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Company PresentationDecember 2015
1
CONFIDENTIAL
GHSF at a Glance
2
We are one of the leading companies in the hotel industry, with aMexican DNA; our focus is in acquiring, converting, developing andoperating owned and third-party hotels.
We are renowned for our operating efficiency and for our Krystal brand.
We are committed to continue being a Company that is a great place towork, and provides an excellent service to our guests, respects ourenvironment and generates a high profitability to our shareholders.
69%
28% 21%
31%
72% 79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Brazil MexicoChain Independent
CONFIDENTIAL 3
Tourism GDP Contribution as of 2014
Mexico ranks #10 in terms of arrival of
international travelers
worldwide
Mexico ranks #8 in terms of GDP Tourism contribution worldwide
Mexico ranks #6 in terms of Tourism job
creation worldwide
Mexico ranks #9 in terms of investment in the Tourism
Sector worldwide
Penetration of chains in the Hotel Industry
Sources: WTTC y JLL
Tourism in Mexico
7%
14%
17%
36%
26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Population: 120 mm
AB C+ C D+ DE
4,179
10,463
-
2,000
4,000
6,000
8,000
10,000
12,000
2010 2020 E
Middle Class anual expenditure per capita (USD)
CONFIDENTIAL 4
Occupancy: Industry vs HOTEL
Sources: WTTC; DATATUR, CONAPO, INEGI and GHSF
2014 business and pleasure traveling expenditure* Touristic activity expenditure by nationality
Target Market
35mm31%
2015 expected growth:
Leisure: 6.0%Business: 6.5%
2015 expected growth:
Foreign: 9.5%Domestic: 5.6%
International Travelers
Hotel Sector: a big opportunity
Foreign11%
Domestic89%
*
40%
45%
50%
55%
60%
65%
70%
2010 2011 2012 2013 2014 Sep-15
Industry HOTEL
Leisure90%
Business10%
CONFIDENTIAL
Grupo Hotelero Santa Fe
5
CONFIDENTIAL
Ownership
Brand
Stabilization Stage
6
Portfolio of 15 hotels and 4,159 rooms
Grupo Hotelero Santa Fe
Presence in Mexico’s main Urban and Resort destinations.
Ciudad Juarez:1. Krystal Business
Ciudad Juarez
Monterrey:1. Hilton Garden Inn
Monterrey2. Hilton Garden Inn
Monterrey Aeropuerto Cancun:1. Krystal Resort
Cancun2. Krystal Grand Punta
Cancun3. Krystal Urban
Cancun Centro
Tabasco:1. Hampton Inn & Suites
Paraíso, TabascoPuerto Vallarta:1. Krystal Resort Puerto
Vallarta2. Hilton Puerto Vallarta
Guadalajara:1. Hilton Guadalajara2. Krystal Urban Guadalajara
(Opening 2015)
Ixtapa:1. Krystal Resort Ixtapa
Acapulco:1. Krystal Beach
Acapulco Development
Operating
Estado de Mexico:1. Krystal Satelite Maria Barbara
Mexico City:1. Krystal Grand
Reforma Uno
Note: Figures include owned hotels, third-party managed hotels and developments..
Owned2,241 54%
Third-party owned
1,784 43%
Co-Investment134 3%
No. of rooms
Krystal3,04973%
Other Brands1,11027%
No. of rooms
Stabilized1,894 46%
In Stabilization Stage2,121
51%
Under Development144 3%
No. of rooms
CONFIDENTIAL
Experienced Hotel Operator
Irreplaceable LocationsSuccessful Acquisitions History
• Our Krystal® Brand has a 35 year presence in Mexico.
• Constant hotel renovation towards younger and moremodern customer.
• Krystal brand well diversified in various segments.
• Acquisition and renovation of hotels.Rebranding when suitable (i.e.:acquisition of Krystal Urban CancunCentro two months after the IPO).
• Development of hotels in strategiclocations and expansion of existingportfolio hotels.
