Dear ladies and gentlemen, welcome to the conference call of AEVIS VICTORIA SA. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode, and after the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, please press star followed by zero on your telephone for operator assistance. May I now hand you over to Antoine Hubert, who will lead you through this conference. Please go ahead.
Hello, and welcome everybody to the conference for the annual result of AEVIS VICTORIA. We just published our annual report this morning, and I am pleased to give you some highlights and some focus on our activities. AEVIS VICTORIA was pretty well prepared for the ongoing COVID crisis because we already had a high level of digitalization and decentralization. Since five years, we are using home office, flexible office. Nobody has a fixed office at AEVIS. It was really easy to switch on remote organization when this crisis happened. We have a mindset focused on adaptability, agility, reactivity, and we had also a good capital base and sufficient liquidity reserve. Nevertheless, we took all possible measure to weather the crisis. All CapEx have been strongly reduced or stopped, only the ongoing project have moved forward. All available tools have been used.
The short-time work, state-backed financing, and also for the hotel business have applied to the non-reversible contribution from the cantons that are beginning right now. We have decided to stay with no ordinary dividend for 2020 as we did for 2019. We will probably give an extraordinary dividend following some sales of participation. We are strongly focusing on management of liquidity in all department of the group, all units. We have got rent waiver during the first half of 2020 from our landlords, and we have been optimizing the cash cycle. Our long-term vision is still the same. AEVIS VICTORIA is a private equity company. We buy company in service for people. We are trying to create value by growing and building up those company for the long-term value.
As we can see now with the sale of 10% of Swiss Medical Network, based on an enterprise value of CHF 1.7 billion, it shows that our strategy is working, and on the long term, we are creating a lot of value. Three main sectors of investment. Healthcare with Swiss Medical Network, Medgate. We have 40% Medgate. Nescens, which becomes the brand for anti-aging and longevity. Swiss Ambulance Rescue, and Avai and AIDA are indirect investment through Medgate. Hospitality and lifestyle. We are now merging the activity of Victoria-Jungfrau Collection, Seiler Hotel, and Schweizerhof in Vevey to build one operator. In infrastructure, as we did with Infracore for the healthcare, we are now building hotel, a real estate company, Swiss Hotel Properties, which has already more than CHF 500 million assets. The vision is to transform AEVIS slowly in a pure-play investment company, as we did with Infracore.
The company was fully consolidated in the first phase of construction. We had the first shareholder coming in with the Baloise. We sold another share to MPT, and now it's an important minority participation for AEVIS with steady cash flows and dividends, since Infracore is paying around CHF 30 million dividend each year. CHF 9 million comes to AEVIS. For Swiss Medical Network, we are also entering in this stage. As we already announced two years ago, that we were contemplating opening the shareholding of Swiss Medical Network to strategic investors. We just sold 10% to Medical Properties Trust. Medical Properties Trust, who's already invested in Infracore, they used to invest up to 10% in the operator. That's the first step for this process.
We are going now to open a strategic process to find other investors that can help us to shape Swiss Medical Network, to achieve the vision of integrated healthcare. In the hotel business, for now, we are in the early stage. We are building the core of both infrastructure and operating pillars in hospitality. Victoria-Jungfrau is the holding for the operating companies. Swiss Hotel Properties is the company for the buildings. Of course, these two companies will also, in the future, maybe 2022 or 2023, will also be open to external shareholders and new investors. The financial of AEVIS. Last year, we had a sale of a subsidiary. To make the consolidated number more comparable, we have made a pro forma, which excludes the capital gain through the participation, only operating income.
Pro forma 2019 has a net revenue of CHF 623 million. We achieve CHF 641 million. That's an increase in revenue, essentially due to acquisition, because on an organic base, we had a slight decrease in the hospital business and a strong decrease in the hotel business because of the COVID. EBITDAR, operating EBITDAR have been increased to CHF 99 million. It was CHF 87 million last year. Of course, with the sale of the subsidiary, Infracore subsidiary, it was CHF 308 million. That's a strong increase if you compare year to year. The rental expense are a little higher in 2020 because in 2019, Infracore was still consolidated until end of May. Five months of consolidation. That's essentially the difference. Also with the increase in assets, we also have an increase in depreciation and amortization. The EBIT is negative with CHF 23 million. Consolidated segment reporting.
Here, we can see that the hospital business is very resilient. We did not achieve our budget because of the 45 day of closure between March 16 and April 27. Still, we reached an EBITDAR of CHF 100 million, which is 18.4%, which is a very good result for the hospital. In a sanitary crisis, of course, the hospital are something key. We have been integrated in all the processes, in all the cantons to help with this COVID crisis. Hospitality, the EBITDAR is positive, but the EBITDA is negative, CHF 8.4 million. Compared to last year, of course, it's a bad result. We know the causes. Our assets are really strong. We have really landmark hotels. We are very confident that as soon as the travels reopen, we will achieve our budget and our goals. The real estate is now almost only the hotels.
