QUARTERLY REPORT FOR Q3 2021 Quarterly report for Q3 2021 ...
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Quarterly report for Q3 2021 ı Motel One Group
QUARTERLY REPORT FOR Q3 2021
KEY FACTS
Q3 2021:
• Opening of Motel One Nuremberg- and Stuttgart-Hauptbahnhof | 02
• 700,000 beOne members | 04
• Motel One wins Red Dot Award | 04
• Good restart in third quarter: | 05
- Occupancy reaches 46% (previous year: 35%)
- Revenue up at EUR 95 million (previous year EUR 64 million)
- Positive EBITDA of EUR 16 million
YTD 2021:
• Despite a hopeful third quarter, the accumulated data illustrates
the economic damage: | 05
- Occupancy reaches just 24%; pre-coronavirus rate in 2019 was 76%
- At EUR 137 million, revenue still below previous year (EUR 184 million)
- EBITDA still in the red at EUR -45 million
• Outlook | 08
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OPENING OF MOTEL ONE NUREMBERG-HAUPTBAHNHOF
With ideal connections to local and long-distance transport, the new building with 559 rooms is
located directly at the entrance to Nuremberg’s main train station and just a few steps from the
pedestrian zone. The attractive redesign of what was once a major post office was carried out
by the Zurich architectural practice Max Dudler. The developer is Hubert Haupt Immobilien
Holding. The design of the hotel is inspired by Nuremberg’s artistic heritage, in particular
Albrecht Dürer. Nuremberg artist Julian Vogel designed the wall in the entrance area, around 36
square metres in total, with quotes and graphic elements from his hometown as well as Dürer’s
famous hare. The 13th floor is a multi-functional space, where breakfast is served in the morning
before it’s transformed into a spacious work area with meeting areas that can be closed off for
privacy. Up on the 14th floor, guests will find a true highlight – the Cloud One Bar with a 360-
degree panoramic view of Nuremberg and a covered loggia with plenty of fresh air. The bar
offers more than 50 different types of gin, including local varieties, with Albrecht Dürer’s star
chart shining behind it over the skyline of Nuremberg. Modern copper-wire lights and
comfortable leather sofas create a welcoming atmosphere. Room prices start at EUR 89. This
is another Motel One that operates on 100% renewable energy.
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OPENING OF MOTEL ONE STUTTGART-HAUPTBAHNHOF
From the new Motel One Stuttgart-Hauptbahnhof, guests can simply jump on the next train.
Access to the main train station is just 100 metres away. The location is ideal not only for
travellers passing through, but also for visitors to the city: Stuttgart’s historic heart with all its
attractions is just around the corner. Designed by the Lederer architectural practice, the new
build boasts 414 rooms, some with a balcony or terrace. The developer is Reiß & Co. Real Estate.
The design of the hotel reflects the atmosphere of the city and the sensation of rail travel
through the surrounding region with its vineyards. The result offers urban modernity paired with
wanderlust and numerous echoes of the natural surrounds which set the tone for the colour
scheme and interior design. Behind the reception desk is a work by artist Anja Klafki –
‘WanderWonderLand’ – which depicts a trip through the vineyards. Along with workbenches for
relaxed work, the One Lounge also offers a meeting room. The comfortable lounge furniture
and greenery on the spacious interior terrace offer guests an inviting oasis where they can take
a breather from the bustle of the city. Rooms at the new Motel One start at EUR 89.
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700,000 BEONE MEMBERS
Following the successful establishment of beOne, the third year of the digital membership
programme saw the 700,000th beOne member registered in August. Guests have responded
enthusiastically to the basic benefits, such as the Welcome Water, Sleep-In Sunday, One-Click-
Book and a delicious free breakfast
with initial registration and the many
time-limited benefits, such as an
invitation to a summer drink.
Now there’s another benefit:
‘beConnected’ enables all beOne
members to connect to the wifi
permanently without having to log in
again when they enter a Motel One –
anywhere in Europe. Think of it as a
digital homecoming.
MOTEL ONE WINS RED DOT AWARD
Motel One’s mobile app was awarded the prestigious Red
Dot Award 2021 for its ‘mobile travel companion’ in a total
of four categories: travel apps, customer experience, digital
solutions and online platforms. The internationally
recognised award is a coveted seal of approval for products
with particularly high design standards, and it documents
the most distinctive trends worldwide.
Developed with SinnerSchrader Swipe, the new mobile
application from Motel One offers a digital experience
specifically designed and implemented for iOS and Android.
The outstanding interface and user experience design
convinced the jury, setting new standards in the ‘Travel &
Tourism’ segment. The app also enables a digital expansion
of the online experience and thus expands the customer
journey – making it the perfect booking platform.
