Madrid – NH Hotel Group has obtained total revenues of 742.4 million euros in the first half of 2022, more than three times the 215.9 million euro obtained in the first six months of 2021, impacted by major restrictions on mobility. The reactivation since March in both leisure and business travelers, combined with the Group’s cost control measures, has allowed the hotel Group’s net result to improve by 89.4%, reducing its total loses to just -15.4 million euros, explained by the losses reported in the first quarter impacted by Omicron, compared to -145.4 million euros in the first half of 2021.
The improvement in NH’s results has been especially intense from April to June, a quarter which saw total revenues of 508.8 million euros, 8.5% higher than the same quarter of 2019 and more than triple the 153,6 million obtained in the second quarter of 2021. In the second quarter of this year, the company achieved a recurring EBITDA of 177.5 million euros, five times higher than for the same months of last year, and obtained a total net profit of 61.6 million euros, compared to losses of 21.3 million euros between April and June 2021. It is the highest quarterly profit obtained by the Group in its entire history. A determining factor in achieving it was the intense recovery of the leisure and business travel segments, which concentrate a considerable part of the group’s supply. After 21 consecutive months of lockdown and six waves of restrictions, in which has been the greatest historical crisis in tourism in the whole world, NH’s revenues and results have been improving month on month since March.
In June alone, revenues exceeded 190 million euros, a new monthly record for the company beating the former record of 175 million euros obtained in October 2019. Furthermore, the improvement in all margins, thanks to strict cost control, has intensified the positive evolution of the group’s cash flows, so that at the end of the first half of this year its net financial debt has been reduced to 463 million euros, 105 million euros less than the net debt of 568 million euros reported in December 2021. This decrease was also supported by the sale of two small non-strategic assets and the low-profile held in capex investments. In the presentation of results sent today to the CNMV, Ramón Aragonés, CEO of NH Hotel Group, considers the essential aspects for the “intense recovery” of the company to be the policy of adapting prices to the new inflationary environment and at the same time assuring cost control. “After the Omicron variant had a very limited effected in time, since March this year the recovery of NH’s hotel activity has been faster than expected, with excellent behavior in activity and prices in all the countries where we operate.
This evolution has allowed us to reach new records in both revenues for the second quarter and in the monthly revenues for June, and makes us optimistic about the outlook for the second half of the year. Having adapted prices is helping us to offset partially the inflationary tensions, which are especially intense in energy or outsourced services, such as housekeeping or laundry. We expect the current strength of the leisure segment and the intense upturn in business travelers to allow us to consolidate the current recovery in the medium term”. Together with the business dynamics, the lower financial leverage combined with the debt refinancing achieved last year with the extension of maturities until 2026 and the strong liquidity of 618 million euros has led the agency Fitch to improve NH’s credit rating in May, from ‘B-’ to ‘B’ with a stable outlook, and has led Moody’s to upgrade the company’s outlook in the same month from negative to stable. Both ratings certify the constant recovery of the business and improved credit metrics obtained by the company. Record second quarter Between April and June 2022, NH’s total revenues were 509 million euros, representing growth of 8.5% compared to the same quarter of 2019.
In comparable levels and with respect to the second quarter of 2021, Spain increased its revenues by 89 million euros, exceeding pre-COVID levels, with a high contribution from Madrid and a strong improvement in Barcelona throughout the second quarter. In Italy, revenues improved by 66 million euros in comparable levels with relevant growth in Milan, Rome and secondary cities. In Benelux the comparable improvement was 81 million euros, with significant increases in Amsterdam and Brussels.
In Central Europe, the comparable increase was 33 million euros, with Berlin, Düsseldorf and Hamburg at higher levels than 2019. In Latin America, the comparable increase was 20 million euros and covered Argentina, Colombia, Chile and Mexico. The changes in perimeter, mainly the eight Boscolo hotels that joined the Group, and the new NH Collection Copenhagen and NH Hannover hotels, contributed 93 million euros to the growth during the half-year. The average daily rate (ADR) of NH hotels increased in the second quarter from 116 euros per night in April to 139 euros per night in June, giving an average for the second quarter of 128 euros per night, 7% higher than the same quarter in 2019. Average occupancy for the second quarter was 68.6% (63% in April, 70% in May and 72% in June), still seven points below the same quarter of 2019. By countries, the average rate for the second quarter in Spain was 131 euros per night and occupancy was 78%.
In Italy, the ADR was 161 euros per night with an occupancy of 74%. In Benelux, the ADR was 146 euros per night with an occupancy of 68%. In Central Europe, ADR was 107 euros per night, with an occupancy of 62%, and in Latin America the ADR was 70 euros per night, with an occupancy of 57%. As far as halfyearly data are concerned, from January to June this year the Group’s average occupancy was 54.5% and ADR 114 euros per night. About NH Hotel Group NH Hotel Group (www.nhhotelgroup.com) is a consolidated multinational operator and one of the leading urban hotel companies in Europe and America, where it operates more than 350 hotels. Since 2019 the Company has been working in conjunction with Minor Hotels on the integration of its hotel brands under the same corporate umbrella with presence in more than 50 countries all over the world. Together they manage a portfolio of more than 500 hotels under eight brands: NH Hotels, NH Collection, nhow, Tivoli, Anantara, Avani, Elewana and Oaks, which make up a broad and diverse range of hotel options tuned to the needs and wishes of modern-day global travelers.