MBI International

MBI International News & Press: 18/04/2006

JJW Hotels & Resorts Limited ("JJW") - 2005 Financial Results

JJW Hotels and Resorts Limited announces a strong performance in 2005 The Group has a portfolio of 56 hotels located in the UK, France, Germany, Austria and Portugal.

Highlights

Unaudited

2005
€m

2004
€m

% change

Revenues

153.9

86.4

+78

EBITDA        

50.5

25.8

+96

EBIT

35.1

13.8

+154

EBT

20.0

4.7

+326

Net income

20.3

4.5

+351

  • Revenues up 78% to €153.9m
  • EBITDA up 96% to €50.5m
  • Total portfolio reached 56 hotels in 2005
  • During the year the Balzac Hotel in Paris was closed for a total renovation, reopening in Autumn 2006
  • £63m acquisition of The Scotsman Hotel Group (which includes The Hotel de la Tremoille in Paris) completed after the year end in line with the Group’s focus on the expansion of activities at the luxury-end of the hotel sector.
  • €200m investment and acquisition programme in 2006

Commenting on the results, Chairman of JJW Hotels,  Mohamed bin Issa al Jaber said:

“2005 was a year of excellent growth for JJW Hotels and the outlook is extremely positive.  With further significant organic growth set to come through very strongly in the next few years and with a number of acquisition opportunities in our sights, we expect to achieve another strong performance in 2006.”

Further information

Richard Brook,
Group Chief Financial Officer -  JJW Hotels / MBI International
Tel: + 44 (0) 20 7935 5859
 http://www.mbiinternational.com/

Howard Lee/Laura Hickman - HeadLand Consultancy 
Tel: + 44 (0) 20 7367 5222

Results Overview

2005 was another year of significant growth for JJW Hotels & Resorts (“JJW”) and the results for the year ending 31 December 2005 were a record for the Group.  

There are a number of factors behind this strong performance and acceleration in sales and earnings growth.

Firstly, a number of investments or upgrades made to the portfolio in prior years came to fruition with hotels that had been under development or refurbishment coming on stream in 2005. The benefits of their contribution led to an uplift in year on year performance resulting in significant increases in turnover, profit and assets.  The Group also achieved good underlying growth from its existing portfolio of assets with like-for-like performance also up on the prior year.

Total turnover in the period increased from €86.4m to €153.9m up 78 %.  EBITDA increased from €25.8m to €50.5m up 96%.  EBIT increased from €13.8m to €35.1m up 154%. Net income was significantly higher at € 20.3m compared to €4.5m.

The Group is anticipating capital expenditure / acquisitions in the region of €200m in 2006.

Business Operations

Overall, JJW’s hotel portfolio continued to grow in 2005 and now comprises 56 hotels across Europe and the Middle East.  Whilst, JJW has hotels in the luxury, mid range and budget sectors, the primary focus for expansion continues to be on the luxury end of the market.

Occupancy rates for our hotels in the period continued to grow. Given the mix of hotels in the portfolio, it is not meaningful to give an average across the group. However, we are pleased to report that performance across all our hotel categories was up on the previous year.  We are particularly pleased with the strong performance of our luxury segment hotel offering.

JJW Luxury Collection

JJW’s portfolio of luxury hotels performed well in 2005.   These hotels, located in the heart of major European capitals, comprise 7 hotels including the flagship five star Grand Hotel Wien in Austria, the Hotel Balzac and Hotel de Vigny in Paris.

Post the year end, the Group was delighted to add further to this portfolio with the acquisition of The Scotsman Hotel Group for £63m.  SHG comprises three boutique hotels; The Scotsman in Edinburgh, 42 The Calls in Leeds and the Hotel de la Tremoille in Paris, thereby expanding operations in the UK and France and advancing the group’s focus on the development of its activities in the luxury sector.

Amarante Hotels

JJW’s Amarante hotels performed well in 2005.   Amarante hotels are aimed at the premium four star luxury segment of the market.  Typically they are located in prime central locations aimed at business and leisure travellers. 

A comprehensive refurbishment program is currently under way across the Amarante offering in France which will be completed during 2006.

The four star Amarante El-Nil is due to open in early 2007 whilst the four star Amarante Nile Cruise ships Osiris and Isis are due for launch in 2006.

Median Hotels

JJW’s Median portfolio of hotels combine city centre locations across France with modern facilities aimed at business and leisure travellers.  The portfolio currently comprises 8 hotels.

The Median St Lazare in Paris is re-opening in spring 2006 after a total refurbishment.

Stars Hotels

JJW operates 19 hotels in this budget hotel collection all located close to main French motorways, city centres and airports.  Stars hotels offer comfortable rooms, excellent quality and service and competitive prices. 

