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HOTEL reports 27% and 34% increases in Total Revenues and EBITDA respectively for 2016

MEXICO CITY, Feb. 22, 2017 (GLOBE NEWSWIRE) -- Grupo Hotelero Santa Fe S.A.B. de C.V. (BMV:HOTEL) (“HOTEL” or “the Company”), announced its consolidated results for the fourth quarter (“4Q16”) ended December 31, 2016. Figures are expressed in Mexican Pesos, are unaudited and are in accordance with International Financial Reporting Standards “IFRS”).

Highlights

  • 2016 EBITDA reached Ps. 426.1 million, with a 34.9% margin representing a 210 basis point outperformance of our 2016 EBITDA margin guidance and a 13.6 outperformance of our 2016 upper range guidance.
  • 2016 Total Revenues reached Ps. 1,221.2 million, representing a 6.75% outperformance of our 2016 upper range guidance.
  • We will release our 2017 Guidance on our conference call tomorrow. Details of the call are on page 14.
  • On February 21 2017, HOTEL closed the acquisition of 50% of two hotels in Los Cabos and Nuevo Vallarta that will be rebranded into Krystal Grand® hotels in the Grand Tourism Category, with a total of 933 rooms under the All-Inclusive model. With these projects, HOTEL will reach 23 hotels and 6,493 rooms. The Krystal Grand® brand will grow from 2 to 4 hotels, and the Company will grow 16% in number of operated rooms of and 37% in owned rooms.
  • 4Q16 Total Revenue reached Ps. 318.6 million, a 20.3% increase compared to 4Q15, driven by the following increases: i) 20.0% in Room Revenue, ii) 14.1% in Food and Beverages, iii) 27.4% in Other Hotel Revenue and iv) 44.7% in management fees related to third-party owned hotels.
  • 4Q16 EBITDA1 reached Ps. 107.0 million, a 20.1% increase compared to 4Q15 driven by revenue growth and efficiencies from operating leverage achieved in the quarter. 4Q16 EBITDA margin remained at 33.6%.
  • 4Q16 Net Income for reached Ps. 45.6 million, equal to a 14.3% net income margin, driven by higher operating income combined with lower income taxes.
  • 4Q16 Net operating cash flow for was Ps. 128.1 million, an increase of 68.2% compared to the Ps. 76.1 million reported in 4Q15. This increase was mainly due to Net income growth and variations in working capital.
  • Net Debt/EBITDA (LTM) ratio was -0.9x at the end of 4Q16. Operating cash flow in dollars represented 64.3% of total operating cash flow, thereby maintaining a natural hedge of the dollarized financial debt.
  • HOTEL’s total portfolio at the end of 4Q16 reached 5,268 rooms in operation, a 16.7% increase compared to the 4,515 rooms at end of 4Q15.
  • RevPAR2 for the Company-owned hotels rose by 10.8% in 4Q16 compared to 4Q15, driven by an increase of 7.4% in ADR2 and 2.1 percentage points in occupancy.

1EBITDA is calculated by adding Operating Income, Depreciation and Total Non-recurring expenses.

2Revenue per Available Room (“RevPAR”) and Average Daily Rate (“ADR”).

Fourth Quarter 12 months ended December
Figures in thousand Mexican Pesos2016 2015 $ Var. % Var. 2016 2015 $ Var. % Var.
Total Revenue318,628 264,889 53,738 20.3 1,221,165 960,119 261,045 27.2
EBITDA106,978 89,102 17,876 20.1 426,119 318,813 107,305 33.7
EBITDA Margin33.6% 33.6% 0.0 pt 0.0 pt 34.9% 33.2% 1.7 pt 1.7 pt
Operating Income66,618 61,599 5,019 8.1 289,913 208,958 80,955 38.7
Net Income45,587 24,467 21,120 86.3 159,988 10,026 149,962 1495.7
Net Income Margin14.3% 9.2% 5.1 pt 5.1 pt 13.1% 1.0% 12.1 pt 12.1 pt
Operating Cashflow128,064 76,144 51,920 68.2 442,756 319,120 123,635 38.7
Occupancy69.1% 65.3% 3.8 pt 3.8 pt 70.0% 68.6% 1.4 pt 1.4 pt
ADR1,453 1,336 116 8.7 1,384 1,253 131 10.5
RevPAR1,004 873 131 15.0 968 860 109 12.7
Note: operating figures belong to owned hotels.


4Q16 Conference Call Details:
HOTEL will host its earnings webcast (audio + presentation) to discuss results:
Date: Thursday, February 23, 2017
Time: 12:00 p.m. Mexico City Time
1:00 p.m. New York Time
To participate in the conference call and Q&A session please dial:
Telephone: U.S.: 1 800 863 3908
International +1 334 323 7224
Mexico: 01 800 847 7666
Conference password: HOTEL 000
Webcast: The webcast will be in English. To follow the Power Point presentation, please visit our website at: http://www.gsf-hotels.com/investors

About Grupo Hotelero Santa Fe

HOTEL is a leading company in the Mexican hotel industry, centered on acquiring, converting, developing and operating its own hotels as well as third party-owned hotels. The Company focuses on strategic hotel location and quality, a unique hotel management model, strict expense control and the proprietary Krystal® brand as well as other international brands. As of year-end 2016, the Company employed over 2,600 people at 23 hotels in Mexico and generated revenues of Ps. 426 million. For more information, please visit www.gsf-hotels.com

Contact Information Enrique Martínez Guerrero CFO +52 55 5261 0800 Maximilian Zimmermann IR Director +52 55 5261 4508

Source:Grupo Hotelero Santa Fe SAB de CV