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1 @ F i b r a H o t e l Annual Report

2 2013 Highlights Portfolio occupancy rate Revenue Per Available Room increase66 % 5.6 % 20 hotels acquired 2,924 million of Pesos invested in hotels

3 4,878 million of Pesos raised in May 2013 (follow-on) 20 hotels: agreement with Marriott 338 million of Pesos: total distribution to holders 22.8 % CBFI return from the IPO (November 2012) to December 2013 (including distributions) Annual Report F IBRAH OTEL 1

4 1. Fiesta Inn Aguascalientes This select-service, 125-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. Located just 20 minutes from the Aguascalientes international airport and 10 minutes from downtown Aguascalientes, it has easy access to the city s most important industrial corridor. This hotel is near the Villasunción Shopping Center, as well as various tourist attractions. As of Dec. 31, 2013, the number of employees was 61. 2

Content Page Hotel s list Letter from the Director to Holders 4 At the time of this Annual Report, the portfolio of hotels in operation was as follows: Introduction to FibraHotel Introduction The

5 Content Page Hotel s list Letter from the Director to Holders 4 At the time of this Annual Report, the portfolio of hotels in operation was as follows: Introduction to FibraHotel Introduction The History of FibraHotel Portfolio Evolution Structure Management Team Industry overview Hotel industry trends in Mexico Market Opportunity FibraHotel s Strategy FibraHotel s Competitive Strengths FibraHotel s Strategy Acquisitions Developments FibraHotel Portfolio Presentation of the FibraHotel Portfolio FibraHotel Portfolio - Map FibraHotel Portfolio Brands and Operator FibraHotel Portfolio Segments Key Performance Indicators of FibraHotel s Portfolio Finance section Financial Results for the year 2013 Cash flow and liquidity position Capital Expenditures Cash flow distribution FibraHotel Corporate Governance Technical Committee and FibraHotel Committees FibraHotel on the Mexican Stock Exchange Renovations Post-2013 events Consolidated Financial Statementss Num. Hotel 1. Fiesta Inn Aguascalientes 2. Fiesta Inn Ciudad Juárez 3. Fiesta Inn Ciudad Obregón 4. Fiesta Inn Chihuahua 5. Fiesta Inn Culiacán 6. Fiesta Inn Cuautitlán 7. Fiesta Inn Durango 8. Fiesta Inn Ecatepec 9. Fiesta Inn Guadalajara Expo 10. Fiesta Inn Hermosillo 11. Fiesta Inn León 12. Fiesta Inn Mexicali 13. Fiesta Inn Monclova 14. Fiesta Inn Monterrey La Fe / Airport 15. Fiesta Inn Naucalpan 16. Fiesta Inn Nuevo Laredo 17. Fiesta Inn Oaxaca 18. Fiesta Inn Perinorte 19. Fiesta Inn Perisur 20. Fiesta Inn Puebla FINSA 21. Fiesta Inn Querétaro 22. Fiesta Inn Saltillo 23. Fiesta Inn Tepic 24. Fiesta Inn Tlalnepantla 25. Fiesta Inn Torreón Galerías 26. Fiesta Inn Toluca 27. Fiesta Inn Xalapa 28. Real Inn Guadalajara Centro 29. Real Inn Morelia 30. Real Inn Mexicali 31. One Acapulco 32. One Aguascalientes 33. One Coatzacoalcos 34. One Culiacán 35. One Guadalajara Tapatío 36. One Xalapa 37. One Monterrey Airport 38. One Puebla FINSA 39. One Querétaro Plaza Galerías 40. One Toluca 41. One Patriotismo 42. Camino Real Puebla 43. Camino Real Hotel & Suites Puebla 44. Fiesta Americana Aguascalientes 45. Fussion 5 León 46. Fairfield Inn Los Cabos 47. Valle Grande Ciudad Obregón Page NOTE: The publication date of this Annual Report is June 30th, Fiesta Inn Ciudad Juárez This select-service, 166-room hotel is located in Ciudad Juárez in the State of Chihuahua. It is strategically located nearby the city s most active commercial and financial district. This hotel is just kilometers from the border with El Paso, Texas, and the International Airport of Ciudad Juárez. The location makes for easy access to important industrial parks, malls, museums, and entertainment venues. As of Dec. 31, 2013, the number of employees was 46. Annual Report F IBRAH OTEL 3

Fiesta Inn Querétaro Letter from the Director to Holders June 2014 Dear FibraHotel Certificate Holders, 2013 was our first full year as a public FIBRA, and a great one for FibraHotel.

