FibraHotel Investor Presentation

Transcription

1 FibraHotel Investor Presentation March

2 2 Disclaimer This presentation has been prepared by FibraHotel (or the Trust ) for informational and discussion purposes. It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any Certificados Bursátiles Fiduciarios Inmobiliarios (or the CBFI ) in the Trust, nor shall any part of it nor the fact of its dissemination form part of or be relied on in connection with any contract or investment decision relating thereto. Any such offering may be made only by an offering memorandum and the information contained herein will be superseded in its entirety by such offering memorandum in final form. This presentation does not contain all the information you should consider before investing in CBFIs of the Trust and no representation or warranty, express or implied, is made by any party as to the accuracy, fairness, completeness or materiality of the information furnished in this presentation, which remains subject to verification, completion and change without notice. Investors should review the offering memorandum (including the information therein as to risks) prior to making an investment decision and should rely only on the information contained in the offering memorandum. The Trust has not authorized anyone to provide you with information different from that contained in the offering memorandum. The securities mentioned in this document have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act ), and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. The information in this presentation includes forwardlooking statements which are based on current expectations, beliefs, and predictions about future events. These forward looking statements are subject to known and unknown risks, uncertainties and assumptions about the Trust, its prospects and the economic environment in which it operates that may prove to be incorrect. Accordingly, the events described in such forward-looking statements may not occur and the Trust s objectives may not be realized. By attending this presentation you agree to be bound by the foregoing limitations and not to distribute, disclose or provide any information discussed today to any other person.

3 FibraHotel is the largest Mexican lodging REIT Origins Investment case Key stats (US$mm) 1 Best-in-class sponsorship from Grupo GDI Over 20 years of local real estate experience Hotel development as a core knowhow Second Fibra in the market IPO in Nov 2012; FO May 2013 Largest business hotel owner in Mexico Unique and irreplaceable assets Well capitalized for accretive growth maximizing dividend per CBFI Asset manager with open architecture Best-in-class vehicle for consolidation Dividend + growth Hotels 85 Rooms 12,023 Market Cap 358 Enterprise Value 459 Net debt (101) Dividend yield 8.4% EV/Op. Key (US$) 38,615 EV/Op. Key (Ps$) 772,293 (1) Pro-forma cash position as of Q net of dividend payments and restricted cash. EV, market cap., hotels and rooms as of Feb 28, EV/Op. key excludes development portfolio and related investments 3

4 The most attractive hotel portfolio in Mexico FibraHotel s portfolio Hotel # room 1 Fiesta Inn Culiacán Fiesta Inn Durango One Monterrey One Acapulco One Toluca One Coatzacoalcos Fiesta Inn Tepic One Aguascalientes Fiesta Inn Hermosillo One Culiacán Fiesta Inn Ecatepec Fiesta Inn Perinorte Fiesta Inn Nuevo Laredo Fiesta Inn Naucalpan Fiesta Inn Cuautitlán Fiesta Inn Perisur Camino Real Puebla Fiesta Inn Chihuahua Fiesta Inn Guadalajara One Querétaro Fiesta Inn Aguascalientes Fiesta Inn Monterrey Fiesta Inn Querétaro Fiesta Inn Saltillo One Patriotismo Fiesta Inn Cd. Juárez Fiesta Inn Mexicali Fiesta Inn León Fiesta Inn Monclova Fiesta Inn Torreón Real Inn Morelia Camino Real Suites Puebla One Tapatío Operating 78 hotels 10,812 rooms Mexico City In 26 states Total 85 hotels 12,023 rooms stabilized hotels with 7,890 rooms 22 hotels in ramp-up period with 2,922 rooms 7 hotels under development with 1,211 rooms Hotel FibraHotel s portfolio # room 34 Fiesta Inn Puebla Finsa Fiesta Inn Oaxaca One Puebla Finsa Real Inn Guadalajara Fiesta Inn Tlalnepantla Fiesta Inn Toluca Tollocan Real Inn Mexicali Fiesta Inn Lofts Monclova One Monclova Grand Fiesta Americana Monterre Live Aqua Monterrey Courtyard Vallejo Fairfield Inn Vallejo Fiesta Americana Aguascalientes Fiesta Inn Xalapa One Xalapa Fairfield Inn Villahermosa Fiesta Inn Cd. Obregon Fiesta Inn Lofts Querétaro Gamma León Courtyard Cd. Del Carmen Fiesta Inn Lofts Cd. Del Carmen Gamma Valle Grande Fairfield Inn Los Cabos Fiesta Inn San Luis Potosi Oriente Gamma Tijuana Fairfield Inn Saltillo AC Torre Americas Guadalajara AC Antea Querétaro One Perisur Sheraton Ambassador Monterrey Live Aqua Boutique Playa del Carm Fiesta Inn Los Mochis Fiesta Inn Cuernavaca One Cuernavaca Fairfield Inn & Suites Juriquilla One Durango Aloft Veracruz Fairfield Inn & Suites Nogales Fiesta Inn Lofts Monterrey Fiesta Americana Viaducto One Cuautitlan Fiesta Americana Pabellon M Fiesta Inn Villahermosa Fiesta Inn Puerto Vallarta Fiesta Americana Hermosillo Fiesta Inn Buenavista Full Service Villa del Mar Veracruz Fiesta Inn Monterrey Valle Live Aqua San Miguel de Allende Fiesta Americana Tlalnepantla Courtyard Toreo 130 Note: Shaded green properties represent under development, yellow represents non-stabilized properties 4

