MEXICO CITY, April 19, 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 first quarter (“1Q18”) ended March 31th, 2018. 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
- On February 23th, the Company announced its 2018 Guidance, anticipating: i) Total Revenue of Ps. 2,250 million, and ii) EBITDA of Ps. 803 million. This guidance was prepared using an average USD/MXN exchange rate of 19.00.
- 1Q18 EBITDA1 reached Ps. 225.6 million, a 49.8% increase compared to 1Q17 driven by revenue growth and efficiencies from operating leverage achieved in the quarter. 1Q18 EBITDA margin increased to 39.2%.
- 1Q18 Total Revenue reached Ps. 575.0 million, a 48.6% increase compared to 1Q17, driven by the following increases: i) 43.8% in Room Revenue, ii) 91.8% in Food and Beverages Revenue, and iii) 8.1% in Other Hotel Revenue, which more than offset a 27.7% decline in Third-party Hotels’ Management Fees.
- 1Q18 Net Income reached Ps. 204.9 million, a 10.8% increase compared to the Ps. 184.9 million to 1Q17. This increase was mainly due to higher operating income which was partially offset by higher income taxes. 1Q18 net income margin was 35.6%.
- 1Q18 Net operating cash flow was Ps. 195.7 million, an increase of 23.9% compared to the Ps. 157.9 million reported in 1Q17. This increase was driven by a higher EBITDA that more than compensated the exit of working capital due to the inclusion of Krystal Grand Los Cabos and Krystal Grand Nuevo Vallarta.
- Net Debt/EBITDA (LTM) ratio was 3.2x at the end of 1Q18. Operating cash flow in dollars represented 94.3% of total operating cash flow, thereby providing a natural hedge of the dollarized financial debt.
- HOTEL’s total portfolio at the end of 1Q18 reached 5,701 rooms in operation, a 11.2% increase compared to the 5,124 rooms at end of 1Q17.
- RevPAR2 for the Company-owned hotels decreased by 2.3% in 1Q18 compared to 1Q17, driven by a slight decrease in both Occupancy and ADR2 due to the inclusion of new properties in the initial stages of stabilization.
| First Quarter | 3 months ended March 31 | ||||||||||||
| Figures in thousands of Mexican Pesos | 2018 | 2017 | Var. | % Var. | 2018 | 2017 | Var. | % Var. | |||||
| Total Revenue | 574,968 | 387,041 | 187,928 | 48.6 | 574,968 | 387,041 | 187,928 | 48.6 | |||||
| EBITDA | 225,634 | 150,646 | 74,988 | 49.8 | 225,634 | 150,646 | 74,988 | 49.8 | |||||
| EBITDA Margin | 39.2% | 38.9% | 0.3 pt | 0.3 pt | 39.2% | 38.9% | 0.3 pt | 0.3 pt | |||||
| Operating Income | 171,359 | 110,336 | 61,023 | 55.3 | 171,359 | 110,336 | 61,023 | 55.3 | |||||
| Net Income | 204,949 | 184,926 | 20,023 | 10.8 | 204,949 | 184,926 | 20,023 | 10.8 | |||||
| Net Income Margin | 35.6% | 47.8% | (12.1 pt) | (12.1 pt) | 35.6% | 47.8% | (12.1 pt) | (12.1 pt) | |||||
| Operating Cashflow | 195,657 | 157,932 | 37,725 | 23.9 | 195,657 | 157,932 | 37,725 | 23.9 | |||||
| Occupancy | 68.7% | 70.3% | (1.5 pt) | (1.5 pt) | 68.7% | 70.3% | (1.6 pt) | (1.6 pt) | |||||
| ADR | 1,493 | 1,493 | (1) | (0.1) | 1,493 | 1,493 | (1) | (0.1) | |||||
| RevPAR | 1,026 | 1,049 | (24) | (2.3) | 1,026 | 1,049 | (24) | (2.3) | |||||
| 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:
This first quarter marked the beginning for a great 2018 for HOTEL; as the results achieved were in line with our expectations. In Mexico, the tourist activity continues to post robust growth with solid underlying fundamentals. We have seen an increase in both national and international travelers as reported in the public monthly airport data.
Moving on to our quarterly results, we achieved solid numbers: Revenue totaled Ps. 575.0 million and EBITDA was Ps. 225.6 million, up 49% and 50%, respectively, compared to the figures recorded in 1Q17. Regarding company-owned hotels, RevPAR decreased by 2.3%, due to a slight decrease in ADR and Occupancy due to the inclusion of new properties in the initial stages of stabilization.
A couple of weeks ago, we announced the opening of the expansion of Hilton Puerto Vallarta named “The Hacienda”. The expansion is “adults only” and has 192 suites. The investment in the project was in line with our budget of Ps. 520 million pesos and was inaugurated in the 1T18, as scheduled. In the first quarter, we also announced the signing of a new management contract for a third-party owned 4-star hotel, the Hyatt Place Aguascalientes with 144 rooms, located in Aguascalientes, Aguascalientes. With the incorporation of this property, we are reaching 12 hotels under a third-party Management Contract that have been added to the Company’s portfolio, clearly showing the confidence real estate investors put in the know-how, experience and dedication of HOTEL.
We feel comfortable achieving the estimates set out in our 2018 Guidance, in which we expect to post growth rates of 42% and 52% for Revenue and EBITDA, respectively. This growth will be largely fueled by the recently opened properties, including Krystal Grand Los Cabos, Altitude Tower of Krystal Grand Punta Cancun, “The Hacienda” of Hilton Puerto Vallarta, Krystal Grand Nuevo Vallarta and Krystal Grand Suites in Mexico City. It is important to emphasize that the “The Hacienda” at Hilton Puerto Vallarta operations will start contributing to results in the second quarter of this year.
HOTEL is on the right track to become the leading hotel company in Mexico. Our top management team and associates, which are recognized for their passion and commitment, combined with high efficiency levels and profitable growth will enable us to meet our goals. As always, we are thankful for the trust and support of our shareholders.
1Q18 Conference Call Details:
HOTEL will host its earnings webcast (audio + presentation) to discuss results:
| Date: | Friday, April 20, 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 Power Point presentation and the audio of the call, please visit our website www.gsf-hotels.com/investors | |||
Contact Information
Enrique Martínez Guerrero
CFO
+52 55 5261 0800
Maximilian Zimmermann
IR Director
+52 55 5261 4508