Orbis reports total revenue up 4.8 pct to EUR 163 million in H1 2018

Newsroom 26/07/2018 | 11:37

In the first half of 2018 Orbis Group has signed 12 new asset light agreements in 6 countries of the region. Thanks to these franchise and management contracts 1,500 new rooms will join Orbis portfolio, starting from September this year.

“Our Business remains strong in the H 1 2018 and despite high comparison base in 2017 Orbis can boost 5.3 percent growth of the RevPAR. The good performance was driven essentially by average price 5.2 percent comparing to 1H 2017. Occupancy rate remains broadly stable. I would like to highlight that RevPAR growth stays strong in all our key markets: Poland (4.6 percent); Hungary (8.4 percent) and Czech Republic (4.8 percent), benefiting from resilient environment in the EE region,” said Gilles Clavie, president and CEO of Orbis.

Orbis concentrates on delivering enhanced customer experience through personalization of its services. And these efforts are confirmed by 4.8 percent growth like-for-like total revenue growth (up to EUR 163 million). Operating EBITDA amounts to EUR 48.3 million, which represents 4 percent like-for-like growth comparing to last year. Based on the H1 2018 results and outlook for the following months Orbis expects operating EBITDA for the whole year in the range of (EUR 110-112 million).

Orbis portfolio

Orbis signed in the first half of 2018 12 new asset light agreements in 6 countries of the region. Thanks to these franchise and management contracts 1,500 new rooms will join Orbis portfolio, starting from September this year. That will make the group more balanced in terms of operating modes and diversified geographically.

All in all the pipeline is secured with 44 projects, over 6,000 rooms. On the other hand, the group has finalized the sale and management back of Sofitel Budapest Chain Bridge and Novotel Szeged. In line with the strategy and the investment plan 2018-2022 Orbis will allocate collected funds to profitable M&A projects to raise the EBITDA and value of the company in the future, such as the acquisition of the Mercure Bucharest Unirii, early July.

“Looking forward, I am convinced that Orbis will follow the growth path, giving its shareholders further returns. In a long-term horizon I expect several growth motors for the company: on the one hand, enhanced organic development, thanks to operational excellence and effective cost management; and on the other hand, further network expansion through development projects and M&A activities. Orbis has the means of its ambition, this approach reinforces further strengthening of the Group in key areas of focus: Performance, Portfolio and People,” summarized Clavie.

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