5 5 Diversified portfolio with irreplaceable landmark assets Rooms per category Rooms per region Rooms per brand 3% Fiesta Inn Limited service Select service Full service Extended stay 18% 56% 23% Center/South Northeast Northwest West 19% 16% 8% 57% One Fiesta America Fairfiel Real Inn Gamma Courtyard 2% 2% 1% 2% 3% 3% 4% 3% 4% 6% 10% 17% 43% Increased full service rooms from 153 to 2,185, more than 14x Full service represents 23% of portfolio value and will increase to 30% (from 7% at IPO) Almost 5,200 rooms in Mexico s five main cities (MEX, MTY, GDL, PUE, QRO) Over 2,300 rooms in Mexico City Almost 1,200 in Monterrey Over 5,000 Fiesta Inn rooms, and almost 2,00 rooms with international brands Increased portfolio brand diversification from 4 to 15 brands

6 Under-penetrated and fragmented target market Trends in attractive target market Mexico lodging - fundamentals/drivers Hotel targeting business travelers 1,301 Independent Urban Hotels: 710 (55%) Branded Urban Hotels: 591 (45%) Total: 85 hotels (7%) Operating: 78 (82%) Development: 7 (8%) Demand driven by Mexico GDP growth Structural reforms, mainly energy Mexico global competitiveness driving sustainable increase in FDI Demand from services, manufacturing and industry driven by US recovery 1 Attractive point in the cycle supply and demand 2 After recovery, opportunity to grow rates 3 Development and repositioning opportunities There are 2.7k per thousand inhabitants in Mexico, below world averages, even including overexposure to resorts ~6k business hotel rooms to be added per year in main cities through 2022 Strong demand growth expected Starting to see ADR growth after lodging market impact from 2009 Inflation catch-up of ~20% RevPAR growth of 12% in 2016 Reconversion of independent hotels International brands to continue increasing exposure of total market % of Independent hotels 55% 35% 464 Branded Urban Hotels Opportunity to consolidate an attractive and fragmented market Source: HVS, Sectur, Bank of America, Mexico Tourism Ministry, WTO 6

7 7 Open architecture with strong brands and operators Strategic relationships with leading hotel operators under attractive and unique agreements Strategic relationships Operators Attractive operating agreements Customized products for the Mexican market Strong marketing and loyalty programs Critical size (purchases volume) Efficient front desk / reservation system Human resource efficiency Operation Agreements Variable fee structure The operator runs the hotel and charges a fee for its services Remaining lease agreements for 3 hotels FibraHotel receives rents and pays real estate expenses Will migrate to Operation Agreements once leases expire with presence across all business hotel segments Full-Service Select-Service Limited-Service Extended-Stay Food and beverage offerings Meeting and conference rooms (incl. ballrooms) Selected services, particularly relating to food and beverage Selected amenities including conf. rooms No food outlet (except breakfast) No room service Little amenities No conference rooms Room with kitchenette Optional full-service house keeping Offerings similar to limited service (i.e. no conference rooms, limited F&B)

