A financial analysis on NH-hotels

2469 Words10 Pages

This report is a financial analysis of the NH Hoteles hotel company from the viewpoint of financial analysts wishing to purchase shares in the hospitability-leisure business. Along with NH Hoteles, we chose two American hotel chains, Hilton and Marriott, and one European chain, Accor as industry alternatives

Our conclusions follow:

·The global travel industry has bottomed out since the dreadful years of 2001 and 2002 and is improving.

·NH Hoteles financial rations do not show great improvement over the past two years, but suggest a solid company that can survive in difficult economic conditions. Public explanations of strategy show that the company is committed to improving these ratios along with general operating
…show more content…
Following the acquisition of the Dutch Krasnapolsky chain in 2000, the Mexican Kristal chain in 2001 and the German Astron chain in 2002 it has currently 242 hotels in operation, with 34,876 rooms in 16 countries, in Europe, Latin America and Africa. NH Hoteles employs more than 12000 employees with 78 different nationalities. (NH Hoteles 2003)

The European Business market is the major market NH Hoteles is operating in. It is targeting this market with 4 and 5 star hotels in the major cities of Europe. It distinguishes from other hotels by its service, interior decoration, good food and technology.


We used the NH Hoteles Annual Report of 2002 as the main source of financial information about the company. The report was composed of two reports, a glossy main section with many pictures of the various (and glamorous) properties owned by the company and a few consolidated financial statements, and a second report with the full financials tucked in a folder in the back of the first!

We found the full financial document to be difficult to read, requiring frequent referral the notes. Key ratios were not provided, forcing us to do numerous calculations ourselves. This is not in theory a bad thing; but in comparison with metric heavy reports from the UK and America simply getting a quick picture of the state
Get Access