Fitch and Standar & Poor’s improve NH Hotel Group’s credit ratings

• The senior secured debt rating has been upgraded from BB- to BB by Fitch and affirmed at BB- by S&P
• Both agencies have highlighted the Group’s improved leverage metrics and solid operating and financial performance

Fitch Ratings has upgraded its issuer rating for NH Hotel Group by one notch, rom B to B+, affirming its positive outlook, and raised its senior secured rating from BB- to BB. Elsewhere, Standard & Poor’s (S&P) has revised its outlook from stable to positive, affirming its issuer and senior secured debt ratings at B and BB-, respectively.

Fitch notes that the ratings upgrade reflects a marked improvement in the Group’s operating performance and leverage metrics as well as lease portfolio optimisation. The upgrade decision also reflects the fact that the capex plan underway since 2015, coupled with a more efficient cost structure and more effective price management, has enabled NH Hotel Group to boost its profitability.

S&P, for its part, flags free operating cash flow generation and debt reduction following the potential conversion of the €250 million bond as drivers for an upgrade of its issuer rating. This credit agency also expects NH Hotel Group to benefit this year from the positive outlook for the hospitality industry, particularly in its four main European markets (Spain, Benelux, Italy and Germany).

About NH Hotel Group

NH Hotel Group is a world-leading urban hotel operator and a consolidated multinational player. It operates close to 400 hotels and almost 60,000 rooms in 30 markets across Europe, America and Africa, including top city destinations such as Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Düsseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.