FIRST QUARTER

Transcription

1 FIRST QUARTER

2 WELCOME TO REZIDOR one of the fastest growing hotel companies in the world FAST TRACK GROWTH FRESH & DYNAMIC MULTI-BRAND PORTFOLIO BRAND SEGMENT HOTELS ROOMS Upscale ,896 Mid-market 64 11,661 Luxury Luxury/lifestyle Note: Hotels in operation & development Q Note: Economy In operation (2 unbranded) FEATURING 47 COUNTRIES LEADING BY ASSET LIGHT & ASSET RIGHT 15% REST OF WESTERN EUROPE 28% MANAGED 19% 42% NORDIC 53% FRANCHISED EASTERN EUROPE 20% LEASED 25% MIDDLE EAST, AFRICA & OTHER Note: By rooms in operation and under development dated 31-March-2007 Note: By rooms in operation and under development dated 31-March

3 Q MAIN HIGHLIGHTS Revenue increased to MEUR (156.2) EBITDA improved to MEUR 4.5 (-0.4) EBITDA margin was 2.6% (-0.3%) Like-for-like RevPAR went up 11% to EUR 71 (64) EPS amounts to EUR (-0.03) The growth story continues Over 2,300 new rooms added to operation Total 227 hotels with 47,400 rooms in operation Contracted over 2,100 new rooms Total 61 hotels with 12,500 rooms in development In line with our target of adding 20,000 rooms to operation 3

4 OPERATING IN A VERY DYNAMIC INDUSTRY International Tourist Arrivals in EMEA (millions) RevPAR Growth in Q1 07 FIRST-CLASS MID-MARKET % 12% 10% 8% 6% 4% EUROPE MIDDLE EAST AFRICA 2% 0% Europe The Middle East (USD) The Nordics Rest of Western Europe Data Source: HotelBenchmark Survey by Deloitte Strong global economy and hotel markets in EMEA More than 842 million global travellers in 2006 Increased travel especially by middle income group and Asian population Russia and CIS upcoming business and tourist destinations Increasing importance of brands limited supply of branded hotels in Europe vs. US 4

5 WELL POSITIONED BRANDS Luxury First class Mid-market Ibis Holiday Inn Novotel Scandic Morgan W Ritz Carlton Bvlgari InterContinental Hilton Marriott Sheraton Four Seasons Our luxury brand Our lifestyle brand Our up-market core brand Our mid-market growth brand Our up the sleeve brand Economy Budget Formule 1 Increased level of service Source: HVS International 5

6 OPERATIONAL INITIATIVES F&B initiatives Filini 5 in operation, 7 in development Paulaner exclusive for Russia & CIS Sure coming soon Steakhouse coming soon ZUMA (Japanese) coming soon at Istanbul Bosphorus Global brand partnerships Nespresso Anne Semonin SONY BOSE Spa venture coming soon Culture of service Yes I Can! attitude Free internet access Radisson SAS Award winning loyalty program Effective People Development tools Mentor Mentee program Centres of Excellence The Business Rezidor E-learning On-the-job-skills Library Hotline the employee magazine Award winning Responsible Business program that walks the talk 6

7 PARTNER OF CHOICE for hotel owners and developers Contract flexibility Quick response time Innovative and flexible approach First mover We Promise We Deliver Experienced development team Increasingly homogeneous portfolio One-stop-shop Strong market recognition 7

8 STRONG YEAR-ON-YEAR FINANCIAL PERFORMANCE 8

9 SEASONALITY Quarterly EBITDA Swings Q1 Q2 Q3 Q EBITDA ( m) (5) (10) (15) Q Q Q Q (*) (*) Excluding IPO costs 9

10 REVPAR GROWTH LIKE-FOR-LIKE REVPAR PER BRAND Q Q Growth % 69 9% 40 15% % TOTAL REVPAR PER BRAND Q Q Growth % 69 9% % % Note: including Managed & Leased hotels only Like-for-like: same hotels in operation during the previous period compared 10

