“After the Group outstanding performance in 2015, our results continued to grow at a remarkable pace in 1H 2016. Orbis can boast double digit RevPAR growth +10.2% comparing to 1H 2105 thanks to operating indicators increase (+1.9 p.p. occupancy rate and +6.9% average room rate) in the EE region. Financial performance was record high with +8.2% increase of revenue up to EUR 146.1 million and operating EBITDA reaching EUR 37.5 m with +14.8% growth comparing to 1H 2015. I am proud of Orbis’ Teams, who have been effectively bringing Company’s strategy into life. Thanks to their commitment, common spirit of conquest and favorable economic situation we have been succeeding.” - said Gilles Clavie, President and CEO of Orbis S.A.
Portfolio Development & Asset Management
Entering new markets in the region in January 2015 made Orbis much more agile and opened up new possibilities to further build company’s value for shareholders. In order to operate an optimal hotel portfolio the Company effectively allocate its capital through asset management. In 1H the buy-back transaction of two leased hotels in Budapest was successfully carried out and the Management Board do not exclude further potential transactions, which would allow a more efficient hotel management. At the same time, sale and franchise back transactions of non-strategic hotels illustrate Orbis approach to an active restructuring of hotel group. That enable the Company to reallocate cash to more profitable investments in new hotels, located in key destinations, and finance product improvement of existing portfolio. In 1H 2016 Orbis strengthened its leading market position by 6 new franchise hotels openings, which brought almost 650 new guestrooms. On top of that 6 new franchise or management contracts have been signed which would result in new hotels soon. Looking for sustainable growth, development pipeline is strong and secured with 23 hotels to open during the next 2 years.
“I express my satisfaction looking at the first half of 2016 Orbis performance. Our optimism is already reflected in our 2016 operating EBITDA forecast of EUR 82.2-84.5 million. Looking into the future, we are on target with our objectives and still have ambitious goals to achieve, in terms of further chain development and Group’s efficiency. I have great expectations to strengthen our leader position in the region.”– summarized Gilles Clavie
Financial and operating results