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
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
SYS-CON Events announced today that Tintri, Inc, a leading provider of enterprise cloud infrastructure, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Tintri offers an enterprise cloud platform built with public cloud-like web services and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds – to build agile development environments...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...