Hotel profit returns from FIIs are showing up again;  Is it time to check in on HTMX11, XPTH11 or MGHT11?

Hotel profit returns from FIIs are showing up again; Is it time to check in on HTMX11, XPTH11 or MGHT11?

Andre Bachi, an investor who has lived off the profits of real estate funds since he was 33, revealed in a recent interview with the program. FIIs . University – produced by Infomoney – To lovingly watch the FII constants of hotels. His comment drew attention, as the sector was one of the sectors most affected by the restrictions imposed by the Covid-19 pandemic. Bachi believes that as this segment is slowly returning to normal, FII should benefit from focusing on it.

Analysis shows that profits distributed by hotel FII companies, in fact, have already begun to appear again. But the financial position of the funds and the specifics of the sector should not be ignored.

Currently, three real estate funds represent the B3 hotel sector and face different situations, particularly with regard to dividends – one of the main objectives of FII investors – and stock appreciation.

“During the pandemic, this sector has shown a sudden drop in revenue and a significant increase in expenditures,” assesses Luis Nouen, an analyst at Levante Investimentos. “Since then, some funds have focused more on realigning their financial results, while others have chosen to maintain recurring distribution.”

IFI Maxinvest Hotel (HTMX11)for example, has not distributed the income to shareholders since February 2020.

Already XP Hotels (XPHT11) It suspended dividends in 2021, but resumed transfers this year. Currently, the rate of return is recorded by dividends (profit return) 1.29% in 12 months.

The only one that maintained distribution during the pandemic was Mahogany (MGHT11) Hotelswhich contains the file profit return Approximately 9.7% have accumulated in the last 12 months. On the other hand, its shares are still facing a sharp devaluation, exceeding 30% in the same period. It is the opposite of market pairs, which actually recover a large part of losses or even accumulate gains.

Check out the details for three FIIs of hotels currently available in B3:

ribbon background Shareholders Performance at 12 months (%) Dividend Yield in 12 Months (%) net value
XPHT11 XP . Hotels 1,254 24.44 1.29 357 million Brazilian real
HTMX11 Maxinvest Hotel 22402 -3.78 164 Million Brazilian Real
MGHT11 Mahogany Hotels 1,039 -30.54 13.91 112 million Brazilian Real

Source: StatusInvest

Discover the step-by-step guide to living on income with FIIs and receiving your first rent in your account in the next few weeks, without the need to own property, in a free semester.

HTMX11: Suspension of dividend, sale of rooms, debt repayment

Revenue generation from the hotel industries can occur through operation (selling daily rates) and through indirect participation in projects, such as investment in Certificates of Real Estate (CRI) associated with the hotel industry – which has its own characteristics, highlights Manuel Linharis, President of the National Association for the hotel industry.

“Depending on the establishment, the minimum occupancy to keep the hotel viable is 50% to 60%,” explains the executive, who recalls without nostalgia the impact the pandemic has had on the sector. According to him, 80% of the sector temporarily closed its doors in the first eight months of the spread of Covid-19.

“The pandemic has been brutal to the economy and devastating to tourism,” Linharis recalls. “Units that remained open occupy between 5% and 8%, receiving only healthcare professionals and transit airlines.”

With the decline in demand during the epidemic, which led to lower revenues, increased inflation and increased interest expenses, the situation of the sector was compromised, which was also reflected in the fishery industries in the sector.

An example is the background Maxinvest Hotel (HTMX11)which suspended dividends in February 2020 as a way to ensure sufficient resources to pay the expenses. “The fund had to pay specific contributions to some projects, such as paying IPTU fees and housing unit fees, with the aim of maintaining cash flow for the units that make up its portfolio,” says the fund’s management report published in July.

During this period, the Maxinvest Hotel also began a divestment program, which has so far sold 447 rooms, half of what it owned. Currently, the fund manages 448 rooms in 23 hotels.

In June this year, FII’s occupancy rate was 67%, lower than the 69% rate recorded in May. In April, the index was at 63%. The average daily rate for June was R$407, the same as in May and higher than R$375 in April.

Although it has not yet resumed dividend payments, Maxinvest recently announced that it had paid off debts accrued in the pandemic and already posted a profit of R$0.0231 per share at the end of July, which indicates the possibility of resuming the transfer of income.

“We are making it clear to investors that income distribution will resume once the fund delivers a positive net result after offsetting the accumulated financial loss in 2020 and 2021,” the management report notes.