8 8 Overview of recent announcements 1 2 Nov 18 th, 2016 FibraHotel`s 4 th Investor Day Event Guidance for 2017 of >25% AFFO growth In light of change in macroeconomic conditions, FIHO is holding its 2018 development portfolio Nov 1 st, FibraHotel announced the development of the iconic Live Aqua San Miguel de Allende with 134 luxury rooms 3 Nov 8 th, FibraHotel announced the opening of the Fairfield Inn & Suites Nogales with 134 limited-service rooms 4 Nov 17 th, FibraHotel announced the opening of the One Cuautitlán with 156 limited-service rooms 5 Nov 17 th, FibraHotel announced the development of the Fiesta Americana Tlalnepantla with 224 full-service rooms 6 Dec 5 th, FibraHotel announced the opening of the Fiesta Inn Los Mochis with 125 select-service rooms

9 9 Overview of recent announcements (cont d) 7 Jan 30 th, FibraHotel announced the opening of the Fiesta Inn Puerto Vallarta hotel with 144 select-service rooms 8 February 27 th, 2016 FibraHotel announced Q and FYE 2016 results Same store y-o-y RevPAR growth of 10% (7.9% ADR, 131bps in occupancy) Distribution of cents per CBFI (8.4% yield) - > Ps. $1.0 for 2016 Revenue growth of 39% y-o-y for Q4 and 31% for y-o-y FYE 2016 EBITDA growth of 45% y-o-y for Q4 and 32% for y-o-y FYE 2016 (Q4 margin of >27%) 9 March 1 st, FibraHotel announced the opening of the Courtyard by Marriott Vallejo with 125 select-service rooms and the Fairfield Inn & Suites Vallejo with 121 limited-service rooms

10 What changed? A better company at half the price Even with real assets and a better environment, the stock decreased in 2015 and stabilized in 2016 FIHO stock price (US$) Rooms in operation $ ,000 $ ,000 $2.00 $1.75 8,000 $1.50 6,000 $1.25 4,000 $1.00 $0.75 2,000 $ / / / / / / / / / /2017 Evolution of FibraHotel since the IPO Hotels are real hard assets and have appreciated in market value 2.5x larger portfolio: Added >50 hotels and >6,500 rooms (40 in operation) Diversified by adding international brands and landmark full-service hotels Announced pipeline. Clear use of cash with proven development know-how Lodging sector outperforming: Best KPIs in years across the board Built asset management team and optimized hotel level results Mexico economic prospects improved (structural reforms, FDI, etc.) ~Ps. 1,700mm returned to shareholders (~Ps. $3.50 per CBFI) Notes: Prices as of March 2017 Considerations since IPO: Increased Interest rate uncertainty Capital deployment has been more focused on development than acquisitions (and slower) Peso depreciation More Fibras in the market 10

11 11 Quality openings in 2016 to drive AFFO growth Overview of the opening of five full-service hotels in 2016 FibraHotel opened 5 full service hotels which together represent a Ps. $1.6 bn investment, or ~14% of FibraHotel s total assets Hotels generally take ~18-36 months to stabilize, and these properties are currently on the 6 th month of operation o average Grand Fiesta Americana Valle room Fiesta Americana Pabellon M suite Live Aqua Monterrey Valle lobby Sky Pool AC by Marriott Guadalajara Spa - Trebol Monterrey Valle AC by Marriott Queretaro Lobby

