SUMMARY OF THE SECOND HALF OF 2023 FOR THE GROUP
- Net sales 38 065 (15 648) TSEK
- Operating resultEBIT 46,483 (-4 455) TSEK
- Result before tax 35 793 (-7 107) TSEK
- Result after tax 36 648 (-7 107) TSEK
- Cash flow from operating activities -6 586 (-1 386) TSEK
- Earnings per share before dilution 0.57/-0.17
- Earnings per share after dilution 0.57/-0.13
FULL YEAR 2023 SUMMARY FOR THE GROUP
- Net sales 55,113 (27,955) TSEK
- Operating result EBIT 41 892 (-19 161) TSEK
- Result before tax 29 996 (-22 875) TSEK
- Result aftertax: 30 852 (-23 128) TSEK
- Cash flow from operating activities -14 067 (-2 606) TSEK
- Earnings per share before dilution 0, 50/-0,40
- Earnings per share after dilution 0, 50/-0, 39
SUMMARY OF SIGNIFICANT EVENTS DURING THE FULL YEAR AND SECOND HALF OF 2023
- On
June 12 ,Reato Group entered into a conditional agreement to acquire two connected properties,Lund Saturnus 27 andLund Saturnus 30, as well as the operating companyHotel Planetstaden AB , fromPlanetstaden Holding AB . - The Annual General Meeting on
June 21 decided on the re-election of board members Terje Nesbakken,Bruce Grant , Håkan Gustafsson, Jan Lorensson, andAnders Smedsrud , and the election ofJonatan Raknes , while Sebastian Nordvang resigned as a board member. Terje Nesbakken was re-elected as chairman of the board. Reato Group secured financing of MSEK 286 for, among other things, the execution of the acquisition of hotel properties and operating companies in central Lund.
SUMMARY OF SIGNIFICANT EVENTS AFTER THE PERIOD
- On
February 29, 2024 , the general meeting unanimously decided to change the company's name from "Reato Group AB (publ)" to "First Hotels AB (publ).”
COMMENTARY BY
Our results for 2023 demonstrate our strength in delivering even in a challenging market environment. We increased net sales by 27.1 MSEK from the previous year, which is a result of our ability to adapt and operate efficiently despite the challenges and changes in travel behaviors this year. The acquisition of
The acquisition of
During 2023,
For the second half of 2023, after we took over operations, we recorded a 17.3% increase in RevPAR, driven by a 12.9% increase in occupancy rate and a 3.9% increase in ADR compared to the period before takeover.
We faced some challenges regarding operations and system changes during July and October, but we navigated through them safely, and we experienced very positive development from
The launch of the First Partner Collection (FPC) program has been very well received in the market and contributed to a solid increase in the number of hotels and rooms connected to
Through the First Member program, we have seen growth in our member base, indicating the attractiveness of our offerings and increasing demand for our services in both the business and leisure segments.
We have increased our investments in sales, distribution, and digitization resources to create even better results for our franchisees. In 2024, we plan to carefully review and improve our digital platforms. The goal is to ensure that both we and our franchisees are using the most efficient and profitable platforms for profiling, sales, distribution, and booking.
We expect in 2024, as in previous years, to see some turnover in our existing franchise portfolio and the number of rooms, but through our focus on property investments and operating our own and others' hotels, we still look positively to achieve net growth in the number of rooms linked to our franchise model.
We have increased our investments in resources related to sales and distribution, as well as digitization, to help create even better results for our franchisees. In 2024, we will review our digital platforms to ensure that we and our franchisees are working on the best and most profitable platforms for profiling, sales, distribution, and booking.
A big thank you to our employees and guests for their contributions to our success. We look forward to an exciting and successful 2024 with an increasing pace of growth and strengthening our position in the market.
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This report has not been subject to review by the company's auditor.
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