Wednesday. If you did not receive a copy via email, you can find it at www.fibrahotel.com or email at cardenas@fibrahotel.com. Today, we are introducing a new earnings call format through Zoom, and the replay of the call will be available at our website. 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. On this note, 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, Antonio, and good morning, everyone. I am going to begin today's call by providing an overview of the fourth quarter and year-end 2023 results, and we'll then turn the call over to Edouard Boudrant, our CFO, who will discuss our financial results in more detail, and we will then open the call for questions and answers. In the fourth quarter, we continue to experience a slower demand environment with a year-on-year RevPAR growth of 4.5%, an ADR increase of 2%, and an occupancy increase of 151 basis points. The growth is in line with inflation and almost doubled Mexico GDP growth. The normalization of demand includes slower growth in certain regions and higher seasonality from leisure travelers. The peso appreciation also continues to impact the results of our dollarized holdings.
For the full year 2023, the portfolio had a year-on-year RevPAR growth of 13.2%, with an ADR increase of 7.7%, and with an occupancy increase of 308 basis points. The results show a mix of solid numbers from the business hotel portfolio, especially select service hotels which increased RevPAR growth of 7.6% year-on-year, combined with leisure and full-service hotels with RevPAR growth in line with last year, partly due to the FX headwinds. During the quarter, the strongest growth came from regions that had a lower comparison base, including the south, with a 12.3% RevPAR growth and which has benefited from the infrastructure investments. The northeast, with an 8.5% RevPAR growth, and the Bajío, with a 7% RevPAR growth. Hotels in Mexico City had a 3.7% RevPAR growth, and west hotels have almost flat versus last year.
The only region with year-on-year RevPAR increase was the northwest, partly due to the difficult comparison base and FX headwinds. Leisure hotels continue to lag results from business hotels as demand is weaker during the weekdays, and in certain months of the year, the Fiesta Americana Condesa Cancún Hotel and the Live Aqua San Miguel de Allende Hotel continue to gain market share in each of the markets. In Cancún, the hotel has performed well as RevPAR growth in the quarter in dollars was almost 10% higher year-over-year. However, when taking into account the impact from the peso appreciation, RevPAR growth decreased 3.6% year-on-year. Furthermore, when considering the cost structure in pesos, lease revenue from the hotel was 28% less. We estimate the exchange rate impact in this hotel for the quarter was $25 million. Food and beverage revenue for the quarter increased 7.9% year-on-year.
The growth rate above total revenues is due to the restaurant and franchise strategy we have implemented throughout the portfolio. The revenue growth is positive, but food and beverage generally have higher costs and lower margins. Revenues for the quarter were MXN 1.373 billion, and EBITDA was MXN 370 million. For the full year 2023, revenue was MXN 5,224 million, and EBITDA was MXN 1,420 million, which are the highest in the FibraHotel history to date. We experienced margin compression in the quarter as we faced cost pressures across our portfolio due to negative operating leverage and the increase in operating costs, mainly labor.
A core strategic objective of FibraHotel continues to be a strong balance sheet with an LTV of 24.9% and net debt-to-LTM/EBITDA ratio of 2.7x . During the quarter, we continue to improve our capital structure with refinancing at better rates, debt in line with the composition of the portfolio.
Overall, after the transactions, the percentage of dollar debt increased from 15% to 19%, and the average cost of debt decreased by approximately 25 basis points. On the inorganic growth front, we continue to make progress on the development of luxury resorts in our joint venture with Fibra Danhos in the Yucatán Peninsula. We expect to start construction in the first half of the year, and we are optimistic about the potential that this project will add to FibraHotel. Even though the benefits will be seen in the medium term, we will provide further details in the future. There are several positive developments for the hotels in our portfolio that I would like to mention. FibraHotel signed a lease for the León Hotel with InHouse. The hotel is expected to open in the second quarter of 2024, and we will have all hotels in our portfolio in operation.
