Risma Unveils Strategic Growth Plan: Capital Increase, Dividend Policy, and Cash Flow Management
Strategic Capital Increase
Risma has announced a capital increase aimed at financing its ambitious growth initiatives. This move follows the recent acquisition of CMG, which includes the Radisson Blu hotel in Marrakech and its associated shopping center. Additionally, the company has secured land in Tangier, near the bay, for the development of a new five-star hotel.
This capital increase is significant as it will be conducted without preferential subscription rights, allowing both institutional and retail investors to participate. Risma aims to build a long-term, trust-based relationship with market investors to support its growth and investment strategies.
Operational Performance and Market Position
Since emerging from the crisis, Risma has consistently outperformed the market, particularly in occupancy rates. Key drivers of this success include the prime locations of its hotels, the high quality of its offerings, and adherence to top industry standards. The presence of international brands and effective distribution channels also contribute significantly to this performance.
Brand Diversification and Profitability
With Accor's exit from its capital structure, Risma has gained greater flexibility in brand selection. This diversification allows the company to expand the types of hotels it can acquire or develop, ensuring that each property is matched with the most suitable brand. This flexibility also enables competitive pricing and service offerings among brands.
Dividend Policy and Shareholder Relations
Risma emphasizes a consistent dividend policy, even during investment phases, as part of its long-term vision for shareholder relations. The company aims to provide market visibility through a tiered distribution policy, starting with a fixed dividend of 6 MAD per share in 2024, followed by 7 MAD per share in 2025. This approach underscores the importance of dividends in the overall return on equity investments.
Future Financing and Growth Ambitions
With a market float of approximately 20% and a strategic approach to market financing, Risma is committed to a recurring financing model. The company has set an ambitious target of reaching 28 hotels by 2030. Future capital increases will be contingent on the evolution of its debt levels, which will be influenced by the pace of hotel acquisitions and construction.
Long-Term Investor Message
Risma aims to present a unique profile to long-term investors, combining attractive dividends with growth potential. The company plans to optimize its existing 24 units while also pursuing new acquisitions and developments. The Moroccan tourism sector is rapidly expanding, with tourist numbers rising from 4 million annually in the early 2000s to nearly 20 million in 2025.
Risma maintains a clear discipline in cash flow allocation, ensuring that operational cash flows cover maintenance investments and renovation programs, as well as dividends. However, significant acquisitions will be financed separately through a mix of debt and equity, determined by the company's targeted debt levels.
