Quarterly Highlights
| Increased net revenue by 5% compared to Q1 2023, driven by our expanding hotel portfolio and increased franchisee revenues within the First Hotels Franchise | Occupancy rates increased by 33% while RevPAR (Revenue per Available Room) increased by 26% within First Operations |
| Increased rental income by 23% within First Property | A total of 130% increase in the group's net revenue for the period |
A summary of the period
The Group's performance in the recent period includes steady growth for the First Hotels Franchise, which is reflected in a growing hotel portfolio and improved sales among franchisees. In addition, an impressive increase in both occupancy and revenue was noted for First Operation, driven by an increase in the number of guests and positive progress in the spa segment. The internal rent between First Property and First Operation has changed, which shows a positive trend in First Property. Internal rent has been eliminated in the Group's earnings.
The Group reports an increase of 130 percent in net sales compared with the previous year in the same period. At the same time, initiatives and investments have been made to develop the business, which has had a negative impact on EBITDA compared to the previous year in the same period. The deviation can largely be attributed to the new group formation and integration of new operations attributable to increased personnel costs, cost per room sold, other premises costs and legal fees.
Significant events during the period
- On February 29, 2024, the Annual General Meeting resolved unanimously to change the company's company name from "Reato Group AB (publ)" to "First Hotels AB (publ)."
Significant events after the period
- Hotel Stockholm North signed an agreement with First Hotels in May 2024, and thus became the chain's sixth hotel in the Stockholm region.
First Quarter 2024 Summary for the Group
| TSEK | 2024 1jan-31mar | 2023 1jan-31mar | ?% |
| Net sales | 18 458 | 8 027 | +130% |
| Adjusted EBITDA | -101 | -869 | +88% |
| (Adjusted for extraordinary costs) | +1 931 | +538 | |
| Operating profit EBIT | -4 469 | -1 864 | -140% |
| Profit for the period | -10 606 | -2 454 | -332% |
| Cash flow from operating activities | 334 | -1 070 | +131% |
| Free cash flow | 4 173 | 1 429 | +192% |
| Earnings per share (basic), SEK | -0,16 | -0,04 | -300% |
| Earnings per share (diluted), SEK | -0,16 | -0,04 | -300% |
Comments by Thomas Gillespie, CEO
I am proud to present our results for the first quarter of 2024, which demonstrate continuous revenue growth and significant strategic progress.
Our performance during this period underlines our strength and ability to deliver value creation to our investors. First Hotels Franchise has achieved stable growth with an increasing hotel portfolio and improved sales among our franchisees. Our loyalty program, First Member, had a strong growth with a doubling of the number of new members compared to the same period last year.
We are also pleased to report impressive increases in occupancy and revenue in First Operations, driven by an increased number of guests and a positive development of our leisure offering. Our property investments have also shown a significant positive development with increased rental income compared to the same period last year.
The period shows an increase in net sales of 5 percent in First Franchise, mainly driven by our growing hotel portfolio and increased franchisee revenues. But acquired growth has also proven to be a profitable business, which together contributes to a 130 percent increase in our net sales for the period.
We are aware of the seasonality of our industry and take this into account in our strategic planning. We continue to strengthen our business model with a focus on sustainable growth and profitability. Thank you for your continued trust and support. We look forward to continuing our growth journey and delivering value to our investors in the time ahead.
- Thomas Gillespie, CEO
This report has not been subject to review by the company's auditor.
For further information, please contact:
Thomas Gillespie, CEO
Tel: +47 940 90 061
E-mail: thomas.gillespie@firsthotels.com
Sepideh Carlsson, CFO
Tel: +46 704 532 536
E-mail: sepideh.carlsson@firsthotels.com
About First Hotels
First Hotels AB (publ) is an independent company listed on Nasdaq First North in Sweden (Ticker: HOTEL), providing franchise rights and marketing services to hotels affiliated with the 'First Hotels' chain. There are 57 First Hotels in total, with 32 located in Sweden, 5 in Norway, and 20 in Denmark. The company's headquarters is situated in Stockholm. Mangold Fondkommission, phone +46 8 503 01 550, serves as the Company's Certified Adviser. For more information, please visit www.firsthotelsab.com.
This information is information that First Hotels AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-05-15 08:15 CEST.
