NH Hotel GroupA company owned by Minor International, a 100 million euro net profit in 2022It represents the first positive annual result since 2019, when it reached €90m, as reported to the National Securities Market Commission (CNMV) on Wednesday. 1,759 million euros in total revenue, 2.4% above the 2019 figure.
The recovery in international tourism experienced by the Spanish tourism sector in 2022 has brought back the profits of the NH hotel chain, which has not recorded a positive result since 2019, the last year of normalization before the pandemic. The company posted a net profit of 100 million euros this Wednesday. asset rotation policy and cost control.
Strong recovery in revenues and gross operating profit (Ebitda) allowed NH to achieve recurring net profit of €76 million in 2022; this is the first positive annual result since 2019.
As announced by the hoteliers, when discounting the micron effect in the first quarter of the year, the company’s regular net profit between April and December 2022 was €156 million, 35 million €, or 29% more than in the same period of 2019. .
In addition, capital gains from rotation of non-strategic assets, including net capital gains from asset rotation, allowed total net profit to exceed €90 million in 2019 to €100 million in 2022.
1.759 million revenue
NH had a total revenue of 1,759 million euros in 2022. 834 million registered in 2021 and 2.4% (41 million) above the 1,718 million achieved in 2019, the last full year before the pandemic.
According to the hotel company, revenues in the first quarter amounted to 234 million euros, including 509 million in the second quarter, 516 million in the third and 501 million in the fourth quarter.
According to the hotel company, pricing strategy and cost control, EBITDA reached 519 million euros“mainly due to the negative impact of last year’s first quarter,” which represents 94% of the 2019 figure.
Excluding the accounting impact of IFRS 16, EBITDA was €250 million from April to December, 11.5% higher than the same period in 2019, as reported to the CNMV.
As well as the resumption of major conventions and long-distance international travel, the company continuous re-activation of business trips “compensates for any particular slowdown in demand in the entertainment industry” at large companies.
debt reduction
This NH’s net financial debt reduced from 568 million It was reduced to 308 million euros on 31 December 2022 at the end of fiscal 2021. year”.
The strong liquidity position has allowed NH to continue to reduce its financial indebtedness that began in 2021, “thereby repaying 200 million euros of the 250 million euro ICO loan issued during Covid in 2022.”
In January 2023, the company repaid the remaining 50 million of that syndicated loan, thereby reducing the risk of variable cost debt from 47% to 25%, “additional strength in the face of possible increases in Euribor”.
price recovery
This average price recovery (ADR) and revenue per available room (RevPAR) offset lower occupancy levels in 2022 compared to 2019, according to the company. In 2022, NH Hotel Group set its RevPAR at an average of 74 euros 2019 figure and despite the negative impact of ohmron in the first quarter
The upward trend was even greater in 2019. ADRwith an average daily price of 90 euros in the first quarter; 128 euros per second; Third place is 130 euros, fourth place is 128 euros. Compared to 2019, ADR growth was 19%, while excluding the first quarter, the increase was 22%.
Average occupancy was 61% in 2022 and was penalized by the micron effect that brought that down to 40% between January and March. While the average occupancy rate was 68% between April and December last year, it is still below the 74% reached in the equivalent period of 2019.
in Spain, Average price per room for the whole of 2022 was 123 euros per dayIt was 10% higher than in 2019, and the average occupancy rate was 69%, five points less than in 2019.
“The increase in revenue is due to the excellent year-round performance of secondary cities and the significant increase seen in Madrid and Barcelona from the second quarter, with the resurgence of business travel,” NH explains.
Average daily revenue in Italy rose 14% to 154 euros, while occupancy fell six points to 63%. Milan joined this trend strongly from the third quarter, as Rome and the secondary cities continued to grow continuously.
In the Benelux, ADR rose 11% to 139 euros per day, while occupancy fell 14 points to 57%. Brussels and secondary Dutch cities continued a high evolution, Amsterdam was developing more gradually and hotels especially for congresses showed a slower development.
In Central Europe, ADR increased by 11% to 107 euros per day, while the occupancy rate remained at 55%, down 18 points. Major cities such as Berlin and Hamburg were in better shape than secondary cities.
In Latin America, occupancy was 58%, four percentage points less, and ADR 76 euros per day, 4% higher. Argentina experienced the best evolution, with good improvements in Colombia and Chile, and slightly slower recovery in Mexico.