12 12 FibraHotel is entering a stabilization phase Operating rooms have grown faster than development rooms 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Stabilized In Ramp-up Under development 4,652 9% 91% 9,539 20% 9% 10,973 22% 14% 12,023 10% 24% 71% 64% 73% Initial portfolio March 2017 Overview of FIHO room growth % growth in total rooms 105% 15% 10% % growth rooms in ramp-up N/A 69% 93% % growth rooms in operation 59% 3% 13% % growth development rooms 368% 31% (51%) Development rooms (% of total) 20% 22% 10% Ramp-up rooms (% of total) 9% 14% 24% Stabilized rooms (% of total) 71% 64% 66% Hotels under development as % of total rooms grew after FibraHotel s follow-on offering in and 2015 had the same trend as the pipeline grew faster than hotel openings with a tight acquisition market As of 2017 ytd, this tendency has reversed as hotel openings outpace new developments FibraHotel s rooms in operation increased 13% thanks to acquisitions and hotel openings Development now represents only ~10% of total rooms (returning to IPO levels) Current focus is on stabilizing recently opened hotels to increase their contribution to distributions Going forward and with a larger base of rooms in operation, developments will represent a lower % of total rooms than what we have seen in the past few years This same trend will be seen as % of assets on the balance sheet and as % of cash flow

13 Devel Opera. Growth pipeline with flexibility going forward 22 hotels 2,922 rooms 3 hotels 425 rooms 4 hotels 786 rooms 85 hotels 12,023 rooms 56 hotels 7,890 rooms 2017 Non-stabilized Additional 2016 stabilized portfolio + operating portfolio + Development + Development = Portfolio Portfolio FibraHotel illustrative Portfolio 56 hotels 7,890 rooms 20 hotels 2,676 rooms 78 hotels 10,812 rooms 3 hotels 425 rooms 4 hotels 789 rooms 7 hotels 1,211 rooms PF net debt (-) Ps. 2.0bn To be invested ~(-) Ps. 0.3bn To be invested ~(-) Ps. 0.2bn To be invested ~(-) Ps. 1.5bn PF net debt (Ps. 4.2bn) PF net debt ~ Ps. 3.0bn (incl. ~.5bn for core and shell). <25% net LTV Note: Company estimates 13

14 14 Full-service hotels opened in 2016 performing well Since March 2016, FibraHotel opened 5 full service hotels which together represent a Ps. $1.6 bn investment, or over 14% of FibraHotel s total assets. Openings were as follows: AC by Marriott Queretaro with 175 rooms In March 2016 Fiesta Americana Pabellón M with 178 rooms in April 2016 In June 2016, Grand Fiesta Americana Monterrey Valle with 180 rooms, Live Aqua Monterrey Valle with 74 rooms and AC by Marriott Guadalajara with 188 rooms KPI during first 7 months 5 full service hotels in ramp-up $1,137 $1,383 $1,434 $1,536 $1,634 $1,725 $1,820 $1,865 $1,993 $1,831 47% $751 $199 6% Hotels take ~18-36 months to stabilize. These properties are performing well during their first months of operation Occupancy ADR RevPAR For the 10 first months of operation: Even in their opening months, the hotels were close to break-even thanks to adequate cost management The hotels crossed their break-even point by July KPI s are growing in line with expectations and occupancy in the fourth quarter was over 47% Lodging contribution is still small (less than 9% of FibraHotel s lodging contribution for the quarter) During the 4Q 2016 these properties had an occupancy rate of 46.5%, an ADR of Ps. $1,865 a RevPAR of Ps. $867. Lodging contribution of Ps. $22.6 million (27.7% margin). Lodging contribution - 5 full service hotels in ramp-up 40% 30% 20% 10% 0% -10% Break ~25% occupancy Login contribution (Ps. million) Lodging contribution margin % $10 $8 $6 $4 $2 $- $(2) Overall, development properties are performing well We are just starting to see the benefits of the recently opened properties in AFFO These properties will support growth in cash flow as they go through their ramp-up period

15 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 4,397 4,798 5,547 5,547 6,115 6,664 6,944 7,656 7,777 7,921 8,077 8,507 9,120 9,782 10,007 10,422 Strong growth - organically and inorganically Rooms in operation Inorganic growth 2.5x the number of the initial portfolio >25% CAGR 10,422 7,656 8,507 4,250 5, RevPAR of stabilized properties Organic growth ~33% growth in RevPar from Q to Q % CAGR 10.0% Note: Based on 56 stabilized properties 15