11 INCOME STATEMENT HIGHLIGHTS & COST RATIOS IN MEUR (EXCEPT STATED OTHERWISE) Q1/07 Q1/06 VAR OPERATING REVENUE % EBITDAR % EBITDA n/m PROFIT/LOSS AFTER TAX n/m EBITDAR % 30.7% 27.9% +280 bps EBITDA % 2.6% -0.3% +290 bps EPS (EUR) n/m Q1/07 Q1/06 VAR COST OF GOODS SOLD 7.5% 8.2% -70 bps PERSONNEL COSTS 36.0% 37.0% -100 bps OTHER OPERATING EXPENSES 23.9% 24.8% -90 bps PROPERTY INSURANCE & TAX 1.9% 2.0% -10 bps 11

12 REVENUE SEGMENTATION (MEUR) Q1/07 Q1/06 VAR LEASED HOTEL REVENUE % FEE REVENUE % OTHER REVENUE % TOTAL REVENUE % LEASED HOTEL REVENUE FEE REVENUE NO Q1/07 Q1/06 ROWE NO ROWE EE MEAO Q1/07 Q1/06 NO: Nordics; ROWE: Rest of Western Europe; EE: Eastern Europe; MEAO: Middle East, Africa and Other 12

13 EBITDA SEGMENTATION (MEUR) Q1/07 Q1/06 VAR Leased Hotels % Managed & Franchised % Other % TOTAL EBITDA (before central costs) % Central Costs (9.9) (8.2) n/m TOTAL EBITDA 4.5 (0.4) n/m LEASED Q1 07 Q1 06 MANAGED & FRANCHISED NO ROWE NO ROWE EE MEAO NO: Nordics; ROWE: Rest of Western Europe; EE: Eastern Europe; MEAO: Middle East, Africa and Other 13

14 EBITDA MARGIN SEGMENTATION Q1/07 Q1/06 VAR Leased Hotels 4.5% 2.8% +1.7% pts Managed & Franchised 36.4% 21.6% +14.8% pts Other 45.5% 34.3% +11.2% pts TOTAL EBITDA (before central costs) 8.4% 4.9% +3.5% pts LEASED Q1 07 Q1 06 MANAGED & FRANCHISED 13% 11% 56% 57% 55% 73% 65% 40% -3% -5% -7% -31% NO ROWE NO ROWE EE MEAO NO: Nordics; ROWE: Rest of Western Europe; EE: Eastern Europe; MEAO: Middle East, Africa and Other 14

15 BALANCE SHEET HIGHLIGHTS IN MEUR End Q1/07 End Q1/06 End 2006 TOTAL EQUITY BALANCE SHEET TOTAL TOTAL INVESTMENTS NET DEBT EQUITY PER SHARE

16 KEY GROWTH DRIVERS REVPAR EXISTING PORTFOLIO RAMP-UP OF RECENT OPENINGS NEW OPENINGS Rate led RevPAR growth Focus on relative RevPAR Continued strong economic condition Optimising existing portfolio through asset management Continued focus on cost controls Economies of scale Hotels opened in last three years yet to achieve full operational performance Pipeline of signed hotels secures growth Growth focused on existing markets Mainly constituted of managed contracts Leading to margin expansion and continued profit growth 16

17 OUTLOOK AND FINANCIAL TARGETS Outlook Financial and Growth targets Market remains strong and RevPAR is expected to grow further Profitability Target EBITDA margin of 12% over a business cycle Rising contribution from hotels in their ramp up phase, rate driven RevPAR growth and gradual shift in business model are expected to improve EBITDA margin Balance Sheet Dividend Policy Growth Targets Small positive average net cash position Approximately one third of annual after-tax income to be distributed to shareholders 20,000 new hotel rooms to be opened from 2007 to

18 OUR BUSINESS World Class, World Wide Hospitality 18

19 OPERATING IN A THRIVING EUROPEAN HOTEL INDUSTRY Four record breaking years in the hotel transaction market Europe is the largest hotel region in the world with 6.6 million rooms About 30% today affiliated to major brands Strong hotel demand in the next 10 years Great conversion & new-build opportunities Strongest growth forecasted in mid- and economy market Ample liquidity in the market Hotel industry now recognized as an asset class for investors In terms of high yields, not too many attractive alternatives available Fundamentals remain robust 19

