NH Collection Piazza Carlina
Torino, Italy
RESULTS AND EVOLUTION
In 2014 NH Hotel Group reported a bottom-line improvement of 76% in the first year of the
implementation of its Strategic Plan. The Company thus tops market expectations in a year marked
by the rollout of initiatives designed to transform the Group, including the launch of a new value
proposition and price strategy, hotel repositioning and system upgrades.
During this period recurring revenue rose to €1,265.1M, up €12.5M compared with the previous year,
while recurring EBITDA increased by 2.5% to €126.2M.
In 2014 hotel business performance was shaped by significant growth in prices and revenue
per available room (RevPAR) in the second half of the year. Prices rose faster than occupancy
throughout the second half, thereby enhancing the Group’s RevPAR mix.
As a result, the average daily rate (ADR) increased by 1.7%, while RevPAR growth came in at 3.6%,
driven by the strong momentum observed in the hotel business throughout the year, coupled with
the impact of the initiatives rolled out by the Company in the context of its Strategic Plan.
SIGNIFICANT MILESTONES ACHIEVED IN 2014
SALE OF ASSETS
NH Hotel Group reached an agreement in October for the sale of 96.997% of Sotogrande S.A.
for a value of €225M, a sum that underpins the financing of the Company’s Strategic Plan. The
agreement encompassed the sale of the assets of the developer, which included land zoned
for development, two golf courses and two hotels that will remain under NH Hotel Group’s
management for an initial period of two years.
This guidance, which called for proceeds of €125M in 2014, was largely exceeded with
this transaction and assets divestments for a value of €62M, mainly as a result of the
sale of NH Amsterdam Centre in June. This hotel continues to be operated by NH Hotel
Group through a sale-and-leaseback agreement, positioning NH to defend its leadership
position in the Amsterdam hotel market in the long term, where it currently operates
twelve hotels, with almost 3,000 rooms.
NH HOTEL GROUP CONTROLS 100% OF NH ITALY
An agreement was reached with Intesa Sanpaolo to acquire its share in NH Italy.
As a result of this operation Intesa Sanpaolo achieved a larger participation in the
shareholding structure of NH Hotel Group, up from 4.5% to 16%, in consideration of
the 44.5% interest in NH Italy it held until this date. Finally, on January 23
rd
2015, Intesa
Sanpaolo, S.p.A. reported the sale of 7.6% of the equity in NH Hotel Group, S.A.
KEY FIGURES
12M 2014
M. Eur
12M 2013
M. Eur
2014/2013
Diff.%
TOTAL REVENUES
1,265.1
1,252.6
1%
Gross operating profit
391.8
398.4
(1.7%)
EBITDA
126.2
123.1
2.5%
Net income before minorities
(18.9)
(35.2)
46.3%
Net recurring income
(18)
(34.2)
47.3%
NET INCOME including non-recurring activity
(9.6)
(39.8)
76%
NH HOTEL GROUP PROFIT AND LOSS STATEMENT
(€ million)
NH HOTEL GROUP
Key figures
10
