Research, Charts & Company Announcements
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.
20 Feb 17
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The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Carpetright - Recovery has just begun
17 Feb 17
With UK LFLs up 6.8% in Jan against tough comparatives, and Europe LFLs up 5.4% in Q3, the first clear evidence is now visible that the transformation strategy is gaining momentum. Given some uncertainties, market forecasts are yet to reflect this, but upgrades seem likely as further initiatives are rolled out. Despite a recent bounce from its all time low, the valuation is still very low on consensus assumptions, where risk now appears to be shifting to the upside. With scope for re-rating too, our 300p target price has the scope to grow to 500p over 18 months. We re-initiate with a Buy.
New Screen – Consistent Growth + “11 with legs”
17 Dec 15
To represent the theme of “Consistent Growth”, we introduce our second basket of small-cap stocks selected by a screening process. This will sit alongside our first (deep value) basket introduced and described in our note dated 26th May 2015 (Our first screen – 10 deep value stocks to consider). The screening criteria address both the extent AND the quality of growth in EPS and sales, which we consider add a worthwhile additional element to stock selection. The process results in a basket of 25 stocks, the performance of which we will track over time, allowing comparison of investment styles, but also highlighting interesting companies. We have taken a closer look at 11 stocks “11 with legs” (see list on the right) in this screen.