In the first six months of 2007, NH Hoteles’ sales rose by 41.1%, to €717.4M, confirming an improvement in performance compared to the same period for last year. EBITDA (operating profit) totalled €142.3M, up by 70,3%, and net earnings grew by 91,6%, to €40.5M, meaning that net earnings were twice as high as in June 2006.
In the hotel activity, where the result of the recent additions to the Group in Italy (Jolly Hotels and Framon) has been consolidated, revenues have improved significantly, by 39%, to €691.9M. The combination of the acquisitions and improvement sales has meant that EBITDA for the hotel business rose 61% to €128.9M.
Worthy of special mention is the fact that Germany, where there have been no new hotel openings, recorded sales totalling €103.6M, higher than the figure recorded for the same period last year. Bearing in mind the fact that in 2006 revenues were boosted significantly essentially by the World Cup held in Germany that year, the Germany Business Unit has performed extremely well in line with the trend it has been showing in recent months.
Spain recorded, not including the revenues from new hotel openings, a 8% increase in Revpar, very much in line with the trend of the previous year; with price rises mainly in the larger cities. The Spain Business Unit, not including new openings, recorded improved earnings of €207.8M and a strong increase of 21% in EBITDA.
Income rose at the Benelux Business Unit, to €138.6M, without the new additions. Sales continued to grow steadily in spite of the fact that some biannual trade fairs were not held last year. EBITDA was steady at €39.8M. The Revpar in the Benelux grew by 4%, mainly as a result of a 5% increase in prices.
Austria, Switzerland, Hungary and Romania, not including new openings, performed well during the first half of the year, with sales up by 7% to €25.3M. EBITDA in this Business Unit recorded growth totalling €0.31M, compared to the losses of last year. The RevPar increased by 4.8%, as a result of a 6% rise in average prices.
In Italy, not including the addition of Jolly Hotels and Framon, hotel earnings rose by 6%. Revenues per available room were up by 8%, as the average price improved by 8%. The contributions brought in by new acquisitions and openings mean that the Italy Business Unit currently accounts for 21% of NH Hoteles’s revenues, after Spain and the Benelux.
America has recorded sales growth of 6% to €33.2M and EBITDA increased by 14%, not including new openings. The Revpar in America remained stead as ADR increased by 4%.
The Group’s real state business recorded sales totalling €25.5M, 127% higher than in the same period of the previous year. The increase in revenues is due to the sale effect of a land plot in Puerto Morelos, Mexico, for €7.3M. Sotogrande recorded a 61% increase in sales, to €18.2M, compared with the same period last year.
EBITDA for real state business totalled €13.4M. It should be borne in mind that Sotogrande’s contribution to the total was €6.1M, compared to €3.4M last year. Confirmed sales yet to be recorded in the accounts totalled €78,3m with an estimated margin of €27.3M.
Sotogrande, which operates Ribera del Marlin S.L. (a company in which Sotogrande and Ponte Gadea S.L. each have a 50% holding), has recently signed an agreement to sell the remaining 35 premises in the Ribera del Marlin development to a group of Irish investors for a total of more than €37M (€37,167,000). This is the biggest operation in Sotogrande’s history. The price per m2 in the operation exceeded 6,700 euros.