6 Fiesta Inn Querétaro Letter from the Director to Holders June 2014 Dear FibraHotel Certificate Holders, 2013 was our first full year as a public FIBRA, and a great one for FibraHotel. As a very young company with strong growth to come during the next couple of years, during 2013 we focused on executing our business plan and setting up the company for long term success. Recapping our most important achievements during 2013, FibraHotel: More than doubled our number of hotels in operation. We started the year with 18 operating hotels (of which it had taken us 17 years to develop 17 hotels as a private company), and with the transformation to a Fibra, we finished the year with 39 operating hotels and eight hotels under developments reaching a total of 47 hotels. Transitioned the company from private to public by rounding out our management team and implementing an administrative structure ready to support our growth strategy. Implemented the double invoicing system, bringing all of our hotels and operators in line with the systems, accounting and operating requirements for Lodging REITs in Mexico. Proved our organic growth potential, especially targeting room rate growth in real terms. We achieved ADR growth for our initial portfolio of 5.7%, while RevPAR grew 5.6%. Both of these metrics were well above Mexican GDP growth of 1.1%, and inflation of 3.9% Capitalized the company through a successful US$381million equity offering and signed a MXN $1,000 million revolving credit line. Even though we only expect to use leverage transactionally at this stage, this capital provides the firepower to execute our business plan and reach our goal of FibraHotel 100, or 100 business hotels in the medium term. 4

7 Expanded the alternatives in our open architecture, under which we as hotel owners choose the best operator and brand based on each specific situation, going from two operators with three brands, to three operators with 11 brands. During 2013 we, signed a 20-hotel agreement with Marriott International giving us access to their international brands, signed a 10-hotel agreement with Grupo Real Turismo, and continued strengthening our relationship with Grupo Posadas adding new brands. Returned through distributions almost MXN $338 million representing MXN $0.77 per certificate. This, notwithstanding the fact that for most of the year a very important part of our balance sheet was held in cash providing a drag on portfolio returns. We will continue focused on returning cash flow to investors through distributions. Even with all of these successes, during 2014 we will continue to be focused on executing our business plan to maximize the value of FibraHotel in the following years as we put to work the MXN $5,000 million in cash at the end of 2013 and as these investments mature providing us with attractive returns. Our core investments continue to be business hotels in Mexico and are very strict in enforcing an investment discipline that is value accretive in the acquisition of stabilized hotels, repositioning of existing hotels and development of new hotels. We will continue to only acquire operating hotels at a 10% or higher cap rate and do developments of new hotels at a 11-12% or higher cap rate. In addition to cap rate, in acquisitions we are very focused on reposition cost of an asset, as measured by price per key. As true real estate asset managers, we understand that in the long run the cost of a property is a key component of future returns and the cost of an asset will remain with the portfolio for its entire life. As an example of this, the average price per key for all of our acquisitions in 2013 was MXN $861,960 per key, or a slight premium to replacement cost. In this sense even though in same circumstances we prefer to acquire operating hotels, we analyze market by market to determine the best alternative between the acquisition of an operating hotel or the development of a new hotel. Development is a core component of our inorganic growth strategy as we can enter markets where it is difficult to acquire an operating hotel at the right price. Developments provide us with a higher risk/return component, but we are very comfortable in managing this risk and that through our real estate relationships we can find unique locations inside multi-use projects that provide a barrier to entry that is difficult to replicate. Furthermore, new developments will help us get higher returns in the medium term as well as balance our portfolio with new assets and new brands/operators. The main drawback to developing new hotels is that in the near term, they will be a drag on returns because we will invest the cash that we currently have on our balance sheet, and before obtaining a proper return we will have to wait months for the hotel construction to be complete and an additional six to 18 months for the hotel to rampup. We understand this risk component in developments, but as the largest shareholder in the FIBRA, I am very comfortable that this will maximize the dividend in the long term and our certificate holders will be properly rewarded in time. In terms of the market, we continue to believe that the industry dynamics as very attractive and that there is an important opportunity to capitalize on the expected growth of the Mexican economy in the future through business hotels, and in the organic growth of our existing portfolio through the sustainable increase in room rates. The first half of 2013 was stronger than the second half and to date in 2014, but we continue to expect important room demand growth in Mexico which will be directly benefited by the increased investing in the country both by foreigners and locals, as business spending continues to accelerate, as the general economy grows, and in the medium term as the structural reforms in Mexico are passed and implemented. In 2013 the hotel industry in Mexico saw an important increase in focus by both local and international investors with new money and players coming into the market. This availability of capital created cap rate compression in the market and at times aggressive acquisition prices. In this light, we continue to hold firm in our acquisition discipline and believe that there continue to be attractive opportunities through our proprietary sourcing. We expect the market to continue growing in the future years and thus continue to be very focused in hotels that provide barriers to entry such as mixed-use projects. Our competitive position in the market is very strong and we continue to position our diversified portfolio in line with GDP growth such as shown in the Bajio region with important auto and aerospace investments and the Gulf of Mexico with important oil/energy investments. Overall, we are confident with the progress we have made to date and continue the commitment we have with our certificate holders since our IPO in November In the near term we are focused in reaching our goal of FibraHotel 100 and in this sense expect to have most of the cash on hand committed by the end of This important growth stage will set the stage for FibraHotel the future. I would like to thank all our certificate holders, employees, and operating partners for the strong effort put together in 2013 that has positioned FibraHotel on a very clear path towards future success. Simón Galante Annual Report F IBRAH OTEL 5

