Radisson has reported a difficult first half to 2020 and CEO Federico J. González in a statement has set out some of the difficulties.
We have published the statement below. This statement sets the agenda for a telephone conference and live webcast concerning the report that is being presented today by President & CEO, Federico J. González and CFO, Sergio Amodeo. The statement reads to us like Federico J. González and Sergio Amodeo have through the statement given themselves a tough time on that call. We look forward to reporting further on the outcome.
“The outbreak of COVID-19 has had a significant impact on Radisson’s performance as from end of February 2020. A majority of the hotels have been closed during this period, but we have gradually started to reopen as from June. 93 hotels out of 392 were still closed per end of June, but a majority of those are expected to reopen in July and August.
“Management has taken several measures to mitigate the financial impact, on both profit and cash flow, of the significant drop in revenue. These measures include, but are not limited to, furloughs, rent renegotiations and deferrals, application for governmental subsidies and loans, and postponement of non-strategic capex investments. The Group is helped by a flexible cost model, which shows an immediate capability to reduce costs. Starting in June, we have seen a gradual and consistent recovery, with a RevPAR increase that is expected to continue in the coming months.
“Management has taken advantage of the low activity period to push forward strategic repositioning and development projects.
“Radisson’s shareholders have reacted by supporting with a 100 million Euro cash injection in the form of a subordinated loan. A global financing plan has been finalised to cover medium- and long-term cash needs until the expected end of the crisis. With this cash injection and the ability to raise further funding, to the extent needed, Radisson can cover its liquidity needs.”
Federico J. González, President & CEO
