NH Hotel Group completes the best second quarter in its history

NH Hotel Group has obtained total revenues of 742.4 million euros in the first half of 2022, more than triple the 215.9 million euros obtained in the first six months of 2021, impacted by greater mobility restrictions . The reactivation since March of both leisure and business clients, together with the Group's cost containment, allowed the hotel company's results to improve by 89.4%, reducing its total losses to just -15.4 million euros , due to the losses reported in the first quarter impacted by Ómicron, compared to -145.4 million euros in the first half of 2021.

The improvement in NH's results has been especially intense between April and June, a quarter in which it achieved total revenues of 508.8 million euros, 8.5% higher than the same quarter in 2019 and more than three times higher than 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 that of the same months last year, and reached 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. The intense recovery of the leisure and business traveler segments, which account for a large part of the hotel company's offer, was decisive in its achievement.

After 21 consecutive months of confinement and six waves of restrictions, in what has been the greatest historical crisis in tourism in the world, NH's income and results have improved month by month since March. In June alone, revenues exceeded 190 million euros, a new monthly record for the company that exceeds the previous one of 175 million euros obtained in October 2019. Likewise, the improvement in all margins, due to the strict control of costs, has intensified the positive evolution of the group's cash flows, so that, at the end of the first half of this year, it has reduced its net financial debt to 463 million euros, 105 million euros less than the net debt for value of 568 million euros existing as of December 2021.

In the presentation of results sent today to the CNMV, Ramón Aragonés, CEO of NH Hotel Group, considers the policy of adapting prices to the new inflationary environment while guaranteeing control of costs. “After the Ómicron variant had a very limited effect over time, since March of this year the recovery of NH hotel activity has been faster than expected, with excellent activity and price performance in all countries where we operate. This evolution has allowed us to reach new records both in revenues for the second quarter and in monthly revenues for June, and makes us optimistic about the forecasts for the second half of the year. Having adapted prices is helping us to partially offset inflationary pressures, especially intense in energy or outsourced services such as cleaning or laundry. We hope that the current strength of the leisure segment and the strong rebound in business trips will allow us to consolidate the current recovery in the medium term."

Together with the dynamics of the business, the lower financial indebtedness, added to the refinancing of the debt reached last year with the extension of maturities until 2026 and together with a strong liquidity amounting to 618 million euros, has made the agency In May, Fitch upgraded NH's credit rating, which went from 'B-' to 'B' with a stable outlook, and this month Moody's upgraded the company's outlook from negative to stable. Both ratings certify the constant recovery of the business and the best credit metrics obtained by the company.

Record second quarter
Between April and June 2022, NH's total revenues were 509 million euros, which represents growth of 8.5% compared to the same quarter of 2019.
At comparable levels and compared to the second quarter of 2021, Spain raised its revenues by 89 million euros, exceeding pre-covid levels, with a high contribution from Madrid and a strong improvement from Barcelona throughout the second quarter. In Italy they improved by 66 million euros on comparable levels, with significant 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 levels higher than 2019. In Latin America the comparable increase was 20 million euros and included Argentina as well as Colombia, Chile and Mexico. The perimeter changes, including the eight hotels of the Boscolo chain incorporated into the Group, as well as the new NH Collection Copenhagen and NH Hannover hotels, contributed 93 million euros to growth during the semester.

The average daily rate (commonly called ADR) of NH hotels increased in the second quarter from 116 euros per night in April to 139 euros per night in June, leaving an average in the second quarter of 128 euros per night, a 7% higher than in the same quarter of 2019. The average occupancy in the second quarter was 68.6% (63% in April, 70% in May and 72% in June), still seven points lower than in the same quarterly period of 2019.

By country, the average price for the second quarter in Spain was 131 euros per night, and 78% occupancy. In Italy the ADR was 161 euros per night, with an occupancy of 74%. In the Benelux, the average was 146 euros per night, with an occupancy of 68%. In Central Europe the 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%. On half-yearly data, from January to June of this year the average occupancy of the Group was 54.5% and the ADR was 114 euros per night.