quarterly report for q3 2021 quarterly report for q3 2021

Quarterly report for Q3 2021 ı Motel One Group

QUARTERLY REPORT FOR Q3 2021

KEY FACTS

Q3 2021:

• Opening of Motel One Nuremberg- and Stuttgart-Hauptbahnhof | 02

• 700,000 beOne members | 04

• Motel One wins Red Dot Award | 04

• Good restart in third quarter: | 05

- Occupancy reaches 46% (previous year: 35%)

- Revenue up at EUR 95 million (previous year EUR 64 million)

- Positive EBITDA of EUR 16 million

YTD 2021:

• Despite a hopeful third quarter, the accumulated data illustrates

the economic damage: | 05

- Occupancy reaches just 24%; pre-coronavirus rate in 2019 was 76%

- At EUR 137 million, revenue still below previous year (EUR 184 million)

- EBITDA still in the red at EUR -45 million

• Outlook | 08

2 QUARTERLY REPORT FOR Q3 2021 MOTEL ONE

GROUP

02

OPENING OF MOTEL ONE NUREMBERG-HAUPTBAHNHOF

With ideal connections to local and long-distance transport, the new building with 559 rooms is

located directly at the entrance to Nuremberg’s main train station and just a few steps from the

pedestrian zone. The attractive redesign of what was once a major post office was carried out

by the Zurich architectural practice Max Dudler. The developer is Hubert Haupt Immobilien

Holding. The design of the hotel is inspired by Nuremberg’s artistic heritage, in particular

Albrecht Dürer. Nuremberg artist Julian Vogel designed the wall in the entrance area, around 36

square metres in total, with quotes and graphic elements from his hometown as well as Dürer’s

famous hare. The 13th floor is a multi-functional space, where breakfast is served in the morning

before it’s transformed into a spacious work area with meeting areas that can be closed off for

privacy. Up on the 14th floor, guests will find a true highlight – the Cloud One Bar with a 360-

degree panoramic view of Nuremberg and a covered loggia with plenty of fresh air. The bar

offers more than 50 different types of gin, including local varieties, with Albrecht Dürer’s star

chart shining behind it over the skyline of Nuremberg. Modern copper-wire lights and

comfortable leather sofas create a welcoming atmosphere. Room prices start at EUR 89. This

is another Motel One that operates on 100% renewable energy.


GROUP

03

OPENING OF MOTEL ONE STUTTGART-HAUPTBAHNHOF

From the new Motel One Stuttgart-Hauptbahnhof, guests can simply jump on the next train.

Access to the main train station is just 100 metres away. The location is ideal not only for

travellers passing through, but also for visitors to the city: Stuttgart’s historic heart with all its

attractions is just around the corner. Designed by the Lederer architectural practice, the new

build boasts 414 rooms, some with a balcony or terrace. The developer is Reiß & Co. Real Estate.

The design of the hotel reflects the atmosphere of the city and the sensation of rail travel

through the surrounding region with its vineyards. The result offers urban modernity paired with

wanderlust and numerous echoes of the natural surrounds which set the tone for the colour

scheme and interior design. Behind the reception desk is a work by artist Anja Klafki –

‘WanderWonderLand’ – which depicts a trip through the vineyards. Along with workbenches for

relaxed work, the One Lounge also offers a meeting room. The comfortable lounge furniture

and greenery on the spacious interior terrace offer guests an inviting oasis where they can take

a breather from the bustle of the city. Rooms at the new Motel One start at EUR 89.


GROUP

04

700,000 BEONE MEMBERS

Following the successful establishment of beOne, the third year of the digital membership

programme saw the 700,000th beOne member registered in August. Guests have responded

enthusiastically to the basic benefits, such as the Welcome Water, Sleep-In Sunday, One-Click-

Book and a delicious free breakfast

with initial registration and the many

time-limited benefits, such as an

invitation to a summer drink.

Now there’s another benefit:

‘beConnected’ enables all beOne

members to connect to the wifi

permanently without having to log in

again when they enter a Motel One –

anywhere in Europe. Think of it as a

digital homecoming.

MOTEL ONE WINS RED DOT AWARD

Motel One’s mobile app was awarded the prestigious Red

Dot Award 2021 for its ‘mobile travel companion’ in a total

of four categories: travel apps, customer experience, digital

solutions and online platforms. The internationally

recognised award is a coveted seal of approval for products

with particularly high design standards, and it documents

the most distinctive trends worldwide.

Developed with SinnerSchrader Swipe, the new mobile

application from Motel One offers a digital experience

specifically designed and implemented for iOS and Android.

The outstanding interface and user experience design

convinced the jury, setting new standards in the ‘Travel &

Tourism’ segment. The app also enables a digital expansion

of the online experience and thus expands the customer

journey – making it the perfect booking platform.


