NH Hotel Group reports record earnings: revenue of €2.16 billion and net profit of €128 million

●   Average daily rate (ADR) increased 13% to €138 per room in 2023, while revenue per available room (RevPAR) jumped 26% to €94, with occupancy rising seven points to 68%

●   EBITDA in 2023 grows 15% to 596M and exceeds the 2019 figure by 44M

●   Net debt fell €44 million to €264 million thanks to strong cash generation, despite having earmarked €113 million to CapEx and €123 million to the acquisition of a portfolio of five Minor Hotels in Portugal

●   Sector dynamics remain favourable so far in 2024, marked by robust demand and a sustained improvement in international and business travel

Avani-Palazzo Moscova Milan Hotel-NHHotelGroup_Minor.jpg
  • jpg

Madrid, 8th February 2024. NH Hotel Group, part of Minor Hotels, reported revenue of €2.16 billion in 2023, a growth of 23% from €1.76 billion recorded in 2022 and 26% more than the €1.72 billion generated in 2019. Reported net profit amounted to €128.1 million, equating to 27.7% annual growth.


In the information submitted to the securities market regulator today, the hotel company underscored that the record growth in the Group's revenue and profits, was attributable to the upgraded portfolio, cost controls, a 13% increase in ADR to €138 on average last year and a seven-point increase in occupancy to 68%.


In 2023, revenue per available room (RevPAR) averaged €94 per night, marking a growth of 26% from 2022 (RevPAR: €74) and 21% compared to 2019 (like-for-like).


In the fourth quarter of 2023 alone, the company generated €551 million in revenue (€570 million excluding the impact of hyperinflation and devaluation in Argentina), with a year-on-year growth of 10%.


Labour costs increased by 20.6% last year, and operating expenses by 25.6%. The revenue-gross operating profit (GOP) conversion rate was 38%, thanks to disciplined corporate control over operating expenses to curb inflationary pressures.


Elsewhere, lease payments and property taxes increased €75.6 million in 2023 due to the addition of new properties and a higher weight of variable rent formulas.


EBITDA amounted to €596 million in 2023 (€604 million excluding the impact of Argentina), up 15% from 2022 and €44 million higher than in 2019.

NH Hotel Group reported a recurring net profit of €126 million in 2023, €50 million growth or 66.3% from 2022, and €23 million by comparison with 2019.


The hotel operator’s gross financial debt decreased €129 million in 2023, due mainly to the repayment of its remaining €50 million of pandemic ICO loan and of the $50 million loan taken out to refurbish the NH Collection New York Madison Avenue.


At year-end 2023, the Group’s net financial debt stood at €264 million, compared to €308 million a year earlier. This reduction in net debt is the result of a robust  operating cash generation, which has allowed the Group to invest €113 million in CapEx last year and invested €123 million to acquire Minor Hotels’ assets in Portugal. NH Hotel Group ended 2023 with €216 million cash.


The Argentine economy, hit by hyperinflation and currency depreciation, slightly eroded NH Hotel Group’s income, profits, and gross operating result in 2023. Excluding those impacts, the Group would have reported revenue of €2.18 billion, EBITDA of €604 million, recurring net profit of €132 million, and total net profit of €134 million.


Sector dynamics are favourable in 2024: demand remains strong in all segments and international and business travellers continue to grow.



Strong growth across all regions driven by better occupancy and high ADRs


Occupancy improved in Southern Europe and both Benelux and Central Europe posted steady improvements.


By business unit, in Spain,Portugal and France, like-for-like revenue increased 17% and 30%, compared to 2022 and 2019, respectively. This is attributed to a solid performance in both primary and secondary cities. Occupancy averaged 73% in Spain, one percentage point below the 2019 equivalent, while ADR was €138.


In Italy, like-for-like revenue registered growth of 19% compared to 2022 and 36% compared to 2019, with Rome and Milan doing considerably better. Italian ADR stands out at €181. Occupancy averaged 67%, in line with 2019.


In Benelux, like-for-like revenue marked growth of 25% versus 2022 and 12% compared to 2019. Amsterdam, Brussels and the conference center hotels registered higher growth rates. In this unit, ADR was €155, while occupancy averaged 66%, which is still five points below the 2019 figure.


