Dear Shareholders:
We are pleased to announce that our Annual Shareholder’s Meeting is scheduled for next Thursday, April 25th. Your participation is highly encouraged, and we invite you to access all relevant information through the following link: https://norte19.com/en/investors/sustainability/corporate-governance
Furthermore, we wish to address inquiries raised during our 1Q24 conference call regarding cost reductions and EBITDA margins. The rise in operating costs primarily stems from fees paid by OpCo to Marriott following the sale of our brands that before the transaction were eliminated in our consolidation process. However, within the hotel operation, we are witnessing cost efficiencies driving margin expansions of approximately 70 basis points from 1Q23 vs 1Q24. All in all, despite cost increases, Average Daily Rates (ADRs) are outpacing inflation levels, indicating favorable performance trends. Please find below a comparative chart illustrating the aforementioned points.
Thank you for your continued support and participation.
Héctor Vázquez
Corporate Finance and IR
Phone: +52 55-5249-8067
E-mail: hvazquez@hotelescity.com