Continued focus on cash protection as market remains weak
Comment from the CEO
"The third quarter has not witnessed any major change in the trading
conditions for Rezidor. A weak demand from business clients has been
partly offset by lower yield leisure travelers.
Visibility is still limited and our current plans are based on the
assumption that the difficult business climate will continue at least
for the near future. Our focus on capturing revenue and controlling
costs is targeted to ensure that Rezidor is well positioned to
benefit when market conditions improve. Our cost cutting program is
progressing according to plan and we feel confident that we will
achieve annual savings of MEUR 30 in operations and additional
reductions of approximately MEUR 4 in central costs.
As reducing risk by adding fee-based managed and franchised rooms
remains an important objective, Rezidor will continue to seek
profitable growth opportunities in this area. This year, the company
has already added almost 4,900 rooms to its operations, of which more
than 88% are managed or franchised" Kurt Ritter, President & CEO.
Third quarter, 2009
* RevPAR like-for-like decreased by -15.9% to EUR 64.3 (76.4).
Like-for-like occupancy was 66.8% (69.4).
* Revenue decreased by -14.1% or MEUR -27.1 to MEUR 165.4 (192.5).
On a like-for-like basis Revenue decreased by -13.4%.
* EBITDA was MEUR 3.1 (20.0), and EBITDA margin was 1.9% (10.4).
* Loss after tax amounted to MEUR -6.1 (10.1).
* Basic and diluted Earnings Per Share amounted to EUR -0.04
(0.07).
Nine month ending September, 2009
* RevPAR like-for-like decreased by -18.1% to EUR 63.2 (77.1).
Like-for-like occupancy was 62.1% (67.6).
* Revenue decreased by -16.9% or MEUR -100.1 to MEUR 491.2 (591.3).
On a like-for-like basis Revenue decreased by -14.5%.
* EBITDA was MEUR -4.8 (57.3), and EBITDA margin was -1.0% (9.7).
* Loss after tax amounted to MEUR -27.9 (24.9).
* Basic and diluted Earnings Per Share amounted to EUR -0.19
(0.17).
* Cash flow from operating activities amounted to MEUR -10.7
(49.1). Total available cash at the end of the period, including
unutilised credit facilities, amounted to MEUR to 92.7 (146.8 in
September 08). Net debt/cash amounted to MEUR -11.7 (19.3 in
September 08).
Other developments
* Rezidor opened ca 1,800 rooms in the third quarter, of which 90%
were managed or franchised. Two hotels, representing ca 145
rooms, left the system. During the first nine months, Rezidor
opened ca 4,900 rooms, of which 88% were managed or franchised.
* Rezidor signed 5 contracts for new hotels in the third quarter
featuring ca 1,000 rooms. During the first nine months, Rezidor
signed 30 contracts for new hotels, totaling ca 5,900 rooms. 100%
of the new rooms contracted year to date were managed or
franchised.
* The cost savings plan generated net savings of MEUR 9.2 during
the third quarter and MEUR 21.7 during the first nine months of
the year.
Selected financial Jul-Sep Jan-Sep Jan-Sep
data, MEUR Jul-Sep 09 08 09 08
Revenue 165.4 192.5 491.2 591.3
EBITDAR 54.2 70.8 148.8 211.6
EBITDA 3.1 20.0 (4.8) 57.3
EBIT (4.9) 13.4 (27.0) 37.6
Profit/(loss) after (6.1) 10.1 (27.9) 24.9
Tax
EBITDAR Margin % 32.7% 36.8% 30.3% 35.8%
EBITDA Margin % 1.9% 10.4% (1.0)% 9.7%
EBIT Margin % (3.0)% 7.0% (5.5)% 6.4%
Financial calendar
Year-end Report January-December 2009: 11 February 2010
Interim Report January-March 2010: 16 April 2010
Stockholm 30th October, 2009
Kurt Ritter
President & CEO
Rezidor Hotel Group AB
Webcast
30th October 2009 at 15:30
Kurt Ritter, President & CEO, Knut Kleiven, Deputy President & CFO
and Puneet Chhatwal, Chief Development Officer, will present the
report and answer questions on 30th October 2009 at 15:30 (Central
European Time).
To participate in the teleconference, please dial:
Sweden: +46 8 505 204 24
Sweden toll-free: 0200 896 377
UK: +44 203 023 4416
US: +1 646 843 4608
US toll-free: 1 866 966 5335
To follow the webcast, please visit www.rezidor.com
A replay of the conference call will be available one month following
the call by dialling
+44 208 196 1998 (UK) and +1 866 583 1035 (US), access code 195424#.
For further information, please contact:
Knut Kleiven, Deputy President and Chief Financial Officer
The Rezidor Hotel Group
Avenue du Bourget 44
B-1130 Brussels, Belgium
Tel: + 32 2 702 9200
www.rezidor.com
The full report with tables can be downloaded from the following
link:
