RevPAR Recovery Driven by Increased Occupancy

Comment from the CEO

“Rezidor’s RevPAR improved in the second quarter mainly driven by higher occupancy. Room rates, too, have seen a gradual recovery in recent months. All of Rezidor’s operating regions reported RevPAR growth; most significantly in Germany, France, Benelux and an encouraging rebound in the important Norwegian market. Although the market is improving, the absolute RevPAR is still at a historically low level and will need continued improvement to yield a satisfying profitability.

"Overall, Rezidor performed well compared to the market. The market recovery combined with successful cost reduction strategies will continue to support delivery of improved margins. Importantly, Rezidor also concluded a portfolio agreement to manage 10 hotels in the Baltics (former Reval Hotels) and completed the disposition of the Regent business. Such portfolio actions also add to the focus of profitability of the business” – Kurt Ritter, President

For further information, please contact:

Knut Kleiven, Madrid,

Deputy President and Chief Financial Officer

The Rezidor Hotel Group

Avenue du Bourget 44

B-1130 Brussels, Belgium

Tel: 32 2 702 9200

www.rezidor.com