Our finances are healthy: in 2018 total income was $7,910 million pesos with an EBITDA (NIIF) of $1,272 million pesos, which added to the sale of the Fiesta Americana Condesa Cancun, closed at $2,425 million pesos.
From the proceeds of the sale of the Fiesta Americana Condesa Cancun Hotel (FACC) -a net amount of $2,004 million pesos- we have invested $1,489 million in projects; some of the main ones are the following:
- The Tulkal Tourist Development in the Mayan Riviera:
Construction of this development has started. The company will operate two hotels with a total of up to 855 keys. Posadas contributed $1,052 million pesos at the end of 2018 equal to 12.5% of the trust.
- Live Aqua Beach Resort Cancun Hotel:
Successful remodeling of rooms, public areas and restaurants ended in early 2019 with an investment of $435 million pesos, of which Posadas invested $276 million and the rest, the lessors.
In addition, the company is considering the following investment projects still in the definition stage:
- Inventory of the Live Aqua Residence Club (LARC):
Forty-five room project in San Miguel de Allende for an estimated investment of $216 million.
- Reforma Corridor:
Real estate investment project for 616 rooms linked to the Fiesta Americana Reforma Hotel.
On the other hand, net profits in 2018 were for $929 million pesos, including the sale of the Fiesta Americana Cancun Hotel registered in the first Quarter of the year.
Cash balance as of December 31, 2018 was $2,734 million (equal to USD $139 million at an exchange rate of $19.6829), and total company assets were $17,170 million pesos (USD $872 million).
The leverage ratio at the end of 2018 was 2.1, while net interest coverage was 5.0x, and average life of total company debt was 3.6 years.
Regarding operational result of the hotels, average rates increased by 1.7% and occupation decreased by 1.2 percentage points (pp), resulting in an effective rate (Revenue per available room) similar to that of the previous year.
In the City Hotel sector -equal to 84% of the total available rooms in the system- we registered an effective rate performance higher by 2% with respect to the same period of the previous year; beach hotels underwent a lower performance, with a 3.5% decrease in the effective rate.
With the objective of generating efficiency of transaction and group control and management, we continued the process of internal streamlining,reducing the number of Grupo Posadas subsidiaries from 136 at the end of 2013, to 21. In 2018, we carried out the merger of a Grupo Posadas subsidiary, equal to the payroll of hotel committees, assuming the total equity and obligations of said society.
Furthermore, we dissolved a foreign subsidiary once the hotel in Laredo, Texas was sold.
Concerning our shareholders, their meeting was held on April 12, 2018.
Among the resolutions passed was the payment of dividends in the amount of $200 million pesos.