business in Spain, with increases in revenues at comparable hotels of 6,6% and a 15% rise in EBITDA. Comparable Revpar in Spain grew by 8.4%, with a 6.9% increase in the average price.

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The Revpar in the Benelux has continued its upward trend in comparable hotels. It grew by 10.2% compared to previous year. ADR accounted for 95% of this growth. Revenues in comparable hotels in the Benelux were €237.32M and EBITDA, up by 18.7%, totaled €78.01M. 
The Switzerland, Austria, Hungary and Romania business unit recorded a major increase of 14.7% in revenues, withan EBITDA totaling €2.7M. This is a sign of the solidity contributed by the latest additions to the NH Hoteles portfolio in Eastern Europe. The Revpar for comparable hotels was up by 11.6%. Occupancy has increased significantly, by 5.71%, to an average rate of 75.7% at comparable hotels.
The Revpar in Latin America has continued to improve throughout the year, having increased by 16.30% in comparable terms. Worthy of mention is the good performance helped by improved ADR, and occupancy in the entire business unit, as can be seen in the 32.1% increase in EBITDA at comparable hotels.
Sotogrande recorded sales of €69.37M, 16.9% down than the previous year, and an EBITDA of €27.09M. The lower contribution of the revenues from Sotogrande is mainly due to the fact that a very large plot was sold the previous year at €35M and to the growth in sales of houses and apartments rather than plots. This fact has to be taken into account in the compary figures for both years. As at 31 December 2006, confirmed sales yet to be recorded in the accounts totaled €74.6M with a margin of €29.6M.
The period for preferential subscriptions to the capital increase approved by the Board of Directors last December started today with an opening deduction of € 0.18 on the listed share price as the opening value of the subscription right. The €250m capital increase will be made by issuing new shares at €15.27 per share.
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