• Reuse conversion of residential andoffice buildings.
Renowned Brand
OtherBrands
• We have and continue to seekirreplaceable locations with uniquecharacteristics.
• Generation of clear entry barriers andcompetitive advantages.
• We participate in Mexico’s main marketsin both urban & resort destinations.
7
Unique Business Model
• We operate our hotels and third party hotels, we can operateinternational brands where markets are suitable.
• Efficient staff management based on multi-function modelwithout compromising service and customers’ experience.
• Centralized support, purchasing and administration areas.
• Proven history of yielding positive results despite adverseenvironment.
CONFIDENTIAL 8
Main Focus on our Krystal® Brand
2Cities
784 Rooms
Resort and Urban
Grand Tourism
4Cities
1,393Rooms
Resort and Urban
5 Stars
1City
400Rooms
Resort
4 Stars
3Cities
472Rooms
Urban
4 Stars
Note: Figures include owned hotels, third-party operated hotels and developments.
9
Krystal Beach AcapulcoAcquired in April 2013
(formerly Marriott & Avalon)
Cases 1 and 2: Krystal Beach Acapulco & Krystal Grand Punta Cancun
Krystal Grand Punta CancúnAcquired in September 2013
(formerly Hyatt Cancún)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-
5.00
10.00
15.00
20.00
25.00
30.00
2012 2013 2014 9M14 9M15
Million Pesos
Avalon EBITDA KBA EBITDA EBITDA Margin
△: 3.1x
△: 12%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2013 2014 LTM Sep-15
Millon Pesos
Hyatt EBITDA KGPC EBITDA EBITDA Margin
△: 34%
△: 62%
Acquired in December 2014
Product Improvement Plan (in process)• Complete makeover in order to comply with Krystal Urban concept.• Renovation of hotel premises (lobby, restaurant, meeting rooms and
ballroom).
Sales & Marketing (in process)• Strategic plan with direct distribution channels, Krystal Rewards loyalty.
program, corporate and commercial accounts, OTA’s, and otherdistribution channels.
• Strong marketing campaign has been implemented along with therenovation process.
Operations (in process)• Implementing our quality program – guest satisfaction improvement.• Operating efficiencies – continuous analysis .• Strengthen Food and Beverage division.
10
Case 3: Krystal Urban Cancun Centro
YE 2014 LTM Sep-15
RevPAR
B2B Krystal
△: 65%
11
Acquired in May 2015
Product Improvement Plan (in process)• Renovation of hotel premises (rooms, lobby, restaurants and ball
rooms).
Sales & Marketing Plan (in process)• Strategic plan with direct distribution channels, Krystal Rewards loyalty
program, corporate and commercial accounts, OTA’s, and otherdistribution channels.
Operations (in process)• Cost and expense analysis.• Processes reengineering and employee training programs.• Operating efficiencies.• Improve quality standards.
Case 4: Turnaround of Krystal Satelite (Greater Mexico City)
2Q14 2Q15 3Q14 3Q15
RevPAR
María Bárbara Krystal
△: 26% △: 16%
*Renovation of the hotel began during 3Q15.
12
Own Hotels
1,083 1,189
59.6%
61.9%
50.0%
52.0%
54.0%
56.0%
58.0%
60.0%
62.0%
64.0%
700
800
900
1,000
1,100
1,200
1,300
3Q14 3Q15
Pe
sos
Stabilized Owned Hotels
ADR Occupancy
△: 9.8%
646
735
720 720
500
550
600
650
700
750
3Q14 3Q15
Pe
so
s
Stabilized Owned Hotels
RevPAR Number of rooms
△: 13.9%
668
759
901
1,299
-
200
400
600
800
1,000
1,200
1,400
500
550
600
650
700
750
800
3Q14 3Q15
Pe
so
sOwned Hotels in Stabilization Stage
RevPAR Number of rooms
△: 13.7%
42.8
48.7
38
40
42
44
46
48
50
3Q14 3Q15
Mill
ion
Pe
so
s
Stabilized Owned Hotels
Room revenue
△: 13.9%
55.3
90.7
30
40
50
60
70
80
90
100
3Q14 3Q15
Mill
ion
Pe
so
s
Owned Hotels in Stabilization Stage
Room revenue
△: 63.9%
1,103 1,197
60.5%
63.4%
50.0%
52.0%
54.0%
56.0%
58.0%
60.0%
62.0%
64.0%
66.0%
700
800
900
1,000
1,100
1,200
1,300
3Q14 3Q15
Pe
so
s
Owned Hotels in Stabilization Stage
ADR Occupancy
△: 8.6%
CONFIDENTIAL
Solid performance drives profitability.