16 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q with less development drag to drive AFFO Quarterly revenue (Ps. $ million) Quarterly NOI (Ps. $ million) 4.3x 44% CAGR 3.7x 39% CAGR Quarterly AFFO per CBFI (Ps. $) 1.6x 12% CAGR $0.30 $0.19 $0.20 $0.21 $0.23 $0.20 $0.20 $0.23 $0.20 $0.22 $0.21 $0.23 $0.24 $0.27 $0.19 $0.15 In the past years, AFFO grew slower than revenue and NOI This was due to FIHO being in: (i) investment phase - less cash, more debt; and (ii) development phase ramp-ups and developments impact returns in the short term This is reversing as we are fully invested and ramp-ups stabilize AFFO per CBFI growth should accelerate to >25% in 2017 Note: Estimated AFFO growth based on current conditions and certain company assumptions 16

17 Attractive spread vs. udibono with upside growth FIHO CBFI yield vs. government bond yields FIHO div. yield FIHO dividend Mexico`s 10Y M-Bono yield Mexico`s 10Y Udibono yield 8.33% 8.37% 6.86% 6.81% 7.46% 4.96% 3.36% 5.92% 6.10% 6.45% 6.20% 5.69% 4.36% 4.05% 3.67% 3.84% 6.11% 5.84% 5.91% 6.06% 6.06% 6.28% 5.96% 5.90% 6.05% 5.06% 5.21% 4.90% 4.39% 4.01% 3.60% 2.48% 2.23% 2.07% 2.22% 2.64% 2.31% 2.70% 2.61% 2.99% 2.92% 3.02% 3.36% 2.99% 2.78% 2.71% 2.94% 2013 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q4 Dividend per CBFI $0.20 $0.23 $0.20 $0.23 $0.21 $0.22 $0.22 $0.24 $0.20 $0.24 $0.27 $0.30 q-o-q (6%) 16% (12%) 11% (8%) 6% (2%) 11% (16%) 20% 13% 12% y-o-y (0%) 53% 0% 5% 4% (5%) 6% 6% (3%) 9% 27% 28% FIHO Dividend Yield 3.67% 3.84% 3.60% 4.39% 4.01% 5.06% 5.21% 6.86% 4.90% 6.81% 8.33% 8.37% Mbono 10-yr yield 6.20% 5.69% 6.11% 5.84% 5.91% 6.06% 6.06% 6.28% 5.96% 5.90% 6.05% 7.46% Inflation Linked 10-yr yield 2.64% 2.31% 2.70% 2.61% 2.99% 2.92% 3.02% 3.36% 2.99% 2.78% 2.71% 2.94% Yield spread FIHO vs. 10yr Mbono (bps) (253 bps) (185 bps) (251 bps) (145 bps) (190 bps) (100 bps) (85 bps) 58 bps (106 bps) 91 bps 228 bps 91 bps FIHO vs. 10yr Inflation linked (bps) 103 bps 153 bps 90 bps 178 bps 102 bps 214 bps 219 bps 350 bps 191 bps 403 bps 562 bps 543 bps Nota: FIHO Q yield based on Feb 27, 2017 prices 17

18 Valuation of assets still at a substantial discount FibraHotel s assets continue to trade at a substantial discount FIHO - Q Total Operating # of hotels # of rooms 12,023 10,812 # of shares with econ. rights (mm) a Share price $14.50 b Fx 20.0 Illustrative calcularion - Net debt of operating rooms Ps. US$ c Net debt (2,019) (101.0) d Dividend payable (150.5) (7.5) c+d=e Net debt (2,169.5) (108.5) f Cash invested in development g Recent opening (Vallarta, Nogales, Vallejo, Mochis, Cuautitlan) e+f+g=h Pro-forma cash (op.) properties (557.5) (27.9) Illustrative calculations - Current price per key of operating keys Ps. US$ i Operating rooms (excluding recently opened) 10,002 10,002 a*i=j Market Cap 7, h Pro-forma cash for operating hotels j+h=k Enterprise Value 7, Ps. / key US$ / key k/i=l EV per operating hotel key 772, ,614.6 m Historical cost of FibraHotel portfolio Discount to FIHO historical cost (18.5%) Ps. / m2 US$ / m2 EV per m2 constructed (@50m2 per room) 15, Illustrative value of FibraHotel CBFI s at replacement value Ps. US$ FIHO weighted avg. room replacement value (at today s dev. costs) 1, Replacement value of operating rooms 12, Value from developments, recently opened hotels and net debt (557.5) (27.9) Illustrative FibraHotel market value at room cost 12, Ps. per CBFI US$ per CBFI Illustrative FibraHotel value per CBFI at replacement value $24.35 $1.22 Comparisons Price per key Average Market transactions FIHO s historical cost per key Per key (Ps 000 s) Average cost to develop new hotels Discount to current $1,546.0 (50.0%) $948.0 (18.5%) Full service $2,000.0 (61.4%) Select service $1,300.0 (40.6%) Limited service $ % FIHO weighted average Q Guide Distributions $1.22 $1.25 Dividend Yield 8.4% 8.6% 2016A 2017 FV/EBITDA 13.0x <9.0x $1,258.9 (38.7%) Comparison BV NAV/CBFI Discount FIHO BV/CBFI $18.78 (22.8%) Note: Illustrative calculations including company estimates. Prices of as of February 2017 and fx of Pesos 18

