NH exceeds 2019 business figures in the second quarter
The operational and financial transformation of the company in the years prior to the pandemic, together with its favorable management, have laid the foundations for leaving the crisis behind quickly
NH Hotel Group faces the winter with very good prospects: occupancy has increased from 40% in the first quarter of this year to 70% in May and continues to grow, while revenues have risen from 234 million euros in first quarter to a figure of more than 500 million euros in the second quarter and beating the same period of 2019. Likewise, the favorable evolution of the average daily revenue per room (ADR) stands out, which has gone from 90 euros in the first quarter of this year to 116 and 128 euros respectively in the months of April and May, exceeding 135 euros in the month of June, according to Ramón Aragonés, CEO of the hotel company, in his speech before the General Shareholders' Meeting,which was held this morning in a hybrid way at the NH Collection Casino in Madrid.
In his speech, the CEO argued before the hotel company's shareholders that the current favorable evolution of the business "is directly based on the work carried out in 2018 and 2019 in terms of digitization, and on the corporate effort carried out throughout 2021, the year in which we have demonstrated our ability to overcome the most difficult stage that the sector has experienced”. Specifically, he has cited the efficiency and cost discipline measures applied last year as especially relevant. In addition, Aragonés has highlighted the diversified portfolio, the strong presence in the main cities, and the high brand recognition that the Company has, as well as the advantage of having preserved in these years a "solid base of owned assets that continue to supporting the Group.
NH shareholders approved the annual accounts and management report for 2021. Last year's consolidated revenue grew by 55%, to 834 million euros, and consolidated recurring net profit improved by 216 million, reaching a result of -155 million euros.
Regarding the evolution so far in 2022, the improvement in the company's consolidated financial position was particularly highlighted thanks to the acceleration of the recovery, the price strategy and cost control that allow cash generation to be increased. In the first five months of the year, net financial debt was reduced by 27 million euros, down to 541 million euros at the end of May, and liquidity reached 540 million euros. "The strong liquidity and the absence of relevant debt maturities until 2026 will allow us to lead the current recovery of the hotel industry, which will benefit from a strong growth trend in the coming years," Aragonés said.
The CEO has also indicated that the company's growth plan will focus on strengthening positioning and brands in the best segments, with specific development projects in luxury for the Anantara brand, and in vacation rentals for the Tivoli brand. The Company has signed projects in its portfolio for a total of 2,500 rooms opening in the next 3 years, of which 45% are under management contracts.
The launch of the new NH Discovery loyalty program together with the Global Hotel Alliance (GHA) allows the company to enter the ranking of the 10 most extensive loyalty programs in the sector by number of clients, with 21 million members, more than 800 hotels and presence in 100 countries, which is a great advantage when it comes to gaining visibility in the main issuing markets and different business segments.
In his speech before the General Shareholders' Meeting, Alfredo Fernández Agras, independent chairman of NH, stated that "in a year as fluctuating and sometimes complicated as 2021, the company implemented different measures and plans to adapt the business and ensure its sustainability, with the aim of minimizing costs, preserving liquidity to meet operational needs, and ensuring that the reactivation of the hotel activity is carried out efficiently and under the premise of the maximum guarantees in terms of health and safety " .
He also added that the company “acted promptly and with a high sense of responsibility. I am convinced that the ability to anticipate and the previous good financial situation that we had have helped us overcome difficulties, as well as the capacity for dialogue and finding comprehensive solutions on the part of the management team”.
Fernández Agras has been re-elected by NH shareholders as an independent director for a new term of three years. Likewise, Kosin Chantikul has been re-elected as proprietary director for the next three years. For her part, Laia Lahoz, Chief Assets & Development Officer of NH since 2017, has been appointed executive director of the hotel company. Lahoz has been working at NH since 2013, where she joined as SVP of Portfolio Management. She has since led the company's global asset management and rent negotiation strategy, and since 2017 she has also assumed responsibility for the hotel company's global expansion.