KEY FACTS
█ 3RD QUARTER 2015:
Motel One opens in Amsterdam
| PAGE 1
Quality knows no standstill | PAGE 2
DEUTSCHE BUNDESBANK confirms investment grade | PAGE 3
Top position in TREUGAST ranking | PAGE 3
Occupancy and results at a high level | PAGE 4
Assured growth to over 20,000 rooms | PAGE 6
Motel One receives German Marketing Award | PAGE 7
Training project for refugees in the pipeline | PAGE 7
█ MOTEL ONE AMSTERDAM HAS OPENED
In August the first Motel One was
opened in the Dutch capital, Amsterdam, with 320 rooms. The futuristic façade of the building makes it a landmark piece of architecture that is situated directly opposite the RAI exhibition
and convention centre and close to
Amstelpark. Its position next to the RAI
is a guarantee for extremely good and
convenient public transport connections
to the city centre. The One Lounge features the themes of bicycles and tulips
in the artistic décor and furniture.
█ BREAKFAST WITH ORGANIC AND FAIR TRADE PRODUCTS
Since the beginning of this year the hotel’s
breakfast buffet has included a large range of
organic products, partly from regional
suppliers, while also avoiding packaging. All
dairy products are fully organic, for instance,
the selection of cheeses and milk, yoghurt
and butter. Other organically certified
products are the various mueslis and jams as
well as fresh rye and wholemeal bread, rolls
and pretzels. Even the coffee is organic and
bears the Fair Trade seal. This policy has
generally been affirmed through positive
ratings and comments from guests.
█ QUALITY KNOWS NO STANDSTILL
The most important indicator of a hotel is of
course the level of guest satisfaction. This is
now the third year in succession that Motel
One has improved factors which can be
directly influenced by its workforce at the
hotels. Cleanliness and friendliness have
received TOP ratings in the entire industry.
The greatest increase was noted for
breakfast, partly due to the introduction of
organic products and the One Smile Service
policy – according to 116,089 ratings
(previous year: 79,850) which were received
at motel-one.com.
motel-one.com ratings
83,1
breakfast
81,8
81,5
92,2
91,4
91,0
cleanliness
92,8
92,0
91,3
friendliness
76
78
2015/ 116.089
80
82
84
2014 / 79.850
86
88
90
92
2013 / 70.663
94
█ DEUTSCHE BUNDESBANK CONFIRMS INVESTMENT GRADE
In its letter of 21 September 2015, Deutsche Bundesbank
confirmed that, as in the previous year, Motel One qualifies for
an investment grade ranking of 3. This means that whenever a commercial bank gives a loan to Motel One, it can use
this loan as a security towards Deutsche Bundesbank.
The creditworthiness rating is based on the decisions of the ECB Governing Council and was awarded by
the relevant Bundesbank unit not just for Motel One’s balance figures, but also with an eye to its specific
circumstances and recent developments. The Deutsche Bundesbank ranking corresponds to investment
grade A, as awarded by the rating agencies S&P and FITCH (both accredited for the Eurozone), and A2
from MOODY’S. Motel One’s investment grade reinforces its standing with investors and therefore supports its international development, in particular.
█ TOP POSITION IN TREUGAST INVESTMENT RANKING
The Treugast Investment Ranking 2015, published at EXPO REAL, gave rise to several surprises this
year. However, the top rating continues to apply to Motel One, Accor and GCH (formerly Grand City).
“Motel One has confidently maintained its top position for several years now. Motel One’s ongoing
performance and its portfolio increases – with the addition of five new operations in 2014 – have reinforced the position of this Munich-based company among the top group. By setting up the One University, Motel One has accepted the challenge of an important future issue in this industry, showing that
sustainable success is not just determined by quantitative factors,” says the Treugast Solution Group.
This year was also the ninth time that the Investment Ranking Austria was presented by the Treugast
Solutions Group at Expo Real, in collaboration with Horwarth HTL Austria. In Austria Motel One is the
only company to have received a Blue Chip rating (source: HospitalityInside 9 Oct. 2015).
█ INCOME STATEMENT
The number of hotels operating as at 30 September 2015 was 51 with 13,887 rooms (previous year: 52
hotels with 11,975 rooms). The sale of the nine first generation hotels was offset by new openings. As the
new hotels are bigger, the overall capacity has risen by 1,912 rooms. Thanks to good start-up phases at
the newly opened hotels, the third quarter of 2015 concluded with 79% occupancy (previous year: 79%).
Sales rose by 27% to EUR 88m (previous year: EUR 69m), and the EBITDA rose by 22% to EUR 30m
(previous year: EUR 25m).
