NH Hotel Group, a subsidiary of Minor Hotels, has announced record-breaking financial results for 2023 with total revenue reaching €2.16bn ($2.33bn) - a 23% increase from the previous year.

The company also reported a net profit of €128m, representing a growth of 27.7% year-on-year.

Financial performance

The company stated that the growth in revenue and profits could be attributed to several key factors, including an increase in the average daily rate by 13% to €138 per room, and a notable rise in revenue per available room by 26% to €94. The occupancy rate saw an improvement of seven points, reaching 68%. NH Hotel Group's earnings before interest, taxes, depreciation and amortisation for the year grew by 15% to €596m, surpassing the 2019 figure by €44m.

Highlights and future outlook

Despite allocating €113m to capital expenditure and €123m for the acquisition of a portfolio of five Minor Hotels in Portugal, NH Hotel Group managed to reduce its net debt by €44m to €264m, demonstrating strong cash generation.

Looking ahead to 2024, the company anticipates favourable sector dynamics, characterised by robust demand and a sustained improvement in international and business travel.

Regional performance

NH Hotel Group experienced growth across all regions, particularly in Southern Europe, the Benelux countries and Central Europe. Spain, Portugal and France saw a 17% and 30% increase in revenue compared to 2022 and 2019 respectively, with solid performance in both primary and secondary cities. Italy registered a 19% growth compared to 2022, with Rome and Milan showing improvement.

Overall, NH Hotel Group's financial performance in 2023, driven by increased revenue and profits along with strategic investments and cost controls, positions the company for continued success in the sector. With favourable sector dynamics and strong growth across regions, the NH Hotel Group remains optimistic about its future prospects.