Occupancy Average Daily Rate (ADR)
Revenue per Available Room (RevPAR Total Rooms
Key Operating Statistics
13
Note: Figures include owned hotels, third-party operated hotels and developments.
57.0%61.3% 59.9%
64.7% 68.2% 65.4%69.9%
2011 2012 2013 2014 Sep-15 2014 2015
Annual LTM 9M
%
+ 4.5 pt
1,022 1,050 1,041 1,135
1,210 1,122
1,222
2011 2012 2013 2014 Sep-15 2014 2015
Annual LTM 9M
Pesos
△: 8.9%
582 643 623
734 825
734
854
2011 2012 2013 2014 Sep-15 2014 2015
Annual LTM 9M
Pesos
△: 16.4%
1,848 2,107
3,292
3,944 4,159 3,732
4,159
2011 2012 2013 2014 Sep-15 2014 2015
Annual LTM 9M
Number of Rooms
△: 11.4%
CONFIDENTIAL
Revenue Breakdown
Solid revenue growth and strong EBITDA generation.
EBITDA
Key Financial Indicators
14
92 92 127
211
289
154
230
33.8% 31.5%
26.5%29.3%
32.7%28.8% 33.0%
-4.0%
1.0%
6.0%
11.0%
16.0%
21.0%
26.0%
31.0%
36.0%
2011 2012 2013 2014 LTM Sep-15 9M14 9M15
-
50
100
150
200
250
300
350Million Pesos
EBITDA EBITDA Margin
CAGR: 27.2%
△: 49.3%
167 159254
407 509
300 403 59 74
141
202
249
146
193
46 59
86
112
125
89
99
2011 2012 2013 2014 LTM Sep-15 9M14 9M15
Million Pesos
Rooms Foods & Beverages Other
△: 29.9%CAGR: 28.1%
14%
58%
28%
CONFIDENTIAL 15
Currency Hedging
Figures in thousand of Mexican Pesos
Currency Hedging Analysis 9M15 % Tot.
Revenue denominated in Pesos 538,196 77.4%
Revenue denominated in dollars 157,034 22.6%
Ingresos Totales 695,230 100.0%
Cost and Expenses denominated in Pesos 403,715 86.7%
Cost and Expenses denominated in dollars 61,804 13.3%
Total Cost and Expenses 465,519 100.0%
Cashflow denominated in Pesos 134,481 58.5%
Cashflow denominated in dollars 95,230 41.5%
Total Cashflow 229,711 100.0%
Interest 24,192
Principal 58,055
Total Debt Service 81,196
Coverage Ratios
Interest Coverage ratio 1 9.5x
Debt Service Coverage Ratio 2 2.8x
Cashflow in dollars / Interest 3 3.9x
Cashflow in dollars / Debts Service 4 1.2x
1) Cashflow / Interest; 2) Cashflow / Total Debt Service
3) Cashflow in dollars / Interest; 4) Cashflow in dollars / Total Debt Service
Note: debt service excludes prepayment of bank loans related to
acquisitions of the Krystal Urban Cancun Centro and Krystal Satelite María
Bárbara hotels, for Ps. 188.0 million in May 2015 and Ps. 55.0 in June
2015, respectively.