P&L Statement
Q3
2015
2014
Statistics:
No. Hotels
No. Rooms
Occupancy (%)
YTD September
2014
2015
+/-
51
52
-1
51
52
-1
13.887
78,7
11.975
78,6
1.912
0,1
13.887
74,9
11.975
74,2
1.912
0,7
88,6
82,7
5,8
87,1
80,7
6,4
RevRoSold (EUR)
Income Statement:
+/-
kEUR
kEUR
% py
kEUR
kEUR
% py
Revenue
88.254
69.637
26,7
235.140
183.905
27,9
EBITDA
30.348
24.853
22,1
73.664
60.408
21,9
EBIT
22.838
19.418
17,6
51.688
44.613
15,9
OPERATING PROFIT
21.698
20.317
6,8
47.288
42.968
10,1
13
0
>100,0
36.177
0
>100,0
EBT
21.711
20.317
6,9
83.465
42.968
94,2
NET PROFIT
14.546
13.613
6,9
59.953
28.789
>100,0
Capital gain hotel properties
Performance:
EBITDAR
% Rev.
% Rev.
% Pts.
% Rev.
% Rev.
% Pts.
50,5
49,7
0,8
48,5
47,5
1,0
-16,1
-14,0
-2,1
-17,2
-14,7
-2,5
EBITDA
34,4
35,7
-1,3
31,3
32,8
-1,5
EBIT
25,9
27,9
-2,0
22,0
24,3
-2,3
OPERATING PROFIT
24,6
29,2
-4,5
20,1
23,4
-3,3
Lease payments
Accumulated sales by September 2015 had increased by 28% to EUR 235m (previous year: EUR 184m),
with 75% occupancy (previous year: 74%). The EBITDA rose by 22% to EUR 74m (previous year: EUR
60m). The operating profit after depreciation and interest went up 10%, reaching EUR 47m (previous
year: EUR 43m). Including EUR 36m in profits from property sales, earnings before tax were EUR 83m
(previous year: EUR 43m). After-tax profits were EUR 60m (previous year: EUR 29m). Relative performance at the EBITDAR level in relation to sales rose to 48.5% (previous year: 47.5%). At the level of
operating profit, the return on sales dropped to 20.1% (previous year 23.4%), due to a larger share of
leased hotels.
█ CASH FLOW STATEMENT AND BALANCE SHEET
Cash flow from operating activities was EUR 29m in the third quarter of 2015 (previous year: EUR 35m),
while investments were EUR 15m (previous year: EUR 42m). Cash flow from financing increased to EUR
4m (previous year: EUR 1m). Cash flow in the 3rd quarter totalled EUR 18m (previous year: -EUR 6m).
Cash Flow
Q3 2015
2014
kEUR
2015
kEUR
+/% py
2015
kEUR
YTD September
2014
kEUR
+/% py
CF operating activities
29.101
35.043
-17,0
87.537
56.064
56,1
CF investing activities
-14.514
-41.856
-65,3
-6.091
-98.136
-93,8
CF financing activities
3.801
1.277
>100,0
-28.623
5.141
<100,0
CF for the period
Cash at beginning of the period
18.388
122.200
-5.536
73.141
<100,0
67,1
52.823
87.765
-36.931
104.536
<100,0
-16,0
Cash at end of period
140.588
67.605
>100,0
140.588
67.605
>100,0
The cash flow from operating activities during the first nine months of 2015 was EUR 88m (previous year:
EUR 56m). Cash flow from investment and financing activities was substantially impacted not only by
dividends paid out to shareholders, but also by property sales. The total cash flow was EUR 53m (previous year: -EUR 37m). Liquid funds rose to EUR 141m (previous year: EUR 68m) as at 30 September
2015.
Net Balance Sheet
and leverage framework
September, 30
2014
2015
kEUR
%
kEUR
+/%
%
Fixed Assets
411.609
100,0
431.550
100,0
-4,6
Equity
312.521
75,9
255.755
59,3
22,2
Net working capital
60.280
14,6
50.901
11,8
18,4
Net debt
38.808
9,4
124.894
28,9
-68,9
EBITDA Rolling 12 months
94.474
78.147
20,9
0,4
1,6
-74,3
Net Debt/EBITDA
Owing to the sale of FirstGen as well as sale and leaseback transactions, fixed assets in the balance
sheet dropped by 5% to EUR 412m (previous year: EUR 432m). Equity increased to EUR 313m (previous
year: EUR 256m), so that the self-financing ratio is now 76% (previous year: 59%). Net working capital
went up 18% to EUR 60 million (previous year: EUR 51 million). Net debts were reduced to EUR 39m
(previous year: EUR 125m) thanks to high cash holdings and the unscheduled repayment of bank loans
in connection with the property sales. The net gearing decreased to 9% (previous year: 29%). The ratio
between net debt and EBITDA dropped to 0.4x (previous year: 1.6x).
