TUI Hotels & Resorts
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The Group’s hotel companies are pooled in TUI Hotels & Resorts. The sector reported a total of 5.4 million bed nights in the second quarter of 2008 and 9.4 million bed nights in the first half of the year. Occupancy stood at 80.4% in the second quarter and 77.8% in the first half slightly exceeding previous year. Although due to the season a number of hotel facilities of all companies were only opened in the course of the second quarter. The development of business showed regional variations and varied for the individual hotel groups.
TUI Hotels & Resorts – Key figures
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Turnover | 99.9 | 90.7 | + 10.1 | 193.8 | 174.9 | + 10.8 |
| EBITA by division | 13 | 15 | - 13.3 | 26 | 31 | - 16.1 |
| Gains on disposals | – | – | – | – | ||
| Restructuring | – | – | – | – | ||
| Purchase price allocation | – | – | – | – | ||
| Other one-off items | + 2 | – | + 2 | – | ||
| Underlying EBITA by division | 15 | 15 | – | 28 | 31 | - 9.7 |
| Investments | 45.8 | 58.3 | - 21.4 | 96.5 | 115.7 | - 16.6 |
| Headcount (30 June) | – | – | – | 17,417 | 15,830 | + 10.0 |
Turnover and earnings
TUI Hotels & Resorts posted consolidated turnover growth of 10.1% in the second quarter of 2008. Accumulated turnover growth for the first half of the year totalled 10.8%. Both bed nights sold in the second quarter and average revenues per bed grew slightly year-on-year. While the Riu Group recorded a slight drop in average revenues per bed in its destinations Mexico, Jamaica, the Dominican Republic, Bahamas and the US due to the persistent weakness of the US dollar, the Magic Life Group and Iberotel reported a marked increase in average rates.
In the second quarter of 2008, earnings totalled € 13 million, down 13.3% year-on-year. In the second quarter a provision for maintenance expenses by the Magic Life Group for a leased facility incurred in the context of the extension and renegotiation of the lease agreement had to be adjusted for. Underlying earnings matched 2007 levels. Accumulated earnings for the first half of the year totalled € 26 million, down 16.1% against earnings in the first half of 2007, which had included a higher earnings contribution from asset management. Adjusted for the special one-off effect which only arose in the second quarter of 2008, accumulated underlying EBITA by the division was 9.7% below previous year.
TUI Hotels & Resorts
|
Hotel brand |
Capacity (‘000)1) Q2 2008 |
Q2 2007 |
Var. % |
Occupancy rate (%)2) Q2 2008 |
Q2 2007 |
Var. % points |
Average revenue per bed (€)3) Q2 2008 |
Q2 2007 |
Var. % |
|---|---|---|---|---|---|---|---|---|---|
| Riu | 3,848 | 3,842 | + 0.1 | 87.5 | 86.4 | + 1.1 | 40.73 | 42.12 | - 3.3 |
| Magic Life | 863 | 875 | - 1.4 | 76.3 | 77.0 | - 0.7 | 37.85 | 32.63 | + 16.0 |
| Grupotel | 290 | 289 | + 0.3 | 77.0 | 78.7 | - 1.7 | 38.33 | 36.70 | + 4.4 |
| Iberotel | 731 | 728 | + 0.3 | 66.9 | 61.9 | + 5.0 | 31.38 | 28.20 | + 11.3 |
| Robinson | 641 | 534 | + 20.1 | 67.9 | 74.3 | - 6.3 | 67.23 | 67.74 | - 0.8 |
| Grecotel | 265 | 285 | - 7.2 | 67.7 | 69.4 | - 1.7 | 57.49 | 53.61 | + 7.2 |
| Dorfhotel4) | 42 | 51 | - 17.3 | 53.9 | 47.2 | + 6.7 | 43.13 | 31.19 | + 38.3 |
| Total | 6,679 | 6,605 | + 1.1 | 80.4 | 80.1 | + 0.4 | 42.14 | 41.79 | + 0.8 |
|
Hotel brand |
Capacity (‘000)1) H1 2008 |
H1 2007 |
Var. % |
Occupancy rate (%)2) H1 2008 |
H1 2007 |
Var. % points |
Average revenue per bed (€)3) H1 2008 |
H1 2007 |
Var. % |
