MEXICO CITY, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Mexico City, February 20, 2020 – Grupo Hotelero Santa Fe S.A.B. de C.V. (BMV: HOTEL) (“HOTEL” or the “Company”), announced its consolidated results for the fourth quarter (“4Q19”) and full-year ended December 31, 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.
|Fourth Quarter||12 months ended December 31|
|Figures in thousand Mexican pesos||2019||2018||Var.||% Var.||2019||2018||Var.||% Var.|
|EBITDA Margin||28.4%||31.9%||(3.5 pt)||(3.5 pt)||28.8%||32.7%||(3.9 pt)||(3.9 pt)|
|Net Income Margin||11.9%||3.1%||8.7 pt||8.7 pt||7.3%||12.9%||(5.6 pt)||(5.6 pt)|
|Occupancy||61.2%||57.5%||3.7 pt||3.7 pt||61.0%||61.5%||(0.5 pt)||(0.5 pt)|
|Note: operating figures include hotels with 50%+ ownership.|
Comments from the Executive Vice President
Mr. Francisco Zinser, stated:
2019 was a challenging year for the Mexican economy as a whole and, thus, for the tourism sector. Our annual results were below our expectations mostly due to external factors. 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 2018, driven by the combined effect of sargassum (brown algae) washing up along the beaches in Cancun and the Riviera Maya, and the perception of decreasing security in certain markets. However, tourist destinations in the Pacific region, such as Puerto Vallarta and Los Cabos, had positive results in part due to the favorable shift of travelers that have preferred these destinations versus the Mexican Caribbean due to the reasons previously mentioned. 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 third-party consultants and service providers who serve this segment.
We met our updated 2019 guidance for both Revenues and EBITDA. Providing more insight into our annual performance, results were also impacted by the aforementioned issues, combined with the performance of the Reflect Krystal Grand properties, which have been negatively affected by the same factors, weighing on our performance for the whole of the year. 2019 revenues were Ps. 2,237.9 million, up 8.4% compared to 2018; EBITDA, on the other hand, was Ps. 645.6 million, down 4.5% compared to 2018, 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 combined lower than expected ADR. Regarding Company-owned hotels, RevPAR was down 8.2%, due to a 7.4% decrease in ADR, combined with a 0.5 percentage point contraction in Occupancy.
As for management contracts, we added two hotels into our portfolio during 2019. First, the AC Hotel by Marriott Santa Fe with 168 rooms located in the Santa Fe district in Mexico City. Second, the Courtyard by Marriott Puebla with 154 rooms located in the city of Puebla, Puebla. Additionally, we will be operating the Breathless Tulum Resort & Spa, a Grand Tourism category resort with 300 rooms that is under construction. Lastly, we expect the construction of the Hyatt Regency Mexico City Insurgentes to resume soon.
To wrap up, I would like to mention that none of these achievements would have been possible without the support of our dedicated employees, experienced management team, and the confidence that you, our investors, have placed in us.
|4Q19 Conference Call Details:|
|HOTEL will host its earnings webcast (audio + presentation) to discuss results:|
|Date:||Friday, February 21, 2020|
|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 2019, the Company employed over 3,500 people and generated revenues of Ps. 2,238 million. For more information, please visit www.gsf-hotels.com
|Enrique Martínez Guerrero|
Chief Financial Officer
Investor Relations Director
1EBITDA is calculated by adding Operating Income, Depreciation and Total Non-Recurring Expenses
2Revenue per Available Room (“RevPAR”) and Average Daily Rate (“ADR”).
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