NH Hotels Reveals EBITDA More Than Doubled in the First 9 Months of 2010
NH Hotels has revealed that the first 9 months of 2010 have lead to a significant improvement in the Group's basic activity.

MADRID, SPAIN, November 04, 2010 /24-7PressRelease/ -- NH Hotels has revealed that the adverse situation of the industry in 2009 underwent a major turnaround during the first 9 months of 2010 leading to a significant improvement towards recovery in the Group's basic activity. NH Hotels' revenues totalled EUR980.5M, a 9.4% rise, and its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reflected both the strong recovery in the market and the remarkable increase in productivity. The company generated an EBITDA totalling EUR102.2M, more than double the figure for the same period in 2009, due mainly to an improvement in the hotel business in all the markets where NH Hotels operates.

The revenues of the hotel business grew by 10.3%, as a result of an increase in occupancy in all the markets over the first 9 months of the year. The increase in occupancy levels, of 12.6% in comparable hotels, meant that RevPar (Revenues Per Available Room) went up by 9.7%. There were increases in prices for the first time after 7 consecutive quarters, helping towards the increase in RevPar. The major growth in hotel activity compares with a smaller rise in expenses of 4.4%, as a result of the cost-cutting plan kept up by NH Hotels in 2010.

In line with the asset rationalisation and divestment plan the company set up last year, the company has commitments and down payments for a number of sales of assets totalling approximately EUR60M. The hotels being sold are in Europe and are minor non strategic assets for the Group. These transactions are expected to be closed during the fourth quarter of the year. In 2010, NH Hotels has sold four assets that have brought in cash for the Group totalling EUR117M.

Moreover, NH Hotels has cancelled contracts for another 14 hotels in the first 9 months of 2010 as part of its plan for managing loss-making and/or non-strategic assets.

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