Good morning. My name is Antonio Cárdenas, and I will be the conference operator today. At this time, I would like to welcome everyone to FibraHotel's 2025 First Quarter Earnings Conference Call. FibraHotel issued its quarterly report on Tuesday. If you did not receive a copy via email, you can find it at www.fibraHotel.com or email me at a.cardenas@fibraHotel.com. Before we begin the call today, I would like to remind you that forward-looking statements made during today's conference call do not account for future economic circumstances, industry conditions, company performance, and financial results. Unless noted, all figures included herein were prepared in accordance with international financial reporting standards and are stated in nominal Mexican pesos. Joining us from FibraHotel are Mr. Simón Galante, CEO; Mr. Eduardo López, General Manager; Mr. Edouard Boudrant, CFO; and Mr. Guillermo Bravo, CIO. With that, I will turn the call over to Simón Galante.
Thank you, Tonio, and good morning, everyone. I am going to begin today's call by providing an overview of the first quarter of 2025 results, and we will then turn the call over to Edouard Boudrant , our CFO, who will discuss our financial results in more detail. We then will open the call for questions and answers. During the first quarter of 2025, FibraHotel posted a solid set of results considering the current macroeconomic environment. The portfolio had a record growth of 7.3% year over year, with an ADR increase of 9.2% and an occupancy decrease of 105 basis points. These numbers reflect a combination of lower demand in certain regions, such as the oil region, combined with positive results in the large cities, including Mexico City, Monterrey, and Guadalajara. For example, Mexico City record increased 15.5% year on year, supported by many city-wide concerts and sporting events.
We also saw good numbers in Guadalajara and Monterrey, which combined had a year-on-year revenue growth of 18%. On the other hand, some cities had a worse performance, including hotels in the oil region, such as Ciudad del Carmen and Villahermosa, which have mainly been impacted by the situation at Pemex. In the first quarter, we did not see a relevant impact from the different tariff announcements in the manufacturing destinations. We are present, but we remain cautioned about changes to demand in those cities. The winter season at the Fiesta Americana Condesa Cancún Hotel had a lease revenue of MXN 110 million, this was the result of overall weekend demand in Cancún, which led to a decrease in ADR in dollars of 7%. It was often by the depreciation of the currency.
Even though the hotel continues to gain market share, we remain cautious as we expect the destination demand weakness to continue during the middle of the year. The hotel ADR would be hard to maintain if there is a drop in demand from U.S. tourists. Revenues from the quarter were MXN 1,352 million, and EBITDA was MXN 351 million. EBITDA margin was 26%. We continue working on efficiency projects to increase the profitability at each hotel. As an example, we finished the conversion of 10 Fiesta Inn hotels into the Fiesta Inn Express model. Under the Express model, breakfast is included, and there is a selective food and beverage alternative, including grab-and-go for lunch and dinner and the ability for catering and events. In this new model, we were able to reduce payroll and have better operation at these hotels.
A couple of additional changes in investment in the portfolio I would like to highlight include: in April, we changed the operating model at the Tapestry Playa del Carmen Hotel from a non-inclusive to a European plan with a new operator to increase the profitability of the hotel. The Fiesta Inn Monterrey Valle Hotel and the Fiesta Inn Monterrey Plate Hotel are in process of being fully remodeled and should be fully operational by the third quarter of 2025. A core strategic objective of FibraHotel continues to be the strong balance sheet with an LTV of 24.6% and a debt-to-EBITDA ratio of 2.7 times. Regarding our ESG objectives during the quarter, we published the net-zero policy based on the Science-based Targets Initiative. We also received a rating of B for the Carbon Disclosure Project.
Finally, Valora validated that FibraHotel achieved a 7.5% annual reduction during 2024 in energy consumption intensity for the one hotel portfolio, which is above the 1.5% reduction target in the credit agreement with Scotiabank. For the first quarter of 2024, FibraHotel will make a distribution of MXN 0.15 per CBPI, and for the full year 2025, we expect to make three additional quarterly distributions of MXN 0.15 per CBPI for a total of MXN 0.60 per CBPI for the year. The distribution represents a healthy 9% growth to 2024. Despite rising uncertainty in market conditions, we remain confident that the operational and financial strength of FibraHotel, along with the diversification of our portfolio, will allow us to continue generating long-term value. I would also like to thank all our partners and team for their work and commitment to FibraHotel.
With that, I will now pass the call over to Edouard Boudrant, CFO of FibraHotel, to discuss the financial and operating results of the first quarter.
Thank you, Simón, and good morning, everyone. We closed the first quarter with 85 hotel openings. The occupancy rate of managed hotels for the quarter was 58% compared to 59% for the first quarter of 2022. Average daily rate was MXN 1,651, increasing 9% compared to the first quarter of 2022. Quarterly RevPAR was MXN 958, representing a 7% increase compared to the first quarter of 2022. The Fiesta Americana Condesa Cancún had an occupancy rate of 84% compared to 87% one year ago. The hotel had a net package ADR of MXN 7,097. The net package RevPAR was MXN 5,992, increasing 9% compared to the first quarter of 2024. In USD, as the rate is sold in USD, ADR decreased by 7% from $367 to $341, and RevPAR decreased 10% from $318 to $288 compared to the first quarter of 2024.
