×

HOTEL reports 39% and 37% growth in Total Revenues and EBITDA respectively for 4Q17

MEXICO CITY, Feb. 22, 2018 (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 (“4Q17”) and full-year ended December 31, 2017. Figures are expressed in Mexican Pesos, are unaudited and are in accordance with International Financial Reporting Standards (“IFRS”) and may vary due to rounding.

Highlights

  • 2017 EBITDA reached Ps. 528.2 million, in line with our revised 2017 guidance, representing a 24.0% increase compared to 2016.
  • 2017 Total Revenues reached Ps. 1,581.5 million, in line with our revised 2017 guidance, representing a 29.5% increase compared to 2016.
  • We will release our 2018 Guidance on our conference call tomorrow February 23rd.
  • 4Q17 Total Revenue reached Ps. 441.3 million, a 38.5% increase compared to 4Q16, driven by the following increases: i) 37.7% in Room Revenue, ii) 68.6% in Food and Beverages, and iii) 3.2% in Other Hotel Revenue which more than compensated for a 30.8% decline in in management fees related to third-party owned hotels.
  • 4Q17 EBITDA1 reached Ps. 146.7 million, a 37.1% increase compared to 4Q16 driven by revenue growth. 4Q17 EBITDA margin was at 33.2%.
  • We posted a 4Q17 Net Income loss of Ps. 116.8 million. The increase in income from operations was offset by an FX loss, higher financing costs and higher income taxes.
  • 4Q17 Net operating cash flow for was Ps. 149.7 million, an increase of 16.9% compared to the Ps. 128.1 million reported in 4Q16. This increase was mainly due to variations in working capital.
  • Net Debt/EBITDA (LTM) ratio was 4.0x at the end of 4Q17. Operating cash flow in dollars represented 78.0% of total operating cash flow, thereby maintaining a natural hedge of the dollarized financial debt.
  • HOTEL’s total portfolio at the end of 4Q17 reached 6,137 rooms, a 16.2% increase compared to the 5,282 rooms at end of 4Q16.
  • RevPAR2 for the Company-owned hotels declined by 2.9% in 4Q17 compared to 4Q16, due to a 6.0 percentage points decrease in occupancy which was partially compensated by an increase of 6.6% in ADR2. Lower occupancies were driven by the inclusion of new properties in the early stages of stabilization combined with the consequences of the external factors mentioned in our 3Q17 report.

Fourth Quarter 12 months ended December 31
Figures in thousands of Mexican Pesos2017 2016 Var.% Var. 2017 2016 Var.% Var.
Total Revenue441,308 318,628 122,68038.5 1,581,496 1,221,165 360,33229.5
EBITDA146,683 106,978 39,70537.1 528,200 426,119 102,08224.0
EBITDA Margin33.2% 33.6% (0.4 pt)(0.4 pt) 33.4% 34.9% (1.5 pt)(1.5 pt)
Operating Income78,501 66,618 11,88317.8 335,065 289,913 45,15215.6
Net Income(116,838) 45,750 (162,588)NA 187,382 160,219 27,16317.0
Net Income Margin(26.5%) 14.4% (40.9 pt)(40.9 pt) 11.8% 13.1% (1.3 pt)(1.3 pt)
Operating Cashflow149,652 128,064 21,58816.9 518,492 442,756 75,73617.1
Occupancy62.9% 69.1% (6.2 pt)(6.2 pt) 66.1% 70.0% (3.9 pt)(3.9 pt)
ADR1,437 1,453 (16)(1.1) 1,445 1,384 614.4
RevPAR904 1,004 (100)(10.0) 956 969 (13)(1.4)
Note: operating figures include hotels with 50%+ ownership.

______________________

1EBITDA is calculated by adding Operating Income, Depreciation and Total Non-recurring expenses.
2Revenue per Available Room (“RevPAR”) and Average Daily Rate (“ADR”).

Comments from the Chief Executive Officer

Mr. Francisco Zinser, stated:

2017 was a great year for the company, and the fourth quarter was no exception. Tourism in Mexico continues to post strong growth with solid underlying fundamentals. In 2017 Mexico reached 8th place for the country that received most international travelers, marking a new historical milestone. In 2017 International travelers in Mexico increased 5%, reaching 39 million. Also, Income from international tourists in 2017 increased 5% to US$ 21 Billion. The sector is well positioned considering recent events including the removal of Cancun and Los Cabos from the latest travel warning from the US. Local tourism also posted healthy increases, complementing our results.

In terms of our annual results, we posted solid Revenue and EBITDA growth of 30% and 24%, respectively. In terms of our operating indicators of company-owned hotels, we maintained our RevPAR stable driven by a 6.4% increase in ADR which compensated a 4.6 percentage point decrease in occupancy. The lower occupancy is attributable to the inclusion of a significant amount of new rooms in the early stages of stabilization, combined with the consequences of the external factors mentioned in our 3Q17 report.

At the beginning of the year we closed an important acquisition for the Company, which was comprised of a 50% stake of two hotels in Los Cabos and Nuevo Vallarta, where we had no presence. Both locations are strategic as the growth projections of these destinations are very attractive and have solidified our portfolio with a wide footprint that now embraces all the main Resort destinations in Mexico. Both Krystal Grand Hotels are operating with 934 rooms.

Regarding other hotel openings, firstly, the opening of the Altitude Tower of the Krystal Grand Punta Cancun with 100 suites which were added to the 295 existing ones of the hotel. Secondly, we announced the opening of the Krystal Grand Suites Insurgentes property located on Insurgentes Sur. It has 150 long-stay suites including kitchenettes. In 2017 we also announced the signing various of a Management Contracts including the AC by Marriot Distrito Armida, Curio Collection Zacatecas and the Ibis Irapuato. Third-party hotels continue to significantly contribute to our results. In the first half of 2019 we plan on opening the Krystal Grand Insurgentes with 250 suites located in front of the World Trade Center in Mexico City.

Lastly, I would like to mention that none of these achievements would have been possible without the support of our dedicated employees, experienced management team and the confidence placed in us by our investors.

4Q17 Conference Call Details:

HOTEL will host its earnings webcast (audio + presentation) to discuss results:
Date: Friday, February 23, 2018
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 presentation and audio of the call, please visit https://hotel.adobeconnect.com/hotel/

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