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INCOME STATEMENT
After the long lockdown of almost nine months, in the third quarter occupancy reached 46%
(previous year: 35%) and revenue of EUR 95 million (previous year: EUR 64 million) was
recorded. Tourist demand has almost completely recovered. However, companies are still
reluctant to allow employees to travel and there is a lack of international business, in particular
from trade fairs and congresses.
With the return to positive EBITDA of EUR 16 million (previous year: EUR 1 million), the restart is
well underway. With further Covid support of EUR 4 million taken into account (previous year:
0), after a quarterly loss of EUR 11 million in the previous year, a break-even EBIT was achieved.
Despite the hopeful third quarter, the accumulated data for the first nine months offers a clear
picture of economic damage. An occupancy rate of 76% in 2019 fell to 32% in 2020 due to the
travel restrictions that began in March of that year. In 2021, the long lockdown and coronavirus
restrictions resulted in an occupancy rate of just 24%.
With revenue of EUR 137 million (previous year: EUR 184 million), Motel One had to accept a
negative EBITDA of EUR 45 million (previous year: EUR -13 million) and an EBIT loss of EUR -
32 million (previous year: EUR -63 million). For 2021, government Covid aid of EUR 61 million
has already been taken into account; this was granted primarily to compensate for the losses
of the previous year.
Although a profit of EUR 57 million was generated in the first nine months of 2019, the
coronavirus years 2020 and 2021 saw revenue losses of almost EUR 210 million, despite
government aid.
2021 +/- ly 2020 +/- ly 2021 +/- ly 2020 +/- ly
Statistics:
No. Hotels 79 5 74 1 79 5 74 1
No. Rooms 22.820 1.969 20.851 111 22.820 1.969 20.851 111
Occupancy (%) 46 11 35 -43 24 -8 32 -44
RevPOR (EUR) 99 4 96 -3 96 -4 99 1
Income Statement: kEUR % ly kEUR % ly kEUR % ly kEUR % ly
Revenue 94.791 47 64.530 -56 137.319 -25 184.240 -55
EBITDAR 48.184 60 30.124 -63 46.956 -37 74.143 -67
Lease payments -27.386 -6 -25.948 -1 -79.522 -1 -78.602 -4
Head Office & Pre-Opening -4.969 -78 -2.796 60 -12.513 -51 -8.260 55
EBITDA 15.829 >100 1.380 -97 -45.079 >100 -12.719 <100
Amortisation/Depreciation -16.394 -81 -9.073 44 -39.781 3 -41.159 4
EBIT -565 -93 -7.693 <100 -84.860 58 -53.878 <100
COVID Subsidies 3.915 >100 0 0 60.988 >100 0 0
Financial Results -3.241 11 -3.628 -8 -7.930 10 -8.769 -14
EBT 109 <100 -11.321 <100 -31.802 -49 -62.647 <100
Income tax -56 <100 0 >100 -75 <100 0 >100
NET RESULT 53 <100 -11.321 <100 -31.877 -49 -62.647 <100
Income Statement3rd Quarter Year-to-Date January - September
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CASH FLOW STATEMENT
With negative EBITDA of EUR 45 million (previous year: EUR -13 million) in the first nine months
of 2021, positive working capital management and very selective redesign measures limited
operating cash outflows to EUR 26 million. In the previous year, the operating cash flow of EUR
81 million was influenced significantly by a purchase price payment from a real estate
transaction.
In addition to the Covid aid of EUR 61 million, the KfW loan secured in the previous year was
called in the full amount of EUR 162 million. Overall, liquid funds have increased by EUR 198
million since the beginning of the year (previous year: EUR 61 million).
After investments in real estate for new hotel projects of EUR 21 million (previous year: EUR 26
million) and EUR 17 million (previous year: EUR 8 million) for the redesign of new hotels, cash
holdings rose in the first nine months of 2021 by EUR 160 million (previous year: EUR 26 million).
