Good day, everyone, and welcome to today's Grupo Hotelero Santa Fe third quarter 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.
Good afternoon, and thank you for joining us today. My name is Rodrigo Ancira, Investor Relations Director of HOTEL. I would like to welcome you to the company's earnings webcast for the third quarter of 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 in 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 risks 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. 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.
Thank you, Rodrigo. During the third quarter, 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 take this type of situation. Regarding the operating indicators of our owned hotels, during the quarter, occupancy was 59%, 1.6 percentage points below the third quarter 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 continue to implement a variety of initiatives to reduce costs and expenses, which allowed us to keep operating income relatively stable at MXN 27 million, despite the decrease in the revenue. The net results for the quarter reflect an MXN 80.5 million non-cash foreign exchange loss from the depreciation of the peso against the U.S. 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 Zihuatanejo acquired in June is progressing as planned. Now, I will pass the call back to Rodrigo.
Thank you. Could you please go to slide two? Room revenue decreased 2.4% to MXN 345 million in the third quarter of 2026 compared to the third quarter of 2025, driven by a lower occupancy rate. Food and beverage revenue decreased 8.5% to MXN 284 million in the third quarter compared to the third quarter 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 third quarter of 2026 compared to the third quarter of 2025.
Vacation club income decreased 2% to MXN 40 million, and third-party hotels management fees were MXN 80 million, which were down 14% in the third quarter of 2026 compared to the third quarter of 2025. Total revenue was MXN 704 million, 4.5% below the third quarter of 2025. Now, if you could please go to slide three. 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 third quarter of 2025.
Now, please move to slide four. EBITDA in the quarter decreased 18% to MXN 129 million compared to MXN 158 million in the third quarter of last year, reflecting lower revenues combined with operational leverage. Moving on, operating income increased 3.6%, from MXN 26 million in the third quarter of 2025 to MXN 27 million in the third quarter of 2026, as lower operating costs and expenses, lower non-recurring expenses, and lower depreciation offset the decrease in revenue.
The net result in the quarter was a loss of MXN 96 million compared to a net income of MXN 31 million in the third quarter 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 U.S. 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 the third quarter of 2026, which represented a net debt-to-EBITDA last 12 months ratio of 3.1x . Total debt is 100% U.S. 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 U.S. dollar position by the end of the quarter was $150 million, equivalent to MXN 2,708 million. Now, I will pass the call back to Enrique to end the call.
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.
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. Our first question comes from Carlos Alcaraz from Apalache Research. Please, sir, go ahead.
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? And second, how has your Quintana Roo portfolio been performing? Thank you very much, and congratulations on the results.
Thank you. The full transition is predicted to take around 18 months, with planned completion targeted ahead of the upcoming seasonal cycles. This 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 planning to see both properties second half of 2028.
On the other hand, October is experiencing the typical transitional dynamics of the autumn/shoulder season, showing 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 third quarter 2027. It is looking better in our booking pace and reservations.
Perfect. Thank you very much, and congratulations again.
Thank you.
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 of Miranda Research. Please, sir, go ahead.
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?
Thank you, Martín. Yes. The difference between the occupancy fell more in managed hotels than in other 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 targeted 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 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 half of the year. Thank you.
The appreciation of the Mexican peso should also help, right?
That will also help. Yes. Having the dollar right now in middle 18s, MXN 18.5, MXN 18.7, that will help a lot. I absolutely agree with you.
Okay. Thank you very much.
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.
Well, we would like to thank you for your trust that you have placed in us, and reaffirm our commitment to maximize your investment. We also would like to thank all of our associates for their consistent effort. Everyone, have a great weekend and a great day. Thank you.
Thank you. You may disconnect.