HOTEL reports 31% and 28% growth in Total Revenues and EBITDA respectively for 2018

Mexico City, MEXICO

MEXICO CITY, Feb. 21, 2019 (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 (“4Q18”) and full-year ended December 31st, 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.


  • 2018 EBITDA reached Ps. 675.8 million, slightly above our revised 2018 guidance, representing a 27.9% increase compared to 2017.
  • 2018 Total Revenues reached Ps. 2,064.9 million, slightly above our revised 2018 guidance, representing a 30.6% increase compared to 2017.
  • 4Q18 Total Revenue reached Ps. 542.7 million, a 23.0% increase compared to 4Q17, driven by the following increases: i) 9.7% in Room Revenue, ii) 36.4% in Food and Beverages (mainly all-inclusive), iii) 76.7% in Other Hotel Revenue, and iv) 17.2% in Third-party Hotels’ Management Fees.
  • 4Q18 EBITDA1 reached Ps. 173.3 million, a 18.2% increase compared to 4Q17 driven by revenue growth. 4Q18 EBITDA margin was 31.9%.
  • We posted a 4Q18 Net Income of Ps. 17.1 million. This was a result of higher income from operations, lower FX losses, lower financing costs and lower income taxes compared to 4Q17.
  • 4Q18 Net Operating Cash Flow was Ps. 167.5 million, an increase of 11.9% compared to the Ps. 149.7 million reported in 4Q17. This increase was mainly due to higher net income.
  • Net Debt/EBITDA (LTM) ratio was 4.1x at the end of 4Q18. Operating cash flow in dollars in 4Q18 represented 79.7% of total operating cash flow, thereby maintaining a natural hedge of the dollarized financial debt.
  • HOTEL’s total portfolio at the end of 4Q18 reached 6,808 rooms with 27 hotels, a 10.9% increase compared to the 6,137 rooms at end of 4Q17.
  • RevPAR2 for the Company-owned hotels declined by 9.0% in 4Q18 compared to 4Q17, due to a 3.5 percentage points decrease in occupancy combined with a decrease of 3.5% in ADR2. Lower occupancies were driven by the internal and external factors mentioned in our 3Q18 report.
  • The Company announces its 2019 guidance. 2019e Total Revenue: Ps. 2,330 million (+13% vs 2018). 2019e EBITDA: Ps. 780 million (+15% vs 2018). This guidance has been prepared using an average exchange rate of US Dollar/Mexican Peso of US$: $19.00.
 Fourth Quarter 12 months ended December 31
Figures in thousand Mexican Pesos20182017Var.% Var. 20182017Var.% Var.
Total Revenue  542,741  441,308101,43323.0  2,064,941 1,581,496483,44530.6
EBITDA  173,338  146,68326,65518.2   675,794  528,200147,59427.9
EBITDA Margin31.9%33.2%(1.3 pt)(1.3 pt) 32.7%33.4%(0.7 pt)(0.7 pt)
Operating Income  111,484  78,50132,98342.0   450,554  335,065115,49034.5
Net Income  17,076 (116,838)133,914NA   267,337  187,38279,95542.7
Net Income Margin3.1%(26.5%)29.6 pt29.6 pt 12.9%11.8%1.1 pt1.1 pt
Operating Cashflow  167,533  149,65317,88011.9   668,569  518,491150,07828.9
Occupancy57.5%61.0%(3.5 pt)(3.5 pt) 61.5%63.6%(2.2 pt)(2.2 pt)
ADR  1,402  1,452(50)(3.5)   1,422  1,404181.3
RevPAR  806  886(80)(9.0)   875  893(18)(2.0)
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 Executive Vice President

Mr. Francisco Zinser, stated:

2018 was a solid growth year for the company, and the fourth quarter was no exception. Tourism in Mexico grew at a lower pace than in the past years, but still has solid underlying fundamentals. In 2018, the World Travel Organization posted that Mexico reached 6th place for the country that received most international travelers, marking a new historical milestone. Moreover, international travelers in Mexico increased 5.5%, reaching 41 million. Also, income from international tourists increased 5.5% to US$ 22 billion. This, despite the sector being affected by an economic slowdown attributed to the election year in the country and by the abnormal amount and duration of sargassum (brown algae) in Cancun and Mayan Riviera.

In terms of our annual results, we posted solid Revenue and EBITDA growth of 31% and 28%, respectively. Regarding our operating indicators of company-owned hotels, our RevPAR contracted 2.0% due to a 2.1 percentage point decrease in occupancy which was partially compensated by a 1.3% increase in ADR. The lower occupancy is attributable to the internal and external factors mentioned in our 3Q18 report.

This year we announced the signing of a strategic alliance with AMResorts. With this strategic alliance, a transitional co-branding was implemented between Reflect® Resorts & Spas brand and Krystal Grand® brand for the hotels in Punta Cancun, Los Cabos and Nuevo Vallarta that altogether, represent 1,329 rooms. With this alliance we expect to significantly increase sales of our three hotels in the following years, achieve a higher participation of US dollar-denominated sales in total revenue, as well as access to more direct, diversified and profitable distribution channels. We began the integration of these hotels in 3Q18, where we underestimated the short-term effect, however we have started to see improved operating trends and are convinced it was the right decision for the medium- and long-term.

During 2018, we also added 4 hotels to our portfolio and rebranded two of our properties. First, we acquired 50% of a grand-tourism hotel in Leon and some months later we announced the signing of a franchise agreement with Hyatt for this property which will soon be the Hyatt Centric Campestre Leon. We also announced the signing of a strategic alliance with a group of private investors and AMResorts with the objective to develop the Breathless Tulum Resort & Spa, a Grand Tourism category resort with 300 rooms where we will have a 25% equity stake. In terms of Management contracts, we added the DoubleTree by Hilton Toluca and the Hyatt Place Aguascalientes, which will both open in 1Q19. And lastly, we announced the signing of a second franchise agreement with Hyatt for Hyatt Regency Insurgentes Mexico City (previously Krystal Grand Insurgentes), which is expected to open in Q2 2020.

In July, we announced two Executive Title Changes. First, my appointment as Executive Vice President, focusing on expansion, development and strategy for the Company, as well as corporate finance and investor relations. Second, the appointment of Francisco Medina Elizalde as CEO of the Company, who will continue overseeing the Company’s operation.

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.

4Q18 Conference Call Details: 

HOTEL will host its earnings webcast (audio + presentation) to discuss results:

Date: Friday, February 22, 2019
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 

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 2018, the Company employed over 3,200 people and generated revenues of Ps. 2,065 million. For more information, please visit


Contact Information

Enrique Martínez Guerrero
+52 55 5261 0800

Maximilian Zimmermann
IR Director
+52 55 5261 4508