Hoteles City Express Reports 10.2% Chain-wide Growth in RevPar and 21.3% Growth in Adjusted EBITDA for Q1 2015

Total revenues came to $376.4 million, an increase of 21.0% over the same period in 2014, mainly due to a 19.9% rise in Occupied Room Nights at the Chain level, combined with growth of 10.2% in Revenue per Available Room.

Hoteles City Express S.A.B. de C.V. (BMV: HCITY), announced its results yesterday for the first quarter (“1Q15”) of 2015.  The figures have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are presented in Mexican Pesos (“$”).

Financial and Operating Highlights (1Q15)

  • Total revenues came to $376.4 million, an increase of 21.0% over the same period in 2014, mainly due to a 19.9% rise in Occupied Room Nights at the Chain level, combined with growth of 10.2% in Revenue per Available Room (“RevPAR”).
  • Operating Income was $58.6 million in 1Q15, an increase of 28.6% over the same quarter of the prior year.
  • EBITDA and Adjusted EBITDA were $118.8 million and $120.7 million respectively, increases of 24.1% and 21.3%, over the same period a year earlier. EBITDA margin and Adjusted EBITDA margin for the period were 31.6% and 32.1%, respectively.
  • Net Income for the period rose to $45.2 million, an increase of 171.4% over the 1Q14. Net Income Margin came to 12.0% for the quarter.
  • At the Chain level, occupancy for 1Q15 reached 57.1%, 185 basis points (“bps”) ahead of the same period a year earlier. Average Daily Rate (“ADR”) and RevPAR showed increases of 6.6% and 10.2% over the prior corresponding period, at $762 and $435 respectively.
  • At the close of the quarter, the Chain was operating 96 hotels, a gain of 11 new units compared to 85 hotels at the close of the same period in 2014. The number of rooms in operation in 1Q15 was 10,929, a gain of 13.0% compared to the 9,670 rooms that were operating at the close of 1Q14.

Operating and Financial Highlights



1Q15 vs 1Q14

% Change

Operating Statistics for the Chain

Number of Hotels at the End of the Period




Number of Rooms at the End of the Period




Number of Installed Room Nights




Number of Occupied Room Nights




Average Occupancy Rate (%)



185 pbs

ADR ($) 




RevPAR ($) 




Consolidated Financial Information (Thousands of Pesos)

Total Revenues




Operating Profit




Operating Margin (%)



93 pbs

Adjusted EBITDA




Adjusted EBITDA Margin (%)



9 pbs





EBITDA Margin (%)



81 pbs

Net Income




Net Income Margin (%)



665 pbs

Adjusted EBITDA = Operating Income + depreciation + amortization + non-recurring expenditures (pre-opening expenditures for new hotels).

Luis Barrios, Chief Executive Officer of Hoteles City Express, commented:

“We are proud to announce our results for the first quarter of 2015, which show double digit growth in RevPAR, Revenues, Operating Income, Adjusted EBITDA and Net Income.  Importantly, the strengthening trend in the Chain’s key metrics of occupancy and rate continued during the period.  Looking ahead, we are focused on building upon the positive track record of our key operating metrics and reaching the goals outlined for our development plan and new hotel openings.

During the quarter, Hoteles City Express remained positioned as the leading hotel chain in Mexico’s limited service segment, with 96 hotels in operation and a development plan for 18 to 20 new hotels over the course of the year.  We hosted more than half a million guests throughout 29 states and 58 cities in Mexico, as well as in Costa Rica and Colombia.

Despite an economic backdrop characterized by uncertainty, subdued expectations for growth in Mexico and high volatility in main economic indicators, Hoteles City Express is presenting record operating figures.  Operating revenues and results continue on the right path, with growth in excess of 20%, and an Adjusted EBITDA margin of 32.1% for the quarter.  This is significant given that the first quarter of the year has the lowest occupancy rates due to seasonality, in addition to the impact of new hotel openings in the final months of 2014. 

We remain focused on expanding our installed capacity through the execution of our development plan and we continue to acquire land at sites where we see long-term growth potential, where our business model can meet the needs of travelers looking for a high price/ value ratio. 

Proudly, we also announce that in March, we were recognized by the CEMEFI with the Socially Responsible Company award, the result of various initiatives that the Company has been implementing in connection with sustainability and social responsibility. 

We continue working to strengthen our competitive position and offer our shareholders an investment alternative for profitable growth and exposure to the entire value chain of the hotel industry.”

About Hoteles City Express:

Hoteles City Express is considered the leading and fastest-growing limited-service hotel chain 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 98 hotels in operation located throughout Mexico, Costa Rica and Colombia, Hoteles City Express operates four distinct brands: City Express, City Express Plus, City Express Suites and City Express Junior 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 October 8, 2014, Hoteles City Express completed a subsequent public offering of stock with the aim of accelerating its growth in new hotels in coming years.

HCITY is covered by the following financial institutions and analysts: Bank of America Merrill Lynch (Carlos Peyrelongue), Citigroup (Dan McGoey), Morgan Stanley (Rafael Pinho), Actinver (Pablo Duarte) y J.P. Morgan (Adrián Huerta), Vector Análisis (Marco Montañez), Santander (Pedro Balcao)and Signum Research (Armando Rodriguez)