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Research Tree provides access to ongoing research coverage, media content and regulatory news on NH HOTEL GROUP SA. We currently have 3 research reports from 1 professional analysts.
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NH HOTEL GROUP SA
NH HOTEL GROUP SA
Strategic plan on track and a lot of uncertainties about governance
16 Sep 16
Revenues grew by +7.5% in H1 16 thanks to higher prices in Spain and Central Europe (double-digit growth) which offset the unfavourable comparison in Italy (Milan Expo in May 2015), lower occupancy in Belgium and continuing difficulties in Latin America. Consolidated RevPAR rose +6.5% with prices up by +5.1% (3.1% excluding renovation). EBITDA reached €73m thanks to the efficiency programme and represented 10.2% of sales (9.4% in H1 15). Net income increased to €9.7m (from €-17.4m in H1 15 including Hoteles Royal) with a reduction in the net recurring loss and the positive contribution of capital gains from asset disposals. Financial structure improved (€37.2m reduction in net financial debt) thanks to favourable cash generation and the financing of capex from non-core asset disposals. The governance issue creates uncertainties about the shareholder structure.
Improving fundamentals but still heavily leveraged
20 Nov 15
NH Hoteles posted 9m 15 results slightly below our expectations, with a disappointing LatAm. In Q3, revenues rose by 8.3% on the back of robust RevPAR (+12.3% yoy, 87% explained by prices), stronger than in Q1 (+9.7%) and Q2 (+12%) and above the group’s FY15 target of 10%. Despite strong figures, Spain slowed down in Q3 (+14.2% lfl vs +17.9% in Q2) but was helped by price increases (+6.1%). Italy (RevPAR +29.2% lfl, +19.5% in 9m 15) benefited from a strong Milan, fuelled by the Expo (+19% in prices), where NH Hoteles operates 12 hotels (2.2k rooms). The Benelux (+14.1% in RevPAR lfl) enjoyed strong price increases (+9.5%) but also benefited from measures taken by the group including a new management team and a new segmentation since early 2015 towards more profitable rates. Central Europe stood out with a 6.8% drop in occupancy (RevPAR -1.5% lfl) marked by a quarter of low activity (Germany was impacted by renovations), also impacted by a postponed product positioning. LatAm (+7.8% in RevPAR vs +20.4% in Q2, -7.5% in occupancy) was hit by the depreciation of the Brazilian real, impacting Mercosur countries (the main feeder market). The operating leverage continued to improve (+24.9% in EBITDA, EBITDA margin of 11% vs 9.5% in Q3 14) despite cost increases caused by the implementation of the strategic plan (IT - and marketing-related investments notably). The group net loss was reduced by 67.2% from €42.4m to €13.8m in 9m 15. The FY15 EBITDA guidance was significantly revised up for FY15 from €200m to €250m.
Upbeat H1 15 figures confirm NH Hoteles' recovery profile
30 Jul 15
NH Hoteles reported upbeat Q2 15 figures. While this was highly expected on the operating front, NH Hoteles’ strategic moves are paying off with margin recovery and positive RevPAR momentum in European cities. Q2 was marked by a continuing acceleration in RevPAR (+12% vs +5.8% in Q1, +4.1% in Q4 and +6.4% in Q3) which was mainly explained by price increases for the fifth quarter in a row (+11.2% vs +7.4% in Q1) while occupancy lagged but turned positive (+0.7% vs -1.5% in Q1) excluding in Spain (+6.1%). Central Europe experienced a 3.5% drop in occupancy (but +2.4% in RevPAR LFL) due to lower number of trade fairs while Latin America (-2.5% in volumes LFL but +20.4% in RevPAR) was impacted by the devaluation in Brazil, the main feeder market in Argentina. Consolidated Q2 15 group revenues rose by 6.8% LFL (+11.3% reported) while EBITDA improved by 25% (+27.8% reported) and the net recurring result by 86.7% (reported), largely shaped by the strong momentum in the Italian (RevPAR grew by 18.6% from +7% in Q1) and Spanish (+17.9% in RevPAR vs +6.5% in Q1) business units. The latter was strongly fuelled by a buoyant Madrid (+30.4% in RevPAR) and Barcelona (+16%). Lower numbers of rooms available due to refurbishments as well as lower management fees (several hotels left the portfolio in 2014 and 2015) have slightly weighed on the sales increase while impacts from portfolio changes were offset by FX movements. The Colombian Hoteles Royal generated €15.7m of sales in Q2 and €1.5m of EBITDA.
05 Dec 16
These interims show LPEs by is ahead of its plan to recruit 360 LPEs by April 2017 and is making impressive progress in Australia. The statement (and we expect the results presentation) provide considerable evidence of Purplebricks’ progress in building its brand, increasing its LPE footprint, developing its technology, creating engaging marketing and selling properties. We leave our forecasts unchanged. Investor confidence in Purplebricks’ ability to deliver sustainable profitable growth should result in share price appreciation towards a valuation based on its results for the year ended April 2019.
Successfully engaging players
06 Dec 16
Stride has a clear focus on online bingo and soft gaming and is growing rapidly, with FY16 l-f-l revenue up 22%. The acquisitions of Tarco and 8Ball at the end of FY16 doubled its share of the UK bingo-led market from 5% to 10% and should deliver material synergies from FY17. Our unchanged FY17 estimates are for 11% EPS growth and strong cash generation. We expect organic growth to be augmented by further accretive acquisitions in due course. Stride’s FY17 P/E is 10.3x and the calendarised EV/EBITDA is only 7.1x, implying considerable share price upside potential.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.