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10-06-2021

HNH Hospitality S.p.A. approves the 2020 financial statement and analyzes the first semester of 2021

Turnover in the winter season at €3.9 million (-48.5%), hit by hotel closures due to the lockdown and second Covid wave.

 The group HNH Hospitality S.p.A., has approved the 2020 financial statement, which closed on 31 October. The statement highlights a net loss of € 3.7 million. From 1 November 2019 to 31 October 2020, the Group recorded overall operating revenue of € 21.4 million, down by 34.3% compared to 2019, when nevertheless the period had been reduced to 10 months due to changing the end of the financial year. The EBITDA is -€4.75 million.

“The 2020 financial statement was significantly conditioned by the Covid pandemic, which is still ongoing. All things considered, the scenario we had forecast in March 2020, at the beginning of the crisis, was even worse. – states Luca Boccato, CEO of the Group – We were able to limit the extent of the damage by paying attention to costs and targeted closings. Our solid financial structure permits us to face the situation with relative serenity.”

Among the key performance indicators of 2020, the REVPAR (Revenue Per Available Room) fell sharply compared to the previous year (47.83 vs 95.2), due to the particular year of global recession, but it is substantially in line with competitors.

The ADR (Average Daily Rate) dropped by 15.1%, from €120.30 in 2019 to €102.40 in 2020. Instead, the OR (Occupancy Rate), was more greatly hit by the current health situation, falling from 79.1% in 2019 to 46.7% in 2020.

At the end of 2019, HNH Hospitality had significantly expanded its offer with the opening of the DoubleTree by Hilton in Trieste and the acquisition of a portfolio of hotels including the Crowne Plaza in Padua, the Crowne Plaza Venice East and the Best Western Air Venice.

Among further development plans in 2020 was the opening of the DoubleTree by Hilton Rome Monti, which was delayed a few months to the beginning of April 2021 due to Covid, as well as the development of new projects in important destinations, which could be announced soon.

HNH Hospitality also closed the first semester on 30 April, having changed the end of the financial year to 31 October each year due to the need to make economic analyses of seasonality and reports the following results:

  • Occupancy rate fell to 17.4%, ADR almost unvaried at €68.80 compared to the same period last year.
  • Important factors were closing the hotels already from November 2020 until spring 2021 and only 7 out of 14 hotels always open in the winter months.

The results of the first semester are fully below expectations following a year such as 2020, which suddenly presented a global pandemic and forced the closing of many hotels. Specifically, the semester in question underwent the consequences of the second great Covid wave at the end of the year, as well as the restrictions of orange and red zones, which entailed blocking any unnecessary movement.

That said, the Occupancy Rate fell from 53.7% in the first semester of 2020 to 17.4% this year. While the ADR dropped 1.4% to €68.80 compared to €69.70 in the first semester of 2020.

Luca Boccato, CEO of the Group, comments, “Unfortunately, the first semester of the 2021 financial year continued in the rut of 2020. A complete absence of leisure traffic and a limited business market significantly conditioned demand and, consequently, performance. – He continues – For a few days now, we have been noting a gradual yet steady increase in demand. The prospects for the leisure segment, thanks to the market being extended to the entire Euro zone through the Green Pass, are improving each day. Art cities, more dependent on international traffic, are also giving the first encouraging signs of recovery and freedom of movement. Vaccinations could give us a summer that exceeds expectations in all the destinations where our hotels are present.”

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