Benelux is different, given that it obtained better results in the fourth quarter than in the first nine months of the year. The Netherlands alone recorded income
of €283.8 million, down 4.4% on 2011. These results were offset by the hotels in the UK, Luxembourg and France, which are also managed by the Benelux
business unit.
With regard to Central Europe, cumulative 12 month RevPAR increased by 6.2%, with growth both in occupancy levels (3.8%), thanks to a favourable trade fair
calendar, and in average prices (2.3%). Generally, all German cities showed a strong increase in occupancy and prices, with a notable increase of more than
12%
in Munich and Berlin. 2012 RevPAR fell, however, in Switzerland compared to the previous year as a result of falling demand (and a strengthened Swiss
franc). This business unit is expected to continue its positive trend in the first quarter of 2013. Specifically, income from NH Hoteles in Germany rose to €281.2
million, up 5.2% over 2011. For the fourth consecutive year the Americas business unit continued to perform well, and posted the second highest growth in the
Group. In comparable terms, RevPAR grew by 2.8%, with falling occupancy levels (down 2.7%) offset by a rise in average prices (up 5.7%). There are significant
differences in the performance of the main Latin American markets. Mexico is notable for very positive increases in RevPAR, in excess of 10% for the year as a
whole, again driven by strong growth in hotel occupancy and average prices. Argentina, however, performed poorly as a result of reduced demand in its main
outbound markets (Brazil and Spain) due to overall prices increases in these countries and the deterioration of the Spanish economy.
Income from real-estate activity, at €22.1 million, was up by 30.2%, and deeds were signed on 25 properties worth a total of €10.79 million, compared to 4
properties totalling €1.58 million over the same period in 2011. No plots of land were sold in 2012, whereas in 2011 nine plots were sold for total of €3.09
million.
In terms of NH Group income for 2012, equal importance is given to the negative effects of the economic crisis in the Group’s main markets on hotel turnover
and the lack of non-recurrent income, resulting from the failure to conclude several sale transactions for non-strategic assets. Compared to the €72.1 million
posted in 2011, only €1.5 million was booked in 2012 due to sales transactions being cancelled late in negotiations as a result of final offers being much lower
than the initial expressions of interest, resulting in sales that would have involved a clear loss of value for NH Hoteles.
CONSOLIDATED MANAGEMENT STATEMENT
(
€ million)
2012
2011
2012/2011
€ Million
%
€ Million
%
VAR. %
Income from hotel activity
1,288.0
98%
1,339.2
94%
(4%)
Income from Real Estate Activity
22.1
2%
17.0
1%
30%
Non-recurrent income
1.5
0%
72.1
5%
(98%)
TOTAL INCOME
1,311.6
100% 1,428.3
100%
(8%)
Cost of Real Estate Sales
(10.0)
(1%)
(2.0)
(0%)
391%
Personnel costs
(465.8)
(36%)
(479.9)
(34%)
(3%)
Direct management expenses
(423.3)
(32%)
(420.0)
(29%)
(1%)
Non-recurrent expenses
(36.6)
(3%)
(32.6)
(2%)
12%
MANAGEMENT PROFIT
376.0
29% 493.8
35%
(24%)
Reversal of provision for onerous and other agreements
(4.7)
(0%)
4.1
0%
(214%)
Leases and property taxes
(293.8)
(22%)
(291.4)
(21%)
(1%)
EBITDA
77.5
6%
202.4
14%
(62%)
Assets impairment provision
(268.3)
(20%)
(15.3)
(1%)
1,656%
Depreciation
(115.5)
(9%)
(119.0)
(8%)
(3%)
EBIT
(306.3)
(23%)
68.1
5%
(550%)
Financial expenses
(54.8)
(4%)
(51.3)
(4%)
7%
Non-recurrent exchange rate differences
(29.2)
(2%)
(1.9)
(0%)
1,437%
Change in fair value of financial instruments
2.5
0%
(6.6)
(0%)
(137%)
Equity Method Profit (Loss)
(4.2)
(0%)
(4.0)
(0%)
6%
EBT
(392.1)
(30%)
4.3
0%
(9,176%)
Corporate income tax
55.5
4%
6.2
0%
795%
Profit before minority interests
(336.6)
(26%)
10.5
1%
(3,299%)
Minority interests
44.0
3%
(4.3)
(0%)
(1,130%)
NET PROFIT (LOSS)
(292.1)
(22%)
6.2
0%
(4,773%)
Note: This consolidated operating statement, on which the figures of this management report are based, was drawn up using hotel management grouping criteria that do not neces-
sarily coincide with the accounting standards applied to the consolidated financial statements of NH Hoteles Group.
CONSOLIDATED
MANAGEMENT REPORT
11
