Hoteles City Express Announces Results for 4th Quarter 2014 with 12.3% growth in RevPAR and 20.9% growth in Adjusted EBITDA
MEXICO CITY, Feb. 18, 2015 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or "the Company"), announced today its results for the 4th quarter ("4Q14") and twelve months ("12M14") of 2014. These figures were prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").
Financial and Operating Highlights (4Q14)
- Total revenues reached $393.9 million, an increase of 28.7% over the same period in 2013, mainly due to a 27.9% rise in the number of Occupied Room Nights at the Chain level, combined with growth of 12.3% in Revenue per Available Room ("RevPAR").
- Operating Income rose 45.8% to $71.5 million over the prior corresponding quarter.
- EBITDA and Adjusted EBITDA reached $123.6 million and $129.1 million respectively, representing increases of 25.7% and 20.9% over the same period in 2013. EBITDA margin and Adjusted EBITDA margin were 31.4% and 32.8%, respectively.
- Net Income for the period rose to $48.5 million, an increase of 72.8% over the fourth quarter of 2013. Net Income Margin came to 12.3% for the quarter.
- At the Chain level, occupancy for 4Q14 reached 61.6%, 403 basis points ("bps") higher than the same period a year earlier. Average Daily Rate ("ADR") and RevPAR grew 5.0% and 12.3%, reaching $748 and $461 respectively.
- At the close of the quarter the Chain was operating 96 hotels, a gain of 14 new units from the end of 2013. The number of rooms in operation in 4Q14 came to 10,929, a gain of 17.2% from 9,326 rooms a year earlier.
Financial and Operating Highlights (12M14)
- Total Revenues for the twelve-months ending on December 2014 came to $1,412.4 million, representing an increase of 27.9% over the same period in 2013. This was due to a 26.6% increase in the number of Occupied Room Nights at Chain level, the 9.6% gain in RevPAR, and expansion of 35.2% in Hotel Management activities.
- Operating profit grew 40.1% to $250.2 million for 2014 over the prior year.
- EBITDA and Adjusted EBITDA came to $457.2 million and $471.0 million, or growth of 33.6% and 31.5% respectively, from the close of 2013. EBITDA and Adjusted EBITDA margins came to 32.4% and 33.3%.
- Net Income for the period was $142.7 million, representing a gain of 70.5% on full year 2013. Net Income Margin was 10.1% at the close of 2014.
- At the Chain level, occupancy for the year closed at 59.1%, with an ADR of $737 and RevPAR of $436, reflecting gains of 2.1% and 9.6%, respectively.
| Operating and Financial Highlights |
4Q14 |
4Q13 |
4Q14 vs 4Q13 |
12M14 |
12M13 |
12M14 vs 12M13 |
| % Change |
% Change |
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| Operating Statistics for the Chain |
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| Number of Hotels at the End of the Period |
96 |
82 |
17.1% |
96 |
82 |
17.1% |
| Number of Rooms at the End of the Period |
10,929 |
9,326 |
17.2% |
10,929 |
9,326 |
17.2% |
| Number of Installed Room Nights |
949,161 |
794,114 |
19.5% |
3,585,874 |
3,040,485 |
17.9% |
| Number of Occupied Room Nights |
584,944 |
457,397 |
27.9% |
2,120,413 |
1,675,426 |
26.6% |
| Average Occupancy Rate (%) |
61.6% |
57.6% |
403 pbs |
59.1% |
55.1% |
403 pbs |
| ADR ($) |
748 |
713 |
5.0% |
737 |
722 |
2.1% |
| RevPAR ($) |
461 |
411 |
12.3% |
436 |
398 |
9.6% |
| Consolidated Financial Information (thousands of pesos) |
||||||
| Total Revenues |
393,947 |
306,179 |
28.7% |
1,412,423 |
1,103,956 |
27.9% |
| Operating Profit |
71,497 |
49,043 |
45.8% |
250,224 |
178,566 |
40.1% |
| Operating Margin (%) |
18.1% |
16.0% |
213 pbs |
17.7% |
16.2% |
154 pbs |
| Adjusted EBITDA |
129,053 |
106,772 |
20.9% |
471,010 |
358,196 |
31.5% |
| Adjusted EBITDA Margin (%) |
32.8% |
34.9% |
-211 pbs |
33.3% |
32.4% |
90 pbs |
| EBITDA |
123,607 |
98,311 |
25.7% |
457,218 |
342,229 |
33.6% |
| EBITDA Margin (%) |
31.4% |
32.1% |
-73 pbs |
32.4% |
31.0% |
137 pbs |
| Net Income |
48,539 |
28,090 |
72.8% |
142,744 |
83,733 |
70.5% |
| Net Income Margin (%) |
12.3% |
9.2% |
315 pbs |
10.1% |
7.6% |
252 pbs |
