Operator: Good day, everyone, and welcome to today's Grupo Hotelero Santa Fe Q3 2026 investor relations call. Please note this call is being recorded. All lines have been placed on mute to prevent any background noise. There will be a question-and-answer session after the speaker's opening remarks, and instructions will be given at that time. It is now my pleasure to turn the call to the management.
Rodrigo Ancira: Good afternoon, and thank you for joining us today. My name is Rodrigo Ancira, Investor Relations Director of HOTEL, and I would like to welcome you to the company's earnings webcast for Q3 2026. On the line, we have Enrique Martínez, our Chief Financial Officer. The presentation slides we will follow during this call are available on our webcast, which you can find on our investor relations section of our website. Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. Our projections are subject to risk and uncertainties, and actual results may differ materially based on a number of factors. Please refer to the detailed notes in the company's press release regarding forward-looking statements.
Rodrigo Ancira: At the end of the presentation, we will open the call to any questions you may have. Now I will pass the call to Enrique, our CFO.
Enrique Martínez: Thank you, Rodrigo. During the Q3, we continued to operate in a challenging environment with softer demand in our main markets, both international and domestic, and elevated exchange rate volatility. We have a solid and resilient business model that allows us to face this type of situation. Regarding the operating indicators of our own hotels, during the quarter, occupancy was 59%, 1.3 percentage points below the Q3 of 2025, with an average daily rate of MXN 1,727 and a RevPAR of MXN 1,018. Revenues were MXN 703 million in the quarter, and EBITDA was MXN 129 million. We continued to implement a variety of initiatives to reduce costs and expenses, which allowed us to keep operating income broadly stable at MXN 27 million despite the decrease in the revenue.
Enrique Martínez: The net result for the quarter reflects an MXN 80.5 million non-cash foreign exchange loss from the depreciation of the peso against the US dollar of our dollar-denominated debt. On a year-to-date basis, the company remains profitable with a net income of MXN 50 million. The integration of the Thompson Ciudad de México, acquired in June, is progressing as planned. Now I will pass the call back to Rodrigo.
Rodrigo Ancira: Thank you. Could you please go to slide 2? Room revenue decreased 2.4% to MXN 345 million in the Q3 of 2026 compared to the Q3 of 2025, driven by a lower occupancy rate. Food and beverage revenue decreased 8.5% to MXN 284 million in the Q3 compared to the Q3 of 2025. Other income, which includes, among other items, event room rentals, parking, laundry, telephone, and leasing of commercial spaces, increased 13% to MXN 42 million in the Q3 of 2026 compared to the Q3 of 2025. Vacation club income decreased 2% to MXN 14 million, and third-party hotels management fees were MXN 18 million, which were down 14% in the Q3 of 2026 compared to the Q3 of 2025. Total revenue was MXN 704 million, 4.5% below Q3 of 2025. Now, if you could please go to slide 3.
Rodrigo Ancira: Moving on to our key operational metrics on a consolidated level this quarter, we posted a 2.5 percentage point decrease in occupancy to 59.7%, combined with an ADR decrease of 2.8% to MXN 1,790. RevPAR in the quarter was MXN 1,068, which was 6.6% lower than in the Q3 of 2025. Now, please move to slide 4. EBITDA in the quarter decreased 18% to MXN 129 million compared to MXN 158 million in the Q3 of last year, reflecting lower revenues combined with operational leverage. Moving on, operating income increased 3.6% from MXN 26 million in the Q3 of 2025 to MXN 27 million in the Q3 of 2026, as lower operating costs and expenses, lower non-recurring expenses, and lower depreciation offset the decrease in revenue.
