RESULTS
The Group continued recording significant activity rates (occupancy of 66.81% in 2013 compared to 64.9% in 2012 on a comparable basis). The increase in occupancy
on a comparable basis took place in all the business units, highlighting Central Europe, Latin America and Italy, with growth of 4.65%, 7.73% and 3.16%, respectively.
As business unit, Central Europe stood out within the Group, since practically all the German cities recorded high occupancy rates, most notably the increase in RevPAR
inMunich, which reached 8.3%.
In the case of Italy, the increase in occupancy also led to positive RevPAR levels in 2013. The business unit recorded a slight increase in revenue and achieved the best
efficiency ratios of the Group, with a significant reduction in operating and lease costs, despite the increase in activity. Consequently, Italy achieved an improvement in
comparable EBITDA of
+
62.5%.
Latin America achieved very different performances in its main markets. Mexico stood out, with increases in 12-month RevPAR of over 7%, due mainly to the increase
in hotel occupancy. Argentina, however, achieved very weak 12-month growth as a consequence of the drop in prices in the wake of adverse movement in exchange rates,
although the sharp increase in occupancy in the fourth quarter nearly offset that drop.
Benelux was able to reverse the negative trend of the first half of the year in the second half, with significant increases in occupancy and stable RevPAR in both quarters.
Lastly, the Spain Business Unit, despite being the business unit most highly exposed to the adverse macroeconomic climate, achieved strong growth in comparable
EBITDA compared to the previous year, fundamentally due to the strong reduction in lease costs. The trend in 2013 and the first weeks of 2014 was positive, although
with more moderate performance than in other countries where the Group operates. Barcelona performed best among Spanish cities, which recorded much lower
activity levels.
ThemostsignificantelementoftheGroup’spropertybusinessisthatIFRS11,JointArrangements,cameintoforceon1January2013,whicheliminatestheproportionate
consolidation method for jointly controlled entities, such as Residencial Marlín and Los Alcornoques de Sotogrande, which will be accounted for using the equity
method. This change had a significant impact on sales in 2013, since the sales of these companies will not be included under “Income” on theConsolidatedBalance Sheet.
The property business obtained income of EUR 14.9million compared toEUR22.1million obtained in the same period the previous year. In 2013, 22 flats of Residencial
Marlin were notarised for a total of EUR 4.07 million, compared to a total of 25 dwellings totalling EUR 10.7 million in 2012.
Applying the same accounting principles and rules in 2013, the increase in sales would be 3%, equivalent to EUR 0.25 million.
CONSOLIDATEDMANAGEMENT REPORT
10