| Adjusted EBITDA = Operating income + depreciation + amortization + non-recurring expenses (pre-opening expenses at new hotels). |
||||||
Comments of the Chief Executive Officer
Luis Barrios, Chief Executive Officer of Hoteles City Express, commented:
"We announce our results for the 4th quarter and full year 2014, which show solid performance both on a quarterly basis and over the past 12 months. In a year of moderate economic growth, Hoteles City Express achieved the best operating, financial and development results in its history.
In 2014 we continued with profitable growth, opening 14 hotels during the year to reach a total of 96 hotels in operation at the end of December. Hoteles City Express continues to be the industry leader in terms of number of new hotel openings per year, and is consolidating its preeminence in the limited services segment. Over the course of 2014, we remained concentrated in Mexico, extending our presence in markets with high growth potential that offer attractive investment dynamics. We also maintained our plans with respect to the international expansion effort, starting construction of one hotel both in Colombia and in Chile.
With respect to our operating results, these reflected a productive commercial strategy throughout the year. We achieved important growth rates across our key indicators of occupancy, ADR and RevPAR, registering an annual increase of 9.6% in the latter. In the case of our financial indicators, in 2014, Hoteles City Express reached a 27.9% growth in Total Revenues, 31.5% growth in Adjusted EBITDA and 70.5% in Net Income.
In October 2014, we successfully executed a Follow-on Offering for a total amount of $2,577.9 million pesos. The net resources of this offering will enable us to proceed with our expansion plan, consolidate our business in a highly fragmented industry segment, and increase our market share.
During 2015, we will continue to expand our commercial and selling capabilities. At the same time, we will take advantage of our scale in order to achieve incremental profitability from our investments, expanding simultaneously the size of the chain with the opening of 18 to 20 new hotels.
With the ongoing efforts of our team at Hoteles City Express, 2015 should be a year in which we further expand our leadership in the limited services hotel segment."
| Conference Call Details: |
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| Hoteles City Express will host a conference call to discuss these results: |
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| Date: |
Thursday, February 19, 2015 |
| Time: |
11:00 am EST / 10:00 am Mexico City Time |
| Dial-in: |
1-888-572-7034 (in the U.S.) / 1-719-785-1753 (outside the U.S.) |
| 01-800-514-1067 (toll-free in Mexico) |
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| Passcode: |
5000855 |
| Webcast: |
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Conference Replay will be available for 12 days:
U.S.: 1-877-870-5176 / International: 1-858-384-5517
Passcode: 5000855
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 mainly towards domestic business travelers. With 96 hotels in operation 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 completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY;" furthermore, on October 8, 2014, Hoteles City Express completed a subsequent public offering of stock with the aim of accelerating its growth in new hotels in 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) y J.P. Morgan (Adrian Huerta), Vector Analisis (Marco Montanez) and Santander (Pedro Balcao)
For further 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 ("the Company"), which are based on the understanding of its management as well as assumptions 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 actual 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, 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 materialize, or if the assumptions utilized prove to be incorrect, actual results can differ materially from those described herein as anticipated, estimated or expected. The Company does not intend 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.
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