Interim Report January – March 2009
“The economic slowdown continued to strain the European hotel market and the industry RevPAR in first quarter 2009 as compared to the same period in 2008. Cost management and cash flow remain at the forefront of Rezidor’s activities. Our cost cutting programme is well underway and is still targeting annual savings of MEUR 30 with full effect as of the second half of 2009 and we continue to look for and analyse the need for further cost reductions”, says Kurt Ritter, President and CEO of The Rezidor Hotel Group.
In Q1 2009, the RevPAR decline in Europe is attributed equally to a decline in occupancy and average room rates. As noted in previous downturns, the mid-market, economy and budget segments are losing less RevPAR than the up-markets segments. Adjusted for the timing of Easter there was no significant difference in RevPAR development between the first three months of 2009.
“Most markets, where Rezidor is operating, experienced a similar negative trend. However the Nordics has so far proven to be somewhat more resilient as compared to other parts of EMEA. Norway, Rezidor’s biggest and strongest market, showed a less negative development than other European countries”, Ritter added.
“During the current financial crisis, we will clearly focus on costs and cash flow, but we believe there are still profitable opportunities for Rezidor’s asset-light growth strategy in emerging markets. Our strong multi-brand portfolio provides growth options across many segments, and Park Inn, in particular, has significant potential at this point in the cycle. This quarter we have added more than 2,300 rooms to our pipeline, all of which are on management or franchise contracts, without financial commitments and almost 80% in emerging markets. This demonstrates our ability to strategically advance the capabilities that we have built”, Kurt Ritter concludes.
The interim report is available on www.rezidor.com
This press release comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08h30 CET on 23rd April 2009.
For further information please contact:
The Rezidor Hotel Group
Mr Knut Kleiven
Deputy President and Chief Financial Officer
Tel. +32 2 702 92 44
About the Rezidor Hotel Group:
The Rezidor Hotel Group is one of the fastest growing hotel companies in the world. The group features a portfolio of close to 370 hotels in operation and under development with 78,000 rooms in 58 countries.
Rezidor operates the brands Radisson Blu Hotels & Resorts, Regent Hotels & Resorts, Park Inn and Country Inns & Suites in Europe, Middle East and Africa, along with the goldpoints plusSM loyalty programme for frequent hotel guests. Rezidor has signed a worldwide license agreement with the Italian fashion house Missoni, in order to develop and operate a lifestyle hotel brand of the same name: Hotel Missoni.
In November 2006, Rezidor was listed on the Stockholm Stock Exchange. Carlson Companies is the main shareholder.
The Corporate Office of the Rezidor Hotel Group is based in Brussels, Belgium.
For more information on Rezidor, visit www.rezidor.com