Orbis Group announces positive results in Romania

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2018 has been another record year in terms of all Orbis strategic goals: financial performance, portfolio development and talents engagement, the Group has announced on Monday. At the end of 2018, Accor announced a tender offer on Orbis shares aiming on replicating active asset management strategy implemented by Accor for several years. Eventually Accor strengthened its position in the company’s shareholding up to 85.8%.

For the fifth year in a row Orbis delivered robust results at the operational level, manifested by +3.8% RevPAR increase up to EUR 44.6 for the whole Group. This high result was achieved thanks to significant growth of the Average Room Rate (+5.1%) and was visible in all the countries of the region. Solid operating results were reflected in the growth of revenues (+4.1%) up to EUR 335.7 m and in remarkable operating EBITDA increase of +7.8% (up to EUR 111.9 m). The Group have proved once again that its know-how and experience are the solid foundation for the Company’s stable functioning even in challenging market conditions, which they faced in 2018, including fast growing competition in key marketplaces and demanding labour market in the region.

Last year achievements in portfolio development made the Company stronger and more diversified. In 2018 Orbis succeeded to open three owned hotels i.e. ibis Vilnius Center (161 rooms), ibis Styles Warsaw Center (179 rooms) and ibis Poznań Centrum after renovation (190 rooms). On top of this 9 hotels with over 1,000 rooms were opened based on asset light agreements and the Company also signed other 20 new agreements (over 2,700 rooms) across Eastern Europe region.

“Looking forward, I am sure that Orbis Group is strong and well prepared to face competitive challenges as well as structural changes, resulting from stronger Accor engagement. Our priority is to continue making our clients “Feel Welcome”, our talents “Feel Valued” and building a long-standing relationship with our business partners. This approach will reinforce further growth of the Group in key areas of focus,” said Gilles Clavie, Orbis CEO and President.

As for its presence in Romania, Orbis Group has strengthened its position here by buying Mercure Bucharest Unirii and opening ibis  Steyles Bucharest Erbas last year, with three more hotel openings in the pipeline in 2019.

“Romania is one of the most dynamic markets in Central & Eastern Europe, has one the fastest growing economies in Europe and a large domestic market with a rising purchasing power. On top of it, Romania offers new, exciting destinations for both corporate and leisure travelers from around the globe. You have a very rich historical heritage, beautiful nature and an amazing culture around food and wines – making Romania one of the fastest growing destinations. With 11 hotels today and another 19 in the pipeline, it’s a key market for Orbis and for Accor. As an investor, we re-affirmed that Romania is on our map by buying Mercure Bucharest Unirii for EUR 11M in July 2018 with a renovation under way to upgrade this address. As an operator, the opening of ibis Styles Bucharest Erbas in 2018 and the upcoming openings in 2019 of ibis Styles Bucharest Airport, Mercure Sibiu Airport and Mercure Timisoara strengthen our leading position in Romania. The performance of hotels under Accor brands is solid and we see a positive outlook for this market,” stated in her turn Emeline Sýkora-Wintrebert, Area General Manager, Orbis & Accor South-Eastern Europe.

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