• Revenue totals €1.61 billion in the first nine months of the year, growing €355 million on the same period of 2019; total net profit tops 9M19 figure by €34 million
  • ADR climbs 14% year-on-year in 9M23; while RevPAR grows 30%, partly thanks to ongoing growth in occupancy to 68%
  • Healthy cash generation drives net debt down by €126 million to €182 million, despite almost €90 million of capital expenditure
  • Company poised for record year, driven by buoyant urban tourism, recovery in business travel, strong prices and cost discipline

Madrid - NH Hotel Group (NH), part of Minor Hotels, generated €1.61 billion of revenue in the first nine months of 2023, up 28.1% year-on-year. Strong demand drove occupancy up to 68%, while average daily rate (ADR) climbed further to €137 in 9M23, marking growth of 14.4% year-on-year and 25.2% compared to 9M19. As a result, revenue per available room (RevPAR) averaged €93, up 30% from the 9M22 and 9M19 figures of €72 and €73, respectively.

Cost discipline unlocked 9M23 EBITDA of €448 million, growth of 26% from the €354 million reported in 9M22 and up 11.7% from the €401 million generated in 9M19.

Net profit amounted to €99.6 million in 9M23, up 77% from the €56.3 million obtained in 9M22 and marking growth of 51.1% from the €65.9 million reported in 9M19.

In the report sent to the regulator today, the company emphasised that resilient demand in urban tourism, coupled with a sustained recovery in business and international travel, foreshadowed a solid earnings performance in the fourth quarter, putting the company on track for a record year.

Ongoing deleveraging

The strong business performance and healthy cash generation enabled NH to reduce its net debt by €126 million to €182 million in the first nine months of the year, despite almost €90 million of capital expenditure.

Liquidity stood at €586 million at the September close: €302 million of cash and €284 million of undrawn credit facilities. Having repaid in July the $50 million loan taken out in 2018 to finance the refurbishment of the NH Collection New York Madison Avenue, NH’s exposure to floating-rate debt has fallen to under 15%.

Strong growth across all regions in 9M23, with momentum in southern Europe standing out

In the Spanish business unit, which includes Portugal and France, like-for-like revenue increased by 18% and 32% from 9M22 and 9M19, respectively, with both the main and secondary cities performing well. Occupancy in Spain averaged 73% in 9M23, down one percentage point from 9M19, while ADR amounted to €137.

In Italy, like-for-like revenue grew 28% compared to 9M22 and 40% compared to 9M19, with Rome and Milan performing considerably better. The Italian ADR stands out at €184. Occupancy averaged 68%, in line with 2019.

In Benelux, like-for-like revenue grew 31% versus 9M22 and of 14% compared to 9M19. Amsterdam, Brussels and the business hotels registered higher growth rates. The ADR in Benelux was €157, while occupancy averaged 66%, down six points from 9M19 levels.

In Central Europe, like-for-like revenue increased 23% year-on-year and 12% from 9M19, with Düsseldorf, Munich and Frankfurt the best performing destinations. ADR in the region was €115, while occupancy averaged 65%, down seven points from 9M19 levels.

Lastly, in Latin America, revenue grew by 33% year-on-year and by 29% compared to 9M19, with Argentina and Mexico the strongest markets. Occupancy climbed eight percentage points from 9M19 to 66% and ADR came in at €81.

3Q23: ongoing solid earnings momentum

In the third quarter of the year, revenue at NH amounted to €586 million, year-on-year growth of 13.5%. Occupancy improved by two points to 71.3% (still one point below 3Q19 levels) and ADR reached €142, marking growth of 9.1% from 3Q22 and of 28% compared to 3Q19.

About NH Hotel Group, part of Minor Hotels

NH Hotel Group, part of Minor Hotels, is an established multinational hotel operator and a benchmark urban hotel chain in Europe and the Americas, where it runs over 350 hotels. Since 2019, it has been working with Minor Hotels on integrating all of its hotel trademarks under a single corporate umbrella brand with a presence in over 50 countries worldwide. Together they have articulated a portfolio of more than 500 hotels operating under eight brands – Anantara, Avani, Elewana, Oaks, NH Hotels, NH Collection, nhow and Tivoli – which between them provide a broad and diverse spectrum of hotel solutions in touch with the needs and desires of today's global travellers.