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NH focuses on Latin America to pursue growth in 2015

After the good results of 2014, NH is setting its sights on Latin America to improve its gross operating margin and RevPAR in 2015.

NH Hotel Group presented the primary activities accomplished in 2014 within the framework of its strategic five-year plan. In particular they made it possible to increase the group's Revenue per available room (RevPAR) by more than 3% between 2013 and 2014.

It must be added that 30 hotels that were considered non-strategic exited the supply of NH Hotel Group in the course of the year when 31 properties were repositioned. In particular this was made possible by shifting NH Hotels properties under the brand NH Collection, its luxury brand launched last July. Today, 10% of NH hotels are operated under the brand NH Collection.

Moreover, the group added three hotels to its portfolio and signed contracts to develop six other properties. A joint-venture has also been signed with HNA for its development on the on the Chinese market. Another cause for satisfaction, NH recorded 25% more clients in its loyalty program NH Rewards.

For 2015, the group has also set a goal to increase its average price excluding taxes. It thus focused on restructuring its supply, for which it announced interest in investing 220 million euros in 2014 and 2016. This amount will be used to renovate hotels in order to improve their quality and services.

NH wants to further improve its good results in 2015 throughout the Latin-American market

In Latin America the hotel portfolio grew from the beginning of the year thanks to NH Hotel Group's acquisition of Hoteles Royal for about 65.6 million euros. The sum was paid in two stages and the remaining 19.23% will be paid by the end of 2015. Nonetheless it was partly absorbed by the sale of NH Bogota Parque 93 for 21.5 million euros.

NH Hotel Group thus took up a 20 hotel portfolio in Latin America: 15 in Colombia, 4 in Chile and Ecuador. Three are owned and operated, twelve are leased and five are under a management contract. With North America and Central America, the group operates more than 8,000 rooms in 37 properties.

For 2015, Federico J. Gonzales Tereja set goal for an EBITDA up by 30% and a RevPAR up by +5% thanks to the Latin American market as well as the repositioning of the hotels in Germany and the Netherlands under NH Collection.

On January 1, 2015, NH Hotel Group is the ninth European hotel group in terms of number of rooms with 48,134 units for 318 properties. (Read our article)

Also read:

  • The Chinese group HNA takes 30% stake in capital of NH Hoteles


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