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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.
Retain forecasts for FY17E and FY18E
05 Oct 16
While LFL sales growth of 1.8% for the first 12 weeks of FY17 looked a little light, this was on the back of 2.8% growth in the prior period. H2 comps become easier to lap and Christmas bookings (festive trading comprises 15% of FY sales on average) are up 10% YoY.
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.
Strong H1 17 performance, confident outlook for H2
20 Jan 17
Following on from the positive AGM statement at the end of November, MySale has released an upbeat pre-close trading update. Group revenue increased 6% to A$136.1m, while higher margin online revenue, now representing over 90% of the total group, experienced a strong rate of growth of 18% to A$126.5m. As a result, gross margin showed continued improvement of 270bps driving a 17% uplift in gross profit to A$38.4m (versus A$32.7m). Strong trading for the half, combined with a carefully controlled cost base, led to a doubling in EBITDA to A$3.0m. Management are confident going into the second half period and following the increase in guidance at the end of November, the company remains comfortable with current full year forecasts. More detail and an update on trading will be given at the interims expected on 1st March 2017.
EBITDA break-even reached, positive outlook
18 Jan 17
7digital’s FY16 revenues increased 7% y-o-y and EBITDA profitability was reached, as targeted, in Q4. New contract wins in FY16 set the stage for a stronger top-line performance in FY17 and we consider management’s reiterated target of operating profitability in FY17 as realistic. For an operationally geared growth company in its first year of profitability, the FY17e EV/EBITDA of c 12x looks attractive.
A year of expansion
17 Jan 17
Final results are broadly in line with our revised forecasts on most headline levels in what proved to be a difficult year for the Group. That said, it has significantly increased room capacity, which is now +40% ahead at the time of the IPO (+14.5% yoy), which improves its competitive position and offering. We are maintaining our headline forecasts, and with the dividend expected to be held for the foreseeable future producing an 8.7% yield with a NAV in excess of 180p, we continue to believe there is strong long term value offered at present.