MEXICO CITY, Feb. 14, 2018 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or the "Company"), has released its results for the fourth quarter of 2017 ("4Q17"). The numbers were prepared in accordance with International Financial Reporting Standards ("IFRS"), and are presented in Mexican pesos ("$").
Summary of Relevant Operating and Financial Information (4Q17)
Summary of Relevant Operating and Financial Information (12M17)
Operating and Financial Highlights |
4Q17 |
4Q16 |
4T17 vs 4T16 |
12M17 |
12M16 |
12M17 vs 12M16 |
12M17 vs 12M16 |
% Variation |
% Variation |
% Change | |||||
Operating Statistics for the Chain |
|||||||
Number of Hotels at the End of the Period |
135 |
123 |
9.8% |
135 |
123 |
9.8% |
9.8% |
Number of Rooms at the End of the Period |
15,228 |
13,702 |
11.1% |
15,228 |
13,702 |
11.1% |
11.1% |
Number of Installed Room Nights |
1,350,327 |
1,193,937 |
13.1% |
5,173,014 |
4,545,795 |
13.8% |
13.8% |
Number of Occupied Room Nights |
845,278 |
733,999 |
15.2% |
3,115,579 |
2,803,820 |
11.1% |
11.1% |
Average Occupancy Rate (%) |
62.6% |
61.5% |
112 pbs |
60.2% |
61.7% |
-145 pbs |
-145 bps |
ADR($) |
927 |
885 |
4.7% |
934 |
842 |
10.9% |
10.9% |
RevPAR($) |
580 |
544 |
6.6% |
562 |
519 |
8.3% |
8.3% |
Consolidated Financial Information (Thousands of Pesos) |
|||||||
Total Revenues |
686,036 |
551,738 |
24.3% |
2,508,448 |
2,037,766 |
23.1% |
23.1% |
Operating Income |
154,409 |
102,361 |
50.8% |
511,264 |
371,992 |
37.4% |
37.4% |
Operating Income Margin |
22.5% |
18.6% |
395 pbs |
20.4% |
18.3% |
213 pbs |
213 bps |
Adjusted EBITDA |
257,499 |
180,487 |
42.7% |
878,877 |
681,548 |
29.0% |
29.0% |
Adjusted EBITDA Margin (%) |
37.5% |
32.7% |
482 pbs |
35.0% |
33.4% |
159 pbs |
159 bps |
EBITDA |
249,458 |
173,784 |
43.5% |
858,983 |
663,353 |
29.5% |
29.5% |
EBITDA Margin (%) |
36.4% |
31.5% |
486 pbs |
34.2% |
32.6% |
169 pbs |
169 bps |
Net Income |
115,570 |
79,113 |
46.1% |
286,373 |
264,498 |
8.3% |
8.3% |
Net Income Margin (%) |
16.8% |
14.3% |
251 pbs |
11.4% |
13.0% |
-156 pbs |
-156 bps |
Adjusted EBITDA = Operating income + depreciation + amortization + non-recurring expenses (pre-opening expenses for new hotels). |
Comments from Mr. Luis Barrios, CEO of Hoteles City Express:
"Our results for the fourth quarter and full-year 2017 show operating and financial strength.
In a year that started out with volatility and put the Mexican economy to the test, the hotel industry continued to demonstrate robust market dynamics, experiencing sustained growth and vigorous demand for quality rooms at affordable prices. At the consolidated level, Hoteles City Express increased Total Revenues and Adjusted EBITDA by more than 23% and 29%, respectively.
Growth of more than 10% in the average rate and more than 8% in the effective rates are reflections of an operating, distribution and digital marketing platform that is best in its class. As we expected, the yield management platform and the efforts to release installed capacity through higher prices, were successful. Today the gap in occupancy levels is non-existent, as it reached levels of 62.6% during 4Q17, more than 100 bps higher than those reported during the same quarter of 2016.
Supported by the transformation to a real-time operating culture, empowerment at all levels of the organization, and technology development in point-to-point processes, Hoteles City Express is ready to capture the benefits of an infrastructure that is able to operate more than 200 hotels without significant increases in the cost basis. Evidence of this is the fact that the company's EBITDA during the year grew 1.3 times more quickly than Total Revenues.
During 2017 we put more than 1,500 rooms into operation, and we completed our entire development plan, operating 136 hotels today and 140 in the coming weeks. For 2018, we reinforce our commitment towards profitable growth, as we work on a plan to add between 15 to 21 new hotels before the end of the year.
Finally, we recently announced our intention to create a lodging REIT under the name FSTAY. The launch of this vehicle is a watershed for the company in several different ways, we believe it will be a vehicle that fully supports investor interests, as it will be the best in its class in terms of corporate governance. Furthermore, the company believes that this vehicle will be a catalyst to create greater transparency in the value of its assets, to establish a mechanism for continuous development without any dilution in value for investors, and to strengthen its development capacity so that it will be able to put more hotels into operation per year.
This step also marks a change in our model of communicating with the market, in which our investors will be able to validate the performance of that portfolio and to compare it with the rest of the company, which has lower levels of stabilization, thus showing the potential for incremental value of Hoteles City Express over time.
It is worth mentioning that currently the Company has sufficient flexibility to adopt any other strategic alternative to achieve the previously discussed objectives, options like increasing leverage based on the credit facilities currently in-placed and taking advantage from the already created trust structure continue to be other ways to accomplish future growth.
Today more than ever, and now with an additional, and potentially public vehicle, we will maintain our commitment to new shareholders to continue being the best alternative for profitable growth in the market. Thank you for your trust."
Conference Call Details:
Hoteles City Express will host a conference call to discuss these results. Details on the call follow:
Date: |
Thursday, February 15, 2018 |
Time: |
10:00 am Eastern Time / 09:00 am Mexico City Time |
Telephones: |
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) | |
Code: |
1815955 |
Webcast: |
|
Conference replay will be available for 30 days: | |
U.S.: 1-877-344-7529/ International: 1-412-317-0088 | |
Code: 10116588 |
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. Created 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 136 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," and in October 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 assessment 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://www.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 of current achievements of the Company to be materially different with respect to any future result, performance of accomplishment of the Company that might be included, expressly or implicitly, within such forward-looking statements, including, among others: changes in general economic and/or political conditions, governmental and commercial changes at the global level and in the countries where 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 may vary 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.
SOURCE Hoteles City Express, S.A.B. de C.V.
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