Last year, there was still this five months of Infracore consolidated. Of course, this year, there was no activity on the corporate level, so no income coming from sales or disposal of participation. The balance sheet equity, CHF 419 million. There is a slight reduction in the equity ratio from 37% to 27%. This will go up again in 2021 because with the sale of 10% of Swiss Medical Network, we will increase the equity of around CHF 100 million and reduce the net debt with the same amount. Cash and cash equivalent at the end of the year was CHF 84 million. With the addition of the sale of this 10% in Swiss Medical Network, we have now around CHF 220 million-CHF 230 million in hand. The statutory AEVIS key figures look better. That is the statutory figures of AEVIS VICTORIA Holding.
The equity has increased to CHF 426 million from CHF 393 million, also due to the capital increase that we did for some acquisition. Dividend income has increased also. Now we have a steady dividend income with Infracore. We have been able to achieve an EBIT of CHF 7 million for the statutory report. If we make an indicative sum of the parts for AEVIS, we have for CHF 300 million of non-consolidated participation, that is Swiss Ambulance Rescue, Medgate, and Infracore. The hotel operating company is worth around CHF 100 million. It is a one-time sale. Swiss Medical Network, CHF 1.7 billion. The value has been set by this sale of 10%. The hotel building portfolio is worth CHF 500 million. That is based on the end-of-year valuation from Wüest Partner, so a really recent valuation. Total assets of CHF 2.6 billion.
The net debt is now before the sale of 10% of Swiss Medical Network, net debt was around CHF 800 million, the implied net asset value, CHF 1.8 billion for AEVIS. We are going to focus on some sectors. Swiss Medical Network was, at the end of the year, 100% participation of AEVIS, will be now a 90% participation of AEVIS. 22 hospital and clinic, 35 health centers, 2,500 physician, around 60,000 surgeries per year, and more than 340,000 outpatients, 1,500 beds. Since 2003, we have been building up this company, Swiss Medical Network, by acquiring companies, hospitals, and also by working on the organic growth. This year, 2020, we took a 35% shareholding in Hôpital du Jura Bernois, which was the first real privatization in Switzerland. We are going to exercise our option to take the majority in July, so we will be a 52% shareholder in Hôpital du Jura Bernois.
We also bought the Medizinisches Zentrum Biel, Centre Médical Bienne, which is a pretty comprehensive medical center in the center of Biel. Highlights, we have continued the growth, even if the organic growth is a decrease of 0.9%. We are trying to stay agile, lean, and quality-driven. It was an achievement for us to have one of our hospitals, the Clinique Générale-Beaulieu, rated number 10 worldwide by Newsweek. That was really a good achievement. Our vision in Swiss Medical Network is, of course, to change the current system because we are in an inefficient and vicious triangle with insurance, taking care of the patient as long as they are healthy, and all the healthcare work, taking care of the patient as soon as they have a healthcare problem.
There is a clear conflict of interest between the two stakeholder, and we will try to integrate all this to get rid of this conflict of interest by integrating in the same organization, all the player and silos around healthcare, including health plan, insurance, education, and research. In Switzerland, we have seven different regions: Geneva, Canton de Vaud, the Fribourg, Valais region, the Mittelland regions, Zurich region, the Ticino region, and the Arc Jurassien region, where is included the Hôpital du Jura Bernois . That's maybe the most mature organization to make an integrated care organization, Hôpital du Jura Bernois in the Arc Jurassien. We have three hospitals, we have medical centers, we have a mental hospital, we have a radiology center, elderly care home, rescue service, pharmacy, laboratories, and we have also a partner network with Inselspital and the Biel hospital. There is a rehabilitation facility and services.
All these organizations, some are integrated, and the partner network are not integrated. We want to turn it into the first real accountable care organization in Switzerland by inviting an insurance partner to be part of the company. The Hôpital du Jura Bernois SA will be renamed in Réseau de l'Arc Jurassien, or the name is not yet defined. The idea is now we are two shareholders with Medical Network and Canton Bern. We'd like to turn it into a three-party organization with also an insurance partner being shareholder of this Réseau de l'Arc Jurassien, to be able to set up our own health plan and to change the paradigm. That means that a part of our top line will be not only the fee-for-service that we invoice to other insurance, but also the insurance revenue from our own health plan.
