Rezidor Hotel Group: YEAR-END REPORT January-December 2017

Fourth Quarter 2017

• On a like-for-like basis ("L/L") Revenue increased by 2.8%, supported by L/L RevPAR growth for leased and managed hotels of 4.3%. The RevPAR growth is due to increase in both occupancy and average room rate.
• Revenue decreased by MEUR 1.5 (-0.6%) to MEUR 241.6. The decrease is mainly due to the exit of one leased hotel end of last year and the strengthening of the Euro, partly offset by positive L/L RevPAR development.
• EBITDA decreased by MEUR 6.3 (-27.3%) to MEUR 16.8 and the EBITDA margin decreased by 2.5 pp to 7.0%. EBITDA is negatively impacted by MEUR 6.6 higher costs for restructurings and MEUR 0.9 higher costs for bad debts, partly offset by the positive development in the like-for-like portfolio. Adjusted EBITDA was flat vs last year and amounted to MEUR 25.2.
• EBIT increased by MEUR 6.1 (59.2%) to MEUR -4.2 and the EBIT margin improved by 2.5 pp to -1.7%. The increase is mainly due to lower exit costs of MEUR 15.5, partly offset by the decrease in EBITDA and higher costs for write-downs of tangible assets of MEUR 4.4. Adjusted EBIT increased by MEUR 1.3 (10.0%) to MEUR 14.3.
• Profit/loss for the period decreased by MEUR 22.9 to MEUR -6.0. The increase in EBIT is offset by higher tax costs of MEUR 28.6, of which MEUR 26.7 are of one-off nature (change in tax rates, capitalisation of deferred tax on losses and write-downs of deferred tax assets).
• Basic and diluted earnings per share were EUR -0.04 (0.10).
• 752 (1,789) rooms were contracted, 1,144 (907) rooms opened and 1,347 (408) rooms left the system.

Twelve months ended December 2017

• On a L/L basis Revenue increased by 4.0%, supported by L/L RevPAR growth for leased and managed hotels of 4.8%.
• Revenue increased by MEUR 6.1 (0.6%) to MEUR 967.3.
• EBITDA increased by MEUR 2.8 (3.5%) to MEUR 82.1 and the EBITDA margin increased by 0.2 pp to 8.5%. Adjusted EBITDA increased by MEUR 10.6 (12.1%) to MEUR 98.2.
• EBIT increased by MEUR 11.7 (390.0%) to MEUR 14.7 and the EBIT margin increased by 1.2 pp to 1.5%. Adjusted EBIT increased by MEUR 10.2 (22.3%) to MEUR 56.0.
• Profit for the period decreased by MEUR 22.0 (-83.3%) to MEUR 4.4.
• Basic and diluted earnings per share were EUR 0.03 (0.15).
• Cash flow from operating activities amounted to MEUR 72.4 (33.9).
• 7,476 (8,200) rooms were contracted, 5,039 (3,585) rooms opened and 4,195 (1,655) rooms left the system.
• The Board of Directors proposes that no dividend is to be paid for the financial year 2017, however the current dividend policy remains.

MEUR		Q4 2017	Q4 2016	Change	%	FY 2017	FY 2016	Change	%
Revenue		241.6	243.1	-1.5	-0.6 %	967.3	961.2	6.1	0.6 %
EBITDA		16.8	23.1	-6.3	-27.3 %	82.1	79.3	2.8	3.5 %
EBIT		-4.2	-10.3	6.1	59.2 %	14.7	3.0	11.7	390.0 %
Profit/loss for the period		-6.0	16.9	-22.9	N/A	4.4	26.4	-22.0	-83.3 %
EBITDA margin		7.0%	9.5%	-2.5 pp		8.5%	8.3%	0.2 pp
EBIT margin		-1.7%	-4.2%	2.5 pp		1.5%	0.3%	1.2 pp

Comments from the CEO

Solid 2017 and excellent progress with the definition of the 5-year operating plan

We report solid 2017 results, growing like-for-like revenue with MEUR 38.3 (4.0%), supported by a RevPAR growth of 4.8%, driven by the strong performance in Eastern Europe and the good development in Rest of Western Europe and the Nordics. The EBITDA margin increased by 0.2 percentage point to 8.5%, despite a number of one off items linked to the 5-year operating plan and change of ownership. Excluding one off items, the Adjusted EBITDA increased by MEUR 10.6 (12.1%) to MEUR 98.2.