Rodrigo Ancira: The net result in the quarter was a loss of MXN 96 million, compared to a net income of MXN 31 million in Q3 of last year. This was mainly driven by a non-cash foreign exchange loss of MXN 80 million from the 3.2% depreciation of the peso against the US dollar during the quarter. Year-to-date, net income was MXN 50 million. Now, please move to slide five. Net debt was MXN 2,455 million at the end of Q3 2026, which represented a net debt to EBITDA last 12 months ratio of 3.1x. Total debt is 100% US dollar denominated and has an average cost of 7.37%. Additionally, I would like to mention that over 90% of debt maturities are long-term. Our short US dollar position by the end of the quarter was $150 million, equivalent to MXN 2,708 million.
Rodrigo Ancira: Now I will pass the call back to Enrique to end the call.
Enrique Martínez: Thank you, Rodrigo. Now, please move to slide six. Lastly, I would like to highlight and express my gratitude to the more than 4,600 associates who have supported the company unconditionally. As always, we are especially thankful for the trust and support of our shareholders, and again, to all of our tremendous professional and corporate teams. With that, I would like to open the call for questions and answers. Thank you so much.
Operator: Thank you. At this time, we will open the floor for your questions. Ladies and gentlemen, if you have a question, please use the raise hand function on your Zoom tool. Please make sure that the microphone is turned on.
Operator: Our first question comes from Carlos Alcaraz from Apalache Research. Please, sir, go ahead.
Carlos Alcaraz: Good afternoon, and thank you for taking my questions. I have two. First, could you give us more color on the investment timeline for the hotel conversions in Punta Cancún and Playa del Carmen? Second, how has your Quintana Roo portfolio been performing? Thank you very much, and congratulations on the results.
Enrique Martínez: Thank you. The full transition is projected to take around 18 months, with final completion targeted ahead of the upcoming seasonal cycles. These renovation and brand alignment measures are being executed in blocks. This ensures that the hotel remains operational with a functional room inventory pool, minimizing the negative impact of a near-term EBITDA. We are targeting both properties H2 2028. On the other hand, October is experiencing the typical transitional dynamics of the autumn shoulder season, showing steady sequential stabilization, but remaining highly price-sensitive. Following the sharp season dips observed across major beach markets in August and September, demand is stabilizing due to corporate groups and early international winter bookings. We are expecting better performance from December, and Q3 2027 is looking better in our booking pace and reservations.
Carlos Alcaraz: Perfect. Thank you very much, and congratulations again.
Enrique Martínez: Thank you.
Operator: Once again, if you want to make a question, please use the function raise your hand in your Zoom tool. Our next question comes from Martín Lara from Miranda Research. Please, sir, go ahead.
Martín Lara: Hi, guys. Thank you for the call. I have the following questions. Could you please explain why occupancy fell more in managed hotels than in owned hotels? What can we expect in terms of ADRs in the rest of the year?
Enrique Martínez: Thank you, Martín. Yes, the difference between the occupancy fell more in managed hotels than in owned hotels, this is due to differences in commercial flexibility and pricing control. Owned properties, the company holds direct equity risk and maintains absolute operational control. This allows for aggressive tactical discounting, localized corporate packaging, and directed wholesale channels, adjustments to defend a baseline occupancy floor during softer demand periods. On the other hand, managed properties, third-party owners often prioritize maintaining a higher average daily rate to protect nominal margins and over volume. Also, they have strict international brand and pricing floors. We are expecting for the average daily rate to increase in this upcoming season, starting in November. It is beginning the best part of the year for our business, so we are expecting a good increase in the ADR for the last of the year. Thank you.
Martín Lara: The depreciation of the Mexican peso should also help, right?
Enrique Martínez: That will also help, yes. Having the dollar right now in middle 18.5, 18.7, that will help a lot. I am absolutely with you.
Martín Lara: Okay. Thank you very much.
Operator: As a final reminder, if you want to make a question, please use the function raise your hand in your Zoom tool. With no further questions in the queue, I would like to turn the call to the management for the close of this conference.
Enrique Martínez: Well, we would like to thank you for your trust that you have placed in us, and we affirm our commitment to maximize your investment. We also would like to thank all of our associates for their consistent effort, and everyone have a great weekend and a great day. Thank you.
Operator: Thank you. Your meeting is connected.
