The net consolidated earnings of the NH Hoteles Group grew strongly in 2007 to €77,4M, 24% up on 2006. This was due to a 38% increase in revenues, to €1,505M. The Company’s EBITDA (operating profit) improved to €283M, a 50% increase on 2006.
A solid 2007 European market fuelled a 40% increase in hotel business earnings to €1,427m. The earnings total reflected the geographically diversified revenue streams that have underpinned the Group’s growth in recent years.
The 2007 hotel business EBITDA consolidated the results of the Italian incorporations last year (Jolly Hotels and Framon) and increased by 60% to €258m.
“These results demonstrate the great strength of the Group and the potential of a growth model based on diversifying geographically and standardising the excellent services of our brand. All the units of NH Hoteles delivered a strong, sustainable growth that was very much in line with our expansion plan,” said Gabriele Burgio, the CEO of NH Hoteles.
The revenue growth was due to new incorporations to the Group and to a 6% Revpar (revenue per available room) increase. The Revpar growth was essentially due to a 7% ADR (average price) increase in Europe, in particular in the Germany, Benelux and Switzerland, Austria and Hungary business units.
A feature of the 2007 results was the strong revenue and EBITDA performance across the board of the Group’s business units.
The Group’s strong, sustainable growth was based on the quality that distinguishes the standardised and innovative services and facilities of its hotels NH Hoteles pays the utmost attention to details and to the comfort of its guests. The group’s hotels are situated in the very best locations, provide state-of-the-art communications technology to business clients and offer meticulous, top-quality restaurant services.
In Germany Revpar increased by 11% in the fourth quarter, confirming the country’s positive trend and overcoming the complicated comparison posted by this business unit at the nine month stage due to the 2006 World Cup.
The Revpar in the Benelux was up by 6% compared to the previous year. The Revpar of this business unit grew strongly in the fourth quarter, due to robust revenues in cities such as Brussels and Amsterdam. The revenues recorded in the Benelux, excluding new incorporations, totalled €297M, 8% up on 2007.
Spain performed strongly. Revenues rose 6% (excluding incorporations) due to increased business in major Spanish cities and particularly in Barcelona. The price-driven Revpar increase and improved efficiency raised EBITDA in Spain by 15% year on year.
In 2007, the Switzerland, Austria, Hungary and Romania business unit posted an 8% in increase in revenues and EBITDA totalled €2.9M (excluding new openings). This result highlighted the stability that recent incorporations in Central and Eastern Europe have brought to the portfolio of NH Hoteles. The hotels recorded an 8% increase in Revpar, basically due to an 8% rise in average prices. The city of Vienna performed particularly well in the fourth quarter of last year.
Revenues in Latin America totalled €69,4M and EBITDA (not including the new openings) grew by 8%, in spite of the adverse trend in the exchange rate. The Revpar increased by 2.8%, due to a rise in the ADR.
Sotogrande recorded sales of €78,6M, 13% up on the previous year, and an EBITDA of €24,2M. As at 31 December 2006, confirmed sales yet to be recorded in the accounts totalled €77,6M with a margin of €27,8M. Most of these sales will be recorded in the accounts at the end of 2008 and relate to the property development Ribera del Marl’n and the moorings of La Marina.