MEXICO CITY, Oct. 24, 2019 (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 (“3Q19”) ended September 30, 2019. 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||2019||2018||Var.||% Var.||2019||2018||Var.||% Var.|
|EBITDA Margin||27.5%||30.3%||(2.8 pt)||(2.8 pt)||29.0%||33.0%||(4.0 pt)||(4.0 pt)|
|Net Income Margin||(5.8%)||25.9%||(31.7 pt)||(31.7 pt)||5.8%||16.4%||(10.6 pt)||(10.6 pt)|
|Occupancy||57.3%||56.0%||1.3 pt||1.3 pt||60.9%||63.1%||(2.2 pt)||(2.2 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:
2019 has been a tough year for the Mexican tourism sector in general, including us. Our quarterly results were below our expectations due to external factors. In Mexico, tourist activity at both resort and urban destinations continued to show softer dynamics. At resort destinations, the main headwind was the slowdown in international tourism that began at the end of last year, driven by the combined effect of perception of decreased security in certain markets, and sargassum (brown algae) washing up along the beaches in Cancún and the Riviera Maya. However, tourist destinations in the Pacific region, such as Puerto Vallarta and Los Cabos, had favorable results. Regarding urban destinations, the slowdown in economic activity continued to affect booking activity in several segments, including meetings and conventions, corporate accounts, and government accounts. Keep in mind that this last item includes not only government accounts, but all the third-party consultants and service providers that cater to this segment.
Providing more insight into our quarterly performance, results were impacted by the aforementioned items, combined with the maturation curve of the Reflect Krystal Grand properties, which have been negatively affected by the same factors, weighing on our performance. Quarterly revenues were Ps. 507.8 million, up 6.9% compared to 3Q18. 3Q19 EBITDA, on the other hand, was Ps. 139.5 million, down 2.9% compared to 3Q18 mainly due to lower top line growth, coupled with lower-than-expected results at Reflect Krystal Grand properties. This affected our margins, as this brand has higher standards and therefore higher operating costs. Regarding Company-owned hotels, RevPAR decreased by 6.3%, due to an 8.4% decrease in ADR, which was partially offset by a 1.3 percentage point expansion in Occupancy.
Due to the previously mentioned factors, which were mostly unpredictable, we are adjusting our guidance in revenues and EBITDA to Ps. 2,200 million and Ps. 645 million, respectively, implying a 6.5% growth rate in revenues and a 4.6% contraction in EBITDA. We believe this guidance more accurately depicts the reality of Mexico’s tourism sector.
In order to strengthen our balance sheet and lower the amount of Company-owned assets whose results are not consolidated in our financial statements, we are announcing the divestment from our stake of Ps. 88 million in the Breathless Tulum Resort & Spa. However, please note that our management contract for this hotel remains in place.
HOTEL is on the right track to become the leading hotel company in Mexico. Our management team and associates, who are recognized for their passion and commitment, combined with the Company’s high efficiency levels and profitable growth, will enable us to meet our goals. As always, we are thankful for the trust and support of our shareholders.
During 3Q19, and as of the date of this report, HOTEL’s recent developments included:
|3Q19 Conference Call Details:|
|HOTEL will host its earnings webcast (audio + presentation) to discuss results:|
|Date:||Friday, October 25, 2019|
|Time:||12:00 p.m. Mexico City Time|
|1:00 p.m. New York Time|
|To participate in the conference call and Q&A session please dial:|
|Telephone:||US: 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 2018, the Company employed over 3,500 people and generated revenues of Ps. 2,065 million. For more information, please visit www.gsf-hotels.com
|Enrique Martínez Guerrero||Maximilian Zimmermann|
|Chief Financial Officer||Investor Relations Director|
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