Financial Results

Munich. The lease accounting reform under IFRS is scheduled to come into force in 2012. "This has serious consequences for the hotel industry!" Wolfgang M. Neumann forecasts, CEO of Arabella Hospitality Group in Munich. After all, leasing transactions also include lease contracts for hotels. The new directives will change operating and accounting ratios, which in turn may worsen the hotel's position in credit negotiations. "Classic lease relationships, which under existing rules fall subject to off-balance-sheet accounting, will thus meet limits and will make it more difficult for hotel companies to sign lease agreements," Neumann concluded. Do the planned new rules under International Financial Reporting Standards, mean the "end" for the lease contract?

Berlin. "We only sign management agreements!" This sentence has been repeated by many hotel chains lately. The global players want to force franchise agreements or management agreements. However, this is not very popular amongst investors, especially in Germany. They still prefer lease agreements with stable cash flows and solvent lessees. Developers also prefer hotel projects with lease agreements as they can be financed and placed more easily ... The polarisation is becoming more obvious now. How is an approach possible? Union Investment, a funds investment company and active hotel investor, is interested in lease agreements and recently issued an invitation to a mini round table together with hospitalityInside.com. At the table: Dr. Frank Billand and Martin Schaller of Union Investment, Project Developer Olaf Steinhage and Developer Ulrich Widmer of Hilton Worldwide.

Munich. After the crisis year 2009 Choice Hotels Germany & Central Europe reports that the 4-star properties suffered most while the midscale hotels only registered a slight fall in prices.

Interlaken. The 5-star hotels Victoria-Jungfrau Collection in Interlaken, Lucerne, Zurich and Berne were strongly affected by the economic downswing in 2009. Therefore, there will be no dividends.

Zurich/Adliswil. Moevenpick Hotels & Resorts has weathered the economical crisis in 2009, achieving a positive EBIT of CHF 2.3 million.

Vienna. The financial year 2009 was highly challenging for Warimpex Finanz- und Beteiligungs AG. Warimpex' business figures clearly reflect this development with impairments heavily influencing the results of the first half of the year and results for the third and fourth quarter slightly positive.

Augsburg. In the business year 2009, Design Hotels recorded significantly lower turnover and results. Maritim Hotels had a turnover of minus ten percent. However, the resort hotel group Seetel reported stable figures and a higher RevPar.

Eschborn. Best Western Hotels Deutschland are not unaffected by the economic crisis. The hotel group's total revenue rose by 0.3 percent to 504 million euros compared to the previous year - thanks to portfolio growth. However, average occupancy and the room rate of the group's hotels both declined. Regarding the current business year, the group expects further hotel expansion and slight recovery of the market.

Stockholm. "During the final quarter of 2009, the hotel market showed signs that the fall in occupancy was starting to level off, while room prices have continued to be under pressure," comments Frank Fiskers, President and CEO of Scandic Hotels the financial year 2009.

Palma de Mallorca. Sol Meliá presented financial results last week for 2009. The positive trends which began at the end of the second quarter continue, and the slowdown in rate and occupancy decreases point towards a forecast recovery in 2010. After adding 20 hotels in 2009, the company prepares its structure for further "strategic" growth at all levels.