NH Hotel Group posts growth of 28% in 9M23 revenue and 77% in net profit to €100 million

Madrid, 8 November 2023 – NH Hotel Group (NH), part of Minor Hotels, generated €1.61 billion of revenue in the first nine months of 2023, up 28.1% year-on-year. Strong demand drove occupancy up to 68%, while average daily rate (ADR) climbed further to €137 in 9M23, marking growth of 14.4% year-on-year and 25.2% compared to 9M19. As a result, revenue per available room (RevPAR) averaged €93, up 30% from the 9M22 and 9M19 figures of €72 and €73, respectively.

Cost discipline unlocked 9M23 EBITDA of €448 million, growth of 26% from the €354 million reported in 9M22 and up 11.7% from the €401 million generated in 9M19.

Net profit amounted to €99.6 million in 9M23, up 77% from the €56.3 million obtained in 9M22 and marking growth of 51.1% from the €65.9 million reported in 9M19.

In the report sent to the regulator today, the company emphasised that resilient demand in urban tourism, coupled with a sustained recovery in business and international travel, foreshadowed a solid earnings performance in the fourth quarter, putting the company on track for a record year.

The strong business performance and healthy cash generation enabled NH to reduce its net debt by €126 million to €182 million in the first nine months of the year, despite almost €90 million of capital expenditure.

Liquidity stood at €586 million at the September close: €302 million of cash and €284 million of undrawn credit facilities. Having repaid in July the $50 million loan taken out in 2018 to finance the refurbishment of the NH Collection New York Madison Avenue, NH’s exposure to floating-rate debt has fallen to under 15%.

In the Spanish business unit, which includes Portugal and France, like-for-like revenue increased by 18% and 32% from 9M22 and 9M19, respectively, with both the main and secondary cities performing well. Occupancy in Spain averaged 73% in 9M23, down one percentage point from 9M19, while ADR amounted to €137.

In Italy, like-for-like revenue grew 28% compared to 9M22 and 40% compared to 9M19, with Rome and Milan performing considerably better. The Italian ADR stands out at €184. Occupancy averaged 68%, in line with 2019.

In Benelux, like-for-like revenue grew 31% versus 9M22 and of 14% compared to 9M19. Amsterdam, Brussels and the business hotels registered higher growth rates. The ADR in Benelux was €157, while occupancy averaged 66%, down six points from 9M19 levels.

In Central Europe, like-for-like revenue increased 23% year-on-year and 12% from 9M19, with Düsseldorf, Munich and Frankfurt the best performing destinations. ADR in the region was €115, while occupancy averaged 65%, down seven points from 9M19 levels.

Lastly, in Latin America, revenue grew by 33% year-on-year and by 29% compared to 9M19, with Argentina and Mexico the strongest markets. Occupancy climbed eight percentage points from 9M19 to 66% and ADR came in at €81.

In the third quarter of the year, revenue at NH amounted to €586 million, year-on-year growth of 13.5%. Occupancy improved by two points to 71.3% (still one point below 3Q19 levels) and ADR reached €142, marking growth of 9.1% from 3Q22 and of 28% compared to 3Q19.