|---|---|---|---|---|---|---|---|---|---|
| Riu | 7,505 | 7,373 | + 1.8 | 85.6 | 83.3 | + 2.3 | 45.60 | 46.91 | - 2.8 |
| Magic Life | 1,381 | 1,194 | + 15.6 | 63.6 | 70.9 | - 7.3 | 36.95 | 32.39 | + 14.1 |
| Grupotel | 396 | 382 | + 3.6 | 69.0 | 72.9 | - 3.9 | 37.61 | 36.06 | + 4.3 |
| Iberotel | 1,314 | 1,310 | + 0.3 | 62.0 | 57.0 | + 5.0 | 32.30 | 28.85 | + 12.0 |
| Robinson | 1,113 | 1,004 | + 10.8 | 68.4 | 70.1 | - 1.7 | 80.07 | 77.55 | + 3.3 |
| Grecotel | 266 | 289 | - 7.8 | 67.4 | 69.3 | - 1.9 | 57.66 | 53.36 | + 8.1 |
| Dorfhotel4) | 99 | 110 | - 10.3 | 60.4 | 57.1 | + 3.3 | 27.28 | 22.04 | + 23.8 |
| Total | 12,073 | 11,663 | + 3.5 | 77.8 | 77.0 | + 0.8 | 46.31 | 46.07 | + 0.5 |
1) Number of owned/leased beds multiplied by open days per quarter
2) Occupied beds divided by capacity
3) Arrangement turnover divided by occupied beds
4) The indicators shown above exclusively relate to the two Group-owned facilities in Austria, i.e. they do not relate to the Dorfhotel facilties managed under management agreements.
Riu
Riu, one of Spain’s leading hotel chains, operated 101 facilities in the period under review. Capacity stood at 3.8 million hotel beds available, roughly matching 2007 volumes. Occupancy of this capacity rose by 1.1 percentage points year-on-year to 87.5%, a development driven in particular by sound bookings for the Canaries. In contrast, average revenues per bed declined by 3.3%, primarily due to negative exchange rate effects for destinations in the US dollar currency region. As before, Riu contributed essentially to the positive earnings situation of the sector with its performance.
Magic Life
Magic Life, the all-inclusive club brand, operated all of its 15 facilities in the second quarter. Capacity on offer declined slightly year-on-year since two clubs in Greece were closed while one new club was opened in Egypt. Occupancy declined by 0.7 percentage points due to the start-up phase of that new operation. Average revenues per bed benefited from a year-on-year reduction in the portion of offerings reduced in price, growing considerably by 16.0%.
Grupotel
In the second quarter of 2008, all 34 hotels of the Grupotel chain in Majorca, Menorca and Ibiza were open. A slight decline in occupancy was offset by an increased level of prices.
Iberotel
In the second quarter of 2008, all 23 Iberotels, most of which are located in Egypt and Turkey, were open. Capacity rose due to the opening of the new Iberotel Boltenhagen, with occupancy rising strongly to 66.9% in the second quarter of 2008. Average revenues per bed also showed a positive development.
Robinson
Robinson, market leader in the premium club holiday segment, operated 21 of its 22 club facilities in the second quarter of 2008. The new Robinson Club in Morocco was opened at the end of April and has already performed very well. Capacity was substantially expanded year-on-year, with occupancy down by 6.3 percentage points due to the opening phase of the new operation. In addition, occupancy in a facility in Egypt declined according to plan in the run-up to a major refurbishment project. Average revenues per bed were 0.8% down year-on-year.
Grecotel
In the second quarter, all 20 holiday facilities of the leading hotel company in Greece were open. Occupancy declined by 1.7 percentage points on slightly lower capacity, offset by an increase in average revenues.
Dorfhotel
Dorfhotels continued on 2007 figures in the second quarter of 2008. The Boltenhagen hotel facility opened in the second quarter of 2008 already recorded strong demand.