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First-quarter financial results from Rezidor Group

2 min reading time

Published on 14/04/11 - Updated on 17/03/22

Rezidor Hotel Group has reported an improved first-quarter loss, after seeing positive growth in revenue. In its interim statement, the group said earnings before interest, taxes, depreciation and amortization (EBITDA), were -€8.5m in the first three months of the year, compared to -€11.5m in the same period last year.

Net loss was at €17.4m, compared to a loss of €17.7m last year. Revenue per available room (RevPAR) increased by 6.5% in the period, to €55.6, compared to €52.2 last year.‘The beginning of 2011 has been very strong in terms of new hotel openings and signings. ‘We opened 1,400 rooms in key markets like Stockholm, Brussels and Kuwait and added more than 2,200 rooms to our pipeline. ‘All the new signings were under management or franchise contracts, supporting our asset-light strategy.’Occupancy was at 55.7%, up from 53.8%, while revenue increased by 5.6%. During the period, 1,400 rooms were added and 2,200 were signed. Rezidor’s Radisson Blu brand saw a 6.1% increase in RevPAR, from €60.2 to €63.9, while its Park Inn by Radisson brand saw RevPAR rise 8.4%, from €28.3 to €55.6. Kurt Rutter, chairman and chief executive, said: ‘We are pleased to report continued strong RevPAR growth in the first quarter.‘ Eastern Europe was the best performing market followed by the Nordics, where the improvement was partly supported by the fact that Easter falls in the second quarter this year.‘The rest of Western Europe also reported substantial growth and we see a continued solid development in Germany. ’In the Middle East and North Africa, the recent political unrest, as expected, had a negative impact on RevPAR development.‘The first quarter is seasonally the weakest of the year. ‘We recorded a strong revenue growth and an improved EBITDA over last year. ‘The margin development was however dampened by the opening up of a significant number of leased hotels since the first quarter of 2010.‘The beginning of 2011 has been very strong in terms of new hotel openings and signings. ‘We opened 1,400 rooms in key markets like Stockholm, Brussels and Kuwait and added more than 2,200 rooms to our pipeline. ‘All the new signings were under management or franchise contracts, supporting our asset-light strategy.’

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