2014 Registration Document and Annual Financial Report - page 203

5
Financial Statemements
Consolidated Financial Statements and Notes
Leased hotels at
December 31, 2014
Fixed
rent with
purchase
option
Fixed rent
without
purchase
option
Fixed rent
with a
variable
portion
Variable
rent with
a minimum
Variable
rent with
a minimum
and cap
Variable
rent without
a minimum Total
Luxury and Upscale Hotels
2
12
4
7
1
8
34
Midscale Hotels
4
77
23
31
8
144
287
Economy Hotels
3
157
35
54
6
384
639
No brand
-
1
-
-
-
-
1
TOTAL
9
247
62
92
15
536
961
(2) Fixed rent expense with a variable portion includes a fixed portion and a variable portion.The variable portion is generally a percentage of revenue or a percentage
of EBITDAR.
(3) This rent expense depends on a percentage of revenue or a percentage of EBITDAR with a fixed contract guaranteed minimum.
(4) This rent expense depends on a percentage of revenue with a fixed contract guaranteed minimum which is also caped.
(5) Variable rents without a minimum are generally based on a percentage of revenue (502 hotels) or a percentage of EBITDAR (34 hotels). None of the leases contains any
minimum rent clause. Variable rents based on a percentage of EBITDAR amounted to €(41) million at December, 31, 2014.
(6) Rents on the 110 hotels in the portfolios acquired from Moor Park, Axa Real Estate andTritax in first-half 2014 (see Notes 3.B.1 to 3.B.3) are presented on the line
“Variable rents without a minimum” in the above table.
C. Minimum rental commitments (cash basis)
Minimum future rentals in the following tables only correspond to long-term rental commitments in the Hotels Division for hotels opened
or closed for repairs.
Undiscounted minimum lease payments in foreign currencies converted at the average exchange rate based on latest known rates, are
as follows:
Years
(inmillions of euros)
Years
(inmillions of euros)
2015
(393)
2023
(200)
2016
(372)
2024
(185)
2017
(344)
2025
(163)
2018
(334)
2026
(145)
2019
(324)
2027
(100)
2020
(287)
2028
(82)
2021
(239)
2029
(67)
2022
(219)
2030
(47)
> 2030
(315)
TOTAL
(3,816)
At December 31, 2014, the present value of future minimum lease
payments, considered as representing 7% of the minimum lease
payments used to calculate the “Adjusted funds from ordinary
activities/adjusted net debt” ratio, amounted to €(2,453) million.
Interest expense on adjusted net debt, estimated at 7%, amounted
to €172 million. The difference between the annual minimum rent
(€393 million) and interest expense (€172 million) amounted to
€221 million.This corresponds to the implicit repayment of adjusted
debt (“Standard & Poor’s method”) and therefore constitutes an
adjustment for the calculation of the adjusted funds from operations/
adjusted net debt ratio (see Note 1.A.b).
Registration Document 2014
201
1...,193,194,195,196,197,198,199,200,201,202 204,205,206,207,208,209,210,211,212,213,...332
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