Grupo Posadas (POSADAS ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was MXN 2,444 million, down 1.9% year-over-year and 2% sequentially.

• Net loss for Q3 was MXN 373 million, compared to MXN 36 million in Q3 2023.

• Hotel pipeline includes 29 new hotels with 4,470 rooms, representing 15% growth, 61% in coastal destinations.

• Cash available as of September 30, 2024, was MXN 2,182 million, up 33% year-over-year.

• Fiesta Americana Condesa Acapulco hotel suffered significant damage from OTIS; partial reopening expected in November 2024.

Financial highlights

• Average daily rate (ADR) increased 11% year-over-year; occupancy rate was 64%.

• RevPAR rose 6% year-over-year, reflecting improved pricing and demand.

• Q3 EBITDA was MXN 285 million, down 8.1% year-over-year.

• Net debt to EBITDA (LTM) increased to 5.1x from 4.7x a year ago.

• Cash flow from operating activities for the first nine months was MXN 1,567 million, up from MXN 639 million in 2023.

Outlook and guidance

• 29 new hotels expected to open by 2026, increasing room supply by 15%.

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