During the Ordinary General Meeting of Shareholders of NH Hotel Group, held today in Madrid, Federico J. Gonzalez Tejera, CEO of the Company, he has taken stock of the evolution of the major milestones that have occurred so far under the strategic five-year plan that the Group is carrying out and the next steps in 2016.
During his presentation, González Tejera highlighted the strong growth in revenues and EBITDA in 2015, which allowed the company into profit for the first time since 2011; He highlighted the efforts made by the Group to continue to raise the conversion ratio of income to EBITDA, which was 41% last year; and a focus on cash generation while the investment effort remains at repositioning.
When Ecuador’s strategic plan, NH Hotel Group is met already has 186 hotels repositioned, which account for 64% of EBITDA of the Group and expects to complete the renovation of another 27 additional for the end of this year. The Managing Director of the Company advanced by the end of 2016 most of the investment of 237 million euros to improve the company’s assets will have been executed and 83% of reforms (total or partial) will be completed .
with more hotels in perfect condition and a portfolio that grows progressively in the upper segment under the brands -alcanzarán nhow NH Collection and 23% of the portfolio in 2018, the Company finds a significant improvement experience and the quality perceived by consumers. NH Hotel Group is already the hotel company of Spanish origin with more certified hotels as excellent worldwide by travel portal TripAdvisor and has made about 30% of the portfolio is already in the top 10 of each destination when the consumer searches on this site
this improvement in consumer recognition, driven. promise a full operational incorporated into each brand of the Group; the renovation of hotels in all markets; the replacement of the elements that form the basic proposal to the client (exclusive mattresses, showers of high quality art LED TVs, amenities and professional dryers); redefining the broader and healthy cuisine; and all this combined with a management strategy more efficient and optimized with new prices predictive tools, is allowing sustainable increase in revenue per available room (RevPar), which in 2015 increased 11% from the previous year. Notably the favorable performance in all where the Company operates, which outperforms the competition quarter to quarter comparative competitive set each destination markets.
The first executive NH Hotel Group also highlighted the momentum in the international deployment teaches NH Collection, the group brand for the upper-upscale segment, and its impact on the image of the group and the increase in the average price (ADR). In total, the Company had 50 hotels NH Collection at the end of last year, 58 today, which will be over 70 by 2018 once the strategic plan is completed. They new brand hotels nhow in the coming years, currently has 3 projects in strategic destinations for the brand as London, Amsterdam and Santiago de Chile will add
The expansion of the Group. In strategic markets continues to strengthen its presence in Europe and increasing the portfolio in Latin America (16 hotels / 2,660 signed rooms and 26 starts / 2,781 rooms in 2015), plus the launch of the joint venture in China with HNA group, through which the incorporation of between 120 and 150 hotels is expected through management contracts until 2020.
on the other hand, Gonzalez Tejera said the plan optimization portfolio is running higher than expected, having out of 40 non-strategic hotels since the beginning of it, which has allowed a significant reduction in the number of hotels with a negative EBITDA and a gradual improvement in the coverage ratio of income. He also stressed that the current date has already reached 50% of the goals of asset sales for the year.
Finally, the CEO of NH Hotel Group Director has also highlighted the positive outlook group by 2016, ahead of an expected EBITDA of 190 million euros and a reduction target leverage ratio group 4 times, which brings you closer to the goal of 3-3.5 times planned for 2017-2018 .
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