Hoteles City Express Results

Hoteles City Express Reports Q3 2015 7.7% Chain-wide Growth in RevPar and 20.7% Growth in Adjusted EBITDA

Total Revenues were $449.4 million, which represents an increase of 21.8% over the same quarter in 2014, mainly due to a rise of 18.8% in the number of Occupied Room Nights at the Chain level, together with growth of 7.7% in RevPAR.

Hoteles City Express

Hoteles City Express S.A.B. de C.V. (BMV: HCITY) today announced its results for the third quarter ("3Q15") of 2015.  The figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").

Financial and Operating Highlights (3Q15)

  • At the Chain level, occupancy in 3Q15 came to 64.0%, 236 basis points ("bps") higher than the same period of the year before. The Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR") showed increases of 3.8% and 7.7% in comparison with 3Q14, coming to $765 and $490, respectively. 
  • Total Revenues were $449.4 million, which represents an increase of 21.8% over the same quarter in 2014, mainly due to a rise of 18.8% in the number of Occupied Room Nights at the Chain level, together with growth of 7.7% in RevPAR.
  • Operating Income was $85.3 million in 3Q15, an increase of 12.4% over the same quarter last year.
  • EBITDA and Adjusted EBITDA were $156.2 million and $158.2 million respectively, reflecting increases of 20.7% in comparison with the same period of the year before. EBITDA margin and Adjusted EBITDA margin for the period came to 34.8% and 35.2%, respectively.
  • Net Income for the period rose to $57.3 million, an increase of 26.4% over the third quarter of 2014. Net Income Margin came to 12.8% for the quarter.
  • At the close of the quarter the Chain was operating 100 hotels, a gain of 10 new units compared to the 90 hotels operating at the close of the same period in 2014. The number of rooms in operation in 3Q15 was 11,313, an increase of 10.9% in comparison with the 10,204 operating at the close of 3Q14. 

 

Operating and Financial Highlights

3Q15

3Q14

3Q15 vs 3Q14

9M15

9M14

9M15 vs 9M14

% Change

% Change

Operating Statistics for the Chain

Number of Hotels at the End of the Period

100

90

11.1%

100

90

11.1%

Number of Rooms at the End of the Period

11,313

10,204

10.9%

11,313

10,204

10.9%

Number of Installed Room Nights

1,038,642

907,616

14.4%

3,025,785

2,636,713

14.8%

Number of Occupied Room Nights

664,348

559,162

18.8%

1,854,805

1,535,573

20.8%

Average Occupancy Rate (%)

64.0%

61.6%

236 bps

61.3%

58.2%

306 bps

ADR($)

765

738

3.8%

762

733

4.0%

RevPAR($)

490

454

7.7%

467

427

9.4%

Consolidated Financial Information (Thousands of Pesos)

Total Revenues

449,368

369,038

21.8%

1,252,044

1,018,476

22.9%

Operating Income

85,278

75,878

12.4%

225,236

178,728

26.0%

Operating Income Margin

19.0%

20.6%

-158 bps

18.0%

17.5%

44 bps

Adjusted EBITDA

158,170

131,024

20.7%

426,229

341,957

24.6%

Adjusted EBITDA Margin (%)

35.2%

35.5%

-31 bps

34.0%

33.6%

47 bps

EBITDA

156,213

129,384

20.7%

420,016

333,611

25.9%

EBITDA Margin (%)

34.8%

35.1%

-30 bps

33.5%

32.8%

79 bps

Net Income

57,310

45,334

26.4%

168,861

94,206

79.2%

Net Income Margin (%)

12.8%

12.3%

47 bps

13.5%

9.2%

424 bps

Adjusted EBITDA = Operating Income + depreciation + amortization + non-recurring expenditures (pre-opening expenditures for new hotels).

 

Comments of Luis Barrios, Chief Executive Officer of Hoteles City Express:

"Against a backdrop of moderate economic growth, Hoteles City Express has sustained a trend of solid quarterly results on both its operating and financial metrics. The performance of the Established Hotel portfolio underpinned the increase in occupancy and ADR, with a 7.7% increase in RevPAR at the chain level. 

During the third quarter of 2015, we registered growth of 21.8% in Total Revenues compared to the same period in 2014. Regarding productivity, we achieved increases in both Adjusted EBITDA and Net Income of more than 20%.  Chain growth was accompanied by an Adjusted EBITDA Margin of 35.2%, with EBITDA at 34.8%, in line with the strong results for the same period in 2014.

With respect to new hotel development, during the third quarter we began operations in City Express Tuxpan and City Express Plus Guadalajara Palomar, our 99th and 100th hotels respectively.  Our plan for hotel openings continues, and we remain focused on achieving the opening of 18 hotels corresponding to the 2015 development pipeline in the closing months of 2015 and first months of 2016. To date, all of our projects remain underway, and none has been canceled.  

Meanwhile, we are continuing to ramp-up our sales & marketing capacity.  With a clear strategy and focused execution we have strengthened our proprietary sales channels, particularly in the digital space.  Moreover, we have substantially increased focus on our frequent traveler program, with the aim of maintaining a close and high-value relationship with our guests.

We will continue to work on consolidating our position as a company with one of the highest industry growth and profitability rates in Mexico, as we invest in the generation of shareholder value over the medium and long-term."  



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