Rezidor hotel group interim report january-march 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.

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.

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.

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.

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.

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.