NH Palacio de la Merced - Burgos (Spain)
“nhube” at NH Cartagena - Murcia (Spain)
NH Hoteles’ revenue totalled €42.13 million in 2004;
a 3% or €953.8 million increase over the previous year.
The evolution of NH Hoteles’ net income was marked
by an absence of extraordinary results, which in 2003
amounted to €28.4 million. The operating profit
(EBITDA), more representative of business
performance, totalled €180 million, 16% growth over
2003.
The company’s significant cost-cutting efforts are
particularly noteworthy and resulted in savings of €38
million. Specifically, operating expenses were reduced
by 4% and the total cost per occupied room fell 7%.
Hotel operations generated revenue of €855.3 million.
We should point out that there was a 4.5% increase in
hotel revenue and 1.4% EBITDA growth if we exclude
the impact of hotels sold by the company in 2003.
The improvement in Germany is noteworthy, where
hotel turnover increased 6.2%, as is the performance
of the business unit in Switzerland. In Austria and
Hungary, income increased 13.3%. In the Netherlands
and Belgium, comparable hotels’ revenue was up
2.1%, while in Spain, despite a sharp increase in the
supply of hotel accommodation, comparable hotels’
turnover fell a mere 2.8%.
Germany showed clear signs of recovery, with Revpar
(revenue per available room) increases of 6% in
comparable hotels due to occupancy rising 4.4% and
an average rate improvement of 1.5%.
Hotel evolution in Latin America was very positive and,
in local currency, Argentina experienced 43% growth
in income, while in Mexico income in local currency
rose 2.7%.
With regard to Latin America, occupancy increases in
MERCOSUR are noteworthy with an improvement in
the local currency average rate, and in Mexico, where,
with a stable average rate, occupancy also improved.
13
2004 RESULTS
3
We have achieved revenue of €954 million, which represents 3% growth over last year
and EBITDA of €180 million, a 16% increase over 2003, despite a sharp increase in the
supply of hotel accommodation in Spain and a still weak economy in Germany. The rest of
Central Europe, Latin America and Sotogrande performed very well
< NH Latino lobby - Buenos Aires (Argentina)