On October 25, 2023, Hurricane Otis made landfall in Acapulco, impacting the One Acapulco Hotel. The hotel represents less than 1% of FibraHotel assets and revenues and has been closed since then. We are using this time to fully refurnish the hotel, which is scheduled to be open on the second quarter of 2024. Just like all of our portfolio, the hotel was insured, and we are advancing on the recovery process. We are with the families of Guerrero and everybody that suffered losses in Acapulco, and we will continue supporting that state with job creation and support to the local communities. FibraHotel signed agreements to reposition the Sheraton Monterrey Hotel as a Wyndham Monterrey Hotel. This agreement is a first for FibraHotel, both with Wyndham Hotels as a franchise and with Aimbridge Hospitality as operator. We remodeled the Fairfield Inn Los Cabos Hotel.
We finished construction of the Prime Steak Restaurant in San Miguel de Allende, which we expect to open in the next few weeks. Regarding our ESG objectives, in November 2023, the AC by Marriott Querétaro received the EDGE certification, achieving 20% savings in energy, 28% in water, and 91% in materials. Based on the distribution policy announced earlier this year, FibraHotel will pay a distribution of $0.125 per CBFI. I would like to end my remarks by thanking all our partners and team for their work and commitment to FibraHotel. With that, I will now pass the call over to Edouard Boudrant, the CFO of FibraHotel, to discuss the financial and operating results of the second quarter.
Thank you, Simón, and good morning, everyone. During the fourth quarter of 2023, we faced both pressure on operating costs, mainly labor costs, and the strength of the Mexican peso against the U.S. dollar, both factors weighed on the profitability of the quarter. We closed the fourth quarter with 85 hotels open. The occupancy rate for managed hotels for the quarter was 64.9% versus 63.4% for the fourth quarter of 2022. The average daily rate was MXN 1,462, increasing 2% versus the fourth quarter of 2022. Quarterly RevPAR was MXN 949, representing a 4% increase versus the fourth quarter of 2022. The Fiesta Americana Condesa Cancún had an occupancy rate of 81.4% versus 77.9% one year ago, showing a strong end of the year for the property.
The hotel has had a Net Package ADR of MXN 5,943, and the Net Package RevPAR was MXN 4,835, representing a 3.7% decrease versus the fourth quarter of 2022. In USD, as the rate is sold in dollars, a year increased by 5% from $321 to $337, and the RevPAR increased 10% from $250 to $274 versus the fourth quarter of 2022. Total revenues for the quarter were MXN 1,373 million versus MXN 1,336 million for the fourth quarter of 2022, a 3% increase. Excluding lease revenues, that decreased 17%, total revenues increased 5%. The total rent collected by the hotel Fiesta Americana Condesa Cancún represented MXN 80 million, which is 6% of our total revenues, decreasing 28%. During the fourth quarter of last year, the total rent collected was MXN 111 million and represented 8% of the total revenues.
Our lodging contribution for the quarter was MXN 472 million versus MXN 505 million for the fourth quarter of the year 2022, a 6% decrease. The margin of lodging contribution for the managed hotels was 29.6%, decreasing versus a 32.1% margin for the fourth quarter of the year 2022. Real estate expenses were MXN 21 million versus MXN 22 million. Corporate expenses were MXN 80 million versus MXN 82 million. EBITDA for the quarter was MXN 370 million versus MXN 401 million for the fourth quarter of last year. In terms of EBITDA margin, it decreased from 30% to 27%. All of the decrease in EBITDA, and half of the decrease in EBITDA margin, is attributable to the Fiesta Americana Condesa Cancún Hotel.
We closed the quarter with net debt of MXN 3.8 billion, decreasing MXN 216 million versus the end of last year. Gross debt amounted to MXN 4.4 billion, and the LTV ratio is very conservative at 25%.