Fiesta Inn Naucalpan Introduction to FibraHotel Introduction FibraHotel is a Mexican trust established principally to develop, acquire and own urban hotels targeting the business traveler in Mexico

FibraHotel is the first lodging real-estate investment trust (REIT), known as Fideicomiso de Inversión en Bienes Raíces or FIBRA in Spanish, listed on the Mexican Stock Exchange (Bolsa Mexicana de

8 Fiesta Inn Naucalpan Introduction to FibraHotel Introduction FibraHotel is a Mexican trust established principally to develop, acquire and own urban hotels targeting the business traveler in Mexico within the following business categories: limited-service, select-service, full-service and extended-stay. FibraHotel is the first lodging real-estate investment trust (REIT), known as Fideicomiso de Inversión en Bienes Raíces or FIBRA in Spanish, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores). The trust is the best positioned and the owner of the largest hotels portfolio in Mexico, and is the first lodging REIT in Latin America. The goal of FibraHotel is to generate attractive riskadjusted returns for the holders of Real Estate Trust Certificates (Certificados Bursatiles Fiduciarios Inmobiliarios or CBFIs in Spanish) principally through distribution of the net taxable income as determined by the Technical Committee and through the CBFI s capital appreciation. FibraHotel seeks to achieve this objective through the ownership, expansion and effective asset management of a portfolio of high-quality hotels of distinct brands, geographically diversified throughout Mexico and operated by recognized and diverse independent hotel operating companies. It must be mentioned that FibraHotel is only a hotels owner and not an operator, which permits it to operate under an open architecture and to work with the hotel operator or hotel brand appropriate to each hotel property. FibraHotel successfully completed its Initial Public Offering (IPO) through a public offering in Mexico and an international private offering on Nov. 30, 2012, raising MXN $4,137 million (US $321 million). Thanks to the IPO, FibraHotel was able to i) pre-pay loans related to the Contribution Portfolio, ii) complete the acquisition of the Acquisition Portfolio, iii) finance the development of the hotels of the Contribution Portfolio under Development, and iv) finance the costs associated with the IPO and related to the Initial Portfolio. Once these transactions were complete, FibraHotel had approximately MXN $1,100 million available to proceed with select acquisitions and new developments. 3. Fiesta Inn Ciudad Obregón This select-service, 123-room hotel is located in Ciudad Obregón, in the State of Sonora. It is located in the city s hotel district, giving guests quick and easy access to both the city s financial district and downtown. This hotel is located at the principal entrance to Ciudad Obregón, 20 minutes from the airport, and just five minutes from downtown and the corporate district. The hotel was added to the FibraHotel portfolio in April of

The Initial Portfolio at the time of FibraHotel s IPO was composed of the following: Contribution Portfolio: 21 hotels provided by Grupo GDI in exchange for CBFIs, of which four were in distinct

through a public offering in Mexico as well as an international private offering, raising MXN $4,878 million (US $381 million) to continue to execute its growth plans and as at that time total

