Hoteles City Announces Third Quarter 2014 Results with Year-over-Year Growth in RevPAR, Revenue and Adjusted EBITDA of 11.7%, 28.0% and 38.2%, Respectively Reaching an Adjusted EBITDA Margin of 35.5%

MEXICO CITY, Oct. 22, 2014 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City" or "the Company"), the leading limited-service hotel chain in Mexico, today announced its financial results for the third quarter ended September 30, 2014 ("3Q14").  These figures were prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").

Financial and Operating Highlights (3Q14)

• At the close of the third quarter of 2014, Hoteles City Express achieved a total of 90 hotels in operation, representing a growth of 16 new units in relation to the 74 hotels operating at the close of 3Q13.  The total number of rooms in operation as of 3Q14 came to 10,204, an increase of 21.5% in contrast with the 8,399 the chain had at the close of the same period last year.
• At the chain level, occupancy in 3Q14 reached 61.6%, with an Average Daily Rate ("ADR") of $738, and Revenue per Available Room ("RevPAR") of $454, which represents an increase of 1.9% and 11.7%, respectively, against the same period in 2013.  The hotels with more than 36 months in operation, registered an occupancy rate of 64.1%, with an ADR of $720 and RevPAR of $461, increases of 0.6% and 9.4% respectively over the same period last year.
• In the third quarter of 2014, Total Revenues came to $369.0 million, representing an increase of 28.0% over the same period in 2013, due to a 29.1% lift in Occupied Room Nights at the chain level, in combination with growth in ADR and RevPAR.
• EBITDA and Adjusted EBITDA for 3Q14 stood at $129.4 million and $131.0 million respectively, representing increases of 39.0% and 38.2% in relation to the same period last year.  Accordingly, EBITDA and Adjusted EBITDA margins expanded by 277 and 263 basis points ("bps") during the period, reaching 35.1% and 35.5%, respectively.
• Net Income for 3Q14 rose to $45.3 million, an increase of 65.5% with respect to 3Q13.  The Net Income margin stood at 12.3% for the quarter, an improvement of 279 bps in comparison with the same period of the previous year.

Comments from the Chief Executive Officer                                                          

Luis Barrios, Chief Executive Officer of Hoteles City, commented:

"In the context of a moderate but improving economic recovery in Mexico, operating and financial results for Hoteles City Express show solid performance at all levels.  For example, the key figures for growth in Installed Room Nights and Occupied Room Nights of 17.8% and 29.1% respectively.  This drove an increase of approximately 600 bps in occupancy and 11.7% in RevPAR at the Chain level in the third quarter.  It should be noted that these results are a consequence, to a large extent, of a well-executed commercial strategy that has been implemented since the end of 2013.   

Total Revenues came to $369.0 million, which represents growth of 28.0% compared to the same quarter a year earlier.  Adjusted EBITDA showed an increase of 38.2%, reaching $131.0 million for the quarter, which results in a margin of 35.5% for the three months to September.  The rise in revenues per installed room, together with our discipline in maintaining high levels of productivity, enables us to follow a path of accelerated growth with higher levels of profitability for Adjusted EBITDA as well as Operating and Net Earnings. 

With respect to our activity in the development of new hotels, during the third quarter the Hotel City Express Monterrey Norte, Hotel City Express Central de Abastos, Hotel City Suites Puebla Autopista and Hotel City Express Apizaco all commenced operations, adding to our ample hotel presence in Mexico's key industrial, commercial and export corridors. With the opening of these hotels, we continue to move towards our goal of new hotel development.  We are committed to the opening of up to 10 additional hotels through the end of the year, which would conclude our Development Plan for 2014 with 100 in operation.

On October 9, we successfully undertook a global primary offering of 100 million shares for a total amount of $2.35 billion, without including the option of an over-allotment of up to 15 million additional shares assigned to the underwriters.  Hoteles City Express will use funds from this issue to continue with growth plans in the number of new hotels, as well as to strengthen our operating and distribution platform. With these funds, Hoteles City Express will be able to implement its expansion plans with greater vigor, and take advantage of investment opportunities presented, particularly in Mexico."

For a full version of this earnings release with complete financial statements, please visit: https://cityexpress.com/en/inversionistas

3Q14 Conference Call Details:

Hoteles City will host a conference call to discuss these results:

Conference Replay (available for 12 days)  
U.S.: 1-877-870-5176 / International: 1-858-384-5517
Passcode: 8001258

About Hoteles City Express:
Hoteles City Express is considered 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 chiefly towards the domestic business traveler. With 90 hotels located throughout Mexico, Costa Rica and Colombia, Hoteles City Express operates four distinct brands: City Express, City Express Plus, City Express Suites and City Express junior to serve different segments of its target market. In June 2013, Hoteles City Express successfully completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY"; moreover, on October 8, 2014, Hoteles City Express completed a secondary stock offering with the aim of accelerating its growth in new hotels for coming years.

HCITY is covered by the following financial institutions and analysts: Bank of America Merrill Lynch (Carlos Peyrelongue), Citigroup (Dan McGoey), Morgan Stanley (Rafael Pinho), Actinver (Pablo Duarte) and J.P. Morgan (Adrián Huerta).

For more information please visit our website: https://cityexpress.com/en/inversionistas/

Disclaimer:
The information presented in this report contains certain forward-looking statements 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 currently available to the Company. These statements reflect the Company's current vision regarding future events and are subject to certain risks, uncertainty factors and assumptions. Many factors may cause the results, performance or actual achievements of the Company to be materially different with respect to any future result, performance or accomplishment of the Company that could be included, expressly or implicitly, in these forward-looking statements, including among others: changes in the general economic and/or political conditions, government and commercial changes at the global level and in the countries in which the Company operates, 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 come into being, or if the assumptions utilized are incorrect, actual results could differ materially from those described as anticipated, estimated or expected. The Company does not intend, and does not assume any obligation to update these statements regarding the future. 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hoteles-city-announces-third-quarter-2014-results-with-year-over-year-growth-in-revpar-revenue-and-adjusted-ebitda-of-117-280-and-382-respectively-reaching-an-adjusted-ebitda-margin-of-355-900900527.html

SOURCE Hoteles City Express, S.A.B. de C.V.