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NH Hotel Group has reported that it has exceeded all of its financial targets for the year, including tripling its recurring net profits to €34.8m (£30.8m).
The group’s total revenue was also 6.5% higher year-on-year reaching €1.57bn (£1.38bn) in 2017, driven by strong momentum in Benelux (+12.8%) and Spain (+11.8%).
Additionally NH Hotel reported that despite growth in business volumes, an effective cost control policy drove recurring EBITDA 29% higher to €233m (£206m), up €52m (£46m) from 2016 and €3m (£2.6m) above the guidance, which was revised upwards in September 2017.
NH Hotel Group’s CEO, Ramón Aragonés, said: “In 2017 we outperformed all the profit and leverage targets we had committed to. Our profitable management of the business, coupled with the effort made to strengthen our capital structure and create value for all of our shareholders by executing our business plan, has put NH Hotel Group in an ideal position to tackle the most ambitious targets in the company’s history with a solid success guarantee.”
Benelux was the group’s best-performing market which the group attributed to significant business volume growth; the results of the refurbishment work carried out in 2016; and the ongoing recovery of the Brussels market, combined with strong momentum in Amsterdam and the secondary Dutch cities.
Benelux posted growth in occupancy of 6.8% and in the ADR of 7.2% for RevPAR expansion of 14.4%. The market generated €339m (£300m) of revenue, up 12.8% from 2016, while EBITDA increased by €20.4m (£18m) up 41% from 2016 to €69.2 million (£61.2).
Spain was the group’s next best performer, as revenue in Spain climbed 11.8% to €396.8m (£351.4m) and EBITDA amounted to €59.4m (£48.6m), up 75.1% from 2016.
