NH Hoteles SA said its board of directors has unanimously rejected Grupo Inversor Hesperia SA's unsolicited bid for a 26.1 pct stake in the hotel group at 8.3 eur per share.
In a statement, NH Hoteles said its board members said the price offered for the stake is "very low," and that it is directed at a small percentage of the group's share capital.
"A future merger with Hesperia would worsen operating ratios and EPS, as well as raise NH Hoteles' borrowings," the company said. Taking into account just property assets, the hotel group said it estimates its current value at 10.7 eur per share, adding that this price does not include other sources of income such as hotel management contracts.
The company also said it sees "strong potential for a recovery" in the tourist industry, particularly in markets like Germany, as well "as strong growth potential from operating synergies in our current business portfolio, thanks to the recent integration of various companies."
NH Hoteles said it expects to report 16 mln eur savings in operating expenses over the next three years from the integration of its Krasnapolsky, Astron, and Krystal hotel divisions and the unification of its IT systems.
It sees a further 8 mln eur annual cost savings from 2004, NH Hoteles added.