Hoteles City Express Results

Hoteles City Express Reports Q1 10.7% Growth in RevPAR and 23.1% Growth in Adjusted EBITDA

Hoteles City Express

Hoteles City Express S.A.B. de C.V. (BMV: HCITY), announced today its results for the first quarter  of 2016. The figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").

Financial and Operating Highlights (1Q16)

  • At the Chain level, occupancy in 1Q16 came to 59.3%, 224 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 6.5% and 10.7% in comparison with 1Q15, coming to $811 and $481, respectively. 

  • Total Revenues were $455.0 million, which represents an increase of 20.9% over the same quarter in 2015, mainly due to a rise of 14.9% in the number of Occupied Room Nights at the Chain level, together with growth of 10.7% in RevPAR.

  • Operating Income was $74.6 million in 1Q16, an increase of 27.2% over the same quarter last year.

  • EBITDA and Adjusted EBITDA were $144.9 million and $148.6 million, respectively, reflecting increases of 22.0% and 23.1% in comparison with the same period of the previous year. EBITDA margin and Adjusted EBITDA margin for the period came to 31.8% and 32.7%, respectively.

  • Net Income for the period reached $47.2 million. Net Income margin came to 10.4% for the quarter.

  • At the close of the quarter, the Chain was operating 106 hotels, a gain of 10 new units compared to the 96 hotels operating at the close of the same period in 2015. The number of rooms in operation in 1Q16 was 11,944, an increase of 9.3% in comparison with the 10,929 installed rooms at the close of 1Q15. Furthermore, in the period from March 31, 2016, to the date of this present report, the Company opened the hotels City Express Junior Aguascalientes Centro and City Express CD MX Aeropuerto, bringing the chain to a total of 108 hotels and more than 12,000 rooms. 

 

Operating and Financial Highlights

1Q16

1Q15

1Q16 vs 1Q15

% Change

Operating Statistics for the Chain

Number of Hotels at the End of the Period

106

96

10.4%

Number of Rooms at the End of the Period

11,944

10,929

9.3%

Number of Installed Room Nights

1,086,667

982,744

10.6%

Number of Occupied Room Nights

644,830

561,135

14.9%

Average Occupancy Rate (%)

59.3%

57.1%

224 bps

ADR($)

811

762

6.5%

RevPAR($)

481

435

10.7%

Consolidated Financial Information (Thousands of Pesos)

Total Revenues

454,953

376,394

20.9%

Operating Income

74,560

58,595

27.2%

Operating Income Margin

16.4%

15.6%

82 bps

Adjusted EBITDA

148,556

120,699

23.1%

Adjusted EBITDA Margin (%)

32.7%

32.1%

59 bps

EBITDA

144,859

118,770

22.0%

EBITDA Margin (%)

31.8%

31.6%

29 bps

Net Income

47,213

45,179

4.5%

Net Income Margin (%)

10.4%

12.0%

-163 bps

Adjusted EBITDA = Operating income + depreciation + amortization + non-recurring expenses (pre-opening expenses of new hotels).

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

"Our results reflect strong 1Q16 operating and financial metrics across all fronts for the Company. In particular, a notable increase of 10.7% in RevPAR was achieved through the combination of significant improvements in both rate and occupancy. Adjusted EBITDA growth of 23.1% was a standout result, representing a 32.7% margin, an improvement of 59 basis points compared to the same quarter last year.

Except for a small number of properties in locations oriented to the extraction of hydrocarbons in the Gulf of Mexico, all hotels in the chain benefited from a positive cycle in the tourism and travel industry across the country. This is due to the continuous progress in key demand generators for lodging throughout Mexico, specifically those related to consumption, exports, services and industry.

As for development, our installed room nights grew 10.6%, the result of the opening of 10 new hotels in the last 12 months. We remain focused on achieving our growth plan in 2016, aiming to open approximately 20 new hotels over the remainder of the year. Achieving this development objective is a priority for Hotels City Express in 2016.

During the first months of this year, we also made significant progress in our commercial strategy. We are particularly pleased with the double-digit increases in B2B platform, City @ccess and membership growth and redemptions in our frequent traveler program, City Premios. We will remain focused on supporting our sales force through all channels; however, our presence in digital channels is a priority. We are working hard to ensure these strong first quarter results are the beginning of a record year for Hoteles City Express."



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