During 2017, we have made significant progress developing our 5-year operating plan - a comprehensive strategy which is aligned with our partner Radisson Hospitality, Inc. (former Carlson Hotels). It has been an intense transition year with numerous activities and significant efforts have been made to analyse our key opportinities and build a solid plan. In 2018, we have started to implement the plan and we are making excellent progress towards the goals set, making a major effort in brands and experience implementation, in repositioning our hotels, in revenue management and in information systems. The core components of the plan were shared with the Investor community at the Investor Day in January and was very well received.

Federico González-Tejera, President & CEO

Presentation of the Q4 Results

On February 21, 2018 at 10:00 CET, a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Federico González-Tejera and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit www.investor.rezidor.com (http://www.investor.rezidor.com).

To access the telephone conference, please dial:

Belgium, Local	[phone]
Belgium, Free	0800 38625
Sweden, Local:	[phone]
Sweden, Free:	0200 883 464
UK, Local:	[phone]
UK, Free:	0800 279 7204
USA, Local:	[phone]
USA, Free:	800 239 9838
France, Local:	[phone]
France, Free:	0805 101 278
Norway, Local:	[phone]
Norway, Free:	800 51084

Confirmation code: 7721772. For a replay of the conference call please visit www.investor.rezidor.com (http://www.investor.rezidor.com).

Financial Calendar

Q1 2018 results: April 26, 2018
AGM 2018: April 26, 2018
Q2 2018 results: July 26, 2018 (TBC)
Q3 2018 results: October 25, 2018 (TBC)

Annual General Meeting 2018

The Annual General Meeting of Rezidor Hotel Group AB (publ) will take place on April 26, 2018 at 15.00 CET at the Radisson Blu Royal Viking Hotel in Stockholm. Please note that the location for the meeting has changed since first disclosed.

The Nominating Committee ahead of the Annual General Meeting consist of Kin Ching Lo (chairman of the committee), representing HNA Tourism, Trelawny Williams, representing Fidelity International, Abhishek Agrawal, representing Polygon Global Partners LLP, and Di Xin (without voting rights), chairman of the Board of Directors.

For Further Information, Contact

Knut Kleiven
Deputy President & CFO
Tel: [phone]
[e-mail] (mailto:[e-mail]%20)

Pablo Corrales Diaz
Director, Strategy & Investor Relations
Tel: [phone]
[e-mail] (mailto:[e-mail]%20)

The Rezidor Hotel Group Corporate Office
Avenue du Bourget 44
B-1130 Brussels
Belgium
Tel: [phone]
Fax: [phone]

Website: www.rezidor.com (http://www.rezidor.com)

About the Rezidor Hotel Group

The Rezidor Hotel Group is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson, as well as Radisson RED, an upscale "lifestyle select" brand inspired by the millennial lifestyle, and Quorvus Collection, a new generation of distinctive five-star hotels. Rezidor also holds 49% in prizeotel, a young hotel chain in the economy segment.

The portfolio consists of 472 hotels with over 104,000 rooms in operation and under development in 79 countries across Europe, the Middle East and Africa.

Rezidor's strategy is to grow with an asset-right approach, balancing management and franchise contracts with selected lease contracts. Management and franchise contracts offer a higher profit margin and more stable income streams and lease contracts allow Rezidor to complete their presence in Mature markets.

Rezidor is a member of the Carlson Rezidor Hotel Group. For more information, visit www.rezidor.com (http://www.rezidor.com).

This year-end report comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 07:30 CET on February 21, 2018.

Stockholm, February 21, 2018

The Board of Directors

Rezidor Hotel Group AB (publ)

The full report with tables can be downloaded from the following link:

Rezidor Year-end Report January-December 2017 (http://hugin.info/142138/R/2170410/836101.pdf)

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Source: Rezidor Hotel Group via Globenewswire