Hoteles City Express Announces First Quarter 2024 Results

Mexico City, April 17th, 2024 – Hoteles City Express S.A.B. de C.V. (BMV: HCITY) (“Hoteles City Express” or “The Company”), releases its results for the first quarter of 2024 (“1Q24”). Accounting figures have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are presented in Mexican Pesos (“$”).

Financial and Operating Highlights (1Q24)

  • At the portfolio level, the Average Daily Rate (“ADR”) increased by 7.8% and the Revenue Per Available Room (“RevPAR”) increased by 9.4%, compared to 1Q23, reaching $1,291 and $699 pesos, respectively. The occupancy rate was 54.1%.

  • Total revenue reached $924.8 million; a 10.1% increase compared to the same quarter of 2023.

  • Operating income reached $114.0 million in 1Q24, compared to $159.8 million in the same quarter of last year. The decrease in operating profit was due to an increase in hotel operating expenses, resulting from higher payroll costs from hiring more staff for the hotels, along with a reduction in revenue from the Operator.

  • EBITDA and Adjusted EBITDA were $224.8 million and $225.1 million, respectively, in comparison to $263.7 million and $265.7 million in 1Q23. Adjusted EBITDA decreased 15.3% from the previous year with a margin of 24.3% for the quarter. In 1Q23, the Company continued to receive revenues from fees charged by the brands.

  • Net Income for the period registered a loss of $33.3 million compared to a loss of $49.2 million in the same quarter of 2023.

  • At the end of the quarter, the portfolio operated 152 hotels, the same number of hotels as in the same quarter of the previous year. There were 17,503 rooms in operation during 1Q24, which was 16 more than the 17,487 rooms in operation at the end of 1Q23.

 

Miranda Newswire – Full Press Release: Download PDF

 

Investor Relations Contact Details

Héctor Vázquez
Corporate Finance and Investor Relations
Phone: +52 (55) 5249 8067
E-mail: hvazquez@hotelescity.com 

Ana Lucía Sors
Miranda IR
Phone: +52 (833) 293 4232
 
About Hoteles City Express
Hoteles City Express considers itself to be the leading owner, operator, and developer of limited-service hotels 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 152 hotels located in Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro, 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, on September 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels over the next few years. In 2021, the process of increasing equity capital was carried out through the issuance of ordinary shares for an approximate amount of $290.0 million pesos. Additionally, in 2023, Hoteles City announced the start of a Strategic Relationship with Marriott International, involving the sale of its 5 brands for $100.0 million dollars.
Disclaimer/Forward-Looking Statements
The information presented in this report contains certain forward-looking statements and information regarding Hoteles City Express, S.A.B. de C.V. and its subsidiaries (jointly, “the Company”), which are based on the understanding of its management, as well as assumptions and information currently available to the Company. These statements reflect the Company’s current vision regarding future events and are subject to certain risks, factors of uncertainty and assumptions. Many factors may cause the results, performance or current achievements of the Company to be materially different with respect to any future result, performance or accomplishment of the Company that might be included, expressly or implicitly, within such forward-looking statements, including, among other things: changes in general economic and/or political conditions, governmental and commercial changes at the global level and in the countries in which the Company does business, changes in interest rates and inflation, exchange rate volatility, changes in business strategy and various other factors. If one or more of these risks or uncertainty factors should materialize, or if the assumptions used prove to be incorrect, actual results could differ materially from those described herein as anticipated, estimated or expected. The Company does not intend to assume, and does not assume any obligation whatsoever to update these forward-looking statements.

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