19 19 Solid organic growth in portfolio Quarterly KPIs 56 Hotels Stabilized Portfolio (as of Q4 2016) Historical KPIs of stabilized hotels (FYE 2016) 58.3% 64.2% 65.0% 67.2% 68.3% 69.3% 68.5% 62.9% , ,025 1,200 1, % 70% 60% 50% % 30% 20% 10% Q Q Q Q Q Q Q Q ADR RevPAR Occupancy ADR RevPar Occupancy 0% 4 th quarter: a 68.5% occupancy rate, a Ps. $1,025 ADR and a Ps. $702 RevPAR Occupancy: +131bps vs. 4Q 2015 (67.2%) ADR: +7.9% vs. 4Q 2015 (Ps. $950) RevPAR: +10.0% vs. 4Q 2015 (Ps. $638) Ramp-up portfolio (19 hotels): a 48.9% occupancy rate, a Ps. $1,248 ADR and a Ps. $611 RevPAR 1Q 2016 (12 hotels): a 37.0% occupancy rate, a Ps. $933 ADR and a Ps. $345 RevPAR 2Q 2016 (15 hotels): a 39.4% occupancy rate, a Ps. $969 ADR and a Ps. $382 RevPAR 3Q 2016 (16 hotels): a 43.2% occupancy rate, a Ps. $1,121 ADR and a Ps. $484 RevPAR Total portfolio (75 hotels): a 64.1% occupancy rate, a Ps. $1,063 ADR and a Ps. $681 RevPAR

20 20 Strong EBITDA growth with margin expansion Last 12 months 1,032 Managed Hotels Revenues (Ps. $ million) 2,635 2,418 1,531 1,671 1,793 1,9012,008 2,227 2, % vs. 4Q 2015 LTM Ps. millions 71 23% 115 Quarterly EBITDA (Ps. $ mm - margin) % 24% 24% 25% 26% % % 25% % vs. 4Q % FY 2013 FY Q Q Q 2015 FY Q Q Q 2016 FY Q Q Q Q Q Q Q Q Q Q 2016 EBITDA per room (Ps. $) Strong increase in LTM revenues Last 12 months External growth (M&A / Development) % vs. 4Q 2015 LTM Organic growth (increase in RevPAR) EBITDA margin is returning to pre follow-on levels Impact from less leased hotels in portfolio mix Solid growth in EBITDA even with additional hotels in ramp-up portfolio Highest EBITDA per room in operation history FY 2013 FY Q Q Q 2015 FY Q Q Q 2016 FY 2016 Development ramping up their contribution to EBITDA generation

