HomeHotelNH Hotel Group breaks its revenue and profit record in 2023

NH Hotel Group breaks its revenue and profit record in 2023

NH Hotel Group, part of Minor Hotels, closed the year 2023 reaching 2,163 million euros in total revenue, which not only exceeds the figures for 2022 by 23% and those of 2019 by 26%, but also marks a “historic record” . The company also improved in terms of net profit, reaching 128.1 million euros, which translates into an increase of 27.7%, as reported to the CNMV.

The impact of Argentina’s hyperinflation and peso devaluation slightly reduced NH Hotel Group’s revenues, profits and gross operating income in 2023. Excluding this blow, Revenues would have amounted to 2,184 million eurostotal EBITDA at 604 million euros, recurring net profit at 133 million euros and total profit at 134 million euros.

The hotel chain highlights that, despite everything, the growth in income and profits, “both historical records”, respond to the improvement of the hotel portfolio; to cost control; to the 13% increase in ADR and the increase of seven percentage points in occupancy

He ADR of the company was 138 euros on average in 2023 as a whole (+12.6%), occupancy of 68%, while revenue per available room (RevPAR) was 94 euros per night, exceeding by 26% 74 euros in 2022, and 21% more compared to the comparable perimeter of 2019.

In the fourth quarter of last year alone, the company obtained total revenues of 551 million euros (570 million excluding the impact of hyperinflation and devaluation of Argentina), 10% higher than the same period of the previous year.

In the relevant information sent by the CNVM they detail that Labor costs increased by 20.6% last yearand operating expenses 25.6%, to together represent a conversion rate of 38% of income over gross operating profit (GOP), “thanks to the corporate discipline of controlling operating costs to contain the inflationary pressure.”

NH Hotel Grouo closed the year with cash of 216 million euros. Source: NH Hotel Group.

Regarding payments for leases and property taxes, they increased by 75.6 million euros last year, due to the incorporations in the perimeter and the greater weight of variable rents.

He gross operating result (EBITDA) in 2023 was 596 million euros (604 million excluding the impact of Argentina), with growth of 15% compared to 2022 and 44 million compared to 2019. The recurring net profit achieved by NH Hotel Group was 126 million euroswhich represents a growth of 50 million euros or 66.3% compared to 2022, and 23 million compared to 2019.

In turn, the hotel company reduced its gross financial debt by 129 million euros, mainly due to the amortization of the remaining 50 million euros of the ICO loan and the 50 million dollars of the loan for the renovation of the NH Collection New York Madison hotel Ave. At the end of the year, the debt was 264 million euros, compared to 308 million euros in 2022.

The chain assures that “this debt reduction is the result of a strong generation of operating cash that has also allowed it to invest 113 million euros in CapEx, and 123 million euros in the acquisition of the assets of Minor Hotels in Portugal.” NH Hotel Group closed 2023 with cash of 216 million.


More information

– NH, the first hotel company to cancel the ICO credit for the pandemic

– NH Hotel Group exceeds pre-pandemic profits by 51%

– Southern Europe drives the growth of NH Hotel Group

Source: Hosteltur

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