That will be a game changer because then if the insurance payment are the top line, that means that then you have to keep the people healthy instead of treating them. There is no more incentive in doing volume, but there is a strong incentive to make quality and to have the better outcomes to be able to recruit more member in the organization. That's currently into a process, and we hope to be able to have our own health plan for the 1st January 2022 for the population of the Arc Jurassien. The hospitality at AEVIS, it's basically four company that we are merging together in the same holding. Victoria-Jungfrau Collection, the Seiler Hotel, Weriwald, which is the InterContinental in Davos, and MR Zermatt, that's just the Schweizerhof in Zermatt.
By organizing all these hotel in the same holding, we will be able in Zermatt to have only one operating company for four hotels. A higher flexibility in Zermatt to adapt the offering to the demand. More than 900 room in operation, 11,000 overnight stay, 306 suites. Our average room rate has increased this year to CHF 517. That's due to the addition of the new hotels in Zermatt and the Eden au Lac in Zurich. The impact of crisis, of course, is very strong on the hotel business. In the city hotel, lack of MICE activity, foreign tourist. This has only been very partially compensated by the domestic demand. We are very happy with La Réserve Eden au Lac in Zurich. Since we reopened, we have great result on the hospitality side.
The food and beverage is still weak, of course, because the restaurant have been closed for a few periods. We are looking forward to be able to open all the restaurants and to reap the full fruits of our investment. We had an organic decline, but overall increase in revenue because of the integration of Seiler Hotels, InterContinental Davos, and the reopening of Eden au Lac . Still, we did a positive EBITDAR in 2020 despite the pandemic. Our current portfolio with our fully owned hotels, Victoria-Jungfrau , La Réserve Zurich, Bellevue Palace, Crans Ambassador, Mont Cervin Palace, Monte Rosa, Petit Cervin, InterContinental Davos, and Schweizerhof Zermatt. The La Réserve Genève is an affiliated hotel. We are managing also this hotel together with the other nine hotels. Infracore is a 30% participation of AEVIS.
We have increased our voting rights to 50% because Baloise has sold its interest in Infracore to Medical Properties Trust. We have installed non-voting rights shares to be able to have a joint control. MPT has 70% of the economic rights and 50% of the voting rights, and we have 30% of the economic rights and 50% of the voting rights. Market value had a slight increase to CHF 1.1 billion. There's no major change in the Infracore portfolio in 2020. Swiss Hotel Properties, that has been a strong addition to the portfolio with the four hotels in Zermatt and the InterContinental Davos. The market value of those hotels is CHF 508 million. This comprises 18 properties on five sites.
The hotel properties in the hotel portfolio, we have hotels, and we have also land reserve in Crans-Montana where we can build a hotel and also in Zermatt there is a lot of land reserve, because we not only have the four hotels but also a lot of commercial properties, like Migros, restaurant, boutique, and also land reserve around the hotels and around Zermatt. Medgate is a 40% shareholding of AEVIS. There are 500 employees. Medgate had a very strong growth in 2020 due to the coronavirus. The Bundesamt für Gesundheit gave Medgate the mandate to be the official hotline for corona, and Medgate is still participating to the corona hotline this year. I think this corona crisis has also boosted the telemedicine all across the board. We just announced yesterday a deal with MPT.
MPT, Medical Properties Trust, is a real estate investment trust stock listed at New York Stock Exchange. They have more than 400 hospitals all around the world in more than nine countries. They are our partner at Infracore since one and a half years. They now have taken this 10% at Swiss Medical Network. That's something that they usually do, having up to 10% in their operator also to have a good feeling of what's happening on the operating level. It's a very strong partner for Swiss Medical Network. The price, the valuation of Swiss Medical Network through this deal has been proved to CHF 1.7 billion, which is a significant value creation since the inception in 2002. That will also boost the equity of AEVIS by CHF 98 million and CHF 145 million cash inflow. It's the first step.
We want to open the shareholder base to other strategic player in Switzerland or abroad. A formal process will be started during Q2 this year to achieve that. It's difficult to give an outlook for 2021. We had a promising start into 2021 with this sale of 10% to Medical Properties Trust, but also we sold 60% of Swiss Ambulance Rescue to a strategic partner, which will make able to buy and build the ambulance business through all Switzerland. On the hospital segment, the hospital have demonstrated the resilience and the utility also during the COVID crisis. We have a significant increase in activity expected for this year. On the hospitality, we are more cautious. It's very difficult to predict, but what we are convinced is that our hotels are landmark hotels. They will rebound as soon as the country reopens.
We use the technical unemployment, the RHT, to have the maximum flexibility. It's very useful in this period, of course. We have also applied for all the government help for the hotel business. We did not receive anything in 2020, we will receive more than CHF 10 million in 2021 for our hotels. In the Alp, we still have Crans Ambassador and Schweizerhof open. We are monitoring weekly the situation. We will close as soon as the demand decrease and take the decision for the reopening for the summer, depending of the border opening and then all other factors. For the real estate, all these building are in prime location and maintained at the highest standards. Infracore is delivering a steady, substantial dividend every year. Also, Infracore will be our partner for the further grow of Swiss Medical Network. Thank you.
