NH Hotel Group expects recovery pace to pick up

NH Hotel Group has reported a significant improvement during the second-half of 2021, re-enforcing hopes of a swift return to profitability.

In 2021, NH's full-year reported consolidated loss decreased by 69.4% to €133.7 million with revenue up 54.6% to €834 million. During the second half, the revenue recovery was stronger in southern Europe thanks to fewer restrictions.

The business upturn in the second half, coupled with strict control over costs, also allowed the company to stem the cash drain, generating €29 million of cash in the second half of the year.

“In 2021 we managed to reduce our losses by 70% and resume cash generation in the second half by focusing on cost control and pricing strategy as the business began to pick up. We are well on our way back to profitability,” Ramón Aragonés, NH’s CEO said.

“We expect to complete that trajectory this year, leveraging our unique value proposition in the leisure segment, preferred urban locations in emblematic cities and the gradual recovery unfolding since the summer in the MICE and business travel segments. Omicron has had a significant impact but limited in time to the months of lower activity. The data we have so far this year points to a recovery from one week to the next, inviting optimism and leaving us convinced that the good news will start to arrive with greater speed”.