6
MESSAGES FROM THE CHAIRMAN AND CEO
2015 has been a very intense year for NH Hotel Group,
not only because of the effective execution of each of the
strategic initiatives planned for the year under the scope of
the Business Plan, but also due to the numerous milestones
achieved among which I would like to highlight the return
to profitability of the Group’s consolidated results after four
years. Much remains to be done. However, it is a good time to
reflect on this year’s performance.
After two years marked by investments in repositioning
our hotel portfolio and the reinforcement of the Group’s
organisational, management and communication capabilities,
we headed into year three of our Business Plan having fulfilled all
the targets we had established at the beginning. We are currently
working with a larger revenue base, a better-positioned and
more streamlined hotel portfolio and substantially-improved
guest experience feedback.
Hotel refurbishments and experience have continued to be
the key to the Company’s transformation during this period,
achieving the objective of having the Group’s best-performing
establishments already in top shape.
Portfolio segmentation, refurbishments, the introduction of
elements that differentiate the NH experience and a value
proposition designed to meet and surpass consumers’
expectations, are making possible an improvement in how our
hotels are rated and how our properties are positioned in online
searches by destination, ultimately resulting in a significant
revenue growth.
The launch of the NH Collection brand across the Group’s main
markets is being exceptionally well received and making a solid
contribution to our revenue growth. More and more hotels are
being rebranded as NH Collection establishments in Europe and
Latin America.
The occupancy and price management strategy, strengthened
by sophisticated IT tools, is enabling the Group to leverage the
more profitable room rates after the new segmentation strategy
embarked last year. Indeed, the Company is outperforming its
direct competitors in its top destinations.
On the other hand, the portfolio optimization plan is giving the
Company greater growth opportunities and a more profitable
portfolio, having exited the hotels which did not fit with our
development strategy.
Moreover, investor and owner confidence has driven accelerated
expansion, with the Group signing nearly three times as many
new hotels as in 2014, improving notably the quality of the
assets and destinations to be included in our portfolio under
the brands NH Collection and nhow. Here it is worth highlighting
destinations such as Rome, London and Amsterdam, among
others. In the later, NH Hotel Group has won a tender to operate
the largest hotel in Benelux under its nhow brand.
In addition to this organic growth, in early 2015 we completed
the acquisition of Hoteles Royal in Latin America, giving us a
leadership position in the city of Bogota and boosting our
presence significantly in Colombia, Chile and Ecuador.
It is important to highlight that the strategic objectives
established at the time of the investment decision and
set for 2015 have been fulfilled. In parallel we made good
progress on our joint venture in China, which announced its
growth plans for the next five years in early 2016.
All of this has translated into a number of recognitions for
our Company. During last year, NH Hotel Group has been
awarded for its business performance, innovation and
commitment to technology and social responsibility with
prizes such as the Worldwide Hospitality Awards 2015
Grand Prix
for Best International Hotel Chain among the
world’s 50 largest hotel companies.
The execution of the Business Plan, supported by a new
human resources, sustainability and IT management
strategy, is advancing faster than expected and presenting
great potential. This, coupled with the recent healthy
performance and the favourable outlook, has allowed us to
raise the guidance initially set for the final phase of the Plan.
All of us employees at NH Hotel Group are obsessed with
delivering memorable experiences to the consumer with the
ambition that one day, whenever anyone contemplates a
trip to a city, for an overnight stay or meeting, for business
or pleasure, they will always ask themselves if there is an
NH hotel at their destination.
I would like to take this opportunity to thank all of our
employees for the enthusiasm and passion they show every
day, always with a smile to make the New NH a reality.
I would also like to thank all of our shareholders, whose trust
and support have enabled the Company to find its way back
to sustainable growth and to a future full of opportunities.
To all, many thanks.
Federico J. González Tejera
CEO of NH Hotel Group
CEO of NH Hotel Group