CONFIDENTIAL 16
Net Debt and Maturity
Figures in thousand Mexican Pesos Debt 1 Cash and Net
Financing Short Term Long Term Total Equivalents 2 Debt
Total 83,559 920,100 1,003,659 99,925 903,734
Denominated in Pesos - - - 34,641 (34,641)
Denominated in Dollars 83,559 920,100 1,003,659 65,285 938,375
Average rate of financial liab ilities 3.43% 3.43% 3.43%
Net Debt / LTM EBITDA (as of 30 September 2015) 3.1x
1) Includes accrued interests and effect of financial instruments related to financial debt.
2) Includes restricted cash related to bank debt.
2.1%
8.0%8.9%
9.8% 9.5% 9.7%
21.8%
6.4%
14.6%
9.3%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
% T
ota
l D
eb
t
Year
Maturities of Grupo Hotelero Santa Feas of 30 September 2015
CONFIDENTIAL 17
Krystal Urban Guadalajara
100% ownership140 rooms
European Plan
Opening: 4T15
Portfolio under Construction
CONFIDENTIAL
GHSF’s Growth Strategy
18
Take advantage of our operating capacity and commercialization to accelerategrowth and value creation.
• Continue with our focus in providing extraordinary results both in stabilizedhotels and hotels in stabilization stage.
• Create additional revenue opportunities within our properties.
• Capitalize our operating capacity and continue our growth via acquisitions,conversions and development.
• Continue to increase our Krystal brand’s presence in the 4 and 5 stars urbansegments.
• Take advantage of the low penetration of hotel chains and increase ourpresence.
• Increase the number of third-party hotels under management to expand ournetwork.
CONFIDENTIAL
Appendix
19
Financial Statements
CONFIDENTIAL 20
Income Statement
Figures in thousand Mexican Pesos
Income Statement 2015 2014 % Var. 2015 2014 % Var.
Room Revenue 139,427 98,120 42.1 402,793 300,458 34.1
Food and Beverage Revenue 65,957 47,930 37.6 193,057 146,160 32.1
Other Revenue 34,526 29,083 18.7 99,380 88,579 12.2
Total Revenue 239,911 175,133 37.0 695,230 535,198 29.9
Cost and Operating Expenses 94,582 74,836 26.4 275,845 232,862 18.5
Sales and Administrative 64,077 44,652 43.5 179,017 138,755 29.0
Other Expenses 3,644 3,491 4.4 10,657 9,707 9.8
Depreciation and Amortization 23,011 16,273 41.4 65,598 51,950 26.3
Total Costs and Expenses 185,314 139,251 33.1 531,117 433,273 22.6
Total Non Recurring Expenses 3,575 2,894 23.5 16,754 8,509 96.9
EBITDA 77,608 52,155 48.8 229,711 153,875 49.3
EBITDA Margin(%) 32.3% 29.8% 2.6 pt 33.0% 28.8% 4.3 pt
Operating Income 51,022 32,988 54.7 147,360 93,416 57.7
Operating Income Margin (%) 21.3% 18.8% 2.4 pt 21.2% 17.5% 3.7 pt
Net Financing Result (89,235) (40,568) 120.0 (165,503) (53,681) 208.3
Undistributed income from subsidiaries, net (47) 141 NA 93 (19) NA
Total income taxes (7,652) (743) 929.2 (3,610) 3,898 (192.6)
Minority Interest - 4,343 NA - - NA
Net Income (30,608) (2,352) 1,201.5 (14,441) 35,819 (140.3)
Net Income Margin (%) (12.8%) (1.3%) (11.4 pt) (2.1%) 6.7% (8.8 pt)
Third Quarter 9 months ended September
CONFIDENTIAL
Balance Sheet
21
Figures in thousand Mexican Pesos
Balance Sheet Summary Sep-15 Sep-14 Var $ Var %
Cash and cash equivalents 52,801 734,901 (682,101) (92.8%)
Accounts receivables and other current assets 104,467 95,516 8,950 9.4%
Creditable taxes 96,324 102,703 (6,379) (6.2%)
Escrow deposit for hotel acquisition 16,553 - 16,553 NA
Total current assets 270,144 933,120 (662,977) (71.0%)
Restricted cash 47,125 27,841 19,284 69.3%
Property, furniture and equipment 2,696,982 2,089,242 607,740 29.1%
Other fixed assets 320,173 147,873 172,300 116.5%
Total non-current assets 3,064,280 2,264,957 799,323 35.3%
