Design Hotels AG: Design Hotels AG publishes Annual Results 2017

Revenue increases by about 12 % to Euro 22.92m - EBITDA increases by 8.4 % to Euro 3.06m

Berlin, March 29, 2018 (pta010/29.03.2018/08:30 UTC+2) Design Hotel AG (m:access, Munich: LBA; ISIN: DE0005141006) publishes the results for the financial year 2017. Revenue increased by about 12% and is slightly above the expectations set forth in the beginning and middle of the year 2017. The operational result increased by 8.4% compared to the previous year and, therefore, exceeds the expected result.

Key Financials:

Total Revenue increased by about 12% Euro 22.921m (20.471) in 2017. The main reason for this increase was the achieved transaction revenue from the participation of Design Hotels member hotels in the SPG-program by Starwood Hotels & Resorts ("Starwood").

Revenue from License Fees for membership with Design Hotels increased by 3% to Euro 4.202m (4.062). This contributes 18% (20) to total revenue. On December 31, 2017, Design Hotels had 309 (308) member hotels in its portfolio with 21,142 (22,087) rooms in 210 destinations and 58 countries.

Booking commissions came in at Euro 13.230m (10.751) in 2017, which means a 23% increase compared to the previous year. Commissions accounted for 58% (53) of the total revenue. The disproportionally high increase mainly comes from the participation of member hotels in the SPG-program and the connection of these hotels to the Starwood booking channels.

Revenue from Marketing and Consulting Services decreased by 3% in 2017 and reached Euro 5.489m (5.658). It accounts for 24% (27) of total revenue. The main reason for the decrease is the change in the products and services offering. The company had decided to reduce the offering of low-margin products to its member hotels.

The Gross Margin was below last year's level and came in at 57% (59). Gross Revenue was Euro 13.090m (12.046), which is an increase of about 9% compared to the previous year. The increase is disproportionally lower compared to the increase of total revenue. This is due to the higher direct costs associated with bookings through the Starwood channels.

The average number of employees increased from 86 to 94. Therefore, Staff Expenses grew by about 10% from Euro 6.144m to Euro 6.730m. At the same time, Revenue per Employee went up from about Euro 238,000 to about Euro 244,000. The increase of staff was necessary to provide more intensive and individualized customer service to the member hotels.

Selling Expenses came in at Euro 1.412m (1.638). They are directly related to the revenue development. The decrease of the selling expenses was mainly due to decreasing advertising expenses from to trade fairs.

Other Operating Expenses increased to Euro 1.613 (1.466) compared to the previous year. This increase mainly comes from refurbishment measures at the headquarter in Berlin.

EBITDA increased by about 8.4% to Euro 3.055m (2.819) in 2017.

The EBITDA margin was 13% (14).

EBIT reached Euro 2.649m (2.363) in 2017. Net Profit came in at Euro 2.694m (2.407).

On December 31, 2017, the Company had cash and cash equivalents in the amount of Euro 1.755m, as compared to Euro 1.221m on December 31, 2016. This is an increase of Euro 0.534. The Management Board assumes that in 2017, all payment obligations arising from the current operations can be covered by the cash inflows from operating activities.

Shareholders' equity increased from Euro 8.913m to Euro 10.827m. The equity ratio amounts to 66% (65).

Further Comments:

In 2017, the international travel industry was able to build on the growth trend of recent years thanks to an overall global economic growth. In October 2017, destinations around the world welcomed 1.1 billion international travellers. The continuous threat of terrorism and unrest in some regions, and therefore, the uncertainty of travellers, have only affected the choice of the destinations. Classical holidays are still the main reasons for international travel whereas business trips stagnated in 2017. Design Hotels AG was able to benefit from the positive developments of the industry and even grew disproportionately compared to the average market trend.

CEO Claus Sendlinger commented: "We are very satisfied with the company's development and the key figures for the year 2017. We were able to increase total revenue as well as the operational result compared to the previous year and exceed the expectations expressed in the beginning and middle of the financial year. Of all revenue streams, we saw the greatest increase in booking commissions last year. This confirms our strategic decision to offer our member hotels the possibility to participate in the SPG-program from Starwood Hotels & Resorts."

Financial Calendar:

12. June 2018 20th Annual Shareholder Meeting in Berlin

19. July 2018 Investor Presentation at m:access Conference in Munich

1. August 2018 Publication of Half Year Results 2018

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Emitter:	Design Hotels AG Stralauer Allee 2c 10245 Berlin Germany
Contact Person:	Sascha Wolff, Chief Financial Officer
Phone:	+49 30 8849400-14
E-Mail:	ir@designhotels.com
Website:	www.designhotels.com
ISIN(s):	DE0005141006 (Share)
Stock Exchange(s):	Free Market in Berlin, Frankfurt, Munich (m:access), Stuttgart