Continued focus on cash protection as market remains weak Comment from the CEO "The third quarter has not witnessed any major change in the trading conditions for Rezidor. A weak demand from business clients has been partly offset by lower yield leisure travelers. Visibility is still limited and our current plans are based on the assumption that the difficult business climate will continue at least for the near future. Our focus on capturing revenue and controlling costs is targeted to ensure that Rezidor is well positioned to benefit when market conditions improve. Our cost cutting program is progressing according to plan and we feel confident that we will achieve annual savings of MEUR 30 in operations and additional reductions of approximately MEUR 4 in central costs. As reducing risk by adding fee-based managed and franchised rooms remains an important objective, Rezidor will continue to seek profitable growth opportunities in this area. This year, the company has already added almost 4,900 rooms to its operations, of which more than 88% are managed or franchised" Kurt Ritter, President & CEO. Third quarter, 2009 * RevPAR like-for-like decreased by -15.9% to EUR 64.3 (76.4). Like-for-like occupancy was 66.8% (69.4). * Revenue decreased by -14.1% or MEUR -27.1 to MEUR 165.4 (192.5). On a like-for-like basis Revenue decreased by -13.4%. * EBITDA was MEUR 3.1 (20.0), and EBITDA margin was 1.9% (10.4). * Loss after tax amounted to MEUR -6.1 (10.1). * Basic and diluted Earnings Per Share amounted to EUR -0.04 (0.07). Nine month ending September, 2009 * RevPAR like-for-like decreased by -18.1% to EUR 63.2 (77.1). Like-for-like occupancy was 62.1% (67.6). * Revenue decreased by -16.9% or MEUR -100.1 to MEUR 491.2 (591.3). On a like-for-like basis Revenue decreased by -14.5%. * EBITDA was MEUR -4.8 (57.3), and EBITDA margin was -1.0% (9.7). * Loss after tax amounted to MEUR -27.9 (24.9). * Basic and diluted Earnings Per Share amounted to EUR -0.19 (0.17). * Cash flow from operating activities amounted to MEUR -10.7 (49.1). Total available cash at the end of the period, including unutilised credit facilities, amounted to MEUR to 92.7 (146.8 in September 08). Net debt/cash amounted to MEUR -11.7 (19.3 in September 08). Other developments * Rezidor opened ca 1,800 rooms in the third quarter, of which 90% were managed or franchised. Two hotels, representing ca 145 rooms, left the system. During the first nine months, Rezidor opened ca 4,900 rooms, of which 88% were managed or franchised. * Rezidor signed 5 contracts for new hotels in the third quarter featuring ca 1,000 rooms. During the first nine months, Rezidor signed 30 contracts for new hotels, totaling ca 5,900 rooms. 100% of the new rooms contracted year to date were managed or franchised. * The cost savings plan generated net savings of MEUR 9.2 during the third quarter and MEUR 21.7 during the first nine months of the year. Selected financial Jul-Sep Jan-Sep Jan-Sep data, MEUR Jul-Sep 09 08 09 08 Revenue 165.4 192.5 491.2 591.3 EBITDAR 54.2 70.8 148.8 211.6 EBITDA 3.1 20.0 (4.8) 57.3 EBIT (4.9) 13.4 (27.0) 37.6 Profit/(loss) after (6.1) 10.1 (27.9) 24.9 Tax EBITDAR Margin % 32.7% 36.8% 30.3% 35.8% EBITDA Margin % 1.9% 10.4% (1.0)% 9.7% EBIT Margin % (3.0)% 7.0% (5.5)% 6.4% Financial calendar Year-end Report January-December 2009: 11 February 2010 Interim Report January-March 2010: 16 April 2010 Stockholm 30th October, 2009 Kurt Ritter President & CEO Rezidor Hotel Group AB Webcast 30th October 2009 at 15:30 Kurt Ritter, President & CEO, Knut Kleiven, Deputy President & CFO and Puneet Chhatwal, Chief Development Officer, will present the report and answer questions on 30th October 2009 at 15:30 (Central European Time). To participate in the teleconference, please dial: Sweden: +46 8 505 204 24 Sweden toll-free: 0200 896 377 UK: +44 203 023 4416 US: +1 646 843 4608 US toll-free: 1 866 966 5335 To follow the webcast, please visit www.rezidor.com A replay of the conference call will be available one month following the call by dialling +44 208 196 1998 (UK) and +1 866 583 1035 (US), access code 195424#. For further information, please contact: Knut Kleiven, Deputy President and Chief Financial Officer The Rezidor Hotel Group Avenue du Bourget 44 B-1130 Brussels, Belgium Tel: + 32 2 702 9200 www.rezidor.com The full report with tables can be downloaded from the following link: