How has NH Hotel Group’s sales developed by market?

How has NH Hotel Group's sales developed by market?

NH Hotel Group’s total revenue for the second quarter was 509 million euros, a growth of 8.5% compared to 2019. The average daily rate (ADR) increased by 7% and occupancy was below the pre-COVID year.

Compared to the results of the second quarter of 2021, the hotels are in Spain increased its revenue by 89 million euros, which surpassed pre-pandemic levels, with “a high contribution from Madrid and a strong improvement from Barcelona”, according to the results presented this Tuesday. In case of Italy sales improved by 66 million Euro at comparable level, with significant growth in Milan, Rome and secondary cities.

In Benelux, the comparable improvement was 81 million euros, with significant increases in Amsterdam and Brussels. In Central Europe, the comparable increase was 33 million euros, with Berlin, Düsseldorf and Hamburg at a higher level than 2019. In the case of Latin America, the comparable increase was €20 million and included Argentina as well as Colombia, Chile and Mexico.

The perimeter changes, including the eight hotels of the Boscolo chain integrated into the group and the new hotels NH Collection Copenhagen and NH Hanover, contributed 93 million euros to growth in the half-year.

Hotel NH Collection Copenhagen.

More ADR and less occupancy

The group’s strategy was to “defend rates, sacrifice occupancy,” as explained in NH Hotel Group’s earnings of over €730 million through June. Thus, the average daily price of NH hotels increased from 116 euros per night in April to 139 euros per night in June, which corresponds to an average of 128 euros per night in the second quarter, 7% more than in the same quarter of 2019. Occupancy was average at 68.6% (63% in April, 70% in May and 72% in June), still seven points down from the same quarter in 2019.

“Adjusting prices helps us partially offset inflationary pressures, which are particularly strong in energy or outsourced services such as cleaning or laundry,” said the group’s CEO, Ramón Aragonés

Analyzed by country, the ADR in Spain was 131 euros per night and 78% occupancy. In Italy the ADR was 161 euros per night with an occupancy rate of 74% and in the Benelux countries it was 146 euros per night with an occupancy rate of 68%. In Central Europe, the average daily price was 107 euros with an occupancy rate of 62% and in Latin America it was 70 euros per night with an occupancy rate of 57%.

Learn more about NH’s financial results

– NH Hotel Group cuts its losses by almost 90% in the first half of the year


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