THE REZIDOR HOTEL GROUP - CORPORATE PRESENTATION APRIL 2016
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THE REZIDOR HOTEL GROUP CORPORATE PRESENTATION APRIL 2016
ABOUT US: FROM A SMALL SCANDINAVIAN GROUP
TO A LEADING INTERNATIONAL PLAYER
40,000
355
HOTELIERS
HOTELS IN
OPERATION
COUNTRIES
100,320 ROOMS
150
102
NATIONALITIES
HOTELS UNDER
DEVELOPMENT
A MEMBER OF THE CARLSON REZIDOR HOTEL GROUP
Carlson Rezidor
collaboration framework:
• Master Franchise
Agreement for EMEA
• Carlson is Rezidor’s
majority shareholder
• Both groups pursue a
strategic partnership
focusing on global
AMERICAS EMEA ASIA PACIFIC revenue generation
and branding
675 hotels, 78,086 rooms 505 hotels, 112,209 rooms* 192 hotels, 32,089 rooms
*EMEA numbers include Rezidor,
Edwardian Group and PPHE
TRAVEL & TOURISM REMAINS A STRONG AND RESILIENT SECTOR…
GROWING FASTER THAN • International arrivals up 4.4%
THE WORLD ECONOMY • Travel & Tourism contribution to global GDP is 10.0%
• 1 in 11 jobs worldwide is in travel & tourism
• Global aircraft fleet will double over the next 20 years
• Low oil price stimulates economy and travel & tourism
• US economy is still strong with solid job market
• Demand growth outpaces supply growth in most markets
… BUT IS IMPACTED BY ECONOMIC AND GEOPOLITICAL CHALLENGES
• Eurozone is patchy and slow in recovery
• Refugee crises challenges German powerhouse and EU unity
• Brexit question overshadows weakening UK economy
• Declining oil price puts major pressure on Norway, Saudi Arabia, Nigeria
• Youth unemployment and social tensions
• Situation in Russia somewhat stabilizes, but remains fragile
• Negative messages coming from some emerging markets
• Terror threats and uncertainty continue to impact our life
WHY DO BUSINESS WITH REZIDOR?
WE ARE GROWING
• Adding scale,
creating more brand awareness
• Reaching new source markets
and customers
2015
41 hotels with
7,936 rooms signed
25 hotels with
4,152 rooms opened
ASSET-LIGHT AND SUSTAINABLE GROWTH
with a focus on emerging markets
In operation 2015 In pipeline 2015 Total portfolio 2015
354 hotels 103 hotels 457 hotels
78,428 rooms 21,892 rooms 100,320 rooms
11%
24% 21%
53%
61% 18%
23%
89%
Franchised Leased Managed Franchised Leased Managed Franchised Leased Managed
1%
17% 19% 13% 15%
27%
24%
30% 62% 30%
34%
28%
NORD RoWE EE MEAO NORD RoWE EE MEAO NORD RoWE EE MEAO
*The pipeline includes signed projects without any CP (condition precedent)
2015 MILESTONE: 100,000 ROOMS IN 80 COUNTRIES
Radisson Blu: Europe’s Rezidor: leading pipeline on African continent
largest upper-upscale brand # of rooms
6,000
5,000
4,000
3,000
2,000
1,000
0
Rezidor: leading Rezidor: largest international hotel operator in Russia/CIS & Baltics
international operator # of rooms Russia Other CIS Baltic's
16,000
in the Nordics 14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Source: MKG 2015 Ranking,
W Hospitality 2015 Ranking, Company websitesWE ARE INVESTING
IN OUR BRANDS & PRODUCTS
Growing the appeal of our network
through vibrant brands and innovative products€200-220M INVESTMENT IN OUR HOTELS AND BRANDS 2015-17
7% of leased revenue in 2015. 46% of Rezidor’s leased estate will be renovated by 2017
80 12%
70
10%
60
8%
50
40 7.5% 6%
30 5.7%
5.2% 5.2% 4%
20 4.2% 4.2% 4.3%
3.4% 3.0% 2%
10
0 0%
2007 2008 2009 2010 2011 2012 2013 2014 2015
CapEx % of total revenueA COMPELLING AND FOCUSED BRAND ARCHITECTURE
ranging from economy to luxury
LUXURY Quorvus Collection – our collection of luxury hotels
Radisson Blu – our upper-upscale full-service brand
UPPER
UPSCALE
Radisson RED – our lifestyle select brand
UPSCALE
MIDSCALE Park Inn by Radisson – our mid-scale brand
ECONOMY
prizeotel – our new economy brandInspired by today’s lifestyle, each property offers a distinguished guest experience into which is woven the distinctive character of the local culture. We call it EIDOS
BLUPRINT
A NEW DESIGN SCHEME
FROM CONVENTIONAL TO FORWARD THINKINGJeddah
Dubai
Brussels Glasgow Cape TownFOCUS 2016 Yes I Can! / The Park Inn Smile Family Focus Adding Color to Lives RB program: Youth at Risk Launch of the new website
Design: Karim Rashid
< €50,000 per key
16 sqm rooms THE ECONOMY SEGMENT
• Resilience to economic cycles
Construction solution
• Increasing demand
Leased & managed • Value for money
• Real estate efficiency
Focus on Germany & Benelux • A business of scale
© prizeotel Management GroupWE ARE INVESTING IN OUR PEOPLE Attracting and retaining top talent as an employer of choice
INVESTMENT IN OUR TALENT
Rezidor’s Performance Management Culture is embraced at all levels
Assessment
Development Centers
Competency Based Leadership & Management
Interview Guide development programmes
TALENT
MANAGEMENT
Talent Review & Succession Three Rezidor Profiles
Management Process
Performance Performance
Management System Management ProcessTARGETED PEOPLE DEVELOPMENT INITIATIVES TO ATTRACT,
RETAIN AND GROW THE BEST TALENT
• Rezidor’s Employee Loyalty Score is constantly
rising and at industry-leading level (in average 6
points above average score of other sectors)
87.5
88
88
87
87
86
86
85
85
84
84 • The Group’s Employee Value Proposition
83 focuses on diversity & inclusion.
