hotels nordic choice · helsingborg revpar development = revpar growth volume development = sold...
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NORDIC CHOICE HOTELS
Third four months 2018
Executive summary - last four months
Reaching the magic number These last four months we performed stronger than same period last year. Gross revenue increased by 238 MNOK compared to the same period last year, and the EBITDA development improved by 46 MNOK. For the full year, EBITDA increases by 235 MNOK (+32 %) and we reached the magic 1 billion NOK in EBITDA.
With an organic growth at 4 %, our organic hotels outperformed the market in most regions, enabling us to take market shares. We’ve had a great expansion by adding 423 new rooms in 4 cities, and yet again we are forerunners in the hospitality industry in offering our guest new and innovative digital solutions. We leave 2018 behind knowing it was the best EBITDA year ever, and we are super excited to open 1.290 new rooms within the first four months of 2019.
In addition to great financial results, Nordic Choice Hotels was also honoured with the award as “Best Hotel Chain” in Norway for the ninth year in a row at the Grand Travel Awards. And for the third time, the company was awarded “Best Hotel Chain” in the Nordic Countries. These awards are dedicated to all our 16 500 employees, who every day strive to delivers personal service way beyond guests expectations.
Latest newsState of Nordic Choice HotelsLooking at our brands Comfort Hotel®, Quality Hotel™ and Clarion Hotel®, we see a good development from last year. Especially Quality Hotel™ stands out in this period, with 11 % gross revenue growth which is largely driven by capacity. Offshore related traffic has been picking up during the year, resulting in the largest increase in room nights in the Stavanger region. Stavanger is also on top when it comes to RevPar development. Our Independent hotels within Nordic Hotels & Resorts continue to take RGI points in the cities, especially in Oslo. Their topline is otherwise driven by full year operation on Brunkebergstorg in Stockholm with At Six and Hobo, as well as the rooftop bars TAK & SUS.
Growing with 423 new hotel rooms Like the other two periods in 2018, we have welcomed many new members into the Nordic Choice family. First hotel to join was Quality Hotel Ålesund with its 131 rooms. Perfectly placed by the waterfront of Ålesund, the hotel can offer our guests a stunning view of the fjord and mountains. Clarion Collection Park in Halden, a new franchise hotel, became part of NCH October 1st, and contributes with 62 romantic rooms. Yet another franchise hotel joined Nordic Choice Hotels on November 1st . The fantastic Clarion Collection Hotel Magasinet, located inside an old granary from 1904 in Trelleborg, 36 rooms within walking distance of shopping, restaurants and tourist attractions. And last, but not least, a new operation hotel opened its doors on November 6th in Kista. Comfort Hotel Kista offers 194 modern rooms, large lounge and gym. Not to mention the ideal location near Kista Gallerian and Kistamässan.
Why not choose your own roomOur digital guest journey has continued with full strength this period. In December we launched an exciting pilot on Clarion Hotel Sign - ‘Choose your room’. This is a new feature in our app which allows our guest to choose which room they want to stay in. The new function will first be available for our Platinum and Gold members, but will soon be rolled out to more hotels and for more member levels in the near future.
Raising our puls for UNICEFDuring this period we also had a number of WeCare initiatives, in addition to Sweet Dreams Stay that runs throughout the year. Both employees and our guests got sweaty for our annual campaign of working out for UNICEF, which lasted for four weeks starting October 15th. For each day we raised our pulse for more than 30 minutes, the company gave a donation to UNICEF. A total of 82.666 activities was registered, which was rounded up to a 1.4 MNOK donation. Our second campaign was ‘Lonely Christmas tree seeking presents’. Once again, guests, employees and locals made sure a lot of people in need got a present for Christmas. In total, more than 60 000 presents and gift cards were collected at our hotels.
Net change in the hotel portfolio the last four months is 3:• Clarion Collection Hotel Arvidsjaur. Franchise left the portfolio September 30th • Quality Hotel Ålesund. New operation hotel from September 1st
• Clarion Collection Hotel Park, Halden. New franchise hotel from October 1st
• Comfort Hotel Victoria, Florø. Changed from operation to franchise November 1st
• Clarion Collection Hotel Magasinet, Trelleborg. New franchise hotel from November 1st
• Comfort Hotel Kista. New operation hotel from November 6th
Changes in rooms is +386 in the last four months, driven by organic and franchise expansion.
HOTEL PORTFOLIO
During the last four months the portfolio increased with three hotels and a net total of 386 rooms
HO
TELS
TOTAL NORWAY SWEDEN DENMARK FINLAND OTHER
Number of operation hotels 134 65 63 3 2 1
Number of franchise / mgmt. hotels
60 27 29 2 1 1
TOTAL 194 92 92 5 3 2
Change last 4 months 3 2 1 0 0 0
PEOPLE‘Puls for Unicef’
PLANET PROFITTRevPAR
organic
EBITDAPAR organic
TRIPLE BOTTOM LINE
PEOPLE PLANET PROFIT
FY LY
+24 %
FY
FY LYFY
+5 %
Sweet Dreams Stay‘Say no thanks to room cleaning –
it saves our planet’
Food wastereduction vs LY
Sep-Dec LY
Sep-Dec 18
+4 %
Sep-Dec LY
+16 %
Sep-Dec 18
‘Lonely Christmas tree seeking presents’
60.000 presents & gift cards collected, making the holiday a little better for people who deserve it!
