Hoteles City Express Announces the Closing of a Purchase Power Agreement (PPA) at a Fixed Price for 10 years
MEXICO CITY, Sept. 24, 2018 /PRNewswire/ -- Hoteles City Express, S.A.B. de C.V. ("The Company") (BMV: HCITY), announced the successful closing of a Power Purchase Agreement (PPA) at a fixed price for 10 years through a Legacy mode.
The contract contemplates the energy supply for 95% of the portfolio of fully owned, co-owned and leased hotels. With this the Company expects to generate savings for more than 25% in their energy expenses, which currently account for between 3.5% and 5.0% of hotel operation revenues for an established property. The savings contemplated for the execution of the PPA will start to be reflected in approximately 12 months.
In line with the sustainability strategy of the Company, the energy supplied will be produced in Tamaulipas, México by wind turbines, being 100% clean and resulting in a neutralization of approximately 90% of the carbon footprint of the chain.
About Hoteles City Express:
Hoteles City Express is considered the leading and fastest-growing limited-service hotel chain in Mexico in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 139 hotels in operation located throughout Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY"; furthermore, on October 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels in coming years.
For further information, please visit our website: https://cityexpress.com/en/investors/
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SOURCE Hoteles City Express, S.A.B. de C.V.
