FibraHotel (FIHO 12) Q2 2024 earnings summary

Executive summary

• Ended Q2 2024 with 85 hotels and 12,360 rooms after the sale of Gamma Guadalajara for Ps. $135 million, above book value.

• Q2 2024 was marked by challenging market conditions, with soft economic activity and investment leading to slower hotel demand and operating cost pressures, especially in labor.

• RevPAR grew 6% year-over-year, driven by a 7.4% increase in ADR, though occupancy decreased by 84 basis points.

• Limited service hotels outperformed with 12.3% RevPAR growth, while full service hotels saw only 1.6% growth.

• Management highlights a diversified portfolio, strong balance sheet, prudent leverage, and operational efficiency strategies.

Financial highlights

• Q2 2024 revenues were Ps. $1,364 million, up 6% year-over-year.

• EBITDA was Ps. $331 million with a 24.3% margin; lodging contribution margin was 28%-33.1%.

• Consolidated net income was Ps. $102 million, down from Ps. $177 million in Q2 2023.

• FFO and AFFO for the quarter were Ps. $260 million and Ps. $166 million, respectively.

• Q2 2024 distribution was Ps. $0.1375 per CBFI, up 10% versus 2023.

Outlook and guidance

• Market conditions are expected to remain challenging in Q3, but forward bookings for Q4 and winter 2024/2025 are stronger.

• Management is focused on margin recovery through operating efficiencies and ADR growth above inflation.

• Expected total 2024 distribution of Ps. $0.55 per CBFI, with two more quarterly payments planned.

• Margin improvement initiatives are medium- to long-term, with benefits expected more toward next year.

• Management confident in portfolio value and operational excellence for continued growth.