Consolidated Financial Statements and Consolidated Management ...

AVERAGE DAILY TRADING IN SECURITIES
2003-2011
AVERAGE DAILY TRADING (Million Euros)
2003-2011
1,000,000
16
900,000
14
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
911,729
820,896
891,818
866,608
887,595
362,591
923,344
749,090
758,097
2003 2004 2005 2006 2007 2008 2009 2010 2011
12
10
8
6
4
2
0
8.1
7.47
10.26
12.56
14.04
3.28
3.29
2.41
3.08
2003 2004 2005 2006 2007 2008 2009 2010 2011
The evolution of the share price and stock market capitalisation over the last four years can be seen in the following graphs.
EVOLUTION NH HOTELES – IBEX
DECEMBER 2007- DECEMBER 2011
CAPITALISATION 2003-2011
(Million euros)
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Dec-07
Mar-08
Jun-08
Sept-08
Dec-08
Mar-09
Jun-09
Sept-09
Dec-09
Mar-10
Jun-10
Sept-10
Dec-10
NH HOTELES
IBEX
Mar-11
Jun-11
Sept-11
Dec-11
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,088,94
1,166,64
1,583,81
1,857,98
1,913,55
546,01
917,42
837,27
537,63
2003 2004 2005 2006 2007 2008 2009 2010 2011
FUTURE OUTLOOK
The hotel industry is especially sensitive to the economic climate and corporate activity. It has, however, been posting better growth and occupation levels
than other production activities each year over the past few years. The forecasts made by World Travel & Tourism Center (WTTC) for the next ten years point
to global year on year growth rates of between 3% and 4% and an increased weight of tourism and catering in global GDP.
Over the last five years, large hotel companies like NH Hoteles, with important turnover and hotels, operating in many countries, with access to international
distribution channels, etc. have been posting economic results which have substantially exceeded the results recorded by smaller companies with fewer
hotels, which are far more sensitive to price and occupation level fluctuations.
As has been mentioned above, NH Hoteles will continue to have preferential access to sales channels and make continuous progress in lowering operating
and personnel expenses to face, in the coming months, the continuing slowdown in economic growth that has been seen in Europe over the last two years.
Thus, the cost reductions set forth in the Efficiency Plan will enable NH Hoteles to continue recording higher EBITDA growth than at the beginning of 2011,
as has been the case in the last six months up to February this year and despite the fact that the percentage growth in sales, though positive, has been lower.
At last, the geographic diversification of NH Hoteles’ activities means that countries like Germany, England, Austria, Netherlands and Mexico having a better
economic outlook for 2012 will more than offset the lower growth in economic activity in Spain or Italy.
On the other hand, however, there is in general little visibility with regard to customer bookings in the city hotel sector. Except for some specific events,
bookings are being increasingly made less in advance, making it difficult to establish any kind of forecast for the year.
The Company’s plans for the entire year point to another increase in occupation levels and revenue, along with additional cost reductions, which will allow its
operating and net profit to improve once more.
14 CONSOLIDATED MANAGEMENT REPORT