Hoteles City Express Announces Results for 4th Quarter 2015 with 7.9% growth in RevPAR and 20.5% growth in Adjusted EBITDA

MEXICO CITY, Feb. 17, 2016 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or "the Company"), announced its results today for the fourth quarter ("4Q15") and twelve months ("12M15") of 2015. The figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").

Financial and Operating Highlights (4Q15)

• At the Chain level, occupancy in 4Q15 came to 63.9%, 225 basis points ("pbs") higher than the same period of the year before. The Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR") showed increases of 4.1% and 7.9% in comparison with 4Q14, coming to $779 and $498, respectively.
• Total Revenues were $466.3 million, which represents an increase of 18.4% over the same quarter in 2014, mainly due to a rise of 14.8% in the number of Occupied Room Nights at the Chain level, together with growth of 7.9% in RevPAR.
• Operating Income was $95.1 million in 4Q15, an increase of 33.1% over the same quarter last year.
• EBITDA and Adjusted EBITDA were $152.6 million and $155.5 million, respectively, reflecting increases of 23.4% and 20.5% in comparison with the same period of the previous year. EBITDA margin and Adjusted EBITDA margin for the period came to 32.7% and 33.4%, respectively.
• Net Income for the period reached $39.9 million. Net Income Margin came to 8.6% for the quarter.
• At the close of the fourth quarter 2015, Hoteles City Express was operating 106 hotels, a gain of 10 new units compared to the 96 hotels operating at the close of the same period in 2014. The number of installed rooms in 4Q15 was 11,944, an increase of 9.3% in comparison with the 10,929 installed rooms at the close of 4Q14.

Financial and Operating Highlights (12M15)

• At the Chain level, occupancy during the last twelve months reached 62.0%, with an ADR of $766 and RevPAR of $475, reflecting increases of 4.0% and 9.0%, respectively.
• Consolidated Total Revenues as of December 2015 were $1.72 billion, an increase of 21.7% with respect to the same period in 2014. This was due to a 19.1% increase in the number of Occupied Room Nights at the Chain level, a 9.0% increase in RevPAR and growth of 18.2% in revenues from Hotel Management activity.
• Operating Income came to $320.4 million during 2015, an increase of 28.0% over 2014.
• EBITDA and Adjusted EBITDA reached $572.6 million and $581.7 million, representing growth of 25.2% and 23.5%, respectively, compared to the close of 2014. EBITDA and Adjusted EBITDA Margins came to 33.3% and 33.9% respectively.
• Net Income for the period rose to $208.8 million, an increase of 46.2% over 2014. Net Income Margin was 12.1% at the close of 2015.

Comments of Luis Barrios, Chief Executive Officer of Hoteles City Express:

"During the fourth quarter and throughout 2015, Hoteles City Express achieved solid improvement across key profitability metrics.

While the outlook for the Mexican economy is mixed, demand indicators for the tourism sector remain robust. In particular, both domestic air travel as well as hotel activity in the most important markets where we operate continue to register record growth. Furthermore, commercial and manufacturing activity continues to expand throughout the country.

We continue to increase chain productivity, recording strong results in ADR and RevPAR, with annual increases of 4.0% and 9.0%, respectively. Over the year to December 31, 2105, we achieved growth of 19.1% in the number of Occupied Room Nights, reflecting strong brand positioning, the Company's commercial acumen, and the increase of our market share.  Regarding financial performance, we increased Total Revenues by 21.7% during the year, with growth in adjusted EBITDA and Net Income of 23.5% and 46.2%, respectively.

The execution of our marketing strategy and investment in our e-commerce platforms are beginning to produce results, enabling us to increase reservations generated through our own channels.

In 2015, we opened 10 new hotels in high growth markets, bringing the total number of hotels in operation to 106. While the development of new hotels is progressing well, the procurement of permits and licenses continues to delay construction starts. We have made adjustments in our structure to ensure tighter oversight of projects and thus mitigate potential delays.  Overall, we hope to have approximately 125 hotels, and more than 14,300 rooms in operation by the end of the year.

This year we will remain focused on consolidating our position as the leading limited service chain in Mexico. Furthermore, we are continuing to increase our exposure in the country's major cities, diversifying our investments through industries and regions.  Looking ahead, we are confident that our operating discipline, supported by attractive demand dynamics, will allow us to continue achieving profitable growth in 2016.

We are proud of our results for 2015, which underscores our strong competitive position and encourage us to continue being an alternative for profitable growth."

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 106 hotels located in 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, in October of 2014, Hoteles City Express completed a subsequent public offering of stock with the aim of accelerating its growth in new hotels in in the short- and medium-term.

HCITY is covered by the following financial institutions and analysts: Actinver (Pablo Duarte), Bank of America Merrill Lynch (Carlos Peyrelongue), Citigroup (Dan McGoey), J.P. Morgan (Adrián Huerta), Morgan Stanley (Nikolaj Lippman and Jorel Guilloty), Santander (Cecilia Jiménez), Signum Research (Armando Rodriguez), UBS (Marimar Torreblanca) and Vector Análisis (Marco Montañez).

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

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