
RevPAR, cash flow from operations and EBITDA margin improved in 2012. Structural changes were undertaken during the year to build a strong platform for continued profitability improvement.
Despite a continued fragile global macroeconomic climate, Rezidor’s Like-for-Like RevPAR continued to show a positive development with a healthy growth of 4.6% for the full year 2012.This was sustained by a 2.3 point increase in Occupancy Rate (OR) and almost 1% in Average Daily Rate (ADR). The Middle East and Africa region performed particularly well, with a 4.3 point rise in OR and 2.3% in ADR fuelling almost 10% RevPAR growth. Whilst in Eastern Europe, a 3.1 point increase in OR and 2.9% in ADR drove 8.4% RevPAR growth.In other regions, Western Europe posted 3% RevPAR growth and the Nordics 1.8%. Speaking abut performances in the fourth quarter and end-of-year, President & CEO, Wolfgang Neumann said:“The RevPAR improvement together with the continued weakening of the Euro, resulted in a revenue increase of 7% in Q4 2012 including a strong growth of 18% in fee revenue from our managed and franchised business. Our EBIT margin and the net result were negatively impacted primarily by termination costs for lease agreements which we exited in the quarter and write-downs of assets resulting in a MEUR 13 loss after tax. Cash flow from operations, adjusted for the termination costs, improved by MEUR 12.”In terms of development, Rezidor opened 4,000 new rooms opened ca 7,100 new rooms were contracted. “Our commitment to profitable asset-light growth continues. All of the 4,000 room openings and 7,100 room signings in 2012 were either managed or franchised contracts,” added NeumannRezidor achieved another important milestone by converting two lease agreements to franchise agreements in Sweden. Together with the earlier announced exit from seven leases in France, these transactions represent a positive effect of ca 0.5% on the EBITDA margin going forward.“Our continued global commercial focus in partnership with Carlson, the effective execution of Route 2015, and the cost cutting programme combined with significant organisational changes have strengthened our platform; paving the way for continued profitability improvement in the years ahead.”