Hispania Multiplies Its Net Profit By 11 In YTD Sept16

14 November 2016 – Expansión

Hispania, the Socimi in which George Soros owns a stake, has generated net profits of €136.7 million during the first nine months of the year, which represents an almost 11-fold increase compared to the €12.94 million it generated during the same period last year.

The company’s turnover amounted to €100.1 million during the nine months to September 2016, compared with €19.58 million during the same period in 2015. In addition to rental income from the asset portfolio, the revenue figure also includes net bonuses and discounts, and income generated from the direct management of the following hotels: Holiday Inn Bernabéu, Hotel Maza, Hotel Guadalmina Spa & Golf Resort and three hotels in the San Miguel portfolio.

At the end of September, the gross value of the Socimi’s real estate assets amounted to €1,684 million, compared with €1,425 million at the end of last year.

The Board of Directors has approved the payment of a €17 million dividend on 30 November. Hispania will pay a total dividend of €40 million during the financial year 2016, of which €10 million has already been disbursed. The final payment corresponding to 2016 will take place after the next General Shareholders’ Meeting, which is due to be held in 2017.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Holiday Inn Bernabéu Files For Bankruptcy

20 April 2015 – Expansión

Madrid / The hotel, which continues to be operational, filed for voluntary bankruptcy at the beginning of this year in order to renegotiate its debt.

Leading Hospitality, the company controlled by the businessman César Losada, which owns the Holiday Inn Madrid Bernabéu hotel and the Hotel Maza in Zaragoza, has filed for bankruptcy to try to restructure its debt and forge ahead (with its business). On 13 January, Leading Hospitality voluntarily adopted this legal status and almost a month later, Commercial Court no. 9 in Madrid declared the procedure open, according to the company’s annual report for the financial year 2014.

Gregorio de la Morena, managing partner at DLM Insolvia, has been appointed as the bankruptcy administrator, although Losada and his team continue to manage the hotel, which is still operational. Sources close to Losada explain that the company filed for bankruptcy because “it had cash flow problems, which prevented it from meeting its short-term debt commitments”. Nevertheless, the intention is that the company will avoid filing for liquidation and instead reach an agreement with its creditors and continue operating.

For the time being, the company is waiting for the bankruptcy administrator to prepare the list of creditors to start negotiations. In addition, Leading Hospitality expects to file a collective dismissal plan (‘expediente de regulación de empleo’ or ERE) to reduce its wage bill – the scope of (that agreement) is being negotiated with the bankruptcy administrators. The hotel employs around 150 people.

In 2013, Leading Hospitality recorded revenues of €7.33 million, but it generated a negative operating profit of -€2.32 million. Net losses reached -€1.92 million and last year, the company also ended the year in the red.

Debt

At the end of 2013, the company had long-term debt amounting to €7.62 million and short-term debt amounting to €1.55 million, as well as several mortgage loans on both of its hotels – with Bankinter over its property in Madrid. Staff salaries and compensation payments amounted to €4.17 million in 2013.

In the accounts for that year, approved in December 2014, the auditor warned that the company was experiencing on-going cash flow problems (to be able to afford to pay) its employees, suppliers and financial partners. And it pointed to the management team’s plan to continue the refurbishment of the hotel, which it says is worth €27 million, and reduce the number of staff.

At the end of 2012, the businessman César Losada became the majority shareholder in the Madrid hotel, after acquiring a 51% stake from the InterContinental Hotel Group (IHG). Losada, who is behind the hotel investment company Losan Hotels World, invested €22 million in the acquisition and refurbishment of the four star hotel, which has 313 rooms. The asset is also owned by other individual shareholders and Losada intends to acquire their respective stakes (over time). Following the change of ownership in 2012, the hotel retained the Holiday Inn brand, which is owned by IHG, though a 25 year franchise contract. In 2013, Leading Hospitality paid a €363,754 fee to IHG.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake