REZIDOR EXITS SIX LEASED HOTEL CONTRACTS IN THE UK AND CAPITALIZES PREVIOUSLY UNRECOGNIZED TAX LOSSES
(Thomson Reuters ONE) -
The Rezidor Hotel Group will strategically exit six hotel contracts under Full
Repairing and Insuring lease in the UK in 2017. The hotels are located in
regional markets and have been unprofitable for Rezidor due primarily to above-
market rental level of the leases. As part of the exit, Rezidor has agreed to a
surrender premium payment of £15M (ca. ?18M) in 2016 to the landlords.
Wolfgang M. Neumann, President & CEO of The Rezidor Hotel Group, commented:
"These exits are part of Rezidor's long-term asset management strategy that
involves exiting from unprofitable contracts and renegotiating of terms
including renovations across EMEA. In 2016, we have successfully completed 15
such transactions. Over the past 5 years, our asset management initiatives
targeting a continuous portfolio optimization have yielded ?17M EBITDA
contribution and 1.8 percent uplift in EBITDA margin."
"The exits will positively impact Rezidor's annual EBITDA by ca. £1.5M (ca.
?1.8M) and EBIT by a higher amount, as well as avoid capital investments for
Rezidor in future years," added Knut Kleiven, Deputy President & Chief Financial
Officer of Rezidor. The properties will remain in the group's lease portfolio
for maximum one more year.
Despite this exit, Rezidor will remain a major international hotel player in the
UK with 28 hotels and 6,000 rooms in operation.
"In addition to the asset management progress made and other initiatives to
improve profitability, we have also adopted our transfer pricing model to
reflect recent tax law changes initiated by OECD and EU and as a result we were
also able to capitalize previously unrecognized tax losses carried forward in
several jurisdictions. This will result in a substantial income tax benefit for
the financial year ending December 31, 2016. The total amount of tax losses
recognized amounts to EUR 23.8 million. Going forward this should lead to a more
normalized tax rate for the group." added Knut Kleiven.
CORPORATE COMMUNICATIONS & PR CONTACTS:
Renu Hanegreefs-Snehi, Vice President, Corporate Communications, PR & Reputation
Management
renu.snehi(at)carlsonrezidor.com
ABOUT THE REZIDOR HOTEL GROUP
The Rezidor Hotel Group is one of the most dynamic hotel companies in the world
and a member of the Carlson Rezidor Hotel Group. The group features a portfolio
of approximately 475 hotels in operation or under development with 104,000 rooms
in over 80 countries.
Rezidor operates the core brands Radisson Blu and Park Inn by Radisson in
Europe, the Middle East and Africa (EMEA), along with the Club Carlson loyalty
program for frequent hotel guests. In early 2014 and together with Carlson,
Rezidor has launched the new brands Radisson RED (lifestyle select) and Quorvus
Collection (luxury). Since 2016, Rezidor also owns 49% of prizeotel.
In November 2006, Rezidor was listed on the Nasdaq Stockholm, Sweden. HNA
Tourism Group Co., Ltd., a division of HNA Group Co., Ltd., a Fortune Global
500 company with operations across aviation, tourism, hospitality, finance, and
online services among other sectors, is since December 2016 the majority
shareholder.
The corporate support office of The Rezidor Hotel Group is based in Brussels,
Belgium.
For more information, visit www.rezidor.com
Twitter (at)carlsonrezidor
LinkedIn www.linkedin.com/company/2364
Instagram www.instagram.com/rezidor_ourpromise
Press release (PDF):
http://hugin.info/142138/R/2067611/776361.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Rezidor Hotel Group via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.12.2016 - 07:55 Uhr
Sprache: Deutsch
News-ID 514682
Anzahl Zeichen: 4379
contact information:
Town:
Brussels
Kategorie:
Business News
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"REZIDOR EXITS SIX LEASED HOTEL CONTRACTS IN THE UK AND CAPITALIZES PREVIOUSLY UNRECOGNIZED TAX LOSSES"
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