Rezidor 2010
2010 has been a positive year for Rezidor with a faster and stronger recovery than we had expected. After a turbulent 2009, in which the whole industry witnessed an unprecedented RevPAR drop, the recession bottomed out towards the end of that year. When we entered 2010, we saw the first green shoots of recovery. This manifested itself as an improvement in occupancy followed by an increase in room rates in the third quarter.
Our revenue grew by 16% in 2010 reflecting the market recovery, and we have also seen a robust increase in the margins. The combination of strong revenue growth and improved margins led to a substantial increase in cash flow. Our financial targets remain, and we will continue to focus on tight cost control, cash and margin improvement in 2011.
Financial Targets
Profitability target
EBITDA-margin of 12% over a business cycle
Balance sheet
Small positive average net cash position
Dividend policy
Approximately one third of annual after-tax income to be distributed to share holders
RevPAR like-for-like, %
All customer segments noted an increase in volume compared to 2009. As a result occupancy grew by 6.3%. Combined with a marginal room rate decline of 1.6% this resulted in a like-for-like RevPAR growth of 4.6%. The strongest development was noted in Rest of Western Europe (+8.3%).
EBITDAR
MARGIN, %
The EBITDAR margin improved by 130 bps to 32.3% compared to last year. This is partly as a result of the measures initiated in 2008/2009 through our ambitious cost-saving programme and the lower cost base established.
EBITDA
MARGIN, %
The EBITDA margin improved by 330 bps to 4.0% compared to 2009 due to the increased EBITDAR margin, lower shortfall guarantees and the fixed-lease structure in Rest of Western Europe.
© Rezidor 2010