Sunday PropTech has agreed to acquire Fletcher Hotels, one of the largest hotel groups in the Netherlands, giving the Indian hotel investor an established European business with 170 hotels and a long history of acquisitions.
But Fletcher’s latest financial statements reveal an unusual dependence on government-funded accommodation.
In the nine months to June, long-stay rooms rented to the Dutch government brought in about 17% of Fletcher’s €288 million ($321 million) revenue, but €22.5 million ($25 million) of EBITDA, a margin of about 45% against about 10% at its other hotels. That is roughly 80% of the group’s €28 million ($31 million) EBITDA, which is calculated after €23.7 million ($26.4 million) of head-office costs, according to Skift’s analysis of the company’s financial disclosures.
Before those costs, long-stay is still about 44% of what the business units earn. The long-stay dip looks temporary so far, and Fletcher has added
