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Massive cuts saved it from worse results. Hopefully those cuts won't position NH so that it won't be able to take advantage of growth opportunities in 2021.

Spain’s NH Hotels swung to a sharp annual loss in 2020 and reported record-low occupancy during what Chief Executive Ramon Aragones called on Wednesday “the worst year in our history” due to the impact of the COVID-19 pandemic.

Demand continues to be severely affected during the start of this year, but NH said it expected a steep recovery in the medium term.

Occupancy across the group’s hotels averaged 25% last year, down from 72% in 2019, as coronavirus measures brought the global tourism trade to its knees.

Despite almost halving operating expenses across the year, NH Hotels swung to a 371 million euro ($450.54 million) loss from a profit of 103 million euros in 2019. Revenue plunged 69% to 539.7 million euros.

($1 = 0.8235 euros) (Reporting by Nathan Allen, editing by Andrei Khalip)

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Tags: earnings, nh hotels

Photo credit: A room at the NH Collection Aránzazu in Gipuzkoa, Spain. NH Hotels

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