Welcome!

News Feed Item

Hoteles City Announces First Quarter 2014 Results

MEXICO CITY, April 23, 2014 /PRNewswire/ -- Hoteles City Express S.A.B. de C.V. (BMV: HCITY) ("Hoteles City" or "the Company"), the leading limited-service hotel chain in Mexico, today announced its financial results for the first quarter ended March 31, 2014 ("1Q14").  These figures were prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Mexican Pesos ("$").

Financial and Operating Highlights (1Q14)

  • Total Revenues grew 29.4% year-over-year ("YoY") to $311.2 million, driven by a 23.9% increase in the number of Occupied Room Nights ("ORN") at the hotel chain level and a 5.2% improvement in Revenue per Available Room ("RevPAR").
  • EBITDA increased 32.0% YoY to $95.7 million, while EBITDA margin expanded by 60 basis points ("bps") to 30.7%. Adjusted EBITDA climbed 30.8% YoY to $99.5 million, while Adjusted EBITDA margin improved by 40 bps to 32.0%.
  • Net Income rose 54.9% YoY to $16.6 million, while Net Income margin widened by 80 bps to 5.3%.
  • At the hotel chain level, Average Occupancy Rate reached 55.2%, with an Average Daily Rate ("ADR") of $714, and RevPAR grew 5.2% YoY to $395. For Established Hotels, Average Occupancy Rate reached 59.7%, with an ADR of $701, and RevPAR grew 5.8% YoY to $419.
  • The number of hotels in operation at the chain level reached 85 at the end of the quarter, an increase of 13 units compared to 72 hotels in operation at the close of 1Q13. The number of rooms in operation at the end of 1Q14 totaled 9,670, 17.9% higher than the 8,201 rooms in operation at the close of the same quarter last year.

 

Financial and Operating Highlights

1Q14

1Q13

1Q14 vs 1Q13

% Variation

Operating Information for the Chain




Number of Hotels at the End of the Period

85

72

18.1%

Number of Rooms at the End of the Period

9,670

8,201

17.9%

Number of Installed Room Nights

846,882

732,429

15.6%

Number of Occupied Room Nights

467,901

377,598

23.9%

Average Occupancy Rate (%)

55.2%

51.6%


ADR ($) 

714

728

-1.9%

RevPAR ($) 

395

375

5.2%





Consolidated Financial Information (thousands of pesos)



Total Revenues

311,151

240,401

29.4%

Operating Profit

45,548

35,546

28.1%

Operating Margin (%)

14.6%

14.8%


Adjusted EBITDA

99,510

76,056

30.8%

Adjusted EBITDA Margin (%)

32.0%

31.6%


EBITDA

95,670

72,480

32.0%

EBITDA Margin (%)

30.7%

30.1%


Net Income

16,644

10,745

54.9%

Net Income Margin (%)

5.3%

4.5%



Adjusted EBITDA = Operating income + depreciation + amortization + non-recurring expenses (pre-opening expenses for new hotels).

 

Comments from the Chief Executive Officer

Luis Barrios, Chief Executive Officer of Hoteles City, commented:

"Our operating and financial results for the first quarter of 2014 continue to demonstrate rapid growth, as well as solid levels of profitability, which is particularly positive in the context of a Mexican economy that remains anemic.  In the coming months, we anticipate an improvement in the country's main economic indicators, which will provide a positive backdrop for Hoteles City to build on its trend of consistently delivering favorable results.

During the first quarter of 2014, we completed 3 hotels in Mexico. The first two in Ciudad del Carmen under our City junior brand, thus successfully finalizing our 2013 Development Plan.  At the same time, we completed the opening of City express Tehuacan, our fifth hotel in the State of Puebla and the first opening under our 2014 Development Plan. 

Our strong financial and operating performance reflects our innovative business model and focused growth strategy, complemented by a strict emphasis on the management of costs and expenses, resulting in high levels of productivity.  In 1Q14 we achieved year-over-year increases of 29.4% in total revenue and 30.8% in adjusted EBITDA.  Our operating profit margins in the quarter remain robust, reinforcing the virtues of our efficient business model.

In the following months we will continue to drive the profitable growth of Hoteles City, and expect to reach 100 hotels in operation by the end of 2014."

For a full version of this earnings release with complete financial statements, please visit: http://www.hotelescity.com/en/investors.aspx.

1Q14 Conference Call Details:

Hoteles City will host a conference call to discuss these results:

Date:              Thursday, April 24, 2014
Time:             11:00 a.m. Eastern Time / 10:00 a.m. Mexico City Time
Dial-in:           1-888-587-0615 (from within the U.S.) / 1-719-457-2661 (from outside the 
                      U.S.) 001-800-514-1067 (toll-free in Mexico)
Passcode:      1738369
Webcast:        http://public.viavid.com/index.php?id=108401

Conference Replay (available for 12 days):
Dial 1-877-870-5176 or 1-858-384-5517
Passcode is: 1738369

About Hoteles City:

Hoteles City 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 specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited- service hotel chain geared towards the domestic business traveler.  With 85 hotels in operation located throughout Mexico, Costa Rica and Colombia, Hoteles City operates three distinct brands: City express, City Suites and City junior to serve different segments of its target market. In June 2013, Hoteles City successfully completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY".

HCITY is covered by the following financial institutions and analysts: Bank of America Merrill Lynch (Carlos Peyrelongue), Citigroup (Dan McGoey), Morgan Stanley (Rafael Pinho), Actinver (Pablo Duarte) y J.P. Morgan (Adrian Huerta).

For more information please visit our Investor Relations website: www.hotelescity.com/en/investors.aspx

Disclaimer:

The information presented in this report contains certain forward-looking statements regarding Hoteles City Express, S.A.B. de C.V. and its subsidiaries ("the Company"), which are based on the understanding of its management as well as assumptions 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 and actual achievements of the Company to be materially different from those expressed or implied by these forward-looking statements, including among others, changes in the general economic or political conditions, government and commercial changes at the global level and in the countries in which the Company operates, changes in interest rates and inflation, exchange rate volatility, changes in the business strategy and various other factors.  If one or more of these uncertainty factors come to be or if the assumptions utilized are incorrect, actual results can differ materially from those expressed as forward-looking statements, estimated or expected.  The Company expressly disclaims any obligation or undertaking to release any update of or revisions to any forward looking statements in this presentation.

Investor Relations Contacts:

In Mexico City:
Abelardo Loscos
Investor Relations Director
Tel:  + (5255) 5249-8050  ext. 1810
E-mail: [email protected]

In New York:
Kalle Ahl / Barbara Cano
Breakstone Group
Tel: + (646) 452-2330
E‐mail: [email protected]  

SOURCE Hoteles City Express, S.A.B. de C.V.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.