Business Strategy

Since it was founded in the late 1980s, JJW Hotels has built a strong portfolio of hotel brands from economy through to mid-range and luxury. Unlike many other hotel operators, all JJW hotels are wholly owned assets.

Today JJW is seeking to focus on expansion of the luxury 5 star hotel portfolio.  In recent years, JJW has acquired the highly sought after 'Grand Hotel Wien' in Vienna, along with the 'Amarante Beau Manoir' in Paris. JJW is equally active in luxury hotel acquisitions in resort locations with prestigious hotels joining the all suite hotel 'Amarante Formosa Park' in the Algarve portfolio. Each of these hotels will offer access to the Algarve's best golf courses.

The recent acquisition of The Scotsman Hotel Group is in line with the Group’s plans to build the portfolio at the luxury end of the hotel market.  JJW sees more scope to expand the portfolio by acquisition, particularly in the United Kingdom.

JJW’s mid-range and economy hotel brands are strong brands in their own right and in their respective market places with prime locations, good management and strong customer recognition.  Whilst not the priority focus of JJW’s expansion plans, they continue to make a good contribution to overall group performance.

Outlook

The new financial year has got off to a good start and the outlook is extremely positive.   A number of renovations at some of the Group’s prime portfolio locations are due for completion in 2006 and new properties are due to come on stream.  We anticipate another year of strong growth as we seek to capitalise and build on the successes of 2005. 

Notes to Editors

  • JJW Hotels, founded in the late 1980s, is a wholly owned subsidiary of MBI International, a $3.8 billion multinational company with strong interests in the Middle East and Europe. MBI International is owned by Mohamed bin Issa Al Jaber, a Saudi businessman.
  • JJW is an international Group involved in the acquisition, development and operation of hotels and resorts in prime locations in Europe and the Middle East. Established in France and Portugal in the late 1980s, the Group acquired an impressive portfolio of 5 star, 4 star, 3 star and 2 star hotels and now owns and operates 56 hotels in Europe and the Middle East.
  • The Group is achieving rapid growth by focusing on two complementary market segments. In the more mature European market, the offering of 5 and 4 star hotels and luxury golf resorts is being increased through acquisitions and mergers. In the Middle Eastern market, growth is achieved through the construction of new hotels.
  • In the European market, 4 and 5 star hotels have already been acquired in some of the world's most fashionable cities: Cannes, Paris and Vienna. Recently, the Group acquired the prestigious de Vigny and Balzac Hotels in Paris. The Balzac is currently undergoing a complete refurbishment to make it into one of the most sought after hotels in Paris. The Group also owns Pinheiros Altos, one of the most exclusive and successful 5 star luxury golf and residential resorts in the Algarve, southern Portugal. As part of JJW's ongoing commitment to excellence, a 5 star hotel and spa is due to open in 2006 in the grounds of Pinheiros Altos.
  • The Group is also active in the Middle East. Investments include a shareholding in Kingdom Hotel Investment Group (KHI). KHI's portfolio consists primarily of 13 hotels managed by Four Seasons, Fairmont and Mövenpick.

Consolidated Statement of Revenue & Expenses in 000€

(unaudited)

31 Dec 2005

31 Dec 2004

31 Dec 2003

Revenue

153,861

86,401

69,985

Operating expenses

(103,344)

(60,554)

(61,733)

EBITDA

50,517

25,847

8,252

EBIT

35,050

13,779

(4,871)

EBT

20,044

4,693

(13,407)

Net Income

20,343

4,535

(13,525)

Consolidated Statement of Assets and Liabilities in 000€

 

31 Dec 2005
(unaudited)

31 Dec 2004

31 Dec 2003

Current assets

203,074

57,932

33,784

Property & Equipment

792,651

522,353

468,573

Investment and others

112,941

71,693

67,731

Total Assets

1,108,666

651,978

570,088

 

 

 

 

Current Liabilities

91,753

40,590

48,908

Lease Commitments

5,354

10,348

8,751

Bank Loans > 1 year

440,420

209,145

154,427

Equity

571,139

391,895

358,002

Total Liabilities & Equity

1,108,666

651,978

570,088

MBI & Partners UK Limited

Mohamed Bin Issa Al Jaber is the founder, Chairman & CEO of MBI International, a group of companies with an asset value in excess of USD 9 billion which operates across Europe, the Middle East and the United States. Over the past twenty five years, MBI Al Jaber's businesses have grown into major international concerns.

Name & Registered Office:
MBI & Partners U.K. Limited
78-80 Wigmore Street
London, W1U 2SJ, UK

Company No. 02592636
Tel: +44 (0)20 7935 5859
Email: info@mbiinternational.com