NH Hotel Group has reported a significant increase in its total net profit, reaching €93 million in the second quarter of 2024, compared to €81 million in the same period of 2023. The company’s revenues for the quarter soared to €685 million, marking a record-breaking quarter and representing a notable growth of €65 million or 11% from the revenues recorded in Q2 2023.
Within the Like for Like (LFL) perimeter, which excludes refurbishments and perimeter changes, revenue saw a robust increase of €33 million or 8%, driven by growth across all geographical regions. Particularly noteworthy was the revenue growth in Spain (+€16 million) and Central Europe (+€11 million), outpacing the growth in Italy (+€2 million), Benelux (+€1 million), and LatAm (+€2 million).
NH Hotel Group’s consolidated revenue per available room (RevPAR) for the second quarter rose by 7.0% to €118 (from €110 in Q2 2023), with LFL RevPAR showing a 6.5% increase compared to the previous year.
FSS International Investment Advisory highlighted NH Hotel’s exceptional core profit of EUR97 million in 2Q24, representing a 23% year-on-year growth, surpassing the analyst’s estimate by 11%.
The company’s EBITDA margin remained relatively stable year-on-year at 33.5%. The noteworthy growth in core profit in Q2 2024 was attributed to higher-than-expected EBITDA margin and a lower-than-anticipated tax rate due to non-activated credits in Spain and Italy, as well as tax loss in Argentina.
FSSIA estimates that NH Hotel Group’s contribution to Minor International Public Company Limited (SET: MINT) could range between 3.6-3.8 billion baht, potentially leading MINT to achieve a new core profit record in 2Q24, surpassing the previous high of THB3.0 billion in Q2 2023. The firm recommended a “BUY” rating for MINT with a target price set at THB44.00 per share.
