REPOSITIONING PLAN
During the first year of implementation of the Repositioning
Plan, the Company made a significant investment to
renovate its product, maximizing the full potential of each
of the NH Hotel Group assets.
In the first stage, between 2014 and 2016, the Company will
invest approximately €227M in 71 hotels, with an estimated
return of 20% (EBITDA).
60% of this investment will be used to reposition hotels
for conversion into NH Collection, a segment in which the
Company already has over 30 establishments. 40% of the
new signage has been implemented and the Company
expects to complete 100% in 2015.
The repositioning process also includes a specific marketing
plan to re-launch hotels in the market, besides the definition
of the appropriate price segmentation according to
establishments in each destination.
Of the 45 hotels undergoing refurbishments as part of
the Repositioning Plan for 2014, 18 have been successfully
accomplished, including in particular NH Collection Palazzo
Barocci and NH Firenze in Italy; NH Alonso Martínez,
NH Collection Abascal, NH Collection Gran Hotel and
NH Collection Aránzazu in Spain; and NH Berlin Mitte,
NH München Messe and NH Danube City in Central Europe,
achieving an average increase of 13.5% in revenue from
room sales from April 2014.
Refurbishment works are currently being completed in
seven other hotels and it is expected that works will be
completed in 12 additional hotels by the end of the year.
Additionally, works at NH Collection Eurobuilding in Madrid
finalized in October 2014. The hotel’s re-opening was an
extraordinary event.
THE NEW NH
Key initiatives in 2014
26
NH Collection Aránzazu
San Sebastian, Spain