In October, we traded a $90 million facility debt that we converted to Mexican pesos at an exchange rate of MXN 18.31, leaving the following: USD denominated debt represents 19% of FibraHotel's total debt. Previously, it was 13%. This represents $15 million. FibraHotel average cost of debt decreased approximately 40 basis points versus the last quarter and 25 basis points versus the end of last year. During the quarter, the debt position generated a financing cost of MXN 110 million. The net financial income was negative MXN 56 million. As of today, our debt structure is extremely healthy. Only 9% is maturing during the next 12 months, and the average cost of debt is 9.7%. We closed the quarter with a MXN 680 million cash position, compared with MXN 501 million at the end of last year.
During the fourth quarter, we deployed $174 million of investment, maintenance CAPEX, and repositioning CAPEX: $94 million from maintenance CAPEX, $26 million in remodeling and restoration of the One Acapulco Hotel, $22 million on improvement in the Fiesta Americana Condesa Cancún, $16 million on improvement in the Live Aqua San Miguel de Allende, $10 million on improvement in other hotels of the portfolio, and $7 million on improvement in the Fairfield Inn Los Cabos Hotel. For the quarter, our FFO and our AFFO were positive $252 million on $180 million. Please note that, in accordance with the distribution policy decided by our technical committee in April, we will pay for the fourth quarter of 2023 a distribution of $0.12 per certificate. At this point, I would like to open the floor for the Q&A session.
Thank you, everyone. To ask a question, please raise your hand or send a message, and we will open your microphone. Thank you, Natalia. Please, with your question.
Thank you. Good morning, everyone. I just wanted to know if you plan to increase dividends for 2024, and also if you could give us a bit more color on the CAPEX you're expecting for the hotel you're doing with Fibra Danhos?
Hi, Natalia. How are you? Thank you for your question and for joining the call. Regarding the dividend, we do expect to increase it. We clearly noticed this quarter that the strategy that the technical committee decided is to have guidance at the beginning of the year. So we expect next quarter to announce the new dividend guidance. But our idea is that we expect to grow the dividend every year. So we do expect to grow the dividend next year. But that announcement will come be defined by the technical committee on the next quarter. Regarding the second question, can you just clarify, is it for the investments we announce or more a little bit of the things we expect for the rest of the year?
Yeah, no, more like guidance for the rest of the year for that hotel.
Yes, excellent. So we're working in the hotel we announced, and we're also working in a couple of other alternatives. And the reality is it's going to depend on the timing of when we start construction for these properties. But to give you a rough estimate, we expect to spend anywhere between MXN 400 million- MXN 600 million this year in these inorganic opportunities. But again, that will depend. If we start later, we will spend less this year. If we start earlier, it will be around that range.
Great. Thank you.
Thank you, Natalia. Next question from Francisco Chávez.
Hello. Thanks for the call. I have a question regarding the labor costs. Do you have a strategy in order to offset these increasing costs? What can we expect for the NOI and EBITDA margins this year?
Hi, Marco. Hello. Speaking in terms of remarks for the question. So basically, yes, the labor cost is the most important cost that we have in the hotels. It's about 25%-30% of the total operating cost. And as you, everyone, know that in the last year, we had a strong increase in the labor costs with the political intention of the government in order to increase, for example, the minimum guaranteed salaries. And if we see since 2018, it doubled the salary. So there is a repercussion on all the salary grid in FibraHotel. And for example, what we expect this year is to have a 10% increase in the cost of labor costs in FibraHotel. So what we are doing as of today and what we are working with the operator is to see if we can have some operating efficiencies in the portfolio.
We did it, as you know, during the pandemic because we made a strong analysis of all the portfolio in order to be much more efficient. It worked very, very well until today. As of today, we are facing high pressure on cost level, and we feel that this year, we should maybe see some reform, labor reform. So we want to be well prepared. The strategy that we are taking is to work with the operator to analyze very deeply the workforce and the work structure of the hotels in order to be much more efficient because this is clearly the most important cost of the hotel, and we will have pressure on that side. So basically, in order to answer your question in terms of margin, we feel that we will have a little bit pressure on the margin in 2024.