20 PORTFOLIO DISTRIBUTION By Brand As of 31 March 2007 As of 31 March 2007 Rooms in operation Rooms under development As of 31 March 2007 Total rooms in operation & under development Unbranded Unbranded 269 1,032 14,872 11,662 3,210 7,766 34,896 Total Rooms in Operation 47,400 42,662 Total Rooms Under Development Total Rooms Under Development 12,027 59,427 20

21 PORTFOLIO DISTRIBUTION By Contract Type As of 31 March 2007 As of 31 March 2007 Rooms in operation Rooms under development As of 31 March 2007 Total rooms in operation & under development 385 Franchised 11,463 Franchised 1,847 Leased 14,646 Leased 21,291 Managed Total Rooms in Operation 47,400 9,795 Managed Franchised 16,493 Leased 31,086 Managed Total Rooms Under Development Total Rooms Under Development 12,027 59,427 21

22 PORTFOLIO DISTRIBUTION By Geography As of 31 March 2007 As of 31 March 2007 Rooms in operation Rooms under development Middle East, Africa & Other Nordics 941 4,854 13,791 Nordics 7,893 Eastern Europe 20,762 Western Europe Total Rooms in Operation 47,400 3,432 Middle East, Africa & Other 4,153 Western Europe 3,501 Eastern Europe As of 31 March 2007 Total rooms in operation & under development Middle East, Africa & Other 8,386 14,732 Nordics 11,394 Eastern Europe 24,915 Western Europe Total Rooms Under Development Total Rooms Under Development 12,027 59,427 22

23 Q1-07 BUSINESS DEVELOPMENT HIGHLIGHTS Over 2,300 new rooms added into operations 39% Radisson SAS & 61% Park Inn 80% management contracts Contracted 12 new hotels with over 2,100 rooms 43% Radisson SAS & 37% Park Inn 80% management contracts 415 rooms discontinued operation MEAO 32% GEOGRAPHIC ROWE 64% DISTRIBUTION OF NEW SIGNED CONTRACTS EE 4% 23 NO: Nordics; ROWE: Rest of Western Europe; EE: Eastern Europe; MEAO: Middle East, Africa and Other

24 PORTFOLIO EVOLUTION By Brand 31 December hotels 28,873 rooms 31 March hotels 47,400 rooms 5% other Target ,000 additional rooms 2% other 4% other 24% 95% 74% 48% 48% 24 Note: Based on number of rooms in operation

25 PORTFOLIO EVOLUTION By Contract Type 31 December hotels 28,873 rooms 31 March hotels 47,400 rooms Target ,000 additional rooms 1% owned 29% franchised 29% leased 41% managed 24% franchised 31% leased 45% managed 30% franchised 20% leased 50% managed 25 Note: Based on number of rooms in operation

26 PORTFOLIO EVOLUTION By Geography 31 December hotels 28,873 rooms 12% MEA & other 15% Eastern Europe 29% RoWE 44% Nordic 31 March hotels 47,400 rooms 10% MEA & other 17% Eastern Europe Target ,000 additional rooms 10% Nordic 29% Nordic 25% MEA & other 35% RoWE 44% RoWE 30% Eastern Europe 26 Note: Based on number of rooms in operation

27 GOING FOR MORE Drive asset management of existing portfolio Maintain our Leading position in the Nordics, and further develop our other home markets Focus on opportunities in Southern Europe, Africa & ME Further invest resources & build on our considerable head-start in Russia & other CIS Continue hunting for portfolio deals Focus on non-committed contracts and conversion opportunities Further increase speed of Park Inn growth Open new rooms during

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29 REZIDOR AN EXCITING INVESTMENT CASE Attractive industry Leaders in key and emerging markets Global brands Asset light and Asset right business model On target to open 20,000 rooms by end 2009 Target 20,000 new rooms by Significant margin expansion = Continued fast profitable growth 29

30 Q&A