Rezidor Hotel Group: Interim Report January-September 2012

• Like-for like ("L/L") RevPAR was up by 4.6%.
• Revenue increased by 8.2% to MEUR 237.3 (219.4).
  On a L/L basis Revenue increased by 3.7%.
• EBITDA amounted to MEUR 17.6 (14.8), and the EBITDA margin to 7.4% (6.7).
• Profit after tax amounted to MEUR 4.4 (14.2).
• Basic and diluted Earnings Per Share amounted to EUR 0.03 (0.10).
• Ca 600 new rooms opened and ca 2,000 new rooms were contracted.

Nine month ending September, 2012

• L/L RevPAR was up by 5.0%.
• Revenue increased by 7.0% to MEUR 683.1 (638.6).
  On a L/L basis Revenue increased by 3.8%.
• EBITDA amounted to MEUR 35.3 (21.0), and the EBITDA margin to 5.2% (3.3).
• Loss after tax amounted to MEUR -3.5 (1.6).
• Basic and diluted Earnings Per Share amounted to EUR -0.02 (0.01).
• Cash flow from operating activities amounted to 9.1 (-5.6).  
• Ca 2,900 new rooms opened and ca 5,900 new rooms were contracted.

*Deferred tax assets of MEUR 11.7 were recognised in the third quarter last year.

Post balance sheet events

• Rezidor has signed an agreement to exit seven lease contracts in France by the end of the year. A termination fee of MEUR 11.5 will be paid to the owner, Hibernia France. This will have a negative impact of MEUR 8.5 on the result in Q4 2012. The exit will have a positive effect on Rezidor's EBITDA of ca MEUR 2 annually, as from 2013.

Comments from the CEO

• Emerging Markets drive RevPAR improvement of 5%. Implementation of Route 2015 shows traction through Asset Management and new optimisation and cost savings programme 

"Our Like-for-Like RevPAR improved by 5% following strong growth in the Middle East & Africa and Eastern Europe whilst the Nordics and some countries in Western Europe reported more modest growth.

The RevPAR improvement resulted in higher revenue in the third quarter, 20% growth in fees from managed and franchised hotels, and an improved EBITDA margin of 0.7 percentage points. We signed 2,000 rooms, in line with our asset-light strategy and our pipeline remains strong and steady at 22,000 rooms.

The outlook is still uncertain due to the current macroeconomic situation. Hence, we remain focused on improving profitability, both in absolute terms and relative to the industry.

The exit from seven unprofitable lease agreements in France will positively affect Rezidor's EBITDA by ca MEUR 2 annually. This is in line with our Route 2015 strategy, aimed at improving the EBITDA margin by 6-8 percentage points by 2015. The agreement was signed on October 24, 2012.

To support our Route 2015 strategy and in light of the uncertain economic outlook, we have initiated a separate optimisation and cost saving programme targeting operating cost reductions by MEUR 13-15 by 2015.

In addition, after 23 years as the CEO of Rezidor I will retire at the end of the year. The Board has appointed Wolfgang M. Neumann, the current Chief Operating Officer, as the new President & CEO; effective January 1, 2013. The Board also appointed Mrs Trudy Rautio as the new Chairman, replacing Hubert Joly.

Kurt Ritter, President & CEO

Presentation of the Q3 results

On 26 October, 2012 at 15:30 (Central European Time) a combined telephone conference and live webcast (in English) concerning the report will be presented by the President and CEO, Kurt Ritter, Deputy President & CFO, Knut Kleiven and Executive Vice President and COO, Wolfgang M. Neumann.

To follow the webcast, please visit www.investor.rezidor.com

To access the telephone conference, please dial:

Confirmation code: 7954559

For a replay of the conference call please visit www.investor.rezidor.com.

Financial calendar 2012/2013

Year-end-report Q4-2012 results: 13 February 2013
Q1-2013 results: 24 April 2013
Annual General Meeting 2013: 24 April 2013
Q2-2013 results: 17 July 2013

This quarterly report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08h30 Central European Time on 26 October 2012.

Stockholm 26 October, 2012

Kurt Ritter
President & CEO
Rezidor Hotel Group AB

For further information, contact

Knut Kleiven
Deputy President & CFO
+32 2 702 9244
+32 2 702 9330
knut.kleiven@carlsonrezidor.com

Ebba Vassallo
Director, Investor Relations
+32 2 702 9286
+32 2 702 9300
ebba.vassallo@carlsonrezidor.com

The Rezidor Hotel Group Corporate Office
Avenue du Bourget 44
B-1130 Brussels
Belgium
Tel. +32 2 702 9200
Fax: +32 2 702 93 00

Website: www.rezidor.com

About the Rezidor Hotel Group

The Rezidor Hotel Group is one of the most dynamic and fastest growing hotel companies in the world. The group currently features a portfolio of 435 hotels with 95,000 rooms in operation and under development in more than 70 countries across Europe, the Middle East and Africa. Rezidor operates the core brands Radisson Blu and Park Inn by Radisson - as well as Regent Hotels & Resorts and Hotel Missoni, a lifestyle brand which is developed worldwide following a licence agreement with the iconic Italian fashion house Missoni.
 
Rezidor is a member of the Carlson Rezidor Hotel Group.

For more information, visit www.rezidor.com

The full report with tables can be downloaded from the following link: