The accounts of the Nh group are improving, but the focus remains on cost containment

Ramón Aragonés, ceo NH Hotel Group

Improved performance for the Nh group, which in the first six months of the year still recorded net losses of 145.4 million euros but at the same time managed to reduce red by 33.5% compared to the same period of 2020. In light of the current context, the priority of the group remains the control of costs: nn the January-June period, operating expenses in particular decreased by 106 million, therefore at a pace higher than the corresponding drop in revenues of 93 million. As a result, the gross operating margin of recurrent items (recurrent ebitda) improved by 12 million, registering a red of 136.7 million, compared to -149 million in the first part of 2020 (excluding profits deriving from the rotation of assets and effects related to the impact of the new accounting calculation systems IFRS 16).

At the end of June, the company’s liquidity was 478 million euros in total, while the net debt amounted to 703 million. The group’s capital structure was also further strengthened in May by the injection of a further 100 million in equity by the parent company Minor International, through a subordinated loan. In addition, last June, Nh managed to place 400 million senior guaranteed securities maturing in July 2026 and interest at 4%. The transaction is aimed at the repayment of existing senior securities for 357 million with maturity 2023. Also in June the company then contracted the extension until March 2026 of a revolving credit facility of 242 million (Rcf) . In this way, the group will not have to face significant debt repayment operations for the next five years.

Finally, breaking down performance by destination, after the easing of travel restrictions last May, the recovery has begun to be felt especially in Southern Europe: between April and June, revenues in Spain amounted to 48 million euros and in Italy to 21 million, while in the Benelux and Central Europe areas they stopped at 21 million. Always since last May, Nh Hotel has nine out of ten properties in its portfolio in business, with employment rates that continue to progressively rise, having reached an average of between 40% and 45% in July, driven above all once again by the locations of southern Europe.

“We are finally leaving behind the worst crisis of the tourism industry in recent years – is the comment of the CEO of Nh Hotel Group, Ramón Aragonés -. Getting here has required a great effort: we have strengthened our capital structure, so as to put ourselves in an advantageous position to take advantage of the opportunities that will come “.

.