Total revenues for the quarter were MXN 1,352 million compared to MXN 1,286 million for the first quarter of 2024, a 5% increase. The total rent collected by the Fiesta Americana Condesa Cancún represented MXN 110 million, which is 8% of our total revenues, increasing 5% versus last year. During the first quarter of 2024, the total rent collected was MXN 105 million and represented also 8% of the total revenues. Our lodging contribution for the quarter was MXN 464 million, compared to MXN 443 million for the first quarter of the year 2024, a 5% increase. The margin of lodging contribution for the managed hotels was 27%, compared to a 27.7% margin for the first quarter of the year 2024. Real estate expenses were MXN 26 million, compared to MXN 21 million for the first quarter of 2024.
Corporate expenses were MXN 88 million, compared to MXN 83 million during the first quarter of 2024. Our EBITDA for the quarter was MXN 351 million, compared to MXN 339 million for the first quarter of 2024. In terms of EBITDA margin, it slightly decreased from 26.4% to 26%. We closed the quarter with a net debt of MXN 3.7 billion, increasing MXN 89 million versus the end of last year. Gross debt amounted to MXN 4.3 billion, and the LTV ratio is still very conservative, at 24.6%. In January, we drew down MXN 219 million of a long-term available line of credit. As of today, our debt structure is extremely healthy. Only 6% is maturing during the next 12 months. The average cost of debt is 9.2%. USD-denominated debt represents 17% of FibraHotel's total debt, 18% at the end of last year, and represents $37 million.
During the quarter, the position generated a financing cost of MXN 99 million. The net financial income was negative MXN 89 million, considering a MXN 3 million foreign exchange profit, non-cash item, mainly related to the USD-denominated debt. We closed the quarter with a MXN 595 million cash position, compared with MXN 630 million at the end of last year. During the first quarter, sorry, we deployed MXN 148 million of investment, maintenance Capex, and repositioning Capex. MXN 75 million in the Ritz-Carlton Cancún Punta Nizuc Hotel, MXN 26 million for maintenance Capex, MXN 23 million in a building in Perin orte, MXN 19 million in the remodeling of the Fiesta Inn Monterrey Valle and Fiesta Inn Monterrey La Fe, and MXN 13 million in other hotels of the portfolio. For the quarter, our FFO and our AFFO were positive MXN 269 million and MXN 186 million.
Please note that in accordance with the distribution policy decided by our technical committee, we will pay for the first quarter of 2025 and for each quarter of the year a distribution of MXN 0.50 per certificate. Total distribution per certificate for the year will be MXN 0.60 per certificate, increasing 9% versus last year. At this point, I would like to open the floor for the Q&A session. Antonio, we are ready to take any questions.
Thank you, Eduardo. To ask a question, please raise your hand or send a message, and we will open your microphone. The first question comes from Edson Murguia.
Hi, good afternoon. Thank you for taking my question.
Edson Murguia.
Thank you. Thank you for taking my question. I have a couple of them. The first one is related to the Ritz-Carlton Cancún. Could you remind us the total cost of the project? The second question regarding Cancún specifically is this capital allocation that you made in the first quarter, it's going to be the same for the rest of 2025? Last but not least, in which level of LTV do you feel comfortable? Right now, it's 24.6%, which is fantastic, by the way. You have, I mean, historically. And improve. In which level are you comfortable regarding the LTV? Thank you.
Hi, Edson. Thank you for your question. Let me start with the first part and I'll let Eduardo comment on the LTV. Regarding the Cancún project, we do not expect similar numbers than in the first quarter. The expenses or the investment in the hotel will be shifting over time. For the remainder of the year, we have started already demolitions and the structuring of the building, and we will have some investment for the rest of the year in order to put in the structure of the property. Most of the heavy investment will come over the next couple of years as we are more advanced on that project. In terms of the full investment, there are several moving pieces, especially in regards to the residential component on how much investment we will need.
Our estimate right now is that FibraHotel's portion of the investment should be around $100 million. That can move around, but that can give you some color. More of that should be slated for the next few years more than this year.
Okay. Regarding the LTV, we have a 24% LTV. We feel very comfortable with this kind of LTV. If you remember, at the beginning of 2021, after the bad result of the pandemic, the highest level that we had was 30%. Also, at that time, under the specific condition, we were also very comfortable with our indebtedness. What we want to do is to reduce the debt in accordance with the amortization schedule that we have. If you see the amortization schedule, it is very, very conservative also, with less than MXN 400 million this year, MXN 400 million next year. We will start to analyze the refinancing of the bond in two years. If you remember, in 2019, when we issued the bond, it was a bond with not a bullet payment, but three equal payments.
In the future, we think that the LTV will slightly increase with the Nizuc project. I do not think it will be higher than 30% if we have no further project. After that, it will decrease quite quickly. Basically, as of today, 25% is very comfortable with the project of Nizuc, which is a very promising project for FibraHotel, 27-28%. Also, we will be very confident in that. We always have been very conservative in terms of indebtedness, and the policy of FibraHotel did not change. We will be very conservative, and one of the priorities of FibraHotel is to reduce the debt according to the cash flow that we generate.
Okay. Last, if I may, a follow-up regarding the Ritz-Carlton. What will be the timeline to be completed the hotel?
We're still determining the final timeline of the property, but we expect late 2017 or during 2018. Realistically, for the numbers, the hotel shouldn't contribute a lot through 2018, 2028.
Okay. [inaudible] thank you so much, and congrats on the results.
Thank you, Edson. To ask a question, please raise your hand or send a message, and we will open your microphone. There are no further questions. Thank you for participating in FibraHotel's 2025 first quarter results conference call. If you have any further questions, please do not hesitate to visit www.fibrahotel.com or contact us. This concludes today's call. Thank you and have a good day.
Thank you, everyone. Sorry for the technical difficulties. Have a good day.