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NH Hotel Group, a multinational hotel company headquartered in Spain, has taken a series of measures to reduce costs and improve liquidity amid Covid-19 crisis.
The move involved trimming non-priority expenses and suspending investments in hotel maintenance and refurbishment.
The hospitality company also trimmed its workforce with temporary layoffs and reduced salaries of its staff in countries where redundancies are prohibited.
Additionally, NH Hotel Group reduced marketing and advertising investments and started discussions with suppliers to reduce procurement amounts and avail alternative products with lower costs.
The company also signed a syndicated loan of €225m with maturity in 2023.
As a result, the group now has a liquidity of more than €675m, despite low activity last month.
NH Hotel Group CEO Ramón Aragonés said: “Covid-19 represents the biggest challenge the hotel industry has ever faced worldwide and is measuring our strength.
“The timely operational and financial transformation we have carried out in the past, together with the efficiency measures we have now implemented and the available liquidity of €675m, will allow us to overcome this situation, maintain leadership and be more competitive when normality returns.”
Due to Covid-19 related lockdowns and other travel restrictions, NH Hotel Group closed nearly 95% of its locations.
However, since the beginning of this month, the group reopened its sales channels and reservation systems, and now plans to gradually open its hotels in the main cities.
The company has also devised new guidelines to adhere to the social distancing and safety protocols during operations.
Notably, NH Hotel Group reported a 20.8% drop in first quarter revenues to €279.4 m, primarily attributing the fall to the COvid-19 pandemic.