Ladies and gentlemen, welcome to NH Hotel Group full year 2022 results presentation. I will now hand over to the speaker. Thank you. Hello. Good morning, everyone. This is Javier Vega-Penichet from Investor Relations. Welcome to NH Hotel Group fourth quarter and full year 2022 results conference call. Our CEO, Ramón Aragonés, will share with you the drivers behind the reassuring closing of the year with a stable demand and solid price development. Our CFO, Luis Martinez Jurado, will provide a more detailed description of the results and will dive in the strong cash flow generation and the implied leverage reduction that continues strengthening our financial position. At the end, we will open a Q&A session to answer any questions you may have. Now I hand over the call to Ramón. Thank you, Javier. Good morning, thank you for joining us today. This is Ramón Aragonés speaking. Um. 2022 conclude with a encouraging fourth quarter, with a sustained demand and strong ADRs. The speed of the of the recovery in 2022 has beaten all expectation, allowing to exceed since April all metrics of 2019. The sustained reactivation of both leisure and business travelers, together with a solid pricing strategy at a strict cost control, are helping to offset the inflationary pressure. Our commercial strategy focus on a strong intra-month demand and segment optimization has allowed to surpass, to pace 2019 like-for-like ADR by 11% in the 12-month period. At group level, ADR reached EUR 122 compared to EUR 103 in 2019. The price development has fully offset the lower occupancy in 2022, 61% compared to 2019, 67%-72%. RevPAR in 2022 reached EUR 74, same level of 2019 based on ADR instead of occupancy. Due to the remarkable performance in the last nine months, fully offsetting Omicron impact in Q1. Excluding Q1, like-for-like RevPAR was +6% versus the same period of 2019 as ADR grew 14% and occupancy was five points lower than in 2019. Once again, based on our strategy focus on prioritizing ADR instead of occupancy. The return of the business travelers in June has permitted the recover similar B2B pre-pandemic revenue levels. This is explained by the strategy focusing on small and medium-sized enterprises as big corporations took longer to reactivate. On the cost side, our discipline and initiative of our purchasing platform to mitigate the increasing price pressure has allowed to overall offset one-third of the inflation rate in 2022. We expect this pressure to continue during the first half of 2023 and to slightly moderate in the second part. In energy costs, we benefit from terms agreed in 2021, and the group took advantage of certain subsidies received in 2022, implying that the EBITDA conversion rate of 37% achieved in 2022 cannot be sustained in 2023 because these subsidies we got during 2022. The financial position of NH has continued to improve with a net financial leverage reduction of EUR 260 million in 2022. The strong operating cash flow generation, EUR 270 million, together with asset rotation, EUR 68 million, certain subsidies collected in Q1 2022, around EUR 40 million, as I mentioned before, a limited CapEx, EUR 49 million, have permitted to decrease net financial debt down to EUR 308 million with an implied leverage of 1.2 times. Comfortable liquidity allowed to continue the reduction of gross financial debt that started in 2021 with the RCF repayment. As a result, EUR 200 million of the ICO COVID-related loan had been voluntarily repaid during 2022, and the outstanding EUR 50 million was repaid in January 2023. Floating debt exposure has decreased from 47%- 25%. Let me now recap the main operating highlights of the year. Total revenues reached EUR 1,759 million, EUR 101 million in Q4, compared to EUR 1,780 million in 2019 and EUR 834 million in 2021. Excluding Q1, revenues were 12% higher compared to the same period of 2019, since April to December. Occupancy improved from 40% in Q1 to 69% in Q2, Q3 saw 65% in Q4, reaching 61% in the year. Excluding Q1, like-for-like occupancy was 0.5 points lower than in 2019. We expect occupancy rate to continue slightly lower than in 2019 during the first part of 2023 due the company strategy based on prioritizing ADR instead of occupancy. A stable ADR since April in the 130 range, the 130 range. Like-for-like ADR growth versus 2019 was +11% and 14% excluding Q1. Excluding IFRS 16, EBITDA reached EUR 250 million, EUR 88 million in Q4. Excluding Q1 2024, that was -EUR 54 million. EBITDA since April exceed by EUR 32 million or 11.5% the same period of 2019 with a similar margin, 20%, despite the high inflation. Reported EBITDA with IFRS 16 reached EUR 490 million, which is 94% of the 2019 figure. All in net recurring profit in 2022 reached EUR 76 million, EUR 45 all in Q4. First positive annual figure since 2019. From Q2 to Q4, recurring net profit was EUR 156 million, an increase of EUR 35 million versus 2019. Total net profit, including net capital gains from asset rotation, reached EUR 100 million in 2022. To conclude, let me share with you that after the fast recovery in 2022, the good dynamics remain in the first months of the year, and we continue to foresee a healthy operation trend during 2022, 2023, sorry. Now, Luis Martinez Jurado will give you more details on the results and balances. Luis. Thank you, Ramón. Good morning, everyone. This is Luis Martinez Jurado speaking. Jumping into the details of the annual results on page five and focusing on top line, reported revenue in 2022 reached EUR 1,759 million, EUR 501 million