“The world of hospitality is changing constantly and over the recent years we have been observing evolution of our guests’ expectations. Assessment of their stay today is definitively more based on experience, rather than product itself, which builds real relations with brands and has huge impact on guests’ loyalty. That is why our efforts have been intended to build a long-term relationship with our clients through personalization of their stay and through making them “Feel Welcome.” To support this approach Orbis is undergoing cultural transformation, which empowers our employees and at the same time strengthens our foundations for further solid development,” said Gilles Clavie, President and CEO of Orbis
2017 was a year full of business and financial success. Orbis delivered record high results as a consequence of the strategy execution. The Company was also taking advantage of favourable macroeconomic environment across the entire Eastern €ope region. The best performing markets were Budapest, Warsaw and Prague with double-digit RevPAR growths. In total RevPAR of Orbis hotels in 2017 increased by +6.5 percent (up to €43.4)comparing to 2016 like-for-like. The growth was largely possible thanks to leverage of average price by +5 percent year-on-year, which derived, among other, from active Revenue Management and focusing more on ad-hoc clients who were higher contributors.
The significant growth of operating indicators translated into record high financial results of the Group. In 2017, Orbis revenues totalled €343.5 million, which represented +5.4 percent growth comparing to 2016. Consequently the Company delivered remarkable operating EBITDA at the level of €110.3 million and reported an extraordinary double-digit +20.2 percent year-on-year increase. Also increasing profitability and generating higher margins (e.g. +4 pp at the EBITDA level) was a clear proof of effective management, taking into account challenging situation on the labour market.
Through 2017 Orbis has made remarkable development of its network by opening 8 new asset-light hotels, with 650 new rooms and entering 2 new markets: Serbia and Bosnia & Hercegovina. The Company still keep on strengthening our footprint in the region through signing 13 new agreements (1600+ new rooms), which secured a remarkable pipeline comprised 38 projects with over 5000 rooms in total. Orbis also have been continuing our subsidiary development projects, i.e. ibis Vilnius Center (164 rooms), ibis Styles Warszawa (178 rooms), which will be open by the end of 2018. To support Orbis growth in the region the Company added new complementary hotel brand to our portfolio – Adagio, representing apart hotels market. This step will allow to generate for the Group additional profits in top locations. Development and asset management activities have driven Orbis to a more diversified and balanced portfolio, not only geographically, but also considering modes of operation, having now over 40 percent asset light share vs. asset heavy hotels. In 2017 Orbis did a lot to make the portfolio operate more effectively through six hotel buyback transactions in Hungary and number of renovation projects in flagship locations. Over the year more than € 145 million of CAPEX has been invested for these projects.
Maintaining the focus on performance and profitability growth, Orbis wants to empower its leading position in the region not only by organic growth but also thorough hotel acquisitions, aspiring to be the leader in each of geographic location the Company are present in.
“Excellent results we achieved in 2017 prove the proper direction of Orbis strategic plan, therefore I strongly confirm our continuing declaration and ability to create value for our shareholders in the future, based on Performance, Portfolio and People strategy. Consistent delivery of our targets were appreciated by our investors, being in the Top 10 performing mid-cap companies in 2017 with +27 percent share return for the year. Looking ahead, we have still aspirations to accelerate Orbis’ growth in coming months, having in mind strong capital position and considerable experience in running investment projects. I believe that our cultural transformation will support the Company’s growth in terms of enriching relations with our clients and strengthening organizational foundations,” summarized Gilles Clavie.
The Orbis Hotel Group is the largest network of hotels in Poland and in Eastern Europe. Orbis comprises 126 hotels and is the sole licensor of all AccorHotels brands in 16 countries including Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia. It offers a total of 20,500 rooms. The hotels operate under the brand names Sofitel, MGallery by Sofitel, Pullman, Novotel, Mercure, adagio, ibis, ibis Styles and ibis budget. These brands, recognized throughout the world, provide a quality of service to various standards, ranging from luxury 5-star to budget 1-star hotels.
Orbis SA has been traded on the Warsaw Stock Exchange since 1997.
