Belmond Ltd., owners, part-owners or managers of 46 luxury hotel, restaurant, tourist train and river cruise properties operating in 23 countries, today announced its results for the first quarter ended March 31, 2016.
Roeland Vos, president and CEO, remarked: “We started 2016 with solid year-over-year growth. Our first quarter constant currency RevPAR growth exceeded our guidance, and our total adjusted EBITDA was more than double our result for the prior-year quarter on a constant currency basis. While the first quarter is seasonally our lowest revenue quarter, we are encouraged by the strong start, which I believe sets the tone for our full year performance.
“In addition to driving strong near-term results, we have remained focused on executing against our long-term strategic plan. We continued to re-invest in our portfolio during the quarter, focusing on projects with attractive forecasted returns that we expect will improve performance and drive greater value from our existing assets. We also maintained our focus on expanding our global footprint through our investment in Belmond Grand Hibernian, which will allow us to bring our luxury train operating expertise to Ireland starting with the train’s scheduled inaugural journey in August. I am pleased with the progress we have made at this early juncture in 2016 and expect to gain more traction as we continue to execute on our strategic plan.
“Looking forward, we continue to forecast healthy year-over-year growth for the full year 2016. Although we currently see potential challenges for select parts of our portfolio in the second quarter, we expect that this temporary softness will be more than offset by a strong third quarter. We anticipate that our third quarter growth will come largely from increased demand for our European hotels during their peak summer months as well as the benefit of the Summer Olympic Games on Belmond Copacabana Palace in Rio de Janeiro, Brazil. For the full year 2016, we are maintaining our guidance for same store, constant currency RevPAR growth of between 3% and 7%.”
Total revenue for the first quarter of 2016 of $99.1 million tracked at the same level as total revenue for the first quarter of 2015. In constant currency, total revenue for the first quarter of 2016 increased $8.1 million or 9% over the first quarter of 2015.
Same store RevPAR for owned hotels for the first quarter of 2016 increased 9% over the prior-year quarter on a constant currency basis as a result of a 5% increase in average daily rate (“ADR”) and a 3 percentage point increase in occupancy.
Total adjusted EBITDA for the first quarter of 2016 was $7.9 million, a $3.6 million or 84% increase over total adjusted EBITDA of $4.3 million for the first quarter of 2015. In constant currency, total adjusted EBITDA for the first quarter of 2016 increased $5.2 million.
Adjusted net losses from continuing operations for the first quarter of 2016 were $3.2 million ($0.03 loss per common share), a $2.9 million or 48% improvement over adjusted net losses from continuing operations of $6.1 million ($0.06 loss per common share) for the first quarter of 2015.
Reported net losses attributable to Belmond Ltd. for the first quarter of 2016 were $1.6 million ($0.02 loss per common share), a $7.9 million improvement over reported net losses attributable to Belmond Ltd. of $9.5 million ($0.09 loss per common share) for the first quarter of 2015.
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