Central Costs
Central Costs represent costs for corporate and regional functions, such as Executive Management, Finance, Business Development, Legal, Communication & Investor Relations, Technical Development, Human Resources, Operations, IT, Brand Management & Development, and Purchasing. These costs are incurred to the benefit of all hotels within the Rezidor group, i.e. leased, managed and franchised.

Development brand
Brand that still is under development, and that currently does not have many hotels in operation.

Debt/equity ratio
Net debt divided by total equity.

Earnings per share
Profit for the period, before allocation to minority interest divided by the weighted average number of shares outstanding.

Equity/assets ratio
Total equity divided by total assets.

FF&E
Furniture, Fittings and Equipment.

Free cash flow
Cash flow from operating activities, investments, financial items and tax and the effect of restructuring measures on cash flow.

Free cash flow per share
Free cash flow divided by the weighted average number of shares outstanding.

General Manager
This title refers to the position as hotel manager.

Return on shareholders’ equity
Profit for the period, attributable to equity holders of the parent as a percentage of average shareholders’ equity, excluding minority interests.

Yield
Dividend as a percentage of the market price.


OPERATIONAL KEY FIGURES

AHR
Average-House Rate – Rooms revenue in relation with the number of rooms sold.

Capital employed
Total assets less interest-bearing financial assets and cash and cash equivalents and non-interest-bearing operating liabilities, including pension liabilities, and excluding tax assets and tax liabilities.

EBIT
Operating profit before net financial items and tax.

EBITDA
Operating profit before depreciation and amortisation and gain on sale of shares and
fixed assets and net financial items and tax (for 2006 excluding IPO related costs).

EBITDA margin
EBITDA as a percentage of Revenue (for 2006 excluding IPO related costs).

EBITDAR
Operating profit before rental expense and share of income in associates and before depreciation and amortisation and gain on sale of shares and of fixed assets and net financial items and tax.

Like-for-like hotels
Comparable hotels in operation during the same previous period compared.

Occupancy (%)
Number of rooms sold in relation to the numbers of rooms available for sale.

Operating cash flow
EBITDA excluding share of income in associated companies, cash flow effect of restructuring measures and net investments and including changes in working capital and dividend from associated companies.

Operating cash flow per share
Operating cash flow divided by average number of shares outstanding.

Return on capital employed
(ROA - Return on Assets)
Operating profit, excluding restructuring costs and impairment losses divided by average capital employed.

Revenue
All related business revenue (including Rooms revenue, Food & Beverage revenue, Other hotel revenue and Fee revenue).

RevPAR
Revenue Per Available Room – Rooms revenue in relation with the rooms available.


REGIONS

Nordic Region
Denmark, Finland, Iceland, Norway and Sweden.

Rest of Western Europe
Austria, the Benelux countries, France, Germany, Greece, Italy, Ireland, Malta, Portugal, Spain, Switzerland and the United Kingdom.

Eastern Europe (incl. CIS countries)
Azerbaijan, the Baltic region, Bulgaria, Croatia, the Czech Republic, Georgia, Hungary, Kazakhstan, Macedonia, Poland, Romania, Russia, Slovakia, Turkey, Ukraine and Uzbekistan.

Middle East, Africa and Other
Bahrain, Egypt, Iran, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria and the United Arab Emirates.