The Swiss hotel chain Movenpick Hotels & Resorts (MH&R) achieved good results in fiscal 2005. With overall sales of CHF 619.6 million (prior year: CHF 538.3 million), including consolidated sales of…
The Swiss hotel chain Movenpick Hotels & Resorts (MH&R) achieved good results in fiscal 2005. With overall sales of CHF 619.6 million (prior year: CHF 538.3 million), including consolidated sales of CHF 191.8 million (prior year CHF 178.7 million), MH&R was able to more than double its EBIT (Earnings Before Interest and Taxes) result to CHF 6.1 million, up from CHF 2.9 million in 2004. The group’s secure and debt-free financial situation, which is exceptional within the hotel sector, provides the foundation for the continued growth of the international hotel chain.
The group’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) result also improved by CHF 2.4 million to CHF 14.6 million or 19.7 % relative to the prior year. The internationally recognized performance metric RevPAR (Revenue per Available Room) increased group-wide by 8.7 % to CHF 75.1 (prior year: CHF 69.1).
The fact that Movenpick Hotels & Resorts is on the right path is clearly demonstrated not only by the group’s positive financial results, but also by the positive feedback received from customer surveys, the numerous international awards and the excellent relationship with hotel proprietors that the group has enjoyed for many years. Expansion is proceeding on schedule: the number of hotels as at the end of 2005 was 54 (with 12,842 rooms), representing an increase of 8.7 % relative to the prior year. The portfolio of Movenpick Hotels & Resorts has thus almost doubled since 1999. As a consequence of this ongoing growth, the group was able to create no less than 1,270 new positions in 2005 and now boasts a total workforce of 10,450.
During the year under review, a total of five new operations were added to the portfolio with hotel acquisitions in Dar es Salaam/Tanzania and Mauritius, the opening of new hotels in Jeddah/Saudi Arabia and Sana’a/Yemen, as well as the maiden voyage of the Movenpick Royal Lotus cruise ship on the Nile/Egypt. In addition, the hotels in Aswan, El Gouna, Cairo Media-City, Luxor (all in Egypt), Kuwait, the Dead Sea/Jordan, Munster/Germany and Zurich-Airport/Switzerland were comprehensively renovated or extended in order to fulfill the heightened quality requirements of the guests.
In 2005, a total of 13 contracts were signed for new projects in the core markets of Europe, the Middle East and Africa – which represents a new record in the history of Movenpick Hotels & Resorts. As a result of these agreements, an additional 4,400 rooms will complement the group’s existing 12,842 rooms in the near future, an increase of 35 %. The group aims to double its portfolio to 100 hotels by 2010.
The positive operating results are the consequence of a professional performance on all levels and create a basis upon which we can forge ahead with our expansion strategy in a targeted and steady manner, commented Jean Gabriel Peres, President & CEO of Movenpick Hotels & Resorts. Our high quality standards, excellent culinary services and carefully selected managers are prompting an increasing number of hotel proprietors to entrust the management of their business to Movenpick Hotels & Resorts. Alongside Europe, the Middle East and Africa, we are now focusing on the Asian region. Indeed, we have taken our first step toward India with the recent signing of a management agreement for a new hotel in Bangalore.
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