21 21 Solid financial structure As of December 31th, 2016 Ps. $2,697 million gross debt Ps. $2,019 million net debt (including recoverable VAT) Debt profile: Current credit lines available with BBVA and Banorte Ixe 100% pesos denominated 100% variable interest rate Debt and LTV evolution Gross debt 100% (Ps. MXN million) denominated 100% variable rate 2,697 Loan to Value 2,514 No debt 862 8% 1,396 1,611 12% 14% 20% 22% 3Q Q Q Q Q Q 2016 Strong financial structure: A 21.7% LTV Sep-16 and Dec-15) A 3.4x Net Debt to EBITDA ratio Sep-2016 and Dic-15) FIBRA s 4Q % 37% 33% 33% 29% 28% 23% 22% 74% of indebtedness covered with derivatives instruments that partially mitigate the impact of raising rates 7% 0% Amortization 2017: Ps. $98 million (~Ps. $0.18 per CBFI) 2018: Ps. $102 million (~Ps. $0.20 per CBFI) Amortization schedule Ps. million On-going analysis of liability management alternatives Liability management alternatives of new bank credit lines or a bond issuance to refinance maturities Additional credit facilities in process to increase firepower

22 Long-term alignment of interests 1 The control group currently has ~15-20% of the certificates 2 Grupo GDI contributed all its urban lodging exposure to FibraHotel 3 Right of First Refusal (1) granted by Grupo GDI to FibraHotel Scope: any future lodging opportunity sourced that meets FibraHotel investment parameters 4 Fee package Advisory fee: 1% of the value of undepreciated assets, net of debt No acquisition, development or any other fee Proposal for an approval structure with shareholder input for any fee increases (2) 5 Technical committee with 36% independent members. Audit, Practices and Nominations committees are majority independent The advisor is aligned with FibraHotel s shareholders with its ownership in the company (1) So long as the control trust holds at least 15% of the outstanding CBFIs, the Relevant Principals of Grupo GDI have agreed to provide FibraHotel with a right of first refusal to purchase any future lodging investment opportunity sourced by any of them, to the extent such opportunity meets substantially all of the eligibility requirements contained in the trust agreement. (2) For any fee increase to be approved: (i) recommendation from the practices committee, (ii) majority vote from the independent members to propose the change to the assembly, (iii) assembly vote with a prior notice of at least 30 days to approve the measure by a majority excluding the control trust certificates 22

23 23 Investment highlights 1 Unique, difficult to replicate portfolio with significant growth potential and ideal platform to consolidate the Mexican business-hotel market 2 Leading player in the hotel sector in the attractive Mexican market 3 Robust business model with open architecture and strong operating leverage 4 Experienced management team with best-in-class advisor to execute our disciplined strategy

24 24 Trebol Monterrey FAG and Aqua Trebol Monterrey Fiesta Americana Grand and Live Aqua Summary Grand Fiesta Americana and Live Aqua hotels Opened in June full-service rooms Aqua: 74 luxury rooms FAG: 180 full-service Operated Grupo Posadas Location Valle Oriente, Monterrey, N.L. Trebol Monterrey mixed use complex

25 Live Aqua y Grand Fiesta Americana Monterrey Valle 25

26 Live Aqua Monterrey Valle public areas 26

27 Grand Fiesta Americana Monterrey Valle public areas 27

28 28 Fiesta Americana Monterrey Pabellon M Fiesta Americana Pabellon M Summary Fiesta Americana Pabellon M Opened in March full-service rooms Operated by Grupo Posadas Location Monterrey, N.L. Inside the Pabellon M mixed-use complex

29 Fiesta Americana Monterrey Pabellon M rooms 29

30 Fiesta Americana Monterrey Pabellon M public areas 30

31 31 AC by Marriott Guadalajara Americas AC by Marriott Guadalajara Summary AC by Marriott Guadalajara Opened in May full-service rooms Operated by Marriott International Location Guadalajara, Jalisco Torre Americas 1500 mixed-use complex

32 32 AC by Marriott Antea Queretaro AC by Marriott Antea Querétaro Summary AC by Marriott Antea, Querétaro Opened in March full-service rooms Operated by Marriott International Location Juriquilla, Querétaro Antea Queretaro mixed use project

33 33 Fiesta Inn Los Mochis Fiesta Inn Los Mochis

34 34 Fairfield Inn y Courtyard Vallejo Via Vallejo (Fairfield Inn & Suites and Courtyard) Courtyard by Marriott Fairfield Inn & Suites by Marriott

35 35 Fiesta Inn La Isla Puerto Vallarta Fiesta Inn La Isla Puerto Vallarta