Capital Increase Announcement
Risma is embarking on a new phase of development with a capital increase totaling 450 million MAD, priced at 300 MAD per share. This move will be executed without the preferential subscription rights (DPS) for existing shareholders.
The primary objective of this capital raise is to fund the group's development initiatives, particularly the refinancing of its acquisition of the Centre Multifonctionnel de Guéliz (CMG), which includes the Radisson Blu Marrakech Carré Eden hotel and the Carré Eden shopping center.
Favorable Market Context
This fundraising effort comes at a time of unprecedented growth in Morocco's tourism sector, with the country welcoming 20 million tourists in 2025. Risma is entering a strategic phase that emphasizes hotel portfolio expansion, brand diversification, and a proactive approach to capital markets to support its growth.
As the only publicly traded hotel group on the Casablanca Stock Exchange, Risma boasts nearly 30 years of experience in the hospitality industry, operating 24 hotels and a shopping center across 11 cities, with a total capacity of approximately 3,700 rooms.
The group's portfolio spans all market segments, from economy to luxury, featuring six international brands, including Ibis, Novotel, Mercure, Sofitel, MGallery, and Radisson Blu.
Strong Operational Performance
Risma has demonstrated robust operational metrics, achieving an occupancy rate of 59% in 2024, significantly higher than the national average of around 51%. Since emerging from the pandemic, the company has consistently reported growth in its key financial indicators.
In 2024, consolidated revenue reached 1.264 billion MAD, reflecting an increase from 2023. The EBITDA stood at 461 million MAD, yielding a notable operational margin of approximately 36%, while the adjusted net profit attributable to the group amounted to 183 million MAD.
Strategic Growth Plans
The first half of 2025 continued this positive trend, with double-digit growth in EBITDA and adjusted net profit, underscoring the strength of the group's business model and its ability to generate recurring cash flows.
Risma's growth strategy focuses on a targeted expansion of its hotel portfolio, aiming for 28 hotels by 2030, which will increase its capacity to over 5,000 rooms. This growth will be achieved through a balanced mix of greenfield projects and acquisitions, prioritizing locations with high tourism or economic potential.
Recently, the group acquired land in Tangier for a high-end hotel, further solidifying its presence in a city expected to play a pivotal role in the coming years.
Flexibility and Brand Diversification
Risma remains vigilant for opportunities to acquire or reposition existing assets, which could provide medium-term value creation levers. The exit of Accor from Risma's capital in 2023 marked a significant turning point, granting the group greater freedom in selecting brands for future projects.
Although hotels operated under Accor brands will remain under management contracts until 2038, the recent integration of the Radisson brand exemplifies Risma's commitment to diversifying its brand portfolio and expanding its customer base.
Market Signal and Shareholder Engagement
According to management and advisors, the decision to proceed with a capital increase without DPS sends a strong signal to the market. This operation aims not only to finance growth but also to broaden the shareholder base and enhance the liquidity of the stock.
Post-transaction, the free float is expected to rise to nearly 20%, up from approximately 10%, effectively resembling a second IPO without significantly diluting existing shareholders.
The subscription price of 300 MAD reflects a discount of about 25% compared to recent average prices, including dividends, presenting attractive multiples relative to the market. At this price point, the stock is estimated to have a P/E ratio of around 17x and an EV/EBITDA close to 11x.
Commitment to Dividend Policy
A central theme of the discussions has been Risma's commitment to maintaining a regular dividend policy. This initiative, which began in 2022, aims to provide visibility and consistency to shareholders, regardless of the investment cycle, fostering loyalty and building a sustainable relationship with the market.
Management emphasized that this discipline is crucial for the group to seek market opportunities under favorable conditions in the future.
Positive Tourism Dynamics
The capital increase aligns with a favorable macro-sectoral environment, bolstered by the national tourism strategy and upcoming major events. Morocco has experienced a record year in tourism, attracting nearly 20 million visitors, leading to a significant rise in foreign exchange earnings and an increase in accommodation capacity.
Medium- to long-term prospects are further strengthened by national objectives set for 2030, which aim to position Morocco among the top 15 global destinations, enhancing the quality of hotel offerings and strengthening infrastructure.
Management has already noted the positive impact of this dynamic on the group's activities, particularly through increased demand linked to preparations for major international events.
Conclusion
With this capital increase, Risma is equipping itself with the necessary financial resources to support its growth trajectory while reinforcing its position as a leading hotel player and a long-term value proposition on the Casablanca market.
Key takeaways from this operation include a strategic market engagement through a capital increase without DPS, a disciplined approach to fundraising, a focus on refinancing the CMG acquisition, and a commitment to maintaining a regular dividend policy.
Risma reaffirms its ambition to expand its portfolio to 28 hotels by 2030, leveraging a combination of greenfield projects, acquisitions, and brand diversification, all within a thriving tourism sector.