XPHT11: Some processes return to pre-pandemic levels

In the first half, the occupancy rate of the hotel chain in Brazil increased by 89.1% compared to the same period in 2021, according to a study conducted by the Forum of Hotel Operators of Brazil (FOHB), which monitors 473 properties, responsible for 74,676 residences. Units (UHS) or rooms.

The survey indicates that the average daily rate in the first six months of the year increased by 33.5% compared to the first half of 2021. On the same comparison, RevPar (revenue from accommodation per room) grew by 152.4%.

According to Federal Housing Office data, the occupancy rate showed a positive performance across all locations, ranging from 56.4% in the North to 100% in the Southeast in the first six months of the year. The national data for July has yet to be consolidated.

The sector’s recovery this year has begun to be reflected in some fisheries industries. Focusing on the corporate business sector, the XP Hotels (XPHT11) It reported in July that some of its operations had already reported results at pre-pandemic levels, according to a management report.

The text states that “in June, of the 11 hotels located in the South District, ten hotels reported positive operational results.” “With regard to the hotels located in São Paulo, they all provided operating profits at levels similar to those obtained in the period leading up to the health and economic crisis of Covid-19.”

With a net worth of R$357 million, XP Hotéis currently operates 1,046 rooms in 14 hotels located in São Paulo and the Southern Region. The fund is currently trading at 19% above book value.

In March, the portfolio resumed dividend payments that had been suspended in 2021. Since then, the amount paid has increased monthly. Last Friday (12), the portfolio paid R$0.54 per share with reference to the July result. The value is equivalent to a monthly return of 0.48%, as shown on the FII page at Infomoney.

Source: InfoMoney

MGHT11: Maintaining dividends, but worrying about rising costs

Although the Extended Consumer Price Index (IPCA) posted a negative 0.68% divergence in July, inflation follows the hotel sector on the radar, which is sensitive to the movements of the economy as it is not primary consumption.

“The hotel industry is a sector that is very sensitive to price increases. If a customer gives up a daily rate today due to inflation, they will not recoup those gains the next day,” explains Linhares, President of ABIH.

Other than that, since the start of the pandemic, new expenses have been added to hotel operations, Linharis recalls. There was a need to train individuals in the new standard of care the sector required, with more health protocols, for example.

He notes that “many regions also did not offer discounts on IPTU, which greatly affects organizations.” “Furthermore, inputs have gone up a lot and the daily average prices, especially in the capitals, haven’t followed the increase.”

Although he did not stop the distribution of dividends during the epidemic, Mahogany (MGHT11) Hotels Emphasizes attention to expenses and searches for alternatives to reduce costs and increase the operational efficiency of the Fund.

“Last month, we were able to lower the prices charged to food and beverage suppliers [alimentos e bebidas] And we reduced the number of employees in some units,” the portfolio management report highlights. “Purchasing power via free market or distributed generation as an alternative to captive market for all operations remains under analysis.”

In addition to CRIs – which represent 53% of the portfolio – Mogno’s portfolio includes hotels Selena Villa Maddalena and Hilton Canopy, both in São Paulo, and Selena Buzios, in Rio de Janeiro.

FII’s dividend has been stable since November 2021, with the fund paying R$0.80 per share. In August, the amount represented a rate of return with a dividend of 1.23% per month. In November 2020, the ratio had dropped to 0.32%.

The fund is in the final stages of structuring CRI, which intends to raise R$9 million to fund acquisition payments for the hotel in Búzios.

Discover the step-by-step guide to living on income with FIIs and receiving your first rent in your account in the next few weeks, without the need to own property, in a free semester.


Luís Nuin, of Levante Investimentos, points out at least four factors that investors should note before choosing a hotel real estate fund, the first of which is the fund’s financial situation.

“The ideal is to look for funds that have been able to address the debt accumulated over the past few years, rather than attracting investors by ensuring distribution [de dividendos] Short term “.

He also suggests FIIs whose investment portfolios own hotels or stakes in projects located in the most flexible regions, that is, in large centers – not in isolated regions with fluctuating demand.

“It is also necessary to pay attention to the occupancy rate in the hotels of these funds to see if they are able to maintain the trend of recovery after the difficulties of the pandemic,” says Noen.

Finally, it directs investors to track RevPar, accommodation revenue per room, a metric that measures the ability to return from hotel real estate funds. In his assessment, the hotel sector is more sensitive to changes in the economy, and therefore requires greater attention from investors.

“In the medium and long term, hotel FIIs present themselves as a potential for diversification,” says the analyst. “But moments of instability in the economy in the short term, including in 2023, could jeopardize the work of these funds.”

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