Total Assets 3,334,424 3,198,077 136,347 4.3%
Current installments of long-term debt 83,559 113,655 (30,096) (26.5%)
Ohter current liabilities 160,964 99,765 61,199 61.3%
Total current liabilities 244,523 213,419 31,104 14.6%
Long-term debt 920,100 794,323 125,778 15.8%
Other non-current liabilities 70,832 2,337 68,495 2931.0%
Total non-current liabilities 990,932 796,659 194,273 24.4%
Total Equity 2,098,969 2,187,999 (89,030) (4.1%)
Total Liabilities and Equity 3,334,424 3,198,077 136,347 4.3%
CONFIDENTIAL
Cashflow
22
Figures in thousand Pesos
Cash Flow Statement 2015 2014 2015 2014
Cashflow from operating activities
Net income (30,608) (2,352) (14,441) 35,819
Depreciation and amortization 23,011 16,273 65,598 51,950
Income taxes (7,652) - (3,610) -
Unrealized gain (loss) in foreign currency exchange 83,845 33,239 139,465 26,482
Net interest expense 8,328 7,536 22,315 21,760
Otros costos financieros 110 - 590 -
Minority interest - (4,343) - -
Cashflow before working capital variations 77,034 50,353 209,917 136,011
Working capital 5,565 (3,323) 33,060 8,468
Non recurring items (10,563) - 21,237 (91,238)
Cashflow net from non recurring items 72,036 47,030 264,213 53,241
Investment activities (72,509) (1,882) (224,915) (213,595)
Financing activities (30,580) 654,154 (335,727) 860,260
Net (decrease) increase in cash and cash equivalents (31,053) 699,302 (296,429) 699,906
Cash and cash equivalents at the beginning of the period 83,854 35,599 348,133 34,995
Cash and cash equivalents at the end of the period 52,801 734,901 51,704 734,901
Cash in business acquistion - - 1,097 -
Total Cash at the end of the period 52,801 734,901 52,801 734,901
Third Quarter 9 months ended September
CONFIDENTIAL 23
Contact Information
For more information please contact:
Enrique Martínez [email protected]+52 (55) 5261-0800
Please visit our website: www.gsf-hotels.com
Miguel Bornacini [email protected]+52 (55) 5261-0800
Legal Note on Forward Looking Statements:The information provided in this report contains certain forward-looking statements and information related to Grupo Hotelero Santa Fe, S.A.B. de C.V. and itssubsidiaries (jointly “Grupo Hotelero Santa Fe”, “HOTEL”, or the “Company”) which are based in the understanding of its managers, as well as in assumptions andinformation currently available for the Company. Such statements reflect the current view of Grupo Hotelero Santa Fe in regard to future events subject to anumber of risks, uncertainties and assumptions. Several features may cause that the results, performance or current achievements of the Company may differmaterially with respect to future results, performance or attainments of Grupo Hotelero Santa Fe that may be included, expressly or implied within suchstatements in regard to the future, including among others, alterations in the economic general conditions and/or politics, governmental and commercial changesglobally or within the countries in which the Company has any business interests, changes in the interests rates and inflation, exchange rates volatility, changes inthe demand and regulations of the products marketed by the Company, changes in the price of raw materials and other goods, changes in the business strategiesand several other features. If one or more of this of risks or uncertainties are materialized, or if the assumptions used result to be incorrect, the real results maymaterially differ from those described herein as anticipated, believed, expected or envisioned. Grupo Hotelero Santa Fe undertakes no obligation to update orrevise any forward-looking statements.