83 The “Women in Leadership”
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Rezidor Climate Analysis 2015
programme targets 22% female leaders
by the end of 2016WE DRIVE REVENUES
Total revenue focus and reshaping the RevGen
engine to increase systems contributionSTRATEGIC REVENUE INITIATIVES
DELIVER FOURTH CONSECUTIVE YEAR OF RGI GROWTH
Rezidor’s 2015 absolute RGI reaches 106.7
110 Rezidor Park Inn Radisson Blu
108.0
106.7
+0.8% +0.7%
+1.6% +0.6% +0.7%0
105 +1.6%
101.8
+1.1%
+1.2% +2.5%
100
-0.1%
+2.0%
95
+2.3%
90
2012 2013 2014 2015
Hotels w.
151 157 151 157
RGI data
RGI >
60.9% 60.5% 65.6% 61.1%
100%
Gaining
54.3% 64.3% 52.3% 52.9%
RGIREVGEN PROJECT SHERPA: RESHAPING REZIDOR’S REVGEN ENGINE
to embrace the shifting dynamics of the marketplace
4 pillars underpin the transformation and
are enabled by a revised funding model
Targeting a 55%
system Online Transformation
contribution in
2016 Direct Marketing/
Loyalty Transformation
(system contribution: Sales Transformation
revenue and room nights
via Brand Web, Internet,
Voice, GDS and Carlson Analytics Transformation
Rezidor influenced (Sales &
Loyalty) hotel direct
business)WE ARE COST CONCIOUS HOTELIERS
Industry leading operating margins
in pursuit of operational excellence
and cash flow optimisationSIGNIFICANT COST REDUCTIONS IN OPERATIONS Reaching a best-in-class GOP margin of 37.8% in 2015 • Productivity gain of 18% in 2015 in hotels • Procurement as a key driver to improved that introduced Productivity+ profitability • Housekeeping PDQ savings from 2013 • Generating €13m savings between €120k until 2015 €1.2m 2013 and 2015 • Significant “Think Planet” energy savings • In 2015 alone, €5.1m savings following investments • New Breakfast concept; food waste cover saved 75% & cost per cover 17%
WE THINK AND ACT
RESPONSIBLE
A unique and award-winning sustainability
philosophy, differentiating our brands
and inspiring our team membersWE CREATE A SAFE AND SECURE
BUSINESS FOUNDATION
Protecting the lives of our guests and employees
while safeguarding your assetsTHE FUNDAMENTAL IMPORTANCE OF SAFETY AND SECURITY
IS BECOMING FRONT OF MIND …
…. AND THE FOUNDATION FOR A STABLE, SUCCESSFUL AND SUSTAINABLE BUSINESSWE ARE A RELATIONSHIP COMPANY
We believe in personal relationships based
on trust and transparency – with our people,
guests, owners, share- & stakeholdersWE ARE FINANCIALLY SOUND
Our turnaround programme
and debt free balance sheet enables
investments and makes us a solid partnerIN 2011, WE DEFINED A STRATEGY BUILT ON 5 KEY FOCUS AREAS
Clear financial targets shaped our turnaround programme “Route 2015”
Focus areas Financial targets
Revenue initiatives Profitability target
EBITDA margin of 12%
over a business cycle
Fee-based
room growth
6-8% Balance sheet
EBITDA margin uplift Small positive average
Cost savings (from 4% to 10-12%)
by end of 2015
net cash position
Asset management
Dividend policy
/ deleveraging
Approximately one third of
annual after-tax income
CapEx deployment to be distributed to
shareholdersREZIDOR’S 2015 RESULTS SURPASSED EXPECTATIONS
Benefits from one-offs lift EBITDA margin to 10.1% and EBIT to €57.4m
M€ 2015 Vs Budget Vs LY
L/L RevPAR L+M 73.5 0.7% 5.1%
Revenue 997.0 26.6 59.7
EBITDAR 341.0 7.1 28.9
EBITDAR Margin % 34.2% -0.2 pp 0.7 pp
EBITDA 101.0 7.8 29.7
EBITDA Margin % 10.1% 0.5 pp 2.5 pp
EBIT 57.4 9.2 26.7
EBIT Margin % 5.8% 0.8 pp 2.5 pp
NET INCOME 34.1 8.6 19.92007 2008 2009 2010 2011 2012 2013 2014 2015 Hotels in operation 237 260 286 312 325 338 337 340 350 Revenue, M€ 785 785 677 786 864 924 920 937 997 EBITDAR, M€ 281 276 210 254 275 300 317 314 341 EBITDAR margin % 35.7 35.1 31.0 32.3 31.8 32.5 34.5 33.5 34.2 EBITDA, M€ 87 71 5 32 35 51 81 73 101 EBITDA margin % 11.0 9.0 0.7 4.0 4.1 5.5 8.8 7.6 10.1 Net Results, M€ 46 26 -28 -3 -12 -17 23 14 34
WE ALWAYS PUT THE GUEST CENTRE STAGE
Why do we exist?
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