Rezidor has released its Q3 Interim Report, announcing an improved third quarter with higher market share and profitability. “I am pleased to report an improved third quarter results, which represent a healthy development over last year,” says Wolfgang M Neumann, president and CEO at Rezidor.
“We continue gaining market share in line with our revenue objectives, and the positive RevPAR trend continues with a 6% increase on a like-for-like-basis. All four geographic segments reported RevPAR growth over last year, with the strongest development seen in Eastern Europe.
“Revenue came in at MEUR 227, which is MEUR 10 behind last year primarily due to the strengthening of the Euro and the exit of nine leased hotels last year. On a L/L basis revenue was MEUR 4 ahead of last year. We noted an improvement in profitability as a result of our focus on driving revenue, cost reduction initiatives launched last year and the exit of loss making leases in 2012. The EBITDA margin grew by 2.6 percentage points to 10.0%, in line with our Route 2015 ambitions.
“Asset Management continues to be a strategic priority, and as a part of this ongoing effort we concluded a restructuring of an unprofitable lease agreement in Rest of Western Europe in October.
“During the quarter, we opened ca 600 rooms and added ca 1400 rooms to the pipeline. All new rooms signed and opened were under fee-based contracts, supporting our asset-light strategy. We also secured two of our highly-profitable existing hotels in Copenhagen by signing new lease agreements – previously management agreements – effective 1st January 2014.”
