MEXICO CITY, July 18, 2018 /PRNewswire/ -- Hoteles
City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or
"the Company"), announced today its results for the second
quarter of 2018 ("2Q18"). The figures have been prepared in
accordance with International Financial Reporting Standards
("IFRS") and are presented in Mexican Pesos ("$").
Financial and Operating Highlights (2Q18)
- At the Chain level, Average Daily Rate ("ADR") and Revenue per
Available Room ("RevPAR") increased by 3.2% and 1.7% in comparison
with 2Q17, to $969 and $576, respectively. Chain occupancy in 2Q18 was
59.5%.
- Total Revenues were $708.8
million, which represents a 16.3% increase with respect to
the same quarter in 2017, primarily due to a 11.9% increase in the
number of Occupied Room Nights at the Chain level, as well as a
1.7% increase in RevPAR
- Operating Income was $142.8
million in 2Q18, an increase of 28.6% over the same quarter
the year before.
- EBITDA and Adjusted EBITDA were $236.3
million and $235.5 million,
respectively, reflecting year on year increases of 19.7% and 16.6%.
EBITDA Margin and Adjusted EBITDA Margin for the period came to
33.3% and 33.2%, respectively.
- Net Income for the period reached $69.1
million. Net Income margin was 9.7% for the quarter.
- At the close of the quarter, the Chain was operating 139
hotels, an increase of 14 new units compared to the 125 hotels
operating at the close of the same period in 2017. The number of
rooms in operation in 2Q18 was 15,691, an increase of 12.5% in
comparison with 13,951 at the close of 2Q17.
Operating and
Financial Highlights
|
2Q18
|
2Q17
|
2Q18 vs
2Q17
|
6M18
|
6M17
|
6M18 vs
6M17
|
% Change
|
% Change
|
|
|
|
|
|
|
|
Operating
Statistics for the Chain
|
|
|
|
|
|
|
|
|
Number of Hotels at
the End of the Period
|
139
|
125
|
11.2%
|
139
|
125
|
11.2%
|
Number of Rooms at
the End of the Period
|
15,691
|
13,951
|
12.5%
|
15,691
|
13,951
|
12.5%
|
|
|
|
|
|
|
|
Number of Installed
Room Nights
|
1,414,086
|
1,264,080
|
11.9%
|
2,792,804
|
2,504,951
|
11.5%
|
Number of Occupied
Room Nights
|
840,753
|
762,291
|
10.3%
|
1,644,596
|
1,452,065
|
13.3%
|
|
|
|
|
|
|
|
Average Occupancy
Rate (%)
|
59.5%
|
60.3%
|
-85 bps
|
58.9%
|
58.0%
|
92 bps
|
ADR($)
|
970
|
940
|
3.2%
|
973
|
948
|
2.6%
|
RevPAR($)
|
576
|
567
|
1.7%
|
573
|
550
|
4.3%
|
|
|
|
|
|
|
|
Consolidated
Financial Information (Thousands of Pesos)
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
708,759
|
609,341
|
16.3%
|
1,394,881
|
1,180,649
|
18.1%
|
|
|
|
|
|
|
|
Operating
Income
|
142,767
|
111,032
|
28.6%
|
285,223
|
220,902
|
29.1%
|
Operating Income
Margin
|
20.1%
|
18.2%
|
192 bps
|
20.4%
|
18.7%
|
174 bps
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
235,519
|
201,932
|
16.6%
|
476,515
|
398,008
|
19.7%
|
Adjusted EBITDA
Margin (%)
|
33.2%
|
33.1%
|
9 bps
|
34.2%
|
33.7%
|
45 bps
|
|
|
|
|
|
|
|
EBITDA
|
236,261
|
197,398
|
19.7%
|
473,114
|
391,159
|
21.0%
|
EBITDA Margin
(%)
|
33.3%
|
32.4%
|
94 bps
|
33.9%
|
33.1%
|
79 bps
|
|
|
|
|
|
|
|
Net Income
|
69,090
|
44,212
|
56.3%
|
119,377
|
82,629
|
44.5%
|
Net Income Margin
(%)
|
9.7%
|
7.3%
|
249 bps
|
8.6%
|
7.0%
|
156 bps
|
|
Adjusted EBITDA =
Operating earnings + depreciation + amortization + non-recurring
expenses (pre-opening expenditures of new hotels).
