MEXICO CITY, Oct. 18, 2017 /PRNewswire/ -- Hoteles
City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or
the "Company"), today announced its results for the third
quarter of 2017 ("3Q17"). The figures have been prepared in
accordance with International Financial Reporting Standards
("IFRS") and are presented in Mexican pesos ("$").
Financial and Operating Highlights (3Q17)
- At the Chain level, the Average Daily Rate ("ADR") and Revenue
per Available Room ("RevPAR") increased by 7.2% and 5.4% in
comparison with 3Q16, to $915 and
$568, respectively. Chain occupancy
in 3Q17 was 62.1%.
- Total Revenues were $641.8
million; a 20.3% year-on-year increase primarily due to a
14.0% increase in the number of Installed Room Nights at the Chain
level as well as a 5.4% increase in RevPAR.
- Operating income was $135.9
million in 3Q17, an increase of 29.0% over the same quarter
in the prior year.
- EBITDA and Adjusted EBITDA were $218.4
million and $223.4 million,
respectively, reflecting year-on-year increases of 21.0% and 20.4%.
EBITDA margin and Adjusted EBITDA margin for the period were 34.0%
and 34.8%, respectively.
- Net Income for the period was $88.2
million. Net Income margin was 13.7% for the quarter.
- At the close of the quarter, the Chain was operating 130
hotels; an increase of 15 new units compared to the 115 hotels
operating at the close of the same period in 2016. The number of
rooms in operation in 3Q17 was 14,606; a 13.3% increase of over the
12,887 rooms in operation at the close of 3Q16.
- During the quarter, the Company announced the opening of six
units – 5 new hotels and one expansion to an existing property - to
the 125 it operated, hotels opened included: City Express Junior
Puebla Angelópolis, City Express Altamira, expansion of the hotel
City Express Mérida, City Express Plus Puerto Vallarta, City
Express Plus Medellín, and City Express Tuxtepec.
Operating and
Financial Highlights
|
3Q17
|
3Q16
|
3Q17 vs
3Q16
|
9M17
|
9M16
|
9M17 vs
9M16
|
% Change
|
% Change
|
|
|
|
|
|
|
|
Operating
Statistics for the Chain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Hotels at
the End of the Period
|
130
|
115
|
13.0%
|
130
|
115
|
13.0%
|
Number of Rooms at
the End of the Period
|
14,606
|
12,887
|
13.3%
|
14,606
|
12,887
|
13.3%
|
|
|
|
|
|
|
|
Number of Installed
Room Nights
|
1,317,750
|
1,156,089
|
14.0%
|
3,822,701
|
3,351,858
|
14.0%
|
Number of Occupied
Room Nights
|
817,934
|
730,338
|
12.0%
|
2,269,999
|
2,069,821
|
9.7%
|
|
|
|
|
|
|
|
Average Occupancy
Rate (%)
|
62.1%
|
63.2%
|
-110 bps
|
59.4%
|
61.8%
|
-237 bps
|
ADR($)
|
915
|
854
|
7.2%
|
936
|
826
|
13.3%
|
RevPAR($)
|
568
|
539
|
5.4%
|
556
|
510
|
9.0%
|
|
|
|
|
|
|
|
Consolidated
Financial Information (Thousands of Pesos)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
641,762
|
533,593
|
20.3%
|
1,822,411
|
1,486,028
|
22.6%
|
|
|
|
|
|
|
|
Operating
Income
|
135,952
|
105,428
|
29.0%
|
356,854
|
269,632
|
32.3%
|
Operating Income
Margin
|
21.2%
|
19.8%
|
143 bps
|
19.6%
|
18.1%
|
144 bps
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
223,370
|
185,526
|
20.4%
|
621,378
|
501,061
|
24.0%
|
Adjusted EBITDA
Margin (%)
|
34.8%
|
34.8%
|
4 bps
|
34.1%
|
33.7%
|
38 bps
|
|
|
|
|
|
|
|
EBITDA
|
218,366
|
180,534
|
21.0%
|
609,525
|
489,570
|
24.5%
|
EBITDA Margin
(%)
|
34.0%
|
33.8%
|
19 bps
|
33.4%
|
32.9%
|
50 bps
|
|
|
|
|
|
|
|
Net Income
|
88,174
|
71,561
|
23.2%
|
170,803
|
185,385
|
-7.9%
|
Net Income Margin
(%)
|
13.7%
|
13.4%
|
33 bps
|
9.4%
|
12.5%
|
-310 bps
|
|
Adjusted EBITDA =
Operating income + depreciation + amortization + non-recurring
expenses (expenses prior to opening new hotels).
|
Comments by Luis
Barrios, CEO of Hoteles City Express:
"Based on stable economic growth
environment and healthy market dynamics Hoteles City Express
achieved strong operational, financial and profitability results
for quarter.
Total Revenues growing more than 20%, occupancy levels almost
completely recovered from their programmed declines in previous
quarters and ADR growth of more than 7% taking into account a
significantly higher comparable base, are evidence of the
commercial strength that underpins a diversified portfolio across 4
countries and 70 cities in LatAm.
