Comwell presents 2020 financial statements

21 May 2021

Comwell has today published its results for 2020. The financial statements show a 39% fall in revenue.

Comwell has just published its results for 2020. With revenue of DKK 527 million, against DKK 868 million in 2019, the group has experienced a 39% decline. Operating profit has been severely impacted by COVID-19 and the restrictions and bans introduced, while the group's Swedish activities continue to have a negative impact on the company's profit; DKK -25.5 million after tax in 2020.

During the period of 2020 when it was possible to maintain normal operations in an adjusted form, Comwell's position in the market showed its strength. This was the case during the summer of 2020, when many Danes chose to take overnight stays at Comwell's hotels for their holiday, which led to record-high demand and activity.

“Lockdown and restrictions have had a major impact on demand and led to a significant and sharp decline in activity at our hotels and venues. Throughout the pandemic, our brand, concepts and market position have helped us perform relatively better than the market, for example in terms of number of overnight stays. The overall occupancy rate in Denmark fell to just over 29% in 2020, compared to just over 71% in 2019, so I’m pleased that we achieved an occupancy rate of almost 40% at our Danish hotels. We’ve been good at adapting to the turbulent times we’ve been going through as an industry. Combined with a strong organisation and good financial resources, this means that, despite COVID-19 remaining a major challenge for our industry, we’re looking forward to being able to open quickly and efficiently as restrictions are eased over the coming months,” says Group CEO Peter Schelde.

Comwell has applied for and recognised compensation totalling DKK 144.6 million. This comprises compensation for Denmark and Sweden. Despite the marked decline in revenue and profit, through 2020 Comwell has only reduced the average number of employees from 910 to 758, corresponding to a decline of -17%.

“Access to compensation schemes has been crucial for our ability to retain so many employees and competences during the lockdowns. So although things looked bleak during the first lockdown in March 2020, when we had to lay off almost 25% of our employees, I’m pleased that, despite the gravity of the situation, we’ve been able to retain so many jobs over the year as a whole,” concludes Peter Schelde. 

New Comwell hotels in Odense and Copenhagen
As an operator, in early 2020 Comwell started running H.C. Andersen Odense, Odense Concert Hall and the ODEON congress and culture facility in Odense. With its location in the middle of Denmark, and with a number of initiatives to improve "Destination Odense", Odense has made the city an attractive place for Comwell to be represented.

Comwell's first hotel in Copenhagen – Comwell Copenhagen Portside – opened in January 2021 in an attractive location. With 445 rooms and conference capacity for up to 750 people, the hotel is Comwell's largest.

Still a leader in the green field
Comwell has been working on sustainability since 2015. Comwell’s targeted efforts in this area resulted in the hotel chain being named Denmark’s most sustainable chain for the third year in a row at the international Sustainable Brand Index Awards. The Sustainable Brand Index™ is Europe's largest independent brand study focusing on sustainability. For nine years running, SB Insight, the Swedish insight agency behind the index, has carried out its comprehensive analysis of how sustainability influences branding, communication and business development. With the help of more than 60,000 consumers and 1,000 opinion formers in eight countries, the study measures and analyses over 1,400 brands in 34 industries.

Profit for the year in key figures
In 2020, Comwell A/S operated 18 conference and spa hotels in Denmark and Sweden. Under the brands "Centralværkstedet" and "Smedien", conference, restaurant and banquet facilities are operated in Aarhus in synergy with nearby Comwell Aarhus.

Comwell Conference Center Copenhagen, Comwell H.C. Andersen Odense and Comwell Køge Strand are included in the income statement with income from management fees and are thus not consolidated in Comwell's group financial statements.

The Comwell Group has a total of 2,855 rooms and employs 758 people.

Revenue: DKK 526.8 million against DKK 867.6 million in 2019
Profit after tax DKK -48.0 million against DKK 8.7 million in 2019
The Group's equity is DKK 205.4 million, with a solvency ratio of 40.6%

Expected development
For 2021, there is significant uncertainty about developments in activity and results. The reason for this is the continued lockdown of society in the first months of the year, which has meant that the majority of the group's hotels have been closed. Furthermore, it is expected that COVID-19 will continue to cause a marked decline in global meeting and travel activity, thus creating significant ongoing uncertainty for the experience, restaurant, hotel and travel industry.

As a consequence of this pandemic and the subsequent economic effects, an increase in revenue can be expected for 2021 – although the result is expected to be on a par with 2020.

The annual general meeting will be held on 27 May 2021 at 13:30 at Comwell Copenhagen Portside.