FibraHotel (FIHO 12) Q1 2025 earnings summary

Executive summary

• Portfolio comprised 85 hotels and 12,360 rooms as of March 31, 2025, diversified across 26 states and 15 brands, with a focus on both leisure and business segments.

• Achieved 7.3% year-over-year RevPAR growth, 9.2% ADR increase, and a 105 basis point decrease in occupancy, reflecting mixed regional demand.

• Major cities like Mexico City, Monterrey, and Guadalajara drove strong performance, while oil region hotels underperformed due to Pemex-related issues.

• Fiesta Americana Condesa Cancún saw high winter demand but ADR in USD fell 7% due to currency depreciation; occupancy at 84.4%.

• Efficiency initiatives included converting 10 Fiesta Inn hotels to the Express model and changing operating models at select properties to improve operations and profitability.

Financial highlights

• Q1 2025 revenues reached Ps. $1,352 million, up 5.1% year-over-year, with EBITDA of Ps. $351 million (26.0% margin).

• Lodging contribution was Ps. $464 million (34.3% margin); net income was Ps. $125 million (9.3% margin).

• FFO and AFFO for the quarter were Ps. $269 million and Ps. $186 million, respectively.

• Net debt stood at Ps. $3,746 million, with gross debt at Ps. $4,341 million and cash position at Ps. $595 million.

• Distribution for Q1 2025 was Ps. $0.15 per CBFI, with full-year guidance of Ps. $0.60 per CBFI, a 9% increase over 2024.

Outlook and guidance

• Expect continued cautious demand in certain regions, especially Cancún, with ADR maintenance dependent on U.S. tourist demand.

• Full-year 2025 distribution guidance of Ps. $0.60 per CBFI, a 9% increase over 2024.

• Most heavy investment in the Ritz-Carlton Cancún project will occur over the next few years, with an estimated total investment of $100 million (Ps. $422 million invested to date).

• Management remains confident in long-term value generation despite market volatility and rising uncertainty.