We think that we will decrease a little bit the margin, not as it decreased between 2022 and 2023, but yes, we expect some pressure on the margin of the GOP.
Okay. Thank you. The second question will be on those inorganic growth opportunities that Guillermo mentioned. What is the criteria on assessing those opportunities? Which kind of hotels are those? Only resorts, or what kind of segments are you considering?
Yes. Thank you, Marco. In terms of the opportunities, we look at everything. We look at M&A opportunities. We look at business hotels. We look at the resorts. We continue to look at all inclusive properties. In reality, the strategy that we drew up several years back and that the pandemic rose was that we wanted to have a portfolio that was more diversified and that had a higher exposure to dollar-generating assets and had a higher exposure to more irreplaceable properties in either resort or business destinations, but that had this component and that also were a good opportunity of return to FibraHotel. As you saw, the property that we've already announced, it's a luxury hotel in a resort. The other properties that we're more advanced with and what we continue to expect is to continue to be more invested or look at more resorts.
It basically is a numbers issue as the underwriting is a little bit easier in dollars than what we see in pesos. So we expect in the short term to the other project we're specifically looking at is another resort-type hotel that's going to take some time to develop. But we continue to look at all other opportunities, both M&A for business and leisure hotels.
Great. Thanks so much.
Thank you, Marco.
Thank you. Next question from Felipe Barragán.
Hey, FibraHotel team. Good morning. Thanks for taking my question for the call. Mine is on the Fibra Danhos JV. Danhos mentioned that they had never developed hotels, which is why they reached out to you guys. I would like to understand what the rationale is for y'all to partner with Danhos. Is it the exclusive tenant base that Danhos has that might be available for your resort, or what sort of benefits do you guys see from partnering instead of just doing it yourselves? Thank you.
Thank you, Felipe. The reality is we have Simón can talk a little bit more about this, but we have a deep and long relationship with many players in Mexico. And we have a very high and deep respect for the team at Danhos as well with some other teams that we're looking to partner. As you know, for us, we have always done hotels on our own, and we own all of the portfolio. So this is the first JV structure that we looked at. And we continue to look at other structures with different partners. There's different things that each side brings to the table. And I think that's the most important thing where the sum of the two parties is going to be better than each of the parties on their own doing one of these projects.
So in the end, the reality is because of the relationship they had and because each of the parties could fix different problems, we were able to get these opportunities. So they were more advanced at the beginning with the piece of property that we're looking at, and they invited us to come in and to fix some other issues where we could add value. So in the end, we do think that they have a lot of expertise in tenants and in constructing and in a lot of different things. The result is that really, we have a good partnership together. We know them for years. We respect them. And we think that the project together is better than the project on each side alone.
It's an issue too of doing great, large projects with a high barrier of entry, very difficult to acquire or develop with not so much equity as we are using our own AFFO and debt to do these deals. So we see very well the low equity uniqueness and the way we can get into projects with a strategic partner, as Guillermo explained. It's a great opportunity for FibraHotel. We haven't done before, but through Fibra Danhos, a special company that will add value with many expertise, and we will bring in our extensive hotel experience. And this, as a luxury project, continues with the big view and the large idea of FibraHotel to become diversified in every asset class in hotels, from limited service all the way to luxury. And then we have this diversification of risk geographically, different operators, different brands, different segments, and different demand drivers.
That's the whole idea that we have been doing the last 13 years. This is a next step for that diversification. So we feel very confident with this deal and the rest of the deals we're analyzing. It's going to be accretive and good for the Fibra numbers and the diversification of the denomination as well. As you should remember, that in 2017, we had close to zero USD income. Today, with the low exchange rate, obviously, it's dragging us down, the exchange rate, in our results. But this diversification in dollars and pesos will be a great asset to FibraHotel going forward and in the medium and long term.
Great. That was very clear. Thank you very much.
Thank you, Felipe, Francisco, and Natalia for your questions. There are no further questions. Thank you for participating in FibraHotel's 2023 fourth 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.