9 The Initial Portfolio at the time of FibraHotel s IPO was composed of the following: Contribution Portfolio: 21 hotels provided by Grupo GDI in exchange for CBFIs, of which four were in distinct phases of development (Contribution Portfolio under Development) Acquisition Portfolio: 13 hotels purchased from Grupo Posadas FibraHotel successfully completed a followon offer on May 30, 2013 through a public offering in Mexico as well as an international private offering, raising MXN $4,878 million (US $381 million) to continue to execute its growth plans and as at that time total resources left over from the IPO (approximately MXN $1,100 million) were totally committed to acquisitions and/or development projects. As of Dec. 31, 2013, FibraHotel was composed of the following: Operating hotels: > 32 hotels in the Initial Portfolio: two hotels of the Contribution Portfolio under Development opened during the year, Real Inn Morelia in March of 2013 and One Guadalajara Tapatío in June of > Seven hotels acquired during 2013 Hotels under development: > Two hotels of the Initial Portfolio (excluding the two hotels that opened during 2013). > Six new projects under development that were acquired during As of the date of this Annual Report, Fibra- Hotel s portfolio is made up of 58 hotels (47 operating hotels and 11 hotels under development) thanks to the acquisition of seven operating hotels, to the opening of a hotel from the portfolio under development, and the acquisition of four hotels being developed. The hotels are located in 24 states of the Republic and Mexico City and are associated with well-known hotel brands, which deliver significant advantages and increases in demand as a result of i) the quality of service, ii) loyalty programs, iii) modern reservation systems and iv) national distribution channels. FibraHotel is associated at this time with the following brands: Fiesta Americana, Fiesta Inn, Fiesta Inn Lofts, Gamma by Fiesta Inn, One Hotels, Camino Real, Camino Real Hotel & Suites, Real Inn and Fairfield Inn. FibraHotel hopes to continue expanding its portfolio of brands and operating companies as, for example, with Marriott International, thanks to an agreement signed at the end of The hotels in Fibra- Hotel s portfolio fundamentally provide services to national business travelers and to a lesser degree to international travelers. For this reason, the majority of FibraHotel s hotels are in strategic locations where there is significant business and industrial activity as well as close to malls and industrial parks, airports and bus terminals which provides guests with access to a great variety of amenities and services. In 18 months: From 22 to 58 hotels From 2,956 to 7,886 rooms From 12 to 24 states From two to three operators From three to 11 brands 4. Fiesta Inn Chihuahua This select-service, 152-room hotel is located in the city of Chihuahua, in the State of Chihuahua. It is located on the main avenue of a residential zone, just eight minutes from the city s downtown. This location allows for easy access to the city s main tourist attractions, industrial parks, and a commercial district that has recently grown dynamically. As of Dec. 31, 2013, the number of employees was 55. Annual Report F IBRAH OTEL 7

The History of FibraHotel > 2012 > 4Q 2012 1Q 2013 2Q 2013 What follows are the principal events that have happened since the founding of FibraHotel up until December 31st, 2013: July 31, 2012: Trust

10 The History of FibraHotel > 2012 > 4Q Q Q 2013 What follows are the principal events that have happened since the founding of FibraHotel up until December 31st, 2013: July 31, 2012: Trust formed. Nov. 30, 2012: FibraHotel s IPO on the Mexican Stock Exchange. Dec. 19, 2012: acquisition of the Fiesta Inn Torreón. December 2012 to February 2013: completion of the acquisition of the Acquisition Portfolio. Jan. 21, 2013: acquisition of 11 hotels. Feb. 28, 2013: acquisition of the Fiesta Inn Monclova. Mar. 1, 2013: opening of Real Inn Morelia. May 1, 2013: acquisition of the Fiesta Inn Toluca Tollocan. May 30, 2013: Follow-on on the Mexican Stock Exchange for a total amount of MXN $4.878 billion. June 24, 2013: acquisition of the Fiesta Inn Tlalnepantla. Opening of the One Guadalajara Tapatío. Portfolio Evolution 4Q Q Q 2013 Number of rooms in operation Number of rooms in development Number of total rooms 2, ,956 4, ,731 4, ,132 Number of hotels in operation Number of hotels in development Number of total hotels Fiesta Inn Culiacán This 142-room, select-service hotel is located in Culiacán, in the State of Sinaloa. Located in the newest part of the city within Plaza Fórum, one of Sinaloa s most important shopping centers, this hotel offers access to plenty of entertainment options. It is also close to the area s main tourist attractions, and the city s agro-business center. This hotel is just 20 kilometers from the city s international airport. As of Dec. 31, 2013, the number of employees was 60. 8

> 3Q 2013 July 1, 2013: acquisition of the Plaza Genova Guadalajara. July 2, 2013: acquisition of the One Puebla FINSA. July 3, 2013: acquisition of the Fiesta Inn Puebla FINSA.

11 > 3Q 2013 July 1, 2013: acquisition of the Plaza Genova Guadalajara. July 2, 2013: acquisition of the One Puebla FINSA. July 3, 2013: acquisition of the Fiesta Inn Puebla FINSA. July 5, 2013: acquisition of the Fiesta Inn Oaxaca. Aug. 1, 2013: acquisition of the Real Inn Mexