Rezidor SAS Reports Positive Results

Rezidor SAS Reports Positive Results London, 13th February 2002.... Even after one of the industry's toughest years on record, European hotel group Rezidor SAS Hospitality has reported its seventh consecutive year of growth in number of hotels and business volume, with 2001 operating revenues up two per cent over 2000 to MEUR 379 (£234.4 million). "Although business growth rates have slowed, the Rezidor SAS trend continues on an upward curve," says Kurt Ritter, President & CEO, Rezidor SAS Hospitality. "This is particularly gratifying in a year when we have opened no fewer than ten new hotels in the face of unusually difficult trading conditions." In 2001, Rezidor SAS' pre-tax income was MEUR 22 (£13.6 million). Although that was substantially lower than the previous year's MEUR 68 (£42 million), the 2000 figure included MEUR 31 (£19.2 million) from property sales. Group-wide revenues for 2001rose from MEUR 1,035 (£640.2 million) to MEUR 1,090 (£674.2 million)*. For comparible units, group occupancy levels remained high, at 68 per cent. Average room rate dropped just two per cent to EUR 105 (£65), and revenue per available room (RevPAR) fell three per cent to EUR 71 (£44) (adjusted for currency fluctuations). Formerly known as SAS International Hotels, Rezidor SAS operates the Radisson SAS and Malmaison brands, and has 160 hotels in operation or under construction in 38 countries. Rezidor SAS currently operates three hotels in the UK - in London, Manchester and Scotland - with a commitment to the UK market in the next five years, starting with the opening of a 147-room property in Leeds next April. Even though business during 2001 was below 2000 performance, it has gradually picked up. Hotels in capital cities have been affected more negatively than hotels in secondary cities and those with a high portion of US related business have suffered more than hotels mainly catering to the domestic market. Furthermore, hotels with a high convention and group business have more difficulties than those with mainly individual customers. Hotels that have not experienced any negative business trend in 2001 are those who cater only to the individual domestic traveller, such as the Malmaison hotels in the UK. Kurt Ritter, President & CEO for Rezidor SAS Hospiality says:" I am very satisfied with the continued consistent growth and financial performance in our company and feel that we are well on the way to become one of Europe's leading hospitality management companies, with a focused collection of high-performing brands in various market segments." He adds:" During the difficult times in the hospitality industry last year, we focused on adapting costs in order to reduce the negative impact of such a dramatic change in the market place." For further press information, please contact Louise Bisoni or Charlene Blake at Brighter PR on 020 7603 2168, fax on 020 7603 2424 or email louise.bisoni@brighterpr.co.uk Note to Editors: Rezidor SAS Hospitality is a wholly owned subsidiary of SAS Scandinavian Airlines System and operates hotels under the Radisson SAS and Malmaison brands. Radisson SAS Hotels & Resorts currently includes 152 hotels in 38 countries and there are five Malmaison properties in operation, with three new destinations in the pipeline. *Revenues in owned, leased, managed and franchised Radisson SAS and Malmaison hotels ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/13/20020213BIT00630/bit0001.doc http://www.waymaker.net/bitonline/2002/02/13/20020213BIT00630/bit0001.pdf