Rezidor Hotel Group: Interim Report January-March 2018

Die Tür zu einem Hotelzimmer (Symbolbild). © oatawa / iStock / Getty Images Plus / Getty Images http://www.gettyimages.de/

First Quarter 2018

Revenue decreased by MEUR 16.3 (-7.3%) to MEUR 206.1. The decrease is mainly due to the exit of eight leases at the end of last year (MEUR -6.5), the strengthening of the Euro (MEUR -7.6), the Easter effect (ca MEUR -5.2) and the reduction of low contributing room sales to release inventory for higher rate business in the future (ca MEUR -3.6). Excluding these factors, like-for-like revenue, including hotels under renovation, increased from a structural point of view by ca 3.5%.
Reported RevPAR for leased and managed hotels decreased by 3.6%. The decrease is mainly due to the negative impact of FX (-4.8%) and openings/exits (-0.5%). RevPAR LFL&R grew by 1.7%. Net of the Easter effect and the reduction of low contributing room sales, the RevPAR LFL&R, from a structural point of view, increased by additional 2.2% to 3.9%.
EBITDA increased MEUR 3.6 (144.0%) to MEUR 6.1 and the EBITDA margin increased 1.9 pp to 3.0%. Strong conversion in the leased portfolio and lower net costs for central activities of MEUR 4.6 has more than offset the negative impact of all the effects mentioned above.
EBIT improved MEUR 3.4 (41.5%) to MEUR -4.8 and the EBIT margin improved 1.4 pp to -2.3%.
Profit/loss for the period improved MEUR 2.6 to MEUR -5.0.
Basic and diluted earnings per share were EUR -0.03 (-0.04).
2,038 (3,178) rooms were contracted, 1,695 (925) rooms opened and 473 (885) rooms left the system.

MEUR	Q1 2018	Q1 2017	Change	%
Revenue	206.2	222.5	-16.3	-7.3%
EBITDA	6.1	2.5	3.6	144.0%
EBIT	-4.8	-8.2	3.4	41.5%
Profit/loss for the period	-5.0	-7.6	2.6	34.2%
EBITDA margin	3.0%	1.1%	1.9 pp
EBIT margin	-2.3%	-3.7%	1.4 pp

Comments from the CEO

A very good quarter with strong profit improvement and progressing well

During the first quarter of the year we had the challenge of absorbing the loss of revenue from the exit of eight leased hotels, unfavourable exchange rate evolution, the effect of timing of Easter and the priority to reduce low rate room sales, which is a key enabler to increase revenue in the coming quarters.

I am happy to write that we over delivered in many areas, which has enabled us to report, despite the revenue evolution, an EBITDA of MEUR 6.1 (+144.0%, representing a 2 percentage points margin improvement) and an EBIT of MEUR -4.8, which is the best result in a first quarter since 2007.

Regarding RevPAR we have made very good progress. From a structural point of view, excluding all the above mentioned elements, RevPAR grew by 3.9%. After all efforts made, at constant exchange rates, we expect to be able to grow RevPAR in Q2 and Q3 at a rate of high single digits.

During the quarter we have made significant progress in the execution of the key elements of our 5-year operating plan (operations, new brands and experience, repositioning of hotels, revenue management and pricing).

We see 2018 as a year of recovery, and (all things equal) expect like-for-like revenue, including renovations, to grow between 4% and 5%, with an EBITDA margin between 9% and 10%.

Federico J. González, President & CEO

ARIVA.DE Börsen-Geflüster

Kurse

Rezidor Hotel Group AB

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Presentation of the Q1 Results

On April 26, 2018 at 10:00 CET, a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Federico González-Tejera and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit www.investor.rezidor.com.

To access the telephone conference, please dial:

Belgium, Local              +32 2 404 0659
Belgium, Free               0800 58229
Sweden, Local:             +46 8 5033 6574
Sweden, Free:              0200 880 390
UK, Local:                    +44 330 336 9105
UK, Free:                      0800 358 6377
USA, Local:                  +1 929 477 0353
USA, Free:                   800 289 0438
France, Local:               +33 1 76 77 22 74
France, Free:                0805 101 219
Norway, Local:              +47 2100 2610
Norway, Free:               800 57933

Confirmation code: 9386190. For a replay of the conference call please visit www.investor.rezidor.com.

Financial Calendar

Q2 2018 results: July 26, 2018
Q3 2018 results: October 25, 2018

For Further Information, Contact

Knut Kleiven
Deputy President & CFO
knut.kleiven@radissonhotels.com

Pablo Corrales Diaz
Director, Strategy & Investor Relations
pablo.corrales@radissonhotels.com

The Rezidor Hotel Group Corporate Office
Avenue du Bourget 44
B-1130 Brussels
Belgium
Tel: +32 2 702 9200

Website: www.rezidor.com

About the Rezidor Hotel Group

The Rezidor Hotel Group is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson, as well as Radisson RED, an upscale "lifestyle select" brand inspired by the millennial lifestyle, and Radisson Collection, a premium lifestyle collection of exceptional hotels located in unique locations. Rezidor also holds 49% in prizeotel, a young hotel chain in the economy segment.

The portfolio consists of 374 hotels, with 82,464 rooms, in operation and 104 hotels, with 23,718 rooms, under development in 78 countries across Europe, the Middle East and Africa.

Rezidor's strategy is to grow with an asset-right approach, balancing management and franchise contracts with selected lease contracts. Management and franchise contracts offer a higher profit margin and more stable income streams and lease contracts allow Rezidor to complete their presence in Mature markets.

Rezidor is a member of Radisson Hotel Group(TM) (formerly Carlson Rezidor Hotel Group). For more information, visit www.rezidor.com.

This interim report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 CET on April 26, 2018.

Stockholm, April 26, 2018

The Board of Directors
Rezidor Hotel Group AB (publ)

The full report with tables can be downloaded from the following link:

Q1_2018_ENG

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Rezidor Hotel Group via Globenewswire

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