|
Comments by Luis Barrios, CEO
of Hoteles City Express:
"With solid performance indicators, the opening of 14 hotels
over the last 12 months and a diverse inventory of more than 15,600
rooms in 4 countries and more than 70 cities in Latin America, Hoteles City announces its
second quarter 2018 results.
Our portfolio of hotels benefits from an appropriate mix of
geographic, industrial, and market diversification, which allow us
to continue to show results along the different economic corridors
where we are present. In particular, the hotels located along the
border and north corridors of Mexico, as well as within metropolitan
markets, continue to perform well. As well, the hotels in the
Gulf of Mexico and those within
the hydrocarbon extraction areas are today registering more than 18
months of growth in RevPAR and delivering double-digit growth in
this metric as compared to the same period of the previous
year.
As a counterbalance, despite continuing to grow our chainwide
RevPAR at healthy rates, which include a significantly higher base
of comparison (more than 15% growth in the last 24 months), in this
quarter we noted certain temporary effects in specific markets that
marginally affected the performance of our portfolio, primarily
that of our Established Hotels. We are confident that given the
operational agility and commercial ability that we are known for,
we will be able to reinforce the operational indicators of this
portfolio and continue our strategy of market penetration in
Mexico and the region in the
coming months.
In terms of our financial indicators, Hoteles City Express again
recorded profitable growth by expanding Total Revenues by more than
16% and Adjusted EBITDA by 17%, while continuing to show expansion
in the operating leverage of our company. This is the result of
completing the deployment of our transformation and empowerment
efforts across all levels of the organization, our culture of real
time operations and decision-making and, our commercial and
distribution advantages at the local level.
Regarding our Development Plan, during 2Q18 we opened the City
Express Comitán hotel in Chiapas
and City Express Gustavo Baz in the State
of Mexico, both in Mexico.
With these properties we are one step closer to achieving our
openings goal for 2018.
Finally, but no less importantly, on June
18 we announced the disbursement of an unsecured bank
financing vehicle for $1,200 million
and the rescheduling of the initial public offering of Fibra STAY.
With the disbursement of the line of credit, we have guaranteed the
financing of the 2018-2020 development plan. We will continue to
include the results of the FSTAY portfolio in our quarterly
reports, so that we will be ready to execute the transaction in an
agile manner as soon as the appropriate market conditions are in
place. Given the current macroeconomic and geopolitical
environment, we believe in hindsight that the decision to
reschedule the offering preserved value and was in the best
interest of all of our shareholders.
We are grateful for your continuing confidence and will continue
working to consolidate our position as one the highest growth and
most profitable companies in our industry in Latin America, investing to generate medium
and long-term value."
Conference Call Details:
Hoteles City Express will host a conference call to discuss
these results. Details on the call follow:
Date:
|
Thursday, July 19,
2018
|
Time:
|
11:00 am Eastern Time
/ 10:00 am Mexico City Time
|
|
Telephones: 1-888-317-6003 (from within
the USA) /
|
|
1-412-317-6061
(outside the USA)
|
|
001-866-6754-929
(toll free from within Mexico)
|
Code:
|
2967100
|
Webcast:
|
https://services.choruscall.com/links/hcity180719.html
|
|
|
|
|
Conference
Replay will be available for 30 days:
|
|
U.S.:
1-877-344-7529/ International: 1-412-317-0088
Passcode: 1012616
|
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 139 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 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 Montoya), 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 further 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.
View original
content:http://www.prnewswire.com/news-releases/hoteles-city-express-announces-2q18-results-with-revenue-growth-of-16-3-and-operating-income-growth-of-28-6-300683227.html
SOURCE Hoteles City Express, S.A.B. de C.V.