Grupo Posadas (POSADAS ) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was MXN 2,600 million, down 6% sequentially, with EBITDA at MXN 480 million, 12% lower quarter-over-quarter.

• Net loss for Q2 2024 was MXN 250 million, compared to a net profit in the same quarter last year.

• Cash balance as of June 30, 2024, was MXN 1,906 million, up 28% year-over-year.

• Pipeline includes 24 new hotels (4,098 rooms), representing 14% growth, with 62% in coastal destinations.

Financial highlights

• Available daily rate rose 5% year-over-year; occupancy rate reached 63%.

• RevPAR increased 1% year-over-year; coastal hotels' RevPAR fell 7% due to lower occupancy and FX impact.

• Upscale & Luxury segment RevPAR up 2% year-over-year; Midscale & Economy RevPAR up 5%.

• Net income for Q2 2024: -$25 million, compared to -$10 million in Q2 2023.

• Vacation club receivables increased 8.8% year-over-year, with 33% denominated in USD.

Outlook and guidance

• 24 new hotels expected to open by 2026, increasing room supply by 14%.

• Partial reopening of Fiesta Americana Condesa Acapulco expected in Q4 2024, full reopening by end of Q1 2025.