Design Hotels AG / Design Hotels AG Reports Results for the Full Year 2010 Processed and transmitted by Thomson Reuters. The issuer is solely responsible for the content of this announcement.
- Revenues increased by 11% to €9,36 million
- EBITDA grows by 32% to €0,62 million
Berlin, March 14, 2011 - Design Hotels AG (Regulated Market, Munich: LBA; ISIN: DE0005141006), integrated provider of marketing and positioning services for individually managed hotels and small hotel groups in the New Luxury Segment, today reports its results for the full financial year 2010 under IFRS. Compared to FY 2009, revenues increased by 11% and the EBITDA grew by 32%.
Financial Highlights for the Design Hotels Group:
Revenues for financial year 2010 increased by approximately 11% to €9.36 (FY09: 8.46) million. Predominant cause for the strong growth was the fast recovery in the travel and tourism sector following the economic crisis during 2009. The positive developments in the sector led to an increase in the length of stay, as well as higher occupancy rates and room rates. Revenues from booking commissions came in at €4.42 (3.45) million, a 26% increase over 2009. This equals a contribution to total revenues of 47%, as compared to 42% for the previous year. Revenues from Marketing Products/Consulting fell by 18% to €2.22 (2.62) million, whereas annual membership fees increased by around 18% to €2.69 (2.77) million. During the fourth quarter, total revenues fell by around 3% to €2.69 (2.77) million. Whereas booking commissions and membership fees showed a strong increase, revenues from Marketing Products/Consulting fell as expected. The high revenues for Consulting in 2009 were due to the revenue recognition in relation to a hotel development project.
The Gross Margin came in at 71%, slightly above that for 2009 (70%). Due to the increase in contribution to the revenue mix of Booking Commissions, the Gross Margin reached previous levels. For the fourth quarter, the Gross Margin was 65% (56%).
In order to increase the focus on customer services and to strengthen the relationship with the member hotels, the Company continued to invest in personnel. The average number of employees increased from 63 to 70. Due to structural changes, however, the increase of staff expenses was disproportional. Additionally, the increase in operating costs by 9% to €5.99 (5.51) million was below the increase in revenues.
The EBITDA for 2010 came in at €0.62 (0.47) million, an increase of 32% compared to the same period last year. Due to an increase in costs of sales, the EBITDA for the fourth quarter fell by 36% to €226,000 (353,000). For the full year, the EBITDA Margin was 7% (6%) and for the fourth quarter this was 8% (13%).
The EBIT for 2010 reached around €362k (300k), a 21% increase. For the fourth quarter, the EBIT fell by 56% to €140k (317k).
The preliminary operational result for 2010 shows a net profit to the amount of €0.124 million, as compared to a net loss of €0.96 million for 2009.
As of December 31st, the Company had liquid assets in the form of cash and cash equivalents of €3.31 million, as compared to €2.53 million as of December 31st 2009. Shareholders' Equity increased from €4.80 million to €4.93 million.
The Company finished the year with 208 members (2009: 196), thereby crossing the 200 mark for the first time in its existence. The number of available rooms increased to 15,965 (14,257) in 126 destinations and 42 countries. During the financial year, 308 hotels applied for membership with Design Hotels (2009: 340).
Additional Notes:
CEO Claus Sendlinger stated: "Design Hotels AG not only benefited from the general market developments in 2010 as it did during the downturn in 2009 but even managed to outperform the market. We see this as a validation of our business model in general but especially as proof of our ability to adapt quickly to changing market conditions."
"With all this, we have not lost sight of our strategic direction. In 2010, we focused on the improvement and growth of our membership portfolio, as well as the expansion of the service portfolio for our member hotels. During 2010, we accepted a further 42 hotels for membership, and for the first time in our history reached the 200 mark. Since 2005, the average membership fee has increased by 30%."
"The increase in the number of member hotels, as well as the increased sales support to the individual members have had a positive effect on booking numbers and consequently on the booking commissions. The value of bookings brokered through Design Hotels channels increased by 35% to €77 million in 2010."
"We will continue with our focus on quality in 2011. We will invest in IT systems and provide our member hotels with the technology needed to optimize online distribution."
"For financial year 2011, we expect a growth rate above market levels provided that the economic climate remains stable."
The complete and audited financials for 2010 will be published in the second half of April.
Contact:
Design Hotels AG
Claus Sendlinger (CEO)
Stralauer Allee 2c
10245 Berlin
P +49 (0)30 88 494 00 01
F +49 (0)30 259 330-17
ir@designhotels.com
Schwarz Financial Communication
Frank Schwarz
P +49 (0)611 17453 9811
F +49 (0)611 17453 9829
schwarz@schwarzfinancial.com
Design Hotels AG (formerly: lebensart global networks AG) is an integrated provider of communication and positioning services and acts as a consultant for individually managed hotels and small hotel groups. The service range of design hotels begins with the concept for a hotel. Clients of design hotels AG can choose from a modular service portfolio. With the brand Design Hotels(TM) the company currently represents and markets a unique collection of over 200 individual hotels in more than 40 countries. Through its marketing and communication activities Design Hotels AG forms the connection between the member hotel and a global clientele looking for self-determination and individuality.
www.designhotels.com, ISIN: DE0005141006, Munich Stock Exchange (Regulated Market)
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Design Hotels AG
Stralauer Allee 2c Berlin Germany
WKN: 514100;ISIN: DE0005141006;
Listed: Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Open Market (Freiverkehr) in Frankfurter Wertpapierbörse,
Regulierter Markt in Bayerische Börse München;
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Source: Design Hotels AG via Thomson Reuters ONE
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