Mexico City, October 20th, 2025 – Promotora de Hoteles Norte 19, S.A.B. de C.V. (“Norte 19” or the “Company”) (BMV: HCITY) today announced its financial results for the third quarter of 2025, highlighting continued progress in executing its strategy focused on profitability, long-term value creation for shareholders, and the strengthening of its operational and financial structure.
The Company successfully completed the restructuring of its hotel operator, resulting in annual savings of approximately $130 million pesos while maintaining operational excellence across its hotel portfolio. As part of this process, Norte 19 also discontinued non-strategic projects and technology platforms, including Stack Up, reaffirming its focus on optimizing the hotel portfolio, improving profitability, and enhancing relationships with partners through closer communication and the development of joint growth initiatives.
As part of its divestment plan for non-strategic assets, the Board of Directors conducted a comprehensive review and instructed management to proceed with the sale of non- productive properties for an estimated $1.3 billion. Proceeds from these transactions will primarily be used to prepay debt, further strengthening the Company’s financial position and supporting free cash flow generation.
“We remain focused on improving our profitability and generating sustainable value. This strategy positions us to face the future with greater resilience while maintaining close relationships with our partners and investors,” said Eduardo Ymay, Chief Executive Officer of Norte 19.
Norte 19 continues to leverage its alliance with Marriott International, approving the migration of certain City Express Plus hotels to other Marriott brands that better align with each property’s category and potential, including Courtyard, Aloft, Moxy, and AC Hotels. With these transitions, the Company continues to advance its positioning as a multi-brand operator specializing in select-service hotels, offering a diversified and competitive portfolio. In line with this strategy, the Board also approved the necessary investments to ensure the portfolio remains in an optimal condition, enhancing guest experience and asset value.
The Development and Construction Division continues to show strong momentum, with 11 active projects in various stages—from concept design and advisory to construction oversight—under different hotel brands.
As part of recent changes in the financial area, Norte 19 announced the appointment of Jaime Martínez Téllez as Chief Financial and Administrative Officer (CFO). Jaime brings extensive experience in strategic planning, financial control, and investor relations, which will be key to advancing the Company’s efficiency and value creation strategy.
Financial Highlights
As a result of these actions, the Operator is expected to close the year with positive EBITDA, and for 2026, management projects an EBITDA margin between 17% and 20%, strengthening operating profitability and contributing meaningfully to consolidated cash flow generation.
During the third quarter, the operator recorded several non-recurring expenses, including: i) a $36 million peso write-off of certain technology investments within its venture capital fund; ii) a $50 million one-time charge associated with the corporate restructuring; and iii) a $52 million peso impairment charge related to the Stack Up platform.
On a consolidated basis, adjusted EBITDA for the quarter reached $238.0 million pesos, compared to $235.0 million pesos in the same period of 2024, representing a 1.2% year-over-year increase.
Revenues were affected by a reduction in the number of hotels under management. However, this did not have a material impact on EBITDA, as the divested properties had a limited contribution to the Company’s operating profitability.
Looking ahead, and as part of an ongoing modernization aligned with best corporate governance practices, the Board of Directors, following recommendations from the Shareholders’ Meeting, has commissioned an analysis for the implementation of a dividend policy and a comprehensive amendment to the Company’s bylaws, as well as the cancellation of approximately 35 million shares. These initiatives are expected to be executed during the first quarter of 2026.
With these actions, Norte 19 reaffirms its commitment to transparency, operational efficiency, and sustainable value creation for its investors.
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Investor Relations Contact Details
Héctor Vázquez
Corporate Finance, Treasury, and IR
Phone: +52 55-5249-8067
E-mail: hvazquez@norte19.com