Definitions
The year in brief • Like-for-like (L/L) RevPAR grew by 3.7%, mainly derived from a 3.2% increase in room rate. • Eastern Europe (15.0%) led the L/L RevPAR recovery throughout the year followed by Rest of Western Europe (6.1%) and the Nordics (2.8%). • The Middle East and Africa reported a negative L/L RevPAR growth (–10.9%) due to the political turbulence in the region. Adjusted for the troubled countries, L/L RevPAR for the group increased by 6.3%. • Revenue grew by 10% to MEUR 864 (786).
• Despite the revenue increase the EBITDA margin was flat over last year, 4.1% (4.0), as it was negatively impacted primarily by the loss of revenue from the Middle East and North Africa and a number of one-offs. • Loss after tax was MEUR –11.9 (–2.7) and was negatively impacted by write-downs of fixed assets of MEUR 11.6. • Basic and diluted Earnings Per Share amounted to EUR –0.08 (–0.02). • Cash flow from operating activities was 14.1 (47.6) and total available cash including un‑ utilised credit facilities was MEUR 104.8 (129.3).
• The Board has recommended paying no dividend for 2011 (EUR 0.00). • I n December, Rezidor announced “Route 2015 Strategy”, a number of initiatives with the aim to improve the EBITDA margin by 6 to 8 percentage points by 2015. • 2011 was a record year for new signings; 9,600 new rooms were added to the pipelineall under managed or franchised contracts. • 5,800 new rooms were added to operations in key location such as Stockholm, Dubai and Moscow.
AHR Average-House Rate – Rooms revenue in relation with the number of rooms sold. Also referred to as ARR (Average Room Rate) or ADR (Average Daily Rate) in the hotel industry. Central Costs Central Costs represent costs for corporate and regional functions, such as Executive Management, Finance, Business Development, Legal, Communication & Investor Relations, Technical Development, Human Resources, Operations, IT, Brand Management & Development, and Purchasing. These costs are incurred to the benefit of all hotels within the Rezidor group, i.e. leased, managed and franchised. Capital employed Total assets less interest-bearing financial assets and cash and cash equivalents and non-interest bearing operating liabilities, including pension liabilities, and excluding tax assets and tax liabilities. Development brand Brand that still is under development, and that currently does not have many hotels in operation. Debt/equity ratio Net debt divided by total equity. Earnings per share Profit for the period, before allocation to minority interest divided by the weighted average number of shares outstanding. EBIT Operating profit before net financial items and tax.
Content
Rezidor opened its second hotel in Georgia in August 2011 – the Radisson Blu Hotel, Batumi. The new hotel, with its wave-inspired glass façade offers 168 rooms and is located in the center of the city, alongside the famous Batumi Boulevard.
1 | The year in brief
8 | Board of Directors’ Report
2 | CEO Statement
18 | Financial Reports
4 | Chairman’s Statement
23 | Notes to the Group accounts
5 | Rezidor in brief
51 | Parent Company accounts, incl. Notes
EBITDA Operating profit before depreciation and amortisation and gain on sale of shares and fixed assets and net financial items and tax EBITDA margin EBITDA as a percentage of Revenue. EBITDAR Operating profit before rental expense and share of income in associates and before depreciation and amortisation and gain on sale of shares and of fixed assets and net financial items and tax. Equity/assets ratio Total equity divided by total assets.
FF&E Furniture, Fittings and Equipment. Free cash flow Cash flow from operating activities, investments, financial items and tax and the effect of restructuring measures on cash flow. Free cash flow per share Free cash flow divided by the weighted average number of shares outstanding. General Manager This title refers to the position as hotel manager. Like-for-like hotels Comparable hotels in operation during the same previous period compared. Net working capital Current non-interest bearing receivables minus current non-interest bearing liabilities. Occupancy (%) Number of rooms sold in relation to the numbers of rooms available for sale. Operating cash flow EBITDA excluding share of income in associated companies, cash flow effect of restructuring measures and net investments and including changes in working capital and dividend from associated companies. Operating cash flow per share Operating cash flow divided by average number of shares outstanding. Return on capital employed (ROA – Return on Assets) Operating profit, excluding restructuring costs and impairment losses divided by average capital employed. Return on shareholders’ equity (ROE) Profit for the period, attributable to equity holders of the parent as a percentage of average shareholders’ equity, excluding minority interests. Revenue All related business revenue (including rooms revenue, food & beverage revenue, other hotel revenue, fee revenue and other non-hotel reenue from administration units).
RevPAR Revenue Per Available Room – Rooms revenue in relation to rooms available. RevPAR like -for-like RevPAR for like-for-like hotels at constant exchange rates. System-wide revenue Hotel revenue (including rooms revenue, food & beverage, conference & banqueting revenue and other hotel revenue) from leased, managed and franchised hotels, where revenue from franchised hotels is an estimate. It also includes other non hotel revenue from administration units, such as revenue from Rezidor’s print shop that prepares marketing materials for Rezidor hotels and revenue generated under Rezidor’s loyalty programs. Yield Dividend as a percentage of the market price.
Regions Nordic Region (NO) Denmark, Finland, Iceland, Norway and Sweden. Rest of Western Europe (ROWE) Austria, Belgium, France, Germany, Greece, Ireland, Italy, Luxemburg, Malta, the Netherlands, Portugal, Spain, Switzerland and the United Kingdom. Eastern Europe (incl. CIS countries) (EE) Azerbaijan, Belarus, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Turkey, Ukraine and Uzbekistan. Middle East, Africa and Other (MEAO) Angola, Bahrain, Brazil, China, Egypt, Ethiopia, Ghana, Jordan, Kenya, Kuwait, Lebanon, Libya, Mali, Mauritius, Mongolia, Morocco, Mozambique, Nigeria, Oman, Qatar, Rwanda, Saudi Arabia, Senegal, Sierra Leone, South Africa, Tunisia, the United Arab Emirates and Zambia.