NH Hotel Reports a Heavily Net Loss of €57M, Pressuring MINT’s 1Q20 Earnings!

NH Hotel Group SA, Minor International PLC (MINT)’s subsidiary, has reported its 1Q20 earnings with a total net loss of 57 million euro mainly due to the plummet in March after temporarily closing business to contain the coronavirus outbreak.

 

The group, an multinational hotel company headquartered in Madrid, that operates over 350 hotels in 28 countries, reported a net loss of 57 million euro in the first quarter of 2020, 42 million euro lower than the first quarter of 2019.

Revenue dropped by 20.8%, reaching 279 million euro in the first quarter. However, in the first two months of the year, revenue grew by 8.0% while in March the reduction was 65.8%.

RevPAR dropped by 27.1% in the first quarter, fully explained by a lower occupancy rate that fell by 29.7% to 46.3% affected by the COVID-19 impact since March.

 

The report of net loss in the business might reflect NH Hotel’s major shareholder, MINT, who holds a portion of 94.1% in the business. In 2019, Hotel & Mixed-use business contributed 76% to MINT’s core revenue, while the main income for MINT’s Hotel & Mixed-use business comes from NH Hotel.

Currently, Europe has 1,691,176 coronavirus cases out of 4,434,399 cases globally, while the death toll was 158,665 out of 299,946 in the globe.