GROUP

05

INCOME STATEMENT

After the long lockdown of almost nine months, in the third quarter occupancy reached 46%

(previous year: 35%) and revenue of EUR 95 million (previous year: EUR 64 million) was

recorded. Tourist demand has almost completely recovered. However, companies are still

reluctant to allow employees to travel and there is a lack of international business, in particular

from trade fairs and congresses.

With the return to positive EBITDA of EUR 16 million (previous year: EUR 1 million), the restart is

well underway. With further Covid support of EUR 4 million taken into account (previous year:

0), after a quarterly loss of EUR 11 million in the previous year, a break-even EBIT was achieved.

Despite the hopeful third quarter, the accumulated data for the first nine months offers a clear

picture of economic damage. An occupancy rate of 76% in 2019 fell to 32% in 2020 due to the

travel restrictions that began in March of that year. In 2021, the long lockdown and coronavirus

restrictions resulted in an occupancy rate of just 24%.

With revenue of EUR 137 million (previous year: EUR 184 million), Motel One had to accept a

negative EBITDA of EUR 45 million (previous year: EUR -13 million) and an EBIT loss of EUR -

32 million (previous year: EUR -63 million). For 2021, government Covid aid of EUR 61 million

has already been taken into account; this was granted primarily to compensate for the losses

of the previous year.

Although a profit of EUR 57 million was generated in the first nine months of 2019, the

coronavirus years 2020 and 2021 saw revenue losses of almost EUR 210 million, despite

government aid.

2021 +/- ly 2020 +/- ly 2021 +/- ly 2020 +/- ly

Statistics:

No. Hotels 79 5 74 1 79 5 74 1

No. Rooms 22.820 1.969 20.851 111 22.820 1.969 20.851 111

Occupancy (%) 46 11 35 -43 24 -8 32 -44

RevPOR (EUR) 99 4 96 -3 96 -4 99 1

Income Statement: kEUR % ly kEUR % ly kEUR % ly kEUR % ly

Revenue 94.791 47 64.530 -56 137.319 -25 184.240 -55

EBITDAR 48.184 60 30.124 -63 46.956 -37 74.143 -67

Lease payments -27.386 -6 -25.948 -1 -79.522 -1 -78.602 -4

Head Office & Pre-Opening -4.969 -78 -2.796 60 -12.513 -51 -8.260 55

EBITDA 15.829 >100 1.380 -97 -45.079 >100 -12.719 <100

Amortisation/Depreciation -16.394 -81 -9.073 44 -39.781 3 -41.159 4

EBIT -565 -93 -7.693 <100 -84.860 58 -53.878 <100

COVID Subsidies 3.915 >100 0 0 60.988 >100 0 0

Financial Results -3.241 11 -3.628 -8 -7.930 10 -8.769 -14

EBT 109 <100 -11.321 <100 -31.802 -49 -62.647 <100

Income tax -56 <100 0 >100 -75 <100 0 >100

NET RESULT 53 <100 -11.321 <100 -31.877 -49 -62.647 <100

Income Statement3rd Quarter Year-to-Date January - September


GROUP

06

CASH FLOW STATEMENT

With negative EBITDA of EUR 45 million (previous year: EUR -13 million) in the first nine months

of 2021, positive working capital management and very selective redesign measures limited

operating cash outflows to EUR 26 million. In the previous year, the operating cash flow of EUR

81 million was influenced significantly by a purchase price payment from a real estate

transaction.

In addition to the Covid aid of EUR 61 million, the KfW loan secured in the previous year was

called in the full amount of EUR 162 million. Overall, liquid funds have increased by EUR 198

million since the beginning of the year (previous year: EUR 61 million).

After investments in real estate for new hotel projects of EUR 21 million (previous year: EUR 26

million) and EUR 17 million (previous year: EUR 8 million) for the redesign of new hotels, cash

holdings rose in the first nine months of 2021 by EUR 160 million (previous year: EUR 26 million).

