HOTEL reports financial and operational results for 2Q20
MEXICO CITY, July 23, 2020 (GLOBE NEWSWIRE) — Grupo Hotelero Santa Fe S.A.B. de C.V. (BMV: HOTEL) (the “HOTEL” or the “Company”), announced its consolidated results for the second quarter (“2Q20”) ended June 30, 2020. Figures are expressed in Mexican pesos, are unaudited and are in accordance with International Financial Reporting Standards (“IFRS”) and may vary due to rounding.Highlights2Q20 EBITDA1 was negative Ps. 86.7 million, compared to Ps. 134.2 million in 2Q19, due to the COVID-19 pandemic.2Q20 Total Revenues were Ps. 15.5 million, down 97.1% compared to 2Q19, due to the following decreases: i) 96.9% in Room Revenue, ii) 98.5% in Food and Beverages Revenue, iii) 93.3% in Other Hotel Revenue, and iv) 94.7% in Third-Party Hotels’ Management Fees.In 2Q20, HOTEL posted a Net Loss of Ps. 43.4 million, compared to a Ps. 19.7 million gain in 2Q19. The lower operating income was partially offset by the foreign exchange rate gain and lower interest expenses.2Q20 Net Operating Cash Flow was negative Ps. 93.3 million, compared to Ps. 163.4 million reported in 2Q19.At the end of 2Q20, the Net Debt/LTM EBITDA ratio was 8.2x.HOTEL’s total portfolio at the end of 2Q20 was 6,237 rooms in operation, a 3.0% increase compared to the 6,058 rooms in operation at the end of 2Q19.RevPAR2 for Company-owned hotels decreased by 96.9% in 2Q20 compared to 2Q19, driven by a 58.4 percentage point decrease in Occupancy combined with a 20.2% decline in ADR2.
Comments from the Executive Vice-President
Mr. Francisco Zinser, stated:Due to the impacts of the COVID 19 pandemic on a Global basis the Tourism industry has been severely impacted, particularly in the second quarter of this year. It was a particularly challenging for our Company since most of our hotels were closed for the months of April, May, and a part of June. As of today, all the hotels in our portfolio excluding Hilton Guadalajara and Hyatt Place Aguascalientes are in operation. These two hotels will be opening in the following weeks based on our demand. Also please keep in mind that currently most of our hotels are limited to 30% occupancy due to government regulation, however these measures should ease in the following weeks.Occupancy for this quarter was 4%, however if we measure real occupancy, (excluding periods when we were closed), we posted 19.5%. This is a positive data point as it allows us to see how hotels are performing. Since the reopening of the portfolio we have seen week-over-week improvements in line with our expectations. We hope that this recovery continues in 3&4 Q20 and that we can gradually build occupancy and rates, and thus exceed our breakeven points of between at operational levels of 25% and 35% occupancy with current ADR, depending on the property and market.Financially, we have implemented a variety of initiatives to preserve our working capital and lower our operating expenses. In 2Q20 we were able to lower our costs and expenses by over 65%. The measures we have implemented include: (i) the reduction of non-priority expenses; (ii) wage reductions at all levels in both corporate and operational structures, averaging approximately 50%; (iii) lowering operational costs and expenses at properties that remain open; and, (iv) deferring all non-essential CAPEX. We have also reprofiled our cash flow thanks to the support of the banks we work with, assuring adequate working capital levels to restart operations.Moving on to our quarterly results, revenue totaled Ps. 15.5 million, down 97.1% compared to 2Q19. EBITDA was negative Ps. 86.7 million in the quarter, consequence severe reduction in revenues for the quarter due to the pandemic. Regarding company-owned hotels, RevPAR decreased by 96.9%, due to a 20.2% decrease in ADR and a 58.4 percentage point decrease in occupancy.I would like to highlight and express my gratitude to the more than 3,700 associates who have supported the Company unconditionally, not only with their economic contribution but with their tremendous attitude that went beyond the call of duty. As always, we are especially thankful for the trust and support of our shareholders in these times, and again to all of our tremendously professional and cooperative teams.About Grupo Hotelero Santa Fe
HOTEL is a leading company in the Mexican hotel industry, focused 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. At year-end 2020, the Company employed over 3,700 people and generated revenues of Ps. 2,238 million. For more information, please visit www.gsf-hotels.comContact InformationEnrique Martínez Guerrero
CFO
+52 55 5261 0800Maximilian Zimmermann
IR Director
+52 55 5261 45081EBITDA is calculated by adding together Operating Income, Depreciation and Total Non-Recurring Expenses.
2Revenue Per Available Room (“RevPAR”) and Average Daily Rate (“ADR”).
