For the first half of 2016, Spain's NH Hotel Group saw solid growth in consolidated revenue, EBITDA and net profit. The group’s new business plan initiatives generated a yearly, half-year revenue growth of 7.5 percent. More specifically, the group reported revenue of €715.1 million in the first six months of 2016.
The increased revenue is driven by a strong performance in key markets such as Spain (+13.8 percent) and Central Europe (+11.4 percent), both of which registered double-digit revenue growth in the second quarter. The Italian business unit, affected by a tough comparative due to the Universal Exhibition hosted by Milan last year, fully offset the absence of this major event with a strong performance across Italy's secondary cities. In parallel, the trend in Benelux was positive despite the impact of the refurbishment work planned for the last quarter. The Americas’ business unit was strong across the board in local currency terms, absorbing almost all of the adverse impact of the exchange rate.
In the first six months of 2016, NH registered RevPAR growth of 6.5 percent, driven mainly by price growth of 5.1 percent as well as an increase in occupancy of 1.3 percent. RevPAR growth in the second quarter was 6.7 percent, 91 percent of which was driven by growth in the average daily rate (+6.1 percent), while the occupancy rate was broadly flat (+0.6 percent).
The first-half of consolidated EBITDA rose by 27.4 percent to €73 million, despite the adverse effects of exchange rates in some markets and other factors such as a still-weak Belgian market in the second quarter.
Net profit, including non-recurring items, came to €9.7 million in the first half, marking a €27-million improvement year-over-year from the first half of 2015, which saw a net loss of €17.4 million. This was a positive trend in recurring net profit in the second quarter, sustained by underlying business momentum. The company reported a recurring net profit of €32.2 million in this period.
At the halfway mark of its five-year business plan, NH Hotel Group has fully re-positioned 52 hotels; six additional refurbishments are under way and another seven are due to start next year. By the end of 2016, most of the capital expenditure allocated to portfolio upgrade work will have been executed and 83 percent of the planned refurbishments (full and partial) will be completed.