reported in Q4. Implied growth of EUR 952 million compared to EUR 834 million in 2021, a year that was highly impacted by COVID mobility restrictions. Compared to 2019, revenues increased by 2.4% or EUR 41 million despite Omicron impact in Q1 2022. Excluding Q1, let me remark that revenues were 12% higher, implying an increase of EUR 160 million compared to the same period in 2019. Moving to RevPAR on page six, let me highlight the increase to EUR 74 in 2022, which is the same figure as 2019 due to the remarkable performance in the last nine months of the year, fully offsetting Omicron impact in Q1. Excluding Q1, like-for-like RevPAR was 6% above the same period in 2019. ADR grew 14% and occupancy was five percentage points lower than in 2019. By region, higher activity level was achieved in Southern Europe due to earlier lifting of restrictions. Moving to page seven, we have seen a fast recovery in all regions, being Southern Europe above 2019 comparable revenues. In Spain, like-for-like and refurbished revenue grew to EUR 116 million with a very healthy evolution of the secondary cities throughout the year and a relevant upturn in Madrid and Barcelona due to the reactivation of the business travelers seen mid Q2. Spain has reached higher comparable revenues versus 2019. In Italy, like-for-like and refurbished revenue increased by EUR 164 million with extraordinary performance in Rome and secondary cities throughout the year. Milan with higher revenues compared to 2019 in Q4 and Q3. Italy also reached higher like-for-like revenues compared to 2019. In Benelux, like-for-like and refurbished revenue grew by EUR 188 million with better evolution in Dutch secondary cities and Brussels. Amsterdam has been improving quarter by quarter. In Central Europe, growth of EUR 119 million on a like-for-like and refurbishment basis, despite the EUR 79 million of direct COVID-related subsidies in 2021 versus EUR 17 million in 2022. We also see a healthy recovery in key cities, especially in Berlin and Hamburg in the case of Germany. Lastly, in Latin America, we report revenue growth across all countries with a stronger recovery in Argentina, followed by Colombia and Chile, and a slower pace in Mexico. Moving to page eight, both payroll and operating expenses increased by 78% in 2022 due to higher activity. Let me highlight that our cost discipline and the strength from our purchasing platform, Coperama, to mitigate the increasing price pressure has allowed us to reach 48% GOP conversion ratio. Reported lease payments and property taxes increased EUR 142.8 million in the year due to increasing variable rents as business grows and the comparison with 2021. A year that was impacted by fixed rent concessions and other contractual features. Reported IFRS EBITDA improved by EUR 302 million, reaching EUR 519 million in the year, which represents 94% of the 2019 figure. Excluding IFRS 16, reported EBITDA grew by EUR 340 million, reaching EUR 250 million, EUR 88 million in Q4, due to a 37% conversion rate supported by the ADR strategy and strict cost control. Excluding Q1 2022, when we reported - EUR 54 million, EBITDA from April until December was EUR 32 million or 11.5% above the same period of 2019, with a similar margin, 20%, despite the high inflationary environment. Reported net recurring profits reached EUR 76 million, EUR 45 million in Q4, setting the first annual positive figures in 2019, implying an improvement of EUR 231 million compared to - EUR 155 million in 2021. From Q2 to Q4, recurring net profit was EUR 156 million, an increase of EUR 35 million versus 2019. Non-recurring items reached EUR 25 million, mainly explained by the net capital gains from asset rotations or cessions, partially offset by a provision for a settlement of a tax claim in the Netherlands. Owning to standard profit in 2022 improved by EUR 234 million, reaching + EUR 100 million compared to - EUR 134 million in 2021. Moving to the capital evolution on page nine, the financial position has continued to improve with a net financial debt reduction of EUR 260 million in 2022, despite the EUR 31 million increase in Q1. As a result, net financial debt decreased to EUR 308 million, with an implied leverage of 1.2 times. It's good to recall that the net financial leverage decrease already started in 2021, with a EUR 117 million reduction during the year. Moving to the details, operating cash flow, including working capital, VAT, and corporate taxes, was EUR 276 million in the year. The working capital investment is explained by the business growth, the return of the B2B segment that implies credit customers, and the normalization of supply chain processes, partially offset by subsidies registered in Q4 2021 and collected in 2022. CapEx payments reached EUR 49 million in the year, but still at a very low level as a result of the limited investment executed during the past two years due to COVID. It will gradually increase during the coming quarters. Asset rotation brought EUR 68 million of net cash proceeds from several transactions that include a hotel in Brussels, other two small non-core assets in Germany and the Netherlands, and a minority stake of a leased hotel in the U.K. Moving to slide 10, the group entered the year with an available liquidity of EUR 569 million, out of which EUR 302 million is cash on banks and EUR 267 million available credit lines. The debt refinancing achieved last year displayed a relaxed debt maturity profile with no relevant maturities until 2026. In 2022, EUR 200 million of the sustainability-linked syndicated loan was voluntarily repaid. Additionally, the remaining EUR 50 million was repaid in January 2023. This financing facility is completely repaid. As a result, floating rate debt has been reduced from 0.7% - 25%, implying strong protection against Euribor rate increases. Now, after covering the results of the year, the team will be very happy to answer any questions you may have. Thank you for your attention. Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press star one one on your telephone keypad. Thank you. The first question comes from the line of João Saraiva e Silva from Banco Santander. Please, João, go ahead. Yes. Hi. Hi, good morning and thank you for taking my question. I have two questions. The first, just if you could talk a bit on the outlook for 2023, in terms of the visibility you have for the year and any data regarding the early bookings. That's my first question. The second question is just in terms of capital allocation, to understand what are your priorities. Is it shareholder remuneration, increasing CapEx to grow further the business? Just if you could give us some highlights on what's your view there for going forward. Hi, João. Good morning. Regarding to constant 2023, our visibility right now is that we don't see problems from demand perspective. I think demand remains strong, we don't see any problem for reaching our goals for 2023 in terms of revenue. This is not gonna be a problem. Generally speaking, we have some demand problems in Germany. The recovery is not so fast that we are having in the rest of the European countries because the economy factors. In the rest of Europe, the demand is very strong, especially in Spain and Italy. We expect the same in Benelux. For the moment, it's not happening, but our prospects for the coming months are positive in all these countries. South America is recovering, but as you know, the total worth of South America in our PNL is not really important. The main concern comes from cost side. We are suffering big time in terms of cost because the increasing, because inflation, the CLA, this is really knocking our PNL. For the moment, we are offsetting the effect of this increasing because the increasing of ADR that we have been able so far to the prices. This is the main problem that we see in the future because obviously we are suffering big increases of costs, and especially in Northern Europe. In Germany, the CLA in some cities is two digits. It's not easy. It's not easy to offset all this increasing. For the moment, as I mentioned before, thanks of the huge demand, we have been able to offset all this increasing, but this is the main concern for the future. Also, we are still waiting for the recovery of the American market, which is quite important for our luxury segment and Anantara. Obviously, the Ukraine war is not helping this recovery. We expect maybe in the second half of the year, things could change depending on the evolution of the conflict in Ukraine. We expect the recovery of the Chinese market. As you know, we have Minor International is our main shareholder with very strong presence in China, in Asia, sorry. We should expect some kind of increasing of the Asian tourists once that the situation becomes stable, especially in China. It seems that this won't happen in maybe in 2024 or the very end of 2023, not immediately. Okay. On the second point, João. Hello. Well, you have seen the healthy balance sheet after the exercise we did in 2021. We're financing the reduction of debt we have already completed in 2021, the accelerated debt reduction during 2022. We sit on a very healthy balance sheet, healthy liquidity. Of course, we see that this company generates cash. The plan is of course, going back to reasonable levels of CapEx in line with what the company was in pre-COVID times. Bear in mind that after two years of very limited investments, we see opportunities to renovate certain hotels, to catch up certain CapEx investments that were suspended. Now, of course, you will see the CapEx going up during 2023. Repaying debt is also an option. We will be very opportunistic on repaying debt. You have seen us strongly committed to reducing this, to repaying this ICO loan. Of course, there is room for further debt repayment, but there is no, the, the. We need to be very economic driven in the repayment of debt. So yes, we will continue to repay debt, but in very opportunistic way. Asking for the question about dividend, for the moment, there is no dividend in the agenda, but of course, the company is, has the possibility to pay dividends. We are in full compliance with our dividend dividend covenants in our financing agreement. As of today, the dividend is not in the agenda for 2023. Thank you. Just a follow-up, if I may. Can you, can you quantify the CapEx that you're planning to deploy in 2023? Yes, João. The CapEx in 2023 will be above the EUR 100 million figure, of which 50%. I'm saying above. I'm not saying it's gonna be EUR 100 million, it's gonna be above. Of which around 50% of that will be repositioning CapEx. It will depend on the evolution. Thank you very much. It will depend on the evolution of the business. Of course, you know how it works. If things are going well, we will invest on the CapEx. If not, probably we'll reduce it. Okay? Thanks. Okay. Perfect. Thank you. Thank you. Ladies and gentlemen, let me remind you, if you wish to ask a question, please press star 1 1 on your telephone keypad. Thank you. The next question