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Hotel NIDA secures 6th hotel & Achieves Record Run Rate Revenue

May 17, 2018 Hotel Developments No Comments Email Email

Hotel NIDA, the fast growing boutique hotel chain in ASEAN, today announced the following:http://www.tourismlegal.com.au/

  •  Hotel NIDA Sukhumvit Nana – The latest addition to the Hotel NIDA portfolio consists of 49 deluxe rooms and a roof-top swimming pool in Bangkok’s vibrant Soi Nana. The hotel is walking distance to Nana BTS and world famous Bumrungrad Hospital. The hotel currently operates under the Hotel Solo Sukhumvit 2 brand and has a Certificate of Excellence from TripAdvisor. Hotel NIDA expects to take-over operations in August.
  • Hotel Level EBITDA Positive – Hotel NIDA achieved a positive, consolidated hotel level EBITDA for first quarter 2018 with four hotels in operation. The best performing hotel achieving a 19.9% EBITDA margin.
  • +US$ 2m Annualized Revenue – Hotel NIDA achieved record revenue in April and is tracking at +US$2m annualized revenues on the existing five hotels.
  • Growing Indonesian Customer Base – Domestic and Asian customers represent +70% of Hotel NIDA customers with rest of the world represents the balance, largely Europe and North America. The Indonesian customer segment is growing consistently since February.

Hotel NIDA acquires long-term leases on existing, successful boutique hotels in excellent locations, re-brands and operates them. This asset-light, lease and operate model has been proven time and time again successful by a variety of China players including Home Inn, 7 Days and China Lodging Group. Hotel NIDA is the only asset-light, lease and operate player in ASEAN that takes full operating control of the hotel property, thereby ensuring control of the customer experience and data. The model adds zero capacity to the marketplace but Hotel NIDA is able to immediately effect significant labour, purchasing, operating, and rate management efficiencies for properties added to its portfolio thereby making the model a “win-win” for property owners, customers and Hotel NIDA.

“We are excited that Hotel NIDA Sukhumvit Nana has joined our family, bringing another excellent location and quality hotel for our customers. The management of Hotel NIDA is also extremely happy to have achieved a critical milestone of hotel level EBITDA profitability for first quarter and trending towards an annualized run rate revenue of over US$2m – all accomplished in under five months since the lease & operate model was launched.” said Kaneswaran Avili, CEO & Co-Founder of Hotel NIDA.

“We continue to build an exciting pipeline and expect to achieve 15 properties in the portfolio by 4Q this year tracking in excess of US$6m of run-rate revenues. Subject to successful closure of ongoing funding discussions, we would expect to achieve a 40 to 60 hotel portfolio by year-end 2019 trading profitability at US$25m to US$36m of annualized revenues. Ultimately, we see an opportunity to expand beyond Thailand and Malaysia with a view towards building a true ASEAN branded portfolio of several hundred properties.” added Kaneswaran Avili.

Hotel Nida Chairman, Dennis Melka added: “The value and boutique hotel segment in Southeast Asia, 50 to 100 room properties, is an exciting multi-billion dollar revenue industry ripe for consolidation and branding particularly given the key structural trends of booming Chinese and Indian outbound tourism and constantly expanding regional airlift from the low cost carriers such as SpiceJet, Air Asia and Malindo. Hotel Nida is solving two fundamental challenges for consumers and hotel owners. Firstly, we are providing excellent branded accommodation in the US$25 to $35 per night price category for travelers in key city center locations. For hotel owners, we are providing a convenient long-term property outsourcing solution no different than what is available for owners of four or five star properties. Hotel Nida adds no capacity to the marketplace as we are consolidating existing operating properties and takes no development risk with new-build construction. Branded chain accommodation in the value hotel segment in USA and China is over 70% and 30%, respectively; however, in ASEAN it is less than half a percent.”

All the hotels are available for bookings through www.hotelnida.com and on all major Online Travel Agents (OTA).

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