Work out for charity!1 activity = 15 nok in dotation
82.666 activities registered
→ rounded to 1.4 MNOK in donation to UNICEF. Equals a ‘safe night’ for
35.000 children
SDS nights
370.000/
46 % of guest staying more than one night
PPP
-28 TONSTotal full year reduction is
111 tons / -3 %
TOTAL PORTFOLIO
Looking at R12 EBITDA, the compound monthly growth of the last four months is +1 pp higher than same period LY
854
957
CMGR +1%
931 9351.001
899
CMGR +2%
764
895
765
952
780869
753778751723
R12 ACT
May – Aug 2018
NC
HG
| Sep - Dec 2017 | Jan – Apr 2018 | | Sep – Dec 2018 |
MARKET YEAR TO DATE
The market development is in line with expectationsOverall strong growth in sold rooms in 2018, despite some markets having a negative RevPAR development due to capacity increase f. ex. Bergen, Linköping, Umeå and Uppsala. Strongest growth in Stavanger and Bergen due to offshore related traffic.
MA
RKE
T
RevPar vs Volum - YTD
Uppsala
Stavanger
Oslo
Gardermoen
Trondheim
GöteborgArlanda
Tromsø
Bergen
Malmö
Stockholm
Linköping
Jönköping CopenhagenÖrebro
Karlstad
Umeå
Helsingborg
REV
PAR
D
EVEL
OPM
ENT
= R
evPA
R g
row
th
VOLUME DEVELOPMENT
= Sold rooms growth
DK
NO
SE
Bubble size =1.000.000 Sold rooms
ORGANIC GROSS REVENUE - LAST FOUR MONTHS
Growth in the period is solely driven by the organic mass. Organic portfolio affected by renovated rooms back on the market.
✓ Organic growth in Sweden is 7 % and 2 % in Norway. In Finland and Denmark we have respectively 11 % and 22 % growth in the organic portfolio.
✓ Full year organic RevPar growth is 2,7 %, which is well above the market growth.
✓ Included new capacity overall gross revenue growth is 4 % in the period while 7 % looking at full year
10.383
Change in portfolio +67 MNOK
(+43%)
Organic Growth +582,9(+6%)
-70
Total Growth +650 MNOK
(+7%)
FY
10.316
9.733
OPE
RA
TIO
NS
YOY growth +141 MNOK
(+4%)
SEPT-DEC
3.684GROSS SALES
2018
Out of Choice -15
GROSS SALES 2017
Sweden
3.543
Norway*
New hotels
GROSS SALES ORGANIC
Denmark
3.692
Finland
TOTAL DEVELOPMENT GROSS REVENUE PER BRAND
Nordic Choice brands are combined up +3%, driven by Quality Hotels (+11%). Nordic Hotels & Resorts is up +20 %.O
PER
ATI
ON
S
+3,2%
3.051
2.956
95
2017 Gross Revenue
Growth
2018 Gross Revenue
1.751
3
1.748
+0,2% 90
911
822
+10,9% 2
388
387
+0,4%
2017 Gross Revenue
112Growth
558
670
+20,1%
2018 Gross Revenue
EXPANSION
First four months of 2019 we are opening 1.290 rooms! P
IPEL
INE
✓ More than 7.600 new hotel rooms signed for the period 2019 - 2022
✓ 25 new hotels in 12 different cities until 2022
2020
2.950
2019
7.681
TOTAL2021-2022
2.828
1.903
Clarion Hotel The HUB – Oslo 810 rooms
Amerikalinjen – Oslo 124 rooms
Quality Hotel The Mill – Malmö 224 rooms
Comfort Hotel Porsgrunn 134 rooms
Pipeline 2019-2022# of rooms
Signed Projects2019 - 2022
What is the no. 1 thing a hotel guest thinks of between checking in and arriving at the hotel room? DID I GET THE BEST POSSIBLE ROOM AVAILABLE?
Those days are finally over when staying at Nordic Choice Hotels:➔ ‘Choose Room’ functionality is now made available in the NCH app➔ Clarion Hotel Sign pilots this new feature➔ Available for Nordic Choice Club member level GOLD and PLATINUM
This new feature ‘Choose Room’ will be available at more hotels and for other Nordic Choice Club members levels in the near future.
DIGITAL DEVELOPMENT
New app feature ‘Choose Room’ - Nordic Choice Hotels let guests pick their own room e
BER
RY
In case you’re wondering...ACT = Actual
CMGR = Compound monthly growth
EBITDA = Earnings before Interests, Taxes, Depreciation & Amortization
EBITDAPAR = Earnings before Interests, Taxes, Depreciation & Amortization Per Available Room
LY = Last Year
NCH = Nordic Choice Hotels
NPS = Net Promoter Score
RevPAR = Revenue Per Available Room
TRevPAR = Total Revenue Per Available Room
YTD = Year To Date