First Hotels AB publishes interim report for the second quarter of 2024
| Quarterly Highlights | Half-Year Highlights |
| Occupancy within Hotel Planetstaden increased by 35% compared to the same period last year, contributing to a 53% increase in RevPAR during the same period. | A total increase of 161% in the Group's net revenue compared to the same period last year, primarily driven by own operational revenues following the acquisition of Hotel Planetstaden. |
| Within First Hotels Franchise, the First Member loyalty base grew by 40% compared to the same period last year. | Occupancy at Hotel Planetstaden increased by 34%, while RevPAR increased by 44% compared to the previous year. |
| Within First Hotels Franchise, 76% of revenue in our own channels is now generated by bookings from our loyalty members. | Thanks to positive factors considered in the external valuation, including increased occupancy and RevPAR as well as further development potential of the property, the property value of Hotel Planetstaden was adjusted to SEK 394 million. |
Summary of the period
During the second quarter and first half of the year, the Group has focused on strategic areas such as developing value-creating services and restructuring the franchise business. These efforts are intended to improve customer experiences, increase revenue, and strengthen operational efficiency in the long term.
Within Operations, the Group has strategically invested in new F&B concepts to strengthen the product portfolio and create new revenue opportunities. These investments aim to enhance the customer experience and differentiate the offering in a competitive market.
The Group has introduced market-specific initiatives tailored to local conditions, which have increased market share and strengthened competitiveness. This has improved market positioning and laid the foundation for continued growth and profitability.
Significant events during the period
- Hotel Stockholm North signed an agreement with First Hotels in May 2024, becoming the chain’s sixth hotel in the Stockholm region.
- Hotel Amadeus by First in Halmstad became the latest addition to the First Hotels portfolio in May 2024.
- At the Annual General Meeting in June, it was decided to elect Johan Gate, Torje Gabrielsen, Pål Mörch, and Kristian Lundkvist as new board members until the end of the next Annual General Meeting. Johan Gate was elected as Chairman of the Board.
Significant events after the period
- First Hotels AB, through its subsidiary First Hotels International AS, signed a refinancing agreement. The agreement involves the repayment of debt to Host Hoteleiendom AS and the issuance of two new convertible loans totaling approximately SEK 12 million to Gate Group AB and Seljeli Invest AS.
First half of 2024 overview for the group
| SEK Thousand | 2024 1apr-30jun | 2023 1apr-30jun | ∆% | 2024 1jan-30jun | 2023 1jan-30jun | ∆% |
| Net sales | 26 015 | 9 021 | +188% | 44 473 | 17 048 | +161% |
| Adjusted EBITDA | 3 930 | 262 | 3 769 | 1 374 | ||
| (Adjusted for extraordinary costs) | 1 601 | 2521 | 3 472 | 5 041 | ||
| Operating profit EBIT | -3 018 | -2 726 | -7 487 | -4 591 | ||
| Profit for the period | -9 006 | -3 343 | -19 612 | -5 797 | ||
| Cash flow from operating activities | 12 185 | -6 411 | 12 519 | -7 481 | ||
| Free cash flow | 20 397 | -5 901 | 20 767 | -7 231 | ||
| Earnings per share (basic), SEK | -0,14 | -0,06 | -0,29 | -0,10 | ||
| Earnings per share (diluted), SEK | -0,14 | -0,06 | -0,29 | -0,10 |
Comments by Thomas Gillespie, CEO
I am pleased to report that First Hotels AB has continued to deliver strong results in the second quarter of 2024. Despite challenging market conditions in certain regions, we have achieved significant progress and strengthened our position in several key areas.
Our flagship hotel, Planetstaden, has demonstrated a remarkable increase in RGI, confirming our success in enhancing both our competitiveness and market share. Additionally, we have expanded our presence in Stockholm with a new franchise hotel, and we look forward to soon announcing further expansions that will further reinforce our position in the market.
Revenues within First Operations have been exceptionally strong. This is clear evidence that our strategic focus on operational optimization and guest attraction is yielding tangible results.
Within First Hotels Franchise, our loyalty base, First Members, has grown impressively compared to the same period in 2023. It is particularly gratifying to note that 76% of our revenue from First Hotels' own channels is now generated by our loyal members, which highlights the strength and success of our loyalty program.
In the Scandinavian hotel segment, First Hotels continues to solidify its position as a leading player, particularly in the mid-range segment, where we offer competitive prices without compromising on quality.
While we are seeing an overall increase in occupancy rates across the region, Sweden has experienced a moderate decline, primarily due to a subdued event calendar in Gothenburg and an increase in room capacity. Meanwhile, Norway and Denmark have shown strong growth, driven by increased tourism and a return to physical events.
In summary, we are well-positioned for continued growth. We see a stable demand for our services in the market, and we continue to focus on delivering high-quality and memorable experiences for our guests, while actively strengthening our operations and expanding our presence in Scandinavia.
– Thomas Gillespie, CEO
This report has not been reviewed by the company's auditor.