As for the absorption of new properties and performance of our
portfolio, we continue to see strong economic fundamentals at
national and local level that continue to drive a positive cycle of
the hospitality industry in Mexico. With strength in private consumption,
double-digit exports and unemployment rates at historic lows, our
portfolio benefits from its exposure to locations with growth rates
above the national average. Particularly in regions such as the
Bajio, the Northern Corridor and
Metropolitan Areas the common denominator is a thriving demand that
seeks a high price-value ratio aligned to the 5 brands of the
Company.
In terms of productivity, with an Adjusted EBITDA margin of
34.8%, it is worth noticing the absorption of the costs of our
operating platform, which has the infrastructure necessary to
sustain future growth without the need for cost increases.
Our objective regarding our Development Plan remains intact and
progresses successfully, with more than 35 projects in different
phases of construction and development, we are confident that we
can achieve a total inventory of more than 15,000 rooms and 140
hotels in by 1Q18 as well as to contemplate between 15 to 20
additional properties for the 2018 Plan.
Based on the significant market potential, long-term
fundamentals and consolidation trends of the hotel industry seen in
other latitudes, the Company continues to be committed to keep the
speed of its growth, this being said, a few days ago, we executed
the Vehículo de Refinanciamiento de Activos Turísticos through the
closing of a Syndicated Structured Facility of $2.0 billion guaranteed by a portfolio of
properties at a value of $6.4
billion.
Finally, with respect to the unfortunate natural events of
September in Mexico, the Company
supported by an impeccable execution of our safety and emergency
protocols - which ensured the evacuation of more than 1,200 people
in record time and without incident - resumed normal operations in
less than 24 hours.
Even beyond this challenge, Hoteles City Express, consistent
with its commitment to social responsibility, was a catalyst for
help and support on different fronts, from the donation of tools
for debris collection (shovels, chainsaws, etc.), to temporary free
accommodation to rescuers, employees and affected victims. To date,
the Company's hotel portfolio has no structural damage to any of
its properties.
Once again, we reaffirm our commitment to continue working to
consolidate our position as one of the companies with higher growth
and profitability in Mexico,
investing in the generation of value in the short, medium and long
term to our shareholders."
Conference Call
Details:
|
Hoteles City Express
will host a conference call to discuss these results:
|
|
Date:
|
Thursday, October 19,
2017
|
Time:
|
11:00 am Eastern Time
/ 10:00 am Mexico City Time
|
Dial-in:
|
1-888-317-6003 (from
within the U.S.) / 1-412-317-6061 (outside the U.S.)
|
|
001-866-6754-929
(toll-free from within Mexico)
|
Passcode:
|
1128634
|
Webcast:
|
http://services.choruscall.com/links/hcity171019.html
|
|
Conference
Replay will be available for 30 days:
|
U.S.: 1-877-344-7529/ International:
1-412-317-0088
|
Passcode: 10112896
|
About Hoteles City Express:
Hoteles City Express is the leading and fastest-growing
limited-service hotel chain in Mexico, in terms of number of hotels, number
of rooms, geographic presence, market share and revenues. Founded
in 2002, Hoteles City Express specializes in offering high-quality,
comfortable and safe lodging at affordable prices via a
limited-service hotel chain geared mainly towards domestic business
travelers. With 130 hotels located in Mexico, Costa
Rica, Chile and
Colombia, Hoteles City Express
operates five distinct brands: City Express, City Express Plus,
City Express Suites, City Express Junior, and City Centro to serve
different segments of its target market. In June 2013, Hoteles City Express completed its IPO
and began trading on the Mexican Stock Exchange under the ticker
symbol "HCITY;" furthermore, in October of 2014, Hoteles City
Express completed a follow-on share issuance with the aim of
accelerating its growth in new hotels in the short- and
medium-term.
HCITY has formal coverage, notes and analytical assessments by
the following financial institutions and analysts: Actinver
(Pablo Duarte), Bank of America
Merrill Lynch (Carlos Peyrelongue),
Citigroup (Alejandro Lavín), GBM (Héctor Vázquez), ITAU BBA
(Enrico Trotta), J.P. Morgan (Adrián
Huerta), Morgan Stanley (Nikolaj
Lippman), Santander (Cecilia Jiménez), Signum Research
(Armando Rodriguez) and UBS
(Marimar Torreblanca).
For more information, please visit our website:
https://cityexpress.com/en/investors/
Disclaimer:
The information presented in this report contains certain
forward-looking statements and information regarding Hoteles City
Express, S.A.B. de C.V. and its subsidiaries (jointly, the
"Company"), which are based on the understanding of its management,
as well as assumptions and information currently available to the
Company. These statements reflect the Company's current vision
regarding future events and are subject to certain risks, factors
of uncertainty and assumptions. Many factors may cause the results,
performance or current achievements of the Company to be materially
different with respect to any future result, performance or
accomplishment of the Company that might be included, expressly or
implicitly, within such forward-looking statements, including,
among other things: changes in general economic and/or political
conditions, governmental and commercial changes at the global level
and in the countries in which the Company does business, changes in
interest rates and inflation, exchange rate volatility, changes in
business strategy and various other factors. If one or more of
these risks or uncertainty factors should materialize, or if the
assumptions used prove to be incorrect, actual results could differ
materially from those described herein as anticipated, estimated or
expected. The Company does not intend to assume, and does not
assume any obligation whatsoever to update these forward-looking
statements.
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SOURCE Hoteles City Express, S.A.B. de C.V.