The like-for-Like RevPAR improved by 5% following strong growth in the Middle East & Africa and Eastern Europe whilst the Nordics and some countries in Western Europe reported more modest growth, explains Rezidor Hotel Group for nine months of operation.
President and CEO, Kurt Ritter explained that «emerging Markets drive RevPAR improvement of 5%. The implementation of Route 2015 shows traction through Asset Management and new optimisation and cost savings programme. The RevPAR improvement resulted in higher revenue in the third quarter, 20% growth in fees from managed and franchised hotels, and an improved EBITDA margin of 0.7 percentage points. We signed 2,000 rooms, in line with our asset-light strategy and our pipeline remains strong and steady at 22,000 rooms».For the 3rd quarter, Revenue increased by 8.2% to €237 million, with €17.6 of Ebitda, a margin of 7.4%, insteadt of 6.7% in 2011. And for the period January-September 2012, Revenue increased by 7.0% to €683 million generating a loss after tax of €3.5 million, due to marketing expenditures.«The outlook is still uncertain due to the current macroeconomic situation. Hence, we remain focused on improving profitability, both in absolute terms and relative to the industry. The exit from seven unprofitable lease agreements in France will positively affect Rezidor’s EBITDA by ca MEUR 2 annually. This is in line with our Route 2015 strategy, aimed at improving the EBITDA margin by 6-8 percentage points by 2015. The agreement was signed on October 24, 2012», commented Kurt Ritter. «To support our Route 2015 strategy and in light of the uncertain economic outlook, we have initiated a separate optimisation and cost saving programme targeting operating cost reductions by MEUR 13-15 by 2015».