In Central Europe, like-for-like revenue increased 17% year-on-year and 10% from 2019 levels, with Düsseldorf, Munich and Frankfurt the best-performing destinations. ADR in the region was €116, while occupancy averaged 66%, down seven points from 2019 levels.


In Latin America, revenue was 12% higher than in 2022 (including the impact of Argentina) and 31% above 2019 levels. Growth was highest in Mexico and Argentina, the latter shaped by hyperinflation and currency trends. Occupancy in the region was seven percentage points above that of 2019, at 67%, while ADR was €85.

About Minor Hotels - Business Unit Northern Europe

Über Minor Hotels

Minor Hotels ist ein internationaler Hoteleigentümer, -betreiber und -investor, der derzeit mehr als 540 Hotels führt. Die Gruppe investiert mit einem vielfältigen Portfolio von Häusern stets in neue Möglichkeiten der Gastfreundschaft, um verschiedene Arten von Reisenden anzusprechen und sowohl neue Interessen als auch persönliche Bedürfnisse zu bedienen. Minor Hotels ist mit seinen Hotels der Marken Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu und Minor International in 56 Ländern im asiatisch-pazifischen Raum, im Nahen Osten, in Afrika, im Indischen Ozean, in Europa, in Südamerika und in Nordamerika vertreten.

Mit dynamischen Plänen zur Erweiterung bestehender Marken und strategischen Akquisitionen in passenden Märkten verfolgt Minor Hotels die Vision einer passionierteren und vernetzteren Welt.

Minor Hotels ist Teil des GHA DISCOVERY Treueprogramms, das es Reisenden ermöglicht, jeden Moment zu Hause oder unterwegs zu genießen, während sie in den teilnehmenden Hotels und Resorts weltweit anerkannt und belohnt werden.

Für weitere Informationen besuchen Sie bitte www.minorhotels.com

About Minor Hotels

Minor Hotels is an international hotel owner, operator and investor currently with more than 540 hotels in operation. Minor Hotels passionately explores new possibilities in hospitality with a diverse portfolio of properties designed intelligently to appeal to different kinds of travellers, serving new passions as well as personal needs. Through our Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International properties, Minor Hotels operates in 56 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South America and North America.

With dynamic plans to expand existing brands and explore strategic acquisitions throughout opportunistic markets, Minor Hotels pursues a vision of a more passionate and interconnected world.

Minor Hotels is part of the GHA DISCOVERY loyalty programme, enabling travellers to savour every moment at home or away, while being recognised and rewarded at participating hotels and resorts worldwide. For more information, please visit www.ghadiscovery.com.

For more information, please visit www.minorhotels.com.

Over Minor Hotels

Minor Hotels is een internationale hotelketen, exploitant en investeerder met momenteel meer dan 540 hotels in exploitatie. Minor Hotels verkent passievol nieuwe mogelijkheden in gastvrijheid met een divers portfolio van hotels die op slimme wijze zijn ontworpen om verschillende soorten reizigers aan te spreken en zowel nieuwe passies als persoonlijke behoeften te vervullen. Via onze eigendommen Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu en Minor International is Minor Hotels actief in 56 landen in Azië en de Stille Oceaan, het Midden-Oosten, Afrika, de Indische Oceaan, Europa, Zuid-Amerika en Noord-Amerika.

Met dynamische plannen om bestaande merken uit te breiden en strategische overnames te onderzoeken in opportunistische markten, streeft Minor Hotels een visie na van een meer gepassioneerde en onderling verbonden wereld.

Minor Hotels maakt deel uit van het GHA DISCOVERY loyaliteitsprogramma, dat reizigers in staat stelt van elk moment thuis of onderweg te genieten terwijl ze worden erkend en beloond bij deelnemende hotels en resorts wereldwijd.

Ga voor meer informatie naar www.minorhotels.com.

Contact details

Related topics

Receive exclusive news

Are you a journalist or do you work for a publication?
Sign up and request access to exclusive news.

Request access

Receive Minor Hotels - Business Unit Northern Europe news on your RSS reader.

Or subscribe through Atom URL manually