With cash holdings of EUR 323 million (previous year: EUR 209 million), Motel One has a strong
liquidity buffer for the ongoing development of the company and the uncertainties of the
pandemic.
kEUR % ly kEUR % ly kEUR % ly kEUR % ly
EBITDA reported 15.829 >100 1.380 -97 -45.079 >100 -12.719 <100
- Net Working Capital 11.711 <100 -5.643 <100 20.909 -82 115.477 36
- ReDesign Capex -724 -54 -1.569 -86 -1.751 -92 -21.982 -34
- Taxes -56 <100 0 <100 -75 <100 0 <100
Operating Cash Flow 26.760 <100 -5.832 <100 -25.996 <100 80.776 -49
- Covid Subsidies 3.915 >100 0 0 60.988 >100 0 0
- Investing / Divesting Cash Flow 0 0 0 0 31 <100 -10.998 >100
- Equity Cash Flow 279 74 160 <100 76 <100 -6.094 56
- Debt Cash Flow -7.020 <100 24.108 <100 162.627 <100 -3.114 <100
Cash Flow before Expansion Capex 23.934 30 18.436 -46 197.726 >100 60.570 -64
- CAPEX new Hotels PROPCO -7.163 -26 -9.732 70 -20.512 -22 -26.452 -44
- CAPEX new Hotels FF&E -5.556 28 -4.347 44 -16.968 >100 -8.324 -19
Net Cash Flow 11.215 >100 4.357 -83 160.246 >100 25.794 -34
Cash carried forward 312.382 53 204.331 55 163.351 -11 182.894 56
Cash at end of period 323.597 55 208.688 33 323.597 55 208.688 33
Cash Flow Statement3rd Quarter
2021 2020
Year-to-Date January - September
2021 2020
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NET BALANCE SHEET
Coronavirus-related losses reduced equity to EUR 431 million (previous year: EUR 476 million).
The equity ratio was 62% (previous year: 69%), remaining at a stable level and similar to the
figure for 2019. The net debt including the KfW loan, with a residual value of EUR 152 million,
rose to EUR 212 million (previous year: EUR 147 million).
PIPELINE REPORT
Currently, 79 (previous year: 74) hotels are in operation with 22,820 rooms (previous year:
20,851). There are 27 hotels in the pipeline (previous year: 28) with 7,040 rooms (previous year:
8,250). Overall, an increase to 106 hotels (previous year: 102) with 29,860 rooms (previous
year: 29,101) is contractually secured. Of these, 67 hotels (previous year: 68) are in Germany
and 39 (previous year: 34) are in European cities. 19 hotels are owned (previous year: 18), and
11 hotels (unchanged from the previous year) are financed via a leasing structure. 76 hotels
(previous year: 73) are secured based on long-term rental agreements with external investors.
+/-
kEUR % kEUR % % ly
Net Balance Sheet:
Equity 431.353 62 475.720 69 -9
Net working capital 56.047 8 70.691 10 -21
Net debt 211.747 30 147.052 21 44
Leverage Framework:
EBITDA Rolling 12 months -74.901 32.055 <100
Net Debt/EBITDA n.a. 4,6 n.a.
September 30,
2021 2020
Hotels Rooms % Hotels Rooms % Hotels Rooms
in operation 79 22.820 76 74 20.851 72 5 1.969
under development 27 7.040 24 28 8.250 28 -1 -1.210
TOTAL 106 29.860 100 102 29.101 100 4 759
- Germany 67 19.472 65 68 19.578 67 -1 -106
- International 39 10.388 35 34 9.523 33 5 865
- Owned 19 5.597 19 18 5.424 19 1 173
- Leased 11 2.461 8 11 2.461 8 0 0
- Rented 76 21.802 73 73 21.216 73 3 586
+/- ly
September 30,
2021 2020
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OUTLOOK
The month of September closed with an occupancy rate of around 57%, and October offers
hope for a further slight recovery in demand.
The first major trade fairs of the year, such as the IAA, Expo Real and Anuga, were carried out
successfully. Even though the number of visitors, in particular international visitors, remains
below pre-coronavirus levels, these events clearly show that business customers want to travel
again. Hope for increased mobility in city tourism is bolstered by the restart of sporting and
cultural events without audience restrictions.
We view the rising coronavirus figures with concern, but remain hopeful that the high vaccination
rate will prevent further lockdowns.
One of the great challenges in the revitalised hotel industry is finding and retaining good
employees. The measures we have introduced, such as additional training, a coronavirus bonus
and flexibility in the scope and location of work, are the first steps. The focus is on emphasising
Motel One as an attractive employer and conveying the idea that hospitality will remain a great
profession in the future.
In the fourth quarter, Motel One Aachen will open with 259 rooms in a prime location, adding yet
another attractive location to the network in Germany.
In addition to the successful conclusion of a lease in New York in July 2021, Motel One secured
entry into the Scandinavian market in the third quarter with Motel One Copenhagen. The 200-
room hotel in the centre of Copenhagen not only brings the company to one of the most
exciting cities in Europe, but for the first time it has succeeded in integrating an existing hotel
into the group with soft rebranding.
As we assumed at the beginning of the pandemic, the current environment opens up interesting
growth opportunities at top locations that Motel One stands ready to seize.
Munich, October 2021