Strong Demand Drove Revenue at Minor Hotels Europe & Americas to €460 million in 1Q24, Year-on-Year Growth of 13%
RevPAR registered growth of 9.2%, driven by price growth (ADR: +5.3%) and a two-point improvement in occupancy
Madrid, 13 May 2024. Minor Hotels Europe & Americas reported total revenue of €460 million in the first three months of the year, a growth of 13% from the €407 million reported in 1Q23. First-quarter recurring EBITDA amounted to €69 million, year-on-year growth of 17%. Excluding rent, first-quarter EBITDAR, rises to €117 million, a growth of 12% from 1Q23.
Business momentum at Minor Hotels Europe and Americas continues to improve thanks to strong demand in the leisure and business travel segments, with occupancy considerably stronger in Benelux and Central Europe, while price growth was higher in Spain and Italy.
During its earnings presentation, Minor Hotels Europe and America told the market that demand was proving strong so far this year and that the favourable business dynamics foreshadowed another set of record earnings this year.
In the first three months of the year, the company reported an average daily rate (ADR) of €121, six euros up from the 1Q23 equivalent. That increase translated into a growth of 9.2% in revenue per available room (RevPAR), which went from €68 in 1Q23 to €75 in the first quarter of this year.
Like-for-like revenue increased by €33 million, or 11.3%, with hotels undergoing refurbishment accounting for €10 million and newly-opened hotels contributing another €10 million to the growth in revenue this quarter.
The company’s net debt increased by €22 million from year-end 2023, shaped by business seasonality and €34 million of CapEx during the quarter. Minor Hotels Europe & Americas plans to gradually step up its CapEx over the coming quarters.
Elsewhere, liquidity remained strong, at €494 million at 31 March 2024, made up of €190 million cash and €304 million of undrawn credit facilities. In April 2024, the credit rating agency, Fitch, upgraded Minor Hotels Europe & Americas’ corporate rating to BB- from B, with a stable outlook, an improvement of two notches that evidences the company’s healthy performance in 2023, marked by significant deleveraging and improved cash generation.
The seasonal nature of the hotel business throughout Europe means the first quarter is traditionally weak: as a result, the company reported a net loss of €22 million, which is 38.5% narrower than the loss reported in the first quarter of 2023 (€36 million).
By region, occupancy averaged 68% in Spain in the first quarter (+0.3pp), while the ADR averaged €122, a growth of 8%. Like-for-like revenue increased by 14%, underpinned by solid performances in Madrid and Barcelona, as well as in the secondary cities.
In Italy, occupancy decreased by one percentage point to 58%, shaped by refurbishments and new openings, but the ADR increased by 9% year-on-year to €147. Like-for-like revenue in Italy grew by 8%, with Venice, Milan and the secondary cities particularly strong.
Occupancy in Benelux increased by five percentage points, to 58%, while the ADR decreased slightly by 1%, to €134, due to some refurbishment work. Faster growth at the hotels in convention centres was behind the growth of 14% in like-for-like revenue in 1Q24, with Brussels and the secondary cities the best performers.
In Central Europe, occupancy increased by four percentage points to 60%, and the ADR climbed 3% higher year-on-year to €108. Like-for-like revenue growth came in at 6%, with Frankfurt, Munich and Hamburg particularly strong, accompanied by a solid performance across the secondary cities.
In Latin America, occupancy was flat at 65%, while the ADR increased by 8% to €86. At real exchange rates, like-for-like revenue grew by 13%. Mexico and Colombia outperformed the other markets in the region.
The Spanish-listed company, which operates hotels in Europe and the Americas, is 95.9%-owned by the international hotel operator and investor, Minor Hotels
About Minor Hotels
Minor Hotels is a global hotel group that operates more than 560 hotels, resorts and residences in 58 countries, and pursues the vision of creating a more passionate and interconnected world. As a hotel owner, operator and investor, Minor Hotels meets the needs and desires of today's global travelers through its diverse portfolio of eight hotel brands (Anantara, Avani, Elewana Collection, NH, NH Collection, nhow, Oaks and Tivoli) and a portfolio of related businesses. Minor Hotels is rapidly accelerating its global growth ambitions, with the goal of adding more than 280 hotels by the end of 2027
Minor Hotels is a member of the Global Hotel Alliance (GHA), the world's largest alliance of independent hotel brands, and participates in the GHA DISCOVERY loyalty program.
For more information, please visit minorhotels.com and connect with Minor Hotels via Facebook and LinkedIn.
Contact details
-
- Natasha Rymes
-
VP PR & Communications
Minor Hotels Europe & Americas, Anantara & Avani - nrhymes@minor.com
- +34 669 125 918
-
- Irene Fernández
-
VP PR & Communications
Minor Hotels Europe & Americas, NH, NH Collection, nhow & Tivoli - ai.fernandez@minor-hotels.com
- +34 619 267 690
-
- Camilla Coburn
-
Director PR & Communications Anantara
Minor Hotels Europe & Americas - cdavis@minor.com
- +351 910 059 714
Related topics
Related news
TEN AWARDED CHEFS, WITH A TOTAL OF 11 MICHELIN STARS, CREATE EXCLUSIVE BREAKFAST DISHES TO CELEBRATE THE 10TH ANNIVER...
The ‘Signature Breakfast Constellation Edition’ highlights local produce through distinctive dishes crafted by renowned chefs at select properties in Europe and Latin America
Minor Hotels Unveils Audio Walking Tour to Celebrate 750 Years Of Amsterdam
To celebrate Amsterdam’s 750th anniversary, Minor Hotels is launching a unique city walking tour that takes visitors past the capital's hidden gems.
Minor Hotels announces the upcoming debut of the NH Hotels & Resorts brand in Copenhagen
Minor Hotels, global hotel owner and operator with more than 560 hotels and resorts in 58 countries located in Asia Pacific, the Middle East, Europe, the Americas, Africa, as well as the Indian Oce...
Minor Hotels to Debut in Paraguay with NH Collection Asunción
Minor Hotels, global hotel owner and operator with more than 560 hotels and resorts in 58 countries located in Asia Pacific, the Middle East, Europe, the Americas, Africa, as well as the Indian Oce...
Minor Hotels Europe & Americas conmemora la Hora del Planeta con apagón simbólico en sus hoteles de México
Minor Hotels Europe & Americas, propietario, operador e inversionista de hoteles, que actualmente cuenta con una cartera de 560 hoteles y resorts en 58 países ubicados en Asia Pacífico, Medio Orien...