FibraHotel (FIHO 12) Q1 2025 earnings summary

Executive summary

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

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

• Strategy centers on maximizing AFFO per CBFI, prudent leverage, and sustainable operations, supported by a strong management team and best-in-class sponsors.

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

• Maintained a solid financial position with LTV at 24.6% amid challenging macroeconomic and political conditions.

Financial highlights

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

• Lodging contribution: Ps. $464 million (34.3% margin); Net income: Ps. $125 million (9.3% margin); FFO: Ps. $269 million; AFFO: Ps. $186 million.

• Net debt as of Q1 2025 was Ps. $3,746 million, with Net Debt/EBITDA at 2.7x.

• Distribution for Q1 2025 was Ps. $0.15 per CBFI, with guidance for three more quarterly distributions at the same level, totaling Ps. $0.60 per CBFI for the year (9% increase vs. 2024).

• Fiesta Americana Condesa Cancun contributed Ps. $110 million in lease revenue, with 84.4% occupancy and Net Package ADR of Ps. $7,097.

Outlook and guidance

• Expectation to pay three additional quarterly distributions of Ps. $0.15 per CBFI in 2025, totaling Ps. $0.60 per CBFI, a 9% increase over 2024.

• Focus on maximizing long-term AFFO per CBFI through asset sales, repurchases, and selective investments.

• Cautious outlook for Cancún and other tourist destinations due to potential demand weakness from U.S. tourists and increased hotel supply.

• Most heavy investment in the Ritz-Carlton Cancún project will occur over the next few years, with Ps. $422 million invested to date.

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