The façade of the NH Collection Eurobuilding forms the backdrop for a chapter in NH Hotel Group’s financial story. The National Securities Market Commission (CNMV) announced a temporary suspension of the stock listing after NH Hotel Group reported results for the first quarter. The report showed a net loss of 36 million euros, an improvement of 40.9 million euros from the same period a year earlier. The decision was disclosed around noon, during trading, as the company disclosed material information. At that moment, NH shares hovered around 3.62 euros, registering a modest gain. The firm noted that January through March is typically a weak stretch due to seasonal factors affecting hotel activity.
Yet the quarterly picture also carried a stronger top line. Total revenue reached 407 million euros, marking a 74.2 percent increase from the prior year period, driven in part by a rebound after pandemic restrictions. This level of sales helped NH surpass fourteen percent of its 2019 revenue in a pre pandemic context, reflecting a robust recovery in the wake of covid related disruptions. The company also reported a gross operating profit, EBITDA, of 59 million euros for the quarter, more than six times the EBITDA of the first quarter a year ago. EBITDA posted 83 million euros in the first three months of 2019, illustrating the scale of the post pandemic rebound.
In the same breath the headline figures underscore a paradox many investors track: the quarterly bottom line still shows red ink despite a strong top line. The contrast speaks to the ongoing seasonality in the hospitality industry and the gradual conversion of higher activity into more sustainable profitability. The quarterly results align with a broader narrative of the sector as it climbs out of the pandemic era while facing new macro headwinds and moderating demand patterns in certain markets. The company emphasized the seasonal nature of the quarter, noting that the weakness is typical for this period even as revenue momentum builds.
NH cut losses and increased revenue by 74% in the first quarter
Net cash generation and liquidity moved into focus as NH discussed its balance sheet. The group reported liquidity exceeding 480 million euros following the voluntary repayment of the final tranche of pandemic-era financing. The company earlier drew and then repaid a total of 250 million euros from an ICO loan program designed to bolster liquidity during the health crisis. This repayment left the group with a strong cash cushion while still navigating the seasonality that affects cash flows in the first quarter. The quarterly cash position was further influenced by capital expenditures totaling 23 million euros, which supported ongoing investments in the portfolio. Resulting from these movements, net financial debt rose to 340 million euros, an uptick of 33 million euros from the prior period, reflecting the interplay between disciplined liquidity management and continued investment activity.
ICO credit and liquidity
The group’s liquidity position remains comfortable, backed by a robust cash balance and a disciplined approach to debt. Equity holders and lenders observe the reversion toward normalized capital structure as market conditions improve. While the first quarter presented a mixed picture, NH continues to deploy capital in ways that support brand strength and guest experience while maintaining a prudent stance on financial leverage. The near-term priority centers on translating revenue growth into durable profitability and preserving financial flexibility to weather seasonal fluctuations and potential demand shifts across key markets.
The NH management team and board reaffirm their focus on sustaining revenue momentum, optimizing operating efficiency, and ensuring that liquidity remains ample to fund strategic initiatives. The period under review highlights the importance of balancing top-line expansion with careful cost discipline and a measured approach to capital allocation. Market observers will continue to watch how NH translates its improving sales trajectory into sustained profitability, particularly as the sector navigates evolving travel patterns and competitive dynamics.