Hoteles City Express Announces Third Quarter 2017 Results with Total Revenue growth of 20.3% and Adjusted EBITDA margin of 34.8%

MEXICO CITY, Oct. 18, 2017

Financial and Operating Highlights (3Q17)

• At the Chain level, the Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR") increased by 7.2% and 5.4% in comparison with 3Q16, to $915 and $568, respectively. Chain occupancy in 3Q17 was 62.1%.
• Total Revenues were $641.8 million; a 20.3% year-on-year increase primarily due to a 14.0% increase in the number of Installed Room Nights at the Chain level as well as a 5.4% increase in RevPAR.
• Operating income was $135.9 million in 3Q17, an increase of 29.0% over the same quarter in the prior year.
• EBITDA and Adjusted EBITDA were $218.4 million and $223.4 million, respectively, reflecting year-on-year increases of 21.0% and 20.4%. EBITDA margin and Adjusted EBITDA margin for the period were 34.0% and 34.8%, respectively.
• Net Income for the period was $88.2 million. Net Income margin was 13.7% for the quarter.
• At the close of the quarter, the Chain was operating 130 hotels; an increase of 15 new units compared to the 115 hotels operating at the close of the same period in 2016. The number of rooms in operation in 3Q17 was 14,606; a 13.3% increase of over the 12,887 rooms in operation at the close of 3Q16.
• During the quarter, the Company announced the opening of six units – 5 new hotels and one expansion to an existing property - to the 125 it operated, hotels opened included: City Express Junior Puebla Angelópolis, City Express Altamira, expansion of the hotel City Express Mérida, City Express Plus Puerto Vallarta, City Express Plus Medellín, and City Express Tuxtepec.