█
HOTELS IN OPERATION AND DEVELOPMENT
As of 30 September 2015 51 hotels with 13,887 rooms (previous year: 52 hotels with 11,975 rooms) are
in operation. Nine first generation hotels were sold, and eight hotels with higher capacities were opened.
The number of leases rose to 82% of the total capacity (previous year: 70%). In all, hotels with 2,493
rooms (previous year: 3,564 rooms) are currently under ownership. After the opening of Amsterdam, the
number of hotels operating outside Germany is now 13 (previous year: 7), with 3,944 rooms (previous
year: 1,930 rooms). This is a share of 28% (previous year: 16%).
Pipeline
September 30, 2015
Hotels
Rooms
September 30, 2014
%
Hotels
Rooms
+/- py
%
Hotels
Rooms
in operation
Owned Hotels
11
2.493
18
21
3.564
30
-10
-1.071
Rented Hotels
40
11.394
82
31
8.411
70
9
2.983
Total
51
13.887
100
52
11.975
100
-1
1.912
- Germany
38
9.943
72
45
10.045
84
-7
-102
- International
13
3.944
28
7
1.930
16
6
2.014
Owned Hotels
9
2.436
38
7
2.391
33
2
45
Rented Hotels
11
3.892
62
15
4.929
67
-4
-1.037
Total
20
6.328
100
22
7.320
100
-2
-992
- Germany
11
4.030
64
9
3.381
46
2
649
9
2.298
36
13
3.939
54
-4
-1.641
Owned Hotels
20
4.929
24
28
5.955
31
-8
-1.026
Rented Hotels
51
15.286
76
46
13.340
69
5
1.946
Total
71
20.215
100
74
19.295
100
-3
920
- Germany
49
13.973
69
54
13.426
70
-5
547
- International
22
6.242
31
20
5.869
30
2
373
under development
- International
Total secured
The development pipeline currently comprises 20 hotels with 6,328 rooms (previous year: 22 hotels with
7,320 rooms). Including this pipeline, Motel One has the contractual security to grow to 71 hotels (previous year: 74) with 20,215 rooms (previous year: 19,295). It means that Motel One’s own property portfolio
will grow back to 20 hotels with 4,929 rooms (previous year: 28 hotels with 5,955 rooms). The international share will rise to 22 hotels with 6,242 rooms (previous year: 20 hotels with 5,869 rooms), resulting
in a total capacity of 31% (previous year: 30%). In all, six new projects were concluded, totalling 1,640
rooms. Four further locations were secured in Germany – Munich, Cologne, Lübeck and Aachen – and
two further international locations, one in Paris and a second hotel in Amsterdam.
█
MARKET
Strong growth in Europe’s tourist industry continued during the third quarter of 2015. For example, STR
Global reported that higher occupancies and higher prices had been accrued for Europe by September.
The most robust markets and growth drivers continue to be UK with an accumulated RevPAR increase
(revenue per available room) of 4.9%, and Germany with a RevPAR increase of 6.7%.
Compared with the previous year, a clear RevPAR increase was also recorded for the top destinations
that are relevant to Motel One, except in cities that are subject to trade show cycles. London 1.8%, Berlin
4.8%, Hamburg 3.6%, Munich 3.3% and Vienna 8.4%. (Source: STR Global European Hotel Review,
September 2015).
█ OUTLOOK
This year’s German Marketing Award went to the Motel One Group. A large majority among the 20
members of this professional jury decided to choose the European budget design hotel chain for its comprehensive package of marketing activities. The trophy will be presented on the German Marketing Day
which will be held at the ICS International Congress Centre in Stuttgart on 3 December 2015.
As a sign of solidarity, Motel One is working with Germany’s Employment Agency and with the Chamber
of Commerce and Industry in setting up a training project for refugees. This important project is to
demonstrate that refugees can be regarded as an opportunity. By receiving suitable investments for their
training, refugees can help to achieve medium-term reductions in skills shortages.
Where economic development prospects are concerned, there is apparently an increase in risks from
weaker exports to China, coupled with initial profit warnings, investment cutbacks by German industry
and an overheated property market.
Munich, October 2015