comes from Daniela Lungu from First Sentier. Please go ahead. Yes, hello. Can you hear me? Yes. Yeah. Good. Good morning. Thank you for the presentation. I have a couple of follow-up questions to what my colleague from Banco Santander asked, then I think another extra one or two, if that's okay. For the CapEx guidance, I didn't quite catch what you said 50% would be in refurbishment CapEx. If you would be able to clarify, if you don't mind. What I was trying to understand is if this is more maintenance CapEx so that you have to invest because, you know, the buildings otherwise become a little bit more derelict, or is it more investment CapEx where you do get a return from refurbishment. That would be one question. Should I ask all of them in one go? Yes. I said 50% is what we call repositioning CapEx. Repositioning CapEx is again what you have said, is CapEx on which we expect a return. Okay. It's upgrading us and it's not maintenance CapEx. Maintenance CapEx is, of course, something that we will also tackle during 2023 because maintenance CapEx is also very important. I say repositioning CapEx, which is an investment. Okay. Yeah, that's clear. Second question. Can you give us a little bit of color or guidance on the interest cost that you might have going forward? I can see the average cost last year was 4.2%, and you tell us what the maturities are. Can you guide us a little bit of what your cost roughly might be this year or maybe the next year, you know, in this current high interest rate environment? Of course. You know that after the EUR 250 million ICO syndicated loan, this is because the government, the Spanish government, financial branch, this ICO syndicated loan repayment that was floating rate and the EUR 242 million RCF repayment in 2021, we are talking about more than EUR 500 million, around EUR 500 million of debt repayment during 2021 and 2022. Those financing agreements were floating rates. Mm-hmm. After that repayment or, after the completion of this repayment, only 35% of our debt is exposed to floating rates. Mm-hmm. I would say irrelevant. The main facility, or the main instrument is the bonds. It's a public bond at 4% coupon with maturity 2026. It's very simple to assess that the risk is very limited. Average cost today is 4.2%. We don't foresee a reason to expect changes, significant changes during 2023. Okay, that's great. I think the last one, is on the cost side. Presumably a lot of that cost increases and pressure on costs are coming from the energy costs. Are you hedging your energy costs going forward? If so, how what percentages is hedged? I mean, many of your peers in other sectors as well have been hedging the gas and electricity costs, you know, last year or even at the beginning of last year. I think the ones that had a crystal ball to predict what's gonna happen, they were hedging at the beginning of 2022. My, my question is, are you hedged at all on energy costs or you are exposed to pretty much the fluctuation of energy prices? Well, listen, in 2022, we benefit from agreements reached in 2021. Now in 2023, we are a little bit, say, exposed to the evolution of the market. We used to negotiate in every market according with the circumstances of the market. We are very active negotiating. We take some risks. So far the strategy of the company has been positive for us. I think it's true that the energy cost is a factor that we have to take into account in 2023, that nobody can anticipate what's gonna happen. For the moment, we feel comfortable with the way that we have managed this specific area of cost. It's included in our budget. We expect in the coming years, some reductions if the market evolution is positive. For the moment, it's not a big concern because we are considering in our budget this increasing of cost. Okay. Then the biggest line of your cost is labor cost, presumably. You are increasing salaries, wage inflation as it's everywhere. You able to give us a figure as to how much a wage inflation you're gonna face this year? I know you operate in many countries, so it's gonna be a quite an average. What type of labor cost inflation? It's extremely complicated because, you know, for example, in Spain, in Spain we have 17 CLA in every single region of the country. It's quite complicated to have an average of total cost. Mm-hmm. In Germany is two digits, in Benelux is almost two digits. It depends. It depends. Every country is different. Generally speaking, it's the highest increasing of labor cost I have ever seen. Mm-hmm. in my life. What is happening right now is complicated. Fortunately, as I mentioned before, for the moment, we are able to offsetting all this increasing because the huge demand that we are having that allowed us to increase the ADR and to offset this increasing of cost. I hope the European governments will control the inflation in the coming year, in the coming months, if not, it's gonna be a problem in 2024. Nobody can guarantee that we are gonna be able to keep with this strategy of increasing prices forever, you know? Yes. We have to think that in 2024 the inflation will go down. Good. Thank you. Thank you so much. Thank you. Thank you. Ladies and gentlemen, let me remind you, in order to ask a question, please press star one one on your telephone keypad. Thank you. Ladies and gentlemen, there are no further questions. Dear speakers, back to you. Okay. Thanks a lot for your time. Happy to have any follow-up call with any of you from, with the IR team. Enjoy your day. Thank you very much. Bye.