“Rezidor’s market share grew for the fifth consecutive year. Like-for-like RevPAR for leased and managed hotels rose 3.2%, mainly due to an increase in average room rate.”
While we gained market share for the fifth consecutive year, 2016 was a turbulent year for the hospitality industry and Rezidor. Like-for-like revenue increased by 3.8% with many markets trading at new peak levels. However, increased volatility related to terrorist attacks and the lower oil price negatively affected some countries.
Three of four regions reported like-for-like RevPAR growth. Eastern Europe reported the strongest growth (12.3%). Denmark, Sweden and Norway all showed positive developments leading to a 6% like-for-like RevPar increase in the Nordics. In Western Europe, like-for-like RevPAR was above last year (+2.4%). In the Middle East and Africa, like-for-like RevPAR fell 7.1%.
Rezidor continued to gain market share for the fifth consecutive year. Like-for-like revenue increased by 3.8% in 2016 with many markets trading at new peak levels. Total revenue decreased by 3.6% to MEUR 961.2 (997.0), mainly due to the exit of four leased hotels, the temporary closure of one leased hotel for renovation and the strengthening of the Euro.
EBITDA amounted to MEUR 79.3, due to a challenging trading environment in some areas, lower one-off fee revenue, and higher central costs, due mostly to redundancies.
EBIT decreased by MEUR 54.3 to MEUR 3.0., impacted by termination costs for six leases in the UK and two in Norway, as well as higher costs for depreciation and write downs of fixed assets.
EBITDA margin decreased to 8.3, a drop from the 2015 rate of 10.1, and EBIT Margin Percentage fell from 5.7 to 0.3.
The profit for the period amounted to MEUR 26.4, compared to MEUR 34.2 last year. The decrease in EBIT is offset by positive income tax, mainly due to recognition of deferred tax assets of net MEUR 22.3.
Five year summary
|MEUR (except stated otherwise)||2016||2015||2014||2013||2012|
|Financial income & expense, net||-0.3||-0.7||-1.5||-1.7||-0.9|
|Profit/loss for the year||26.4||34.2||14.2||23.2||-17|
|Balance sheet total||502.5||464.3||427.5||381.7||375.4|
|Total equity attributable to equity holders of the parent||265.7||246.7||219.4||155||145.8|
|Total investments (tangible and intangible investments)||71.1||74||53.8||49.1||40.2|
|Cash flow from operating activities||34.3||85.8||41.2||54.6||16.5|
|Cash flow from investing activities||-83.1||-74.6||-53.3||-48.8||-41.5|
|Cash flow from financing activities||15.8||-5.7||40.8||-7.2||23.7|
|Financial key figures (6)|
|EBITDAR Margin, %||32.7||34.2||33.5||34.5||32.5|
|EBITDA Margin, %||8.3||10.1||7.6||8.8||5.5|
|EBIT Margin, %||0.3||5.7||3.3||4.8||-0.1|
|Return on capital employed, %||20.1||40.1||27.2||33.4||Neg|
|Return on equity, %||10.3||14.7||7.6||15.4||Neg|
|Operational key figures (4)|
|Number of hotels (1)||363||355||340||337||338|
|Number of rooms (1)||80,502||78,628||76,609||75,277||74,006|
|Number of employees (3)||5,142||5,561||5,518||5,360||5,452|
|Occupancy % (2, 7)||65||67||66||66||64|
|RevPAR EUR (2, 6)||69||72||68||69||67|
|Share related key figures (4)|
|Basic average number of shares (5)||170,725,046||170,707,719||161,019,805||146,320,902||146,320,902|
|Diluted average number of shares||173,509,152||172,902,764||162,608,506||148,123,048||146,320,902|
|Basic earnings per share, EUR (5)||0.15||0.2||0.09||0.16||-0.12|
|Diluted earnings per share, EUR||0.15||0.2||0.09||0.16||-0.12|
|Dividend per share, EUR (4)||0.05||0.07||0.03||—||—|
- 1. Includes leased, managed and franchised hotels in operation
- 2. Including managed and leased hotels in operation
- 3. Including consolidated entities (leased hotels and administrative units)
- 4. Proposed dividend for 2016 is to be approved by the Annual General Meeting on April 28, 2017
- 5. IFRS Measure, see definition Note 45
- 6. Non-IFRS Measure – Alternative Performance Measure, see definition Note 45
- 7. Operating Measure, see definition Note 45
The demand for international tourism remained strong in 2016, in spite of challenges, according to the UNWTO World Tourism Barometer, January 2017. International tourist arrivals grew by 3.9% to 1.235 million. Some 46 million more tourists (overnight visitors) travelled internationally in 2016, compared to the prior year.
Overall, 2016 was the seventh consecutive year of sustained growth, following the 2009 global economic and financial crisis...
The impact of tourism on the world’s economy cannot be ignored. It is a powerful driver of socioeconomic progress and is the engine for 10% of GDP. It provides 1.5 trillion USD in exports annually, or 4 billion USD daily. The long-term forecast for tourism is impressive with growth expected to top both worldwide GDP growth and the average growth of the sector...
One of the biggest trends in 2016 was continued consolidation in the hotel industry, including the acquisition of Carlson Hotels, Rezidor’s majority shareholder by HNA Tourism Group, which also acquired a 25% share in Hilton International. Marriott International acquired Starwood Hotels & Resorts Worldwide in a USD 13 billion deal, creating the world’s largest hotel group with more than 30 brands, 5,500 hotels and 11 million rooms. China’s Anbang Insurance Group Co. purchased Strategic Hotel & Resorts for about USD 6.5 billion...
Looking ahead, tourism experts are optimistic about 2017 and expect growth to be similar to that of recent years. Experts in the public sector are more positive than those in the private sector. Those in Africa have the highest expectations for the coming year with a UNWTO barometer score of 141. The Middle East follows at 137. European experts are also optimistic with a score of 131, above the prior two years. Their confidence reflects the resiliency of the European marketplace in spite of safety and security issues in some destinations...
The impact of tourism on the world’s economy can’t be ignored. It is a powerful driver of socio-economic progress and is the engine for 10% of GDP. It provides 1.5 trillion USD in exports annually, or 4 billion USD daily. The long-term forecast for tourism is impressive with growth expected to top both worldwide GDP growth and the average growth of the sector.
arrivals in 2016