M"ovenpick Reports 2006 Positive Operating Results with Dynamic Growth
MARCH 20, 2007. For the fourth consecutive year, M"ovenpick Hotels & Resorts (MH&R) has reported consistent earnings growth and once again achieved a good operating result in fiscal 2006. With overall sales of CHF 696.8 million (prior year: CHF 619.6 million), MH&R was able to improve its EBIT (Earnings Before Interest and Taxes) result by 44 % relative to the prior year (CHF 6.1 million) to CHF 8.7 million. The EBIT result consistently increased by over 40 % annually over the last four years. The group's EBITDA (Earning Before Interest, Taxes, Depreciation and Amortization) result improved by CHF 3.2 million or 22 % to 17.8 million. In addition to the opening of four hotels, management agreements were signed for a total of nine new projects in 2006.
The group is forging ahead with its expansion plans. Currently, M"ovenpick Hotels & Resorts has a total of 30 projects in the development or construction phase and is thus well on the way to reaching its stated target of expanding its portfolio to 100 hotels worldwide by 2010. The group celebrated three new hotel openings during 2006: Taba (Egypt), Frankfurt City (Germany) and Amsterdam (the Netherlands). In addition, MH&R returned to the Asian market following the management takeover of an upscale holiday resort in Phuket (Thailand) in mid-year. At the end of 2006, the group's portfolio comprised 58 hotels and around 13800 rooms. As a consequence of this ongoing growth, the group was able to create more than 2000 new jobs in 2006.
In line with M"ovenpick Hotels & Resorts' expansion targets, the group signed its first management agreement on the Indian subcontinent: a new business hotel will open its doors in Bangalore (India) in 2008. Over the course of the year, management contracts were also signed for new projects in Istanbul and Bodrum (both in Turkey), Crete (Greece), Kuwait, Mecca, Riyadh, Buraydah and Yanbu (Saudi Arabia). As a result of these agreements, the group's portfolio will be expanded by more than 2700 new rooms in the near future.
The group's high level of customer satisfaction was once again reflected by the improved guest comments on quality, as well as the international accolades awarded to MH&R. In addition, a number of hotels and resorts were renovated and expanded in order to more adequately fulfill the requirements of the guests.
"We are very pleased to report that, thanks to a professional performance at all levels, we have not only achieved a positive operating result in 2006, but have also been able to further optimize our quality and service standards," commented Jean Gabriel P'er`es, President & CEO of M"ovenpick Hotels & Resorts. "Moreover, we are proud of the fact that we have taken our first steps into the Indian and Asian regions. Alongside our core markets in Europe, the Middle East and Africa, we are looking at expanding further towards the Far East."
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