Hoteles City Express S.A.B. de C.V. (BMV:HCITY), announced its results for the fourth quarter (“4Q13”) and twelve month (“12M13”) periods ended December 31, 2013. These figures were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are presented in Mexican Pesos (“$”).
Financial and Operating Highlights (4Q13)
- Total Revenues reached $306.2 million, which represents an increase of 17.1% when compared to 4Q12 due mainly to an 11.1% growth in the number of Occupied Room Nights at the hotel chain level combined with a 3.4% improvement in Revenue per Available Room (“RevPAR”).
- Operating Profit totaled $49.0 million in 4Q13, up 53.6% when compared to 4Q12.
- EBITDA and Adjusted EBITDA were $98.3 million and $106.8 million, increasing 39.5% and 45.0%, respectively, when compared to 4Q12. EBITDA and Adjusted EBITDA margins came in at 32.1% and 34.9%, respectively.
- Net Income reached $28.1 million, 154.7% higher than 4Q12. Net margin was 9.2% in 4Q13.
- At the hotel chain level, in 4Q13, Average Occupancy Rate reached 57.6%, with an Average Daily Rate (“ADR”) of $713 and RevPAR of $410, both representing increases of 3.4% when compared to 4Q12.
- The number of hotels in operation at the chain level reached 82 at the end of the quarter, compared to 71 hotels in operation at the close of 4Q12. The number of rooms in operation as of the closing of December 31, 2013 totaled 9,326, 15.2% higher than the 8,092 reported at the close of the previous year.
- As of the closing of February 2014, the chain will have 84 hotels in operations with 9,559 rooms installed.
- Total Revenues for 12M13 reached $1,104.0 million, representing an increase of 18.4% when compared to 12M12 due to the 9.5% growth in the number of Occupied Room Nights at the hotel chain level, a 2.4% increase in RevPAR and greater Hotel Management activity.
- Operating Profit came in at $178.6 million during 12M13, up 45.2% when compared to 12M12.
- EBITDA and Adjusted EBITDA reached $342.2 million and $358.2 million, representing increases of 28.0% and 28.1%, respectively, when compared to 12M12. EBITDA and Adjusted EBITDA margins were 31.0% and 32.4%, respectively.
- Net Income was $83.7 million in 12M13, 227.2% higher than in 12M12, while the net margin for 12M13 reached 7.6%.
- At the hotel chain level, Average Occupancy Rate closed at 55.1%, with an ADR of $722 and RevPAR of $398, for increases of 5.6% and 2.4%, respectively.
Luis Barrios, Chief Executive Officer of Hoteles City, commented:
“I’m pleased to report our results for the fourth quarter and full year of 2013, which demonstrate a solid performance across both periods.
We reached our growth target by opening 11 hotels as of December 2013, and 2 additional hotels during the first weeks of 2014. As a result, in the last twelve months, Hoteles City was able to place into operation a total of 1,467 rooms within 13 new hotels.
Throughout 2013, we remained focused on the Mexican market, opening 12 new hotels in cities with high growth potential. We plan to continue focusing our growth in Mexico. Furthermore, we continue our process of expanding the chain outside of Mexico with the opening of our first hotel in Colombia, which initiated operations during the final weeks of 2013. With this opening, we reached a new milestone in our international development process, inaugurating our second hotel outside Mexico.
Our operating and financial results reflect, both, our accelerated growth profile as well as our disciplined cost and expense management which result in high productivity levels. At the close of 2013, we achieved 18.4% growth in Total Revenues and 28.1% higher Adjusted EBITDA. Our operating and EBITDA margins reflect the virtues of an efficient business model with high potential for generating attractive profitability levels.
In 2014 we will continue driving Hoteles City’s growth with the opening of 14 to 16 new hotels. To this end, we will launch the opening of units in several of the more dynamic economic centers in Mexico, taking advantage of the favorable performance expected for the country in the short and medium-term. The international development process will be maintained with initiation of construction of new hotels in Colombia and Chile.
Driven by the efforts of Hoteles City’s entire team, 2014 should be a year in which we expand our leadership in the limited-service hotel segment.”
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 more than 80 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”.
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