Hotelero Santa Fe 4Q operating loss MXN147.5M

Hotelero Santa Fe 4Q operating loss MXN147.5M

Grupo Hotelero Santa Fe Reports Strong Q4 2024 Performance Despite Yearly EBITDA Decline

Grupo Hotelero Santa Fe SAB de CV (MEX:HOTEL) reported mixed financial results for the fourth quarter of 2024, with a notable improvement in operating income but a year-over-year decline in annual EBITDA. For Q4 2024, the company achieved MXN198 million in operating income, reversing a MXN16 million operating loss in Q4 2023. This turnaround was driven by a 20% increase in room revenue to MXN425 million, a 24% rise in food and beverage revenue to MXN359 million, and a 48% surge in EBITDA to MXN266 million.

However, annual EBITDA for 2024 fell 4% to MXN810 million compared to 2023, attributed to challenges such as hurricane-related disruptions at Krystal Beach Acapulco, lower tourism in Mexico, and a stronger Mexican peso. The company also faced a tough start to 2024, with subpar performance in the first three quarters.

Key metrics in Q4 2024 included a 16% increase in RevPAR to MXN1,350, driven by a 13% rise in average daily rate (ADR) and a 1.8 percentage point gain in occupancy to 68%. The company's debt-to-EBITDA ratio improved to 3.1 times from 3.6 times in the prior quarter, with 100% of its debt now dollar-denominated at an average cost of 7.8%.

Management highlighted cost discipline and yield management strategies as critical to Q4's success. Francisco Medina Elizalde, CEO, noted that remodeling of Krystal Beach Acapulco is 95% complete, with final works expected by February 25, 2026.

While Q4 results reflect strong operational leverage, the annual EBITDA decline underscores ongoing challenges. Investors should monitor the company's ability to sustain Q4 momentum amid macroeconomic and tourism-related headwinds.

Yahoo Finance, February 21, 2025: Yahoo Finance, February 21, 2025.