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Rezidor's Q4 2010 Interim Results


February 22, 2011 - London

Comment from the CEO

 

A year of record openings and strongly improved cash-flow

 

"2010 has been a very positive year for us. We experienced a recovery in all geographical regions and a robust increase in margins as a result of the RevPAR improvement and the cost saving measures initiated in 2008/2009. We also reported a substantial increase in free cash flow coming from good operating results, improved working capital and tight CAPEX control. Rest of Western Europe led the recovery throughout the year and we witnessed significant RevPAR increases in key markets such as Germany, France and Benelux.

 

The fourth quarter, however, recorded a drop in margins compared to last year. This was mainly the result of exceptional costs, such as higher variable salaries due to better than expected performance during 2010, allocation of marketing costs to the quarter and one-offs in the Nordics. The extraordinary costs in the quarter do not represent an increase in the cost base going forward.

 

We have continued with our growth strategy, and despite the continuation of difficult trading, 2010 was another record year of new openings. 7,200 new rooms were added to operations, and we continue to have one of the largest pipelines in the industry. Going forward we will continue adding new hotels to our portfolio and invest in further enhancing the quality of the existing hotels."

 

Kurt Ritter, President & CEO

 

Fourth quarter, 2010  

  • RevPAR Like-for-like increased by 6.9% to EUR 61.0 (57.0).
    Like-for-like Occupancy was 62.9% (59.0).
  • Revenue increased by 13.8% or MEUR 25.7 to MEUR 211.7 (186.0).
    On a Like-for-like basis Revenue increased by 5.4%.
  • EBITDA was MEUR 6.9 (9.7), and EBITDA margin was 3.3% (5.2).
  • Loss after tax amounted to MEUR -6.8 (-0.3).
  • Basic and diluted Earnings Per Share amounted to EUR -0.05 (-0.00).  

Twelve month ending December, 2010 

  • RevPAR Like-for-like increased by 4.6% to EUR 62.8 (60.0).
    Like-for-like Occupancy was 65.0% (61.1).
  • Revenue increased by 16.0% or MEUR 108.5 to MEUR 785.7 (677.2).
    On a Like-for-like basis Revenue increased by 3.2%.
  • EBITDA was MEUR 31.5 (4.9), and EBITDA margin was 4.0% (0.7).
  • Loss after tax amounted to MEUR -2.7 (-28.2).
  • Basic and diluted Earnings Per Share amounted to EUR -0.02 (-0.19).
  • Cash flow from operating activities was 49.0 (-6.1). Total available cash at the end of the period, including unutilised credit facilities, amounted to MEUR 129.3 (97.0). 

Other developments  

  • Circa 500 new rooms were added into operations in the fourth quarter and ca 7,200 during the year. 
  • Circa 1,800 rooms were signed in the fourth quarter and ca 8,100 in 2010. All of the new rooms signed during the year were managed or franchised.
  • The Board of Directors proposes no dividend (EUR 0.00). 

 

  Fourth quarter Twelve months
MEUR Oct-Dec 10 Oct-Dec 09 Jan-Dec 10 Jan-Dec 09
Revenue 211.7 186.0 785.7 677.2
EBITDAR 63.2 61.4 254.1 210.1
EBITDA 6.9 9.7 31.5 4.9
EBIT -0.9 2.0 3.9 -25.0
Profit/loss after Tax -6.8 -0.3 -2.7 -28.2
EBITDAR Margin % 29.9% 33.0% 32.3% 31.0%
EBITDA Margin % 3.3% 5.2% 4.0% 0.7%
EBIT Margin % -0.4% 1.1% 0.5% -3.7%

 

Financial calendar

 

Interim Report January-March 2011: 13 April 2011
Annual General Meeting 2011: 13 April 2011
Interim Report January-June 2011: 21 July 2011
Interim Report January-September 2011: 28 October 2011

 

 

This quarterly report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08:30 Central European Time on 22nd February 2011.

 

Stockholm 22nd February, 2011

 

Kurt Ritter
President & CEO
Rezidor Hotel Group AB

 

Webcast

 

22nd February 2011 at 15:30 (Central European Time).

 

Kurt Ritter, President & CEO, Knut Kleiven, Deputy President & CFO and Puneet Chhatwal, Chief Development Officer, will present the report and answer questions.

 

To participate in the teleconference, please dial:

 

  Sweden: +46 (0)8 5066 2770  
  Sweden toll-free: 0200 897 065  
  UK: +44 (0)20 7784 1036  
  UK toll-free: 0800 279 9640  
  US: +1 718 354 1152  
  US toll-free: 1866 850 2201  

 

 

To follow the webcast, please visit www.rezidor.com

 

A replay of the conference call will be available one month following the call by dialling +46 (0)8 5051 3897 (Sweden),
+44 (0)20 7111 1244 (UK) and +1 347 366 9565 (US), access code 7147173#.

 

For further information, please contact:

Knut Kleiven, Deputy President and Chief Financial Officer

The Rezidor Hotel Group
Avenue du Bourget 44
B-1130 Brussels, Belgium
Tel: + 32 2 702 9200
www.rezidor.com

 

The full report with tables can be downloaded from the following link:

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Rezidor Hotel Group via Thomson Reuters ONE

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