Hoteles City Express Announces Results for the Third Quarter of 2015 with 7.7% Chain-wide Growth in RevPar and 20.7% Growth in Adjusted EBITDA
MEXICO CITY, Oct. 21, 2015 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City Express" or "the Company"), today announced its results for the third quarter ("3Q15") 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 (3Q15)
- At the Chain level, occupancy in 3Q15 came to 64.0%, 236 basis points ("bps") higher than the same period of the year before. The Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR") showed increases of 3.8% and 7.7% in comparison with 3Q14, coming to $765 and $490, respectively.
- Total Revenues were $449.4 million, which represents an increase of 21.8% over the same quarter in 2014, mainly due to a rise of 18.8% in the number of Occupied Room Nights at the Chain level, together with growth of 7.7% in RevPAR.
- Operating Income was $85.3 million in 3Q15, an increase of 12.4% over the same quarter last year.
- EBITDA and Adjusted EBITDA were $156.2 million and $158.2 million respectively, reflecting increases of 20.7% in comparison with the same period of the year before. EBITDA margin and Adjusted EBITDA margin for the period came to 34.8% and 35.2%, respectively.
- Net Income for the period rose to $57.3 million, an increase of 26.4% over the third quarter of 2014. Net Income Margin came to 12.8% for the quarter.
- At the close of the quarter the Chain was operating 100 hotels, a gain of 10 new units compared to the 90 hotels operating at the close of the same period in 2014. The number of rooms in operation in 3Q15 was 11,313, an increase of 10.9% in comparison with the 10,204 operating at the close of 3Q14.
| Operating and Financial Highlights |
3Q15 |
3Q14 |
3Q15 vs 3Q14 |
9M15 |
9M14 |
9M15 vs 9M14 |
| % Change |
% Change |
|||||
| Operating Statistics for the Chain |
||||||
| Number of Hotels at the End of the Period |
100 |
90 |
11.1% |
100 |
90 |
11.1% |
| Number of Rooms at the End of the Period |
11,313 |
10,204 |
10.9% |
11,313 |
10,204 |
10.9% |
| Number of Installed Room Nights |
1,038,642 |
907,616 |
14.4% |
3,025,785 |
2,636,713 |
14.8% |
| Number of Occupied Room Nights |
664,348 |
559,162 |
18.8% |
1,854,805 |
1,535,573 |
20.8% |
| Average Occupancy Rate (%) |
64.0% |
61.6% |
236 bps |
61.3% |
58.2% |
306 bps |
| ADR($) |
765 |
738 |
3.8% |
762 |
733 |
4.0% |
| RevPAR($) |
490 |
454 |
7.7% |
467 |
427 |
9.4% |
| Consolidated Financial Information (Thousands of Pesos) |
||||||
| Total Revenues |
449,368 |
369,038 |
21.8% |
1,252,044 |
1,018,476 |
22.9% |
| Operating Income |
85,278 |
75,878 |
12.4% |
225,236 |
178,728 |
26.0% |
| Operating Income Margin |
19.0% |
20.6% |
-158 bps |
18.0% |
17.5% |
44 bps |
| Adjusted EBITDA |
158,170 |
131,024 |
20.7% |
426,229 |
341,957 |
24.6% |
| Adjusted EBITDA Margin (%) |
35.2% |
35.5% |
-31 bps |
34.0% |
33.6% |
47 bps |
| EBITDA |
156,213 |
129,384 |
20.7% |
420,016 |
333,611 |
25.9% |
| EBITDA Margin (%) |
34.8% |
35.1% |
-30 bps |
33.5% |
32.8% |
79 bps |
| Net Income |
57,310 |
45,334 |
26.4% |
168,861 |
94,206 |
79.2% |
| Net Income Margin (%) |
12.8% |
12.3% |
47 bps |
13.5% |
9.2% |
424 bps |
| Adjusted EBITDA = Operating Income + depreciation + amortization + non-recurring expenditures (pre-opening expenditures for new hotels). |
||||||
Comments of Luis Barrios, Chief Executive Officer of Hoteles City Express:
"Against a backdrop of moderate economic growth, Hoteles City Express has sustained a trend of solid quarterly results on both its operating and financial metrics. The performance of the Established Hotel portfolio underpinned the increase in occupancy and ADR, with a 7.7% increase in RevPAR at the chain level.
During the third quarter of 2015, we registered growth of 21.8% in Total Revenues compared to the same period in 2014. Regarding productivity, we achieved increases in both Adjusted EBITDA and Net Income of more than 20%. Chain growth was accompanied by an Adjusted EBITDA Margin of 35.2%, with EBITDA at 34.8%, in line with the strong results for the same period in 2014.
With respect to new hotel development, during the third quarter we began operations in City Express Tuxpan and City Express Plus Guadalajara Palomar, our 99th and 100th hotels respectively. Our plan for hotel openings continues, and we remain focused on achieving the opening of 18 hotels corresponding to the 2015 development pipeline in the closing months of 2015 and first months of 2016. To date, all of our projects remain underway, and none has been canceled.
Meanwhile, we are continuing to ramp-up our sales & marketing capacity. With a clear strategy and focused execution we have strengthened our proprietary sales channels, particularly in the digital space. Moreover, we have substantially increased focus on our frequent traveler program, with the aim of maintaining a close and high-value relationship with our guests.
We will continue to work on consolidating our position as a company with one of the highest industry growth and profitability rates in Mexico, as we invest in the generation of shareholder value over the medium and long-term."
Conference Call Details:
Hoteles City Express will host a conference call to discuss these results:
| Date: |
Thursday, October 22, 2015 |
| Time: |
11:00 am EST / 10:00 am Mexico City Time |
| Dial-in: |
1-888-317-6003 (in the U.S.) / 1-412-317-6061 (outside the U.S.) |
| 001-866-675-4929 (toll-free in Mexico) |
|
| Passcode: |
10073168 |
| Webcast: |
Conference Replay will be available for 30 days:
U.S.: 1-877-344-7529/ International: 1-412-317-0088
Passcode: 10073168
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 100 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 coming years.
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/
| 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 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 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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