With cash holdings of EUR 323 million (previous year: EUR 209 million), Motel One has a strong

liquidity buffer for the ongoing development of the company and the uncertainties of the

pandemic.

kEUR % ly kEUR % ly kEUR % ly kEUR % ly

EBITDA reported 15.829 >100 1.380 -97 -45.079 >100 -12.719 <100

- Net Working Capital 11.711 <100 -5.643 <100 20.909 -82 115.477 36

- ReDesign Capex -724 -54 -1.569 -86 -1.751 -92 -21.982 -34

- Taxes -56 <100 0 <100 -75 <100 0 <100

Operating Cash Flow 26.760 <100 -5.832 <100 -25.996 <100 80.776 -49

- Covid Subsidies 3.915 >100 0 0 60.988 >100 0 0

- Investing / Divesting Cash Flow 0 0 0 0 31 <100 -10.998 >100

- Equity Cash Flow 279 74 160 <100 76 <100 -6.094 56

- Debt Cash Flow -7.020 <100 24.108 <100 162.627 <100 -3.114 <100

Cash Flow before Expansion Capex 23.934 30 18.436 -46 197.726 >100 60.570 -64

- CAPEX new Hotels PROPCO -7.163 -26 -9.732 70 -20.512 -22 -26.452 -44

- CAPEX new Hotels FF&E -5.556 28 -4.347 44 -16.968 >100 -8.324 -19

Net Cash Flow 11.215 >100 4.357 -83 160.246 >100 25.794 -34

Cash carried forward 312.382 53 204.331 55 163.351 -11 182.894 56

Cash at end of period 323.597 55 208.688 33 323.597 55 208.688 33

Cash Flow Statement3rd Quarter

2021 2020

Year-to-Date January - September

2021 2020


GROUP

07

NET BALANCE SHEET

Coronavirus-related losses reduced equity to EUR 431 million (previous year: EUR 476 million).

The equity ratio was 62% (previous year: 69%), remaining at a stable level and similar to the

figure for 2019. The net debt including the KfW loan, with a residual value of EUR 152 million,

rose to EUR 212 million (previous year: EUR 147 million).

PIPELINE REPORT

Currently, 79 (previous year: 74) hotels are in operation with 22,820 rooms (previous year:

20,851). There are 27 hotels in the pipeline (previous year: 28) with 7,040 rooms (previous year:

8,250). Overall, an increase to 106 hotels (previous year: 102) with 29,860 rooms (previous

year: 29,101) is contractually secured. Of these, 67 hotels (previous year: 68) are in Germany

and 39 (previous year: 34) are in European cities. 19 hotels are owned (previous year: 18), and

11 hotels (unchanged from the previous year) are financed via a leasing structure. 76 hotels

(previous year: 73) are secured based on long-term rental agreements with external investors.

+/-

kEUR % kEUR % % ly

Net Balance Sheet:

Equity 431.353 62 475.720 69 -9

Net working capital 56.047 8 70.691 10 -21

Net debt 211.747 30 147.052 21 44

Leverage Framework:

EBITDA Rolling 12 months -74.901 32.055 <100

Net Debt/EBITDA n.a. 4,6 n.a.

September 30,

2021 2020

Hotels Rooms % Hotels Rooms % Hotels Rooms

in operation 79 22.820 76 74 20.851 72 5 1.969

under development 27 7.040 24 28 8.250 28 -1 -1.210

TOTAL 106 29.860 100 102 29.101 100 4 759

- Germany 67 19.472 65 68 19.578 67 -1 -106

- International 39 10.388 35 34 9.523 33 5 865

- Owned 19 5.597 19 18 5.424 19 1 173

- Leased 11 2.461 8 11 2.461 8 0 0

- Rented 76 21.802 73 73 21.216 73 3 586

+/- ly

September 30,

2021 2020


GROUP

08

OUTLOOK

The month of September closed with an occupancy rate of around 57%, and October offers

hope for a further slight recovery in demand.

The first major trade fairs of the year, such as the IAA, Expo Real and Anuga, were carried out

successfully. Even though the number of visitors, in particular international visitors, remains

below pre-coronavirus levels, these events clearly show that business customers want to travel

again. Hope for increased mobility in city tourism is bolstered by the restart of sporting and

cultural events without audience restrictions.

We view the rising coronavirus figures with concern, but remain hopeful that the high vaccination

rate will prevent further lockdowns.

One of the great challenges in the revitalised hotel industry is finding and retaining good

employees. The measures we have introduced, such as additional training, a coronavirus bonus

and flexibility in the scope and location of work, are the first steps. The focus is on emphasising

Motel One as an attractive employer and conveying the idea that hospitality will remain a great

profession in the future.

In the fourth quarter, Motel One Aachen will open with 259 rooms in a prime location, adding yet

another attractive location to the network in Germany.

In addition to the successful conclusion of a lease in New York in July 2021, Motel One secured

entry into the Scandinavian market in the third quarter with Motel One Copenhagen. The 200-

room hotel in the centre of Copenhagen not only brings the company to one of the most

exciting cities in Europe, but for the first time it has succeeded in integrating an existing hotel

into the group with soft rebranding.

As we assumed at the beginning of the pandemic, the current environment opens up interesting

growth opportunities at top locations that Motel One stands ready to seize.

Munich, October 2021

quarterly report for q3 2021 quarterly report for q3 2021

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