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Rezidor Q3 RevPAR Up 2.3%

2011-11-01

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Rezidor SAS Hospitality Revenue increased by 6.9% or MEUR 14.1 to MEUR 219.4 (205.3). On a Like-for-like basis Revenue increased by 0.1%.

Third quarter, 2011

RevPAR Like-for-like increased by 2.3% to EUR 69.1 (67.5). Like-for-like Occupancy was 69.8% (69.5).
Revenue increased by 6.9% or MEUR 14.1 to MEUR 219.4 (205.3). On a Like-for-like basis Revenue increased by 0.1%.
EBITDA was MEUR 14.8 (18.4), and EBITDA margin was 6.7% (9.0).
Profit after tax amounted to MEUR 14.2 (4.6), positively impacted by a MEUR 11.7 capitalisation of deferred tax assets.
Basic and diluted Earnings Per Share amounted to EUR 0.10 (0.03).

Nine month ending September, 2011

RevPAR Like-for-like increased by 3.7% to EUR 65.6 (63.3). Like-for-like Occupancy was 64.1% (63.5).
Revenue increased by 11.3% or MEUR 64.6 to MEUR 638.6 (574.0). On a Like-for-like basis Revenue increased by 1.8%.
EBITDA was MEUR 21.0 (24.5), and EBITDA margin was 3.3% (4.3).
Profit after tax amounted to MEUR 1.6 (4.1).
Basic and diluted Earnings Per Share amounted to EUR 0.01 (0.03).
Cash flow from operating activities was -5.6 (21.9). Total available cash at the end of the period, including unutilised credit facilities, amounted to MEUR 100.5 (MEUR 129.3 in Dec 2010 and MEUR 108.5 in September 2010).

Other developments

Deferred tax assets of MEUR 11.7 were capitalised during the quarter, following a review of the likelihood to utilise tax losses carry forward within the group.
Circa 1,700 new rooms were added into operations in the third quarter and ca 4,100 during the first nine months.
Circa 2,100 rooms were signed in the third quarter and ca 6,400 during the first nine months. All of the new rooms signed during the year were managed or franchised.

	Third quarter		Nine months		Rolling 12-months
MEUR	Jul-Sep 11	Jul-Sep 10	Jan-Sep 11	Jan-Sep 10	Oct 10-Sep 11	Oct 09-Sep 10
Revenue	219.4	205.3	638.6	574.0	850.3	760.0
EBITDAR	74.4	75.1	200.6	190.9	263.8	252.3
EBITDA	14.8	18.4	21.0	24.5	27.9	34.2
EBIT	5.9	9.4	-3.7	4.7	-4.6	6.7
Profit/loss after Tax	14.2	4.6	1.6	4.1	-5.2	3.8
EBITDAR Margin %	33.9%	36.6%	31.4%	33.3%	31.0%	33.2%
EBITDA Margin %	6.7%	9.0%	3.3%	4.3%	3.3%	4.5%
EBIT Margin %	2.7%	4.6%	-0.6%	0.8%	-0.5%	0.9%

Comment from the CEO

Continued strong RevPAR development in emerging markets while macroeconomic uncertainties are starting to impact growth in more mature European markets.

"RevPAR continues to improve. Overall macroeconomic uncertainties are however starting to impact the growth pace. Eastern Europe still shows strong growth while RevPAR development in Western Europe and the Nordics is slowing down. The Middle East and Africa continues to suffer from the political unrest.

Our RevPAR has developed more positively than the market during the first eight months of the year.

The drop in EBIT versus last year is mainly the result of a timing difference in our marketing spending versus last year.

Our main focus is on improving profitability both in absolute terms and relative to the industry. This will primarily be achieved through stronger emphasis on revenue generation, partly through synergies with Carlson, and asset management initiatives as well as the impact of the openings of the current asset-light pipeline.

During the first nine months of the year we opened 4,100 new rooms, and added more than 6,000 rooms to the pipeline. Supporting our development strategy, 100% of the pipeline at this point comprises management or franchise contracts.

Kurt Ritter, President & CEO

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