In the first quarter of 2007, NH Hoteles’s sales increase by 39%, to €318.38M, confirming the improvement in performance compared to the same period of the previous year. NH Hoteles’s hotel business, where the results of the recent additions to the Group in Italy (Jolly Hotels and Framon) have been consolidated, has improved significantly, by 30.7%, to €288.55M.
EBITDA (Revenues per available room) recorded by NH Hoteles is at €51.5M, a 107% higher than in the first quarter of 2006. This is highly significant, considering this is normally the slowest period of the year.
The Revpar (Revenue per available room) increased by 10%, mostly based on an ADR (Average price) increase. Important to mention is the improvement in the Revpar, especially in Spain and the Benelux.
There is the strong growth in the Group’s net earnings, to €5,18M, which reflects an increase of 195.7%, compared to last year, because of the good performance of the hotel business and, in particular, the major improvement in the contribution made by Sotogrande, its property subsidiary company.
Spain recorded, excluding the revenues from new hotel openings, a 7.47% increase in Revpar, very much in line with the trend of the previous year; with prices rising mainly in the largest cities and an increase in weekend business. The Spain Business Unit, not including new openings, recorded improved earnings of €92.27M and a large increase of 33% in EBITDA.
The Germany Business Unit confirms the good trend recorded last year with clear signs of strength, showing that prices increase does not full down occupancy. The average price increased by 8.45%, excluding 2006 openings. I is significant the outstanding average performance of Berlin and Munich hotels. Germany recorded total revenues at €49M and 26% growth in EBITDA.
Incomes increased 5% to €62M at the Benelux Business Unit, excluding the new additions to the Group’s portfolio of rooms in 2006. Sales in Netherlands reported particularly strong, especially in Amsterdam. This is also true for other cities such as Brussels and London. The Revpar Benelux grew up 7.2%, mainly as a result of prices increase. EBITDA was up by 11%, to €14.49M.
The spite of the fact that this first period is normally slow in Austria, Switzerland, Hungary and Romania, the Revpar increased a 5.4%, partly as a result of a 2.9% ADR increase and, especially, due to a higher occupancy rate of 63.6%. In this Business Unit, incomes reflected a 8% increase in sales.
In Italy, excluding the recently added Jolly Hotels and Framon, hotel earnings grew up 13%. Occupancy at these hotels rose significantly by 10% to 61.4%, which made for a 15.3% increase in revenues per available room.
In America, the most significant facts were the 23% increase in Revpar in Argentina and the 11% increase in other Mercosur countries.
Sotogrande’s real state business recorded earnings of €10.89M, 142% higher than in the same period last year. Moreover, total EBITDA was at €3.35M as opposed to a €0.81M in 2006. On December 31st 2006, Sotogrande had sales confirmed yet to be recorded in the accounts totalled €71.28M, with an estimated margin of €28.32M.