MEXICO CITY, July 20, 2016 /PRNewswire/ — Hoteles City Express S.A.B. de C.V. (BMV: HCITY) (“Hoteles City Express” or “the Company”), announced today its results for the second quarter of 2016 (“2Q16”). The figures have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are presented in Mexican Pesos (“$”).
Financial and Operating Highlights (2Q16)
Comments by Luis Barrios, Chief Executive Officer of Hoteles City Express:
“Hoteles City Express key results for the second quarter of 2016 affirm a positive trend, reflected in a 7.1% RevPAR increase, a 16.7% rise in Revenues, and Adjusted EBITDA margin of 33.6%. In this regard, Established Hotels- or those with at least 36 months in operation- reported 68.2% occupancy at the end of the quarter, with growth in ADR and RevPAR of 8.1% and 9.6%, respectively.
An adequate geographical, industrial and commercial diversification enables us to maintain consistent growth in an economy that is moving in divergent directions across regions. For example, we are achieving record occupancy levels at hotels located in the northern maquila corridor, cities that are state capitals and larger metropolitan markets, with double-digit increases in RevPAR. By contrast, hotels in the Gulf of Mexico and those within the hydrocarbon extraction zone are maintaining occupancy figures below the Chain average. Hotels in large and medium-sized cities, as well as those in state capitals, are seeing significant rises in ADR due to a larger number of consumers seeking high quality accommodation.
Regarding productivity, Hoteles City Express is maintaining discipline in cost control and expenses. In 2Q16 we achieved an Adjusted EBITDA margin of 33.6%, which reflects the establishment of 11 new hotels in the last twelve months. Towards the end of this year, we will be strengthening our expense control, both in our hotels and operating company, with the aim of profitably absorbing the opening of 12 to 16 new hotels over the remainder of 2016.
Our development plan and new property openings continue on schedule. We currently have 111 hotels in operation, and have achieved our goal for new openings in the first half of the year. With the support of an extraordinary team that specialize in hotel development, we are maintaining strict oversight over all phases of construction, equipment and opening for new units. Our goal of having between 123 and 127 hotels by the end of 2016 remains intact.
Everyday we are progressing to position Hoteles City Express’s reputation as a first-rate company in the lodging & accommodation industry, characterized by modernity, innovation, warmth and service excellence. At the same time, we are focused on ensuring our robust commercial platform incorporates the latest technology, providing superior service for guests whenever they need us.”
Conference Call Details:
Hoteles City Express will host a conference call to discuss these results
Conference Replay will be available for 30 days:
U.S.: 1-877-344-7529/ International: 1-412-317-0088
About Hoteles City Express:
Hoteles City Express 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 Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 111 hotels located in Mexico, Costa Rica and Colombia, Hoteles City Express operates four distinct brands: City Express, City Express Plus, City Express Suites and City Express Junior, to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol “HCITY;” furthermore, in October of 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels in the short- and medium-term.
HCITY is covered by the following financial institutions and analysts:
Actinver (Pablo Duarte), Bank of America Merrill Lynch (Carlos Peyrelongue), Citigroup (Dan McGoey), ITAU BBA (Enrico Trotta), J.P. Morgan (Adrián Huerta), Morgan Stanley (Nikolaj Lippman), Santander (Cecilia Jiménez), Signum Research (Armando Rodriguez), and UBS (Marimar Torreblanca).
For further information, please visit our website: www.cityexpress.com/en/investors
SOURCE Hoteles City Express S.A.B. de C.V.