11
In 2015, NH Hotel Group obtained recurring annual revenues of €1,395.5 million, up by 10.3% on the previous year, representing an increase of +€130.4
million.
Staff costs were €496.4 million, in line with Group’s increased activity, higher salaries due to collective bargaining, and the merger of Hoteles Royal.
Direct management costs were €457.0 million. We can highlight greater efforts in marketing and systems over the year, higher repair and maintenance
costs in connection with the hotel repositioning plan, an increase in fees due to the change in segmentation towards more profitable indirect sales
channels, and the acquisition of Hoteles Royal.
In 2015 the group carried out actions in 24 rental contracts, including the cancellation of two contracts with negative contributions. The renegotiation
of leasehold contracts enabled the offset of increases from negotiations in previous years, CPI revisions and variable components. Over the 12 months,
leasehold payments increased by +3.9%.
Taking all of this into account, recurring EBITDA in 2015 was €149.5 million, an increase of +€39.4 million on the previous year (+35.8%).
Non-recurring EBITDA in 2015 mainly consisted of capital gains from asset sales, compensation relating to outsourcing processes, fiscal and financial
consulting, and linearization from renegotiating leasehold contracts.
Among other factors, operational improvement has allowed to release €31,5 millions provisions for impaired assets from previous years.
Depreciation, both recurring (€94.8 million) and non-recurring (€21.2 million), increased due to higher CAPEX spending on repositioning hotels and the
accelerated depreciation relating to those investments and to hotels with impairment.
In 2015 the Group’s net interest expenses were €46.6 million, a reduction of -6.6% compared to the previous year. This was largely due to the downward
trend of the Euribor, the reference interest rate for most of the Group’s variable interest rate debt, and the reduction of margins before the summer
(long-term syndicated borrowing and a German mortgage).
The change in Corporate Tax is explained by the positive tax rate change in Italy compared to 2014 where there was a negative impact from the tax
rate in Spain.
The Group’s Net Profit for 2015 is +€0.9 million. This is the first positive net profit since 2011.
Evolution per Business Unit
- In Spain the RevPAR grew by +17.3% with price increases of +10.7% representing 62% of RevPAR growth. Occupancy was up by +5.9% thanks to
good behaviour in both primary and secondary cities. LFL&R revenues grew by +11.0% (+€32.2m), lower than RevPAR growth, explained by the
loss of -€2.9m of restaurant income due to outsourcing catering in 6 hotels.
- Meanwhile, RevPAR increased by +20.0% in Italy, with a price increase of +17.0%. A highlight was the behaviour of Milan thanks to the Expo, with
an increase of +41.1%, where we have 12 hotels and 2,222 bedrooms. The increase in Rome was +5.4%. The change in the usual business customer
profile in Milan, who consume more than visitors to the Expo, meant that revenues grew by +15.6%.
- Benelux reached +8.0% growth in RevPAR over the year, mainly due to +6.5% higher prices. The change in segmentation implemented from the
start of 2015 has made it possible to improve results. A highlight is Amsterdam (+11.2%). The change in segmentation towards more profitable
rates but with lower restaurant consumption meant that LFL&R revenues +2.3% (+€6.5m) did not grow at the same pace as the increase in
RevPAR.
- Central Europe: The cumulative increase in RevPAR over 12 months was 1.3%, with a price increase of +6.0% and occupancy down by -4.4%, due
to lower attendance at trade fairs, the change in segmentation, which could not be offset, and poorer brand positioning due to a later start on
brand and product repositioning. LFL&R income was down -0.1% (-€0.5m) due to lower restaurant income, the change in segmentation and the
lost income from hotels being renovated.
- Latin America: without taking the contribution of Hoteles Royal into account, RevPAR at a real exchange rate grew over the year by +11.3%, with a
price increase of +15.9%, and occupancy was down by -4.0%, mainly due to the problem of inflation in Argentina. Over the year, LFL&R revenues
at the real exchange rate grew by +9.7% (+€7.2m).
CONSOLIDATED MANAGEMENT REPORT
