MEXICO CITY, Oct. 25, 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 third quarter (“3Q18”) ended September 30th, 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.
|Third Quarter||9 months ended September 30|
|Figures in thousand Mexican Pesos||2018||2017||Var.||% Var.||2018||2017||Var.||% Var.|
|EBITDA Margin||30.3%||31.5%||(1.2 pt)||(1.2 pt)||33.0%||33.5%||(0.5 pt)||(0.5 pt)|
|Net Income Margin||25.9%||11.7%||14.2 pt||14.2 pt||16.4%||26.7%||(10.2 pt)||(10.2 pt)|
|Occupancy||56.0%||61.9%||(5.9 pt)||(5.9 pt)||63.1%||64.7%||(1.7 pt)||(1.7 pt)|
|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:
HOTEL posted solid results in the nine months of the year, although Revenue and EBITDA growth rates ended below expectations. Top line for the third quarter came in lower than expected, mainly due to internal and circumstantial external factors. The most important effect came from the change of model and connectivity with AMResorts, which had a larger effect than we originally expected with our domestic market. When we say, “change of model”, we mean that since July, AMResorts is responsible for the top line (commercialization, sales and marketing) of the Reflect Krystal Grand properties in Cancun, Los Cabos and Nuevo Vallarta with an exclusively all-inclusive model. Currently, we are in the integration process with AMResorts and expect to see positive effects of the co-branding in the coming winter season. I would like to highlight that our decision to sign a strategic alliance with AMResorts gives the Company higher growth on international sales, and therefore, a higher dollar-denominated sales percentage, and will also give us access to more direct, diversified and profitable distribution channels. We made the change in the season where less international travelers visit the country to integrate the new model and systems to limit the impact. We underestimated the short-term effect but are convinced it was the right decision for the medium and long-term.
In terms of the circumstantial external factors, we would like to highlight, groups & conventions, sargassum and security issues in some destinations. The first one is related to the economic slowdown attributed to the election year in Mexico where most companies are under a tight budget and have not invested in group & convention business trips, which is a relevant segment in our business. On the other hand, the abnormal amount and duration of sargassum (brown algae) has affected us more than we anticipated in Cancun. We foresee that these circumstantial external factors should be mostly temporary in nature. In terms of our margins, we were affected negatively by important incremental costs in electricity which were partially compensated by our cost containment efforts.
Due to the previously mentioned internal and external factors which were mostly unpredictable, we are adjusting our guidance in revenues and EBITDA to Ps. 2,010 million and Ps. 670 million respectively, which implies a 27% growth rate in both lines for 2018 compared to 2017.
In relation to the Tourism sector in Mexico, according to figures from the Mexican Institute of Statistics, Geography and IT (INEGI), Mexico’s international visitors increased 7% and their spending increased 4% in the first eight months of the year compared to the same period of 2017. This marks a healthy growth rate, but below what we saw in the last 5 years which is a natural consequence of the accelerated historical growth. On the other hand, this quarter Mexico gained two positions reaching the 6th most visited country in the world according to the World Tourism Organization.
Moving on to our quarterly results, Total Revenue was Ps. 475.1 million and EBITDA was Ps. 143.7 million, up 24% and 19%, respectively, compared to the figures recorded in 3Q17. Regarding company-owned hotels, RevPAR decreased by 6.0%, driven by a 5.9 p.p. decrease in Occupancy which was which was partially offset by a 3.9% increase in ADR.
This quarter we also were proud to announce one acquisition and one operating contract. First, we announced the signing of a contract to acquire 50% of the Cleviá Grand Leon hotel for Ps.128 million. The property is a 5-star hotel located in Leon, Guanajuato with 140 rooms. Second, we announced the signing of a Management Contract for a 4-star hotel, the DoubleTree by Hilton Toluca with 142 rooms located in the industrial part of Toluca, Estado de Mexico.
At HOTEL, we remain committed to becoming the leading hotel company in Mexico. The extraordinary management team and associates we have assembled and the strategy we have outlined will allow us to continue growing efficiently and profitably in the long run. As always, we are thankful for the trust and support of our shareholders.
|3Q18 Conference Call Details: |
|HOTEL will host its earnings webcast (audio + presentation) to discuss results:|
|Date:||Friday, October 26, 2018|
|Time:||11:00 a.m. Mexico City Time|
12:00 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|
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 2017, the Company employed over 3,200 people and generated revenues of Ps. 1,582 million. For more information, please visit www.gsf-hotels.com
|Enrique Martínez Guerrero|
Chief Financial Officer
Investor Relations Director
|Legal Note on Forward-Looking Statements:|
The information provided in this report contains certain forward-looking statements and information related to Grupo Hotelero Santa Fe, S.A.B. de C.V. and its subsidiaries (jointly “Grupo Hotelero Santa Fe”, “HOTEL”, or the “Company”) which are based in the understanding of its managers, as well as in assumptions and information currently available for the Company. Such statements reflect the current view of Grupo Hotelero Santa Fe in regard to future events subject to a number of risks, uncertainties and assumptions. Several features may cause that the results, performance or current achievements of the Company may differ materially with respect to future results, performance or attainments of Grupo Hotelero Santa Fe that may be included, expressly or implied within such statements in regard to the future, including among others, alterations in the economic general conditions and/or politics, governmental and commercial changes globally or within the countries in which the Company has any business interests, changes in the interests rates and inflation, exchange rates volatility, changes in the demand and regulations of the products marketed by the Company, changes in the price of raw materials and other goods, changes in the business strategies and several other features. If one or more these of risks or uncertainties are materialized, or if the assumptions used result to be incorrect, the real results may materially differ from those described herein as anticipated, believed, expected or envisioned. Grupo Hotelero Santa Fe undertakes no obligation to update or revise any forward-looking statements.