Now, opening the question-and-answer session.
Ladies and gentlemen, if you have a question for a speaker, please dial zero and one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask a question. If you find your question is answered before it is your turn to speak, you can dial zero and two to cancel your question. If you are using speaker equipment today, please lift the handset before making your selection. One moment please, for the first question. Once again, as a reminder, if you would like to ask a question, please press zero and one on your telephone keypad now. The first question is from Philippe Rey, L'Agefi . Your line is now open. Please go ahead.
Hello, Mr. Hubert. Philippe Rey from L'Agefi . I have a question about the CapEx needs for the hospital segment. How do you assess your maintenance needs, in particular for the hospitals? Can you generate free cash flow for this business annually?
Yes. As you know, when we buy a hospital, we invest to put this hospital to the state-of-the-art level. We have no CapEx backlog in the hospital, which means that we can stop investing without any impact because everything is up to date. We can make a pause in investment in the hospital with no problem. That's what we did. Only the new project have been finished. The existing project and we are strongly managing the CapEx to be able to make free cash flow. This year, overall, AEVIS has produced more than CHF 28 million of operating cash flow, and on the hospital side, of course, the operating cash flow was really satisfying.
Thank you. Can you hear me?
Yes.
You have shown the indicative sum of the parts. This analysis is a conservative assessment of the valuation. We can see that, for example, for Swiss Medical Network From the transaction with MPT, it's a good proof or a good indicator for the value of Swiss Medical Network in particular.
Yes, exactly. That's a formal transaction, that can put a price for Infracore also. There has been a transaction at the end of the year between Baloise and MPT, which can assess also the value of our share in Infracore to more than CHF 200 million. The assessment is, when there is no transaction, we have made a very conservative assessment of the value.
Thank you.
The next question is from Dominic Fotis, Intertek. Your line is now open. Please go ahead.
Yes, good morning, Mr. Hubert. Again, about the Swiss Medical Network there, what's your ultimate goal there? I guess you will still, as AEVIS, will keep minority stake. Can you tell us about in which region it will be? Do you have indications that MPT will raise maybe its stake? Obviously, your most important competitor in Switzerland is Hirslanden is fully owned by a foreign group. Could this also happen to AEVIS? Maybe a third question. I've heard from Hirslanden recently from their CEO that they were really brimming with activity again, because all these elective surgeries had to be now, that there was a catching up and had to be done then. Do you see a similar effect? Are you full again in your hospitals?
Okay. I will begin with the last question. Hospitals are now running at full capacity, of course, and that is already since September 2020. The first months of 2021 are very active, and we feel that now the people do not fear anymore to come into a hospital. They trust the hospital. Regarding MPT is a real estate investment trust. They will not invest more than 10%. That is a rule. They cannot invest more than 10% without losing their real estate tax statute. The participation of MPT is really to have a link between the infrastructure, real estate, and the operation. The investor we are looking for are mostly Swiss, mainly Swiss, yes. We are looking for investors that can bring something to the integrated care concept. Could be insurance, could be pharmacy, could be medical centers, could be know-how.
That is more in this region that we go. In the end picture, the ideal end picture would be that AEVIS retain a 30%-35% shareholding in this Swiss Medical Network organization. We are not control freak. We just want our company to be in the best hand possible for the future and for the long term.
May I ask just a follow-up question? To this day, are there any Swiss health insurance companies being invested in hospitals, or would that be something new for them as well?
For now, there is no healthcare insurance invested in hospital.
This could be new, probably maybe the health insurance would be more a regional partner. Not the same insurance in all the region, because also the Swiss healthcare insurance have also a lot of difference. You take CSS are very strong in Lucerne, very strong in the French part of Switzerland. KPT is very strong in Bern, the region Bern. You have different culture and presence, we think that maybe partnership with Swiss insurance would be more regional. You have also some Swiss non-healthcare insurance that could be interested in investing in this sector, like Swiss Life, Swiss Re, Zurich, et cetera. Some international insurance like AXA, like Allianz, which are also a very strong player in Switzerland.
Thank you.
There are currently no further questions. Once again, as a reminder, if you would like to ask a question, please press zero and one on your telephone keypad. We haven't received any further questions at this point. I hand back to Antoine Hubert for closing remarks.
Thank you very much, as always, our investor relation service is always open to further question and discussion. I'm also open to one-to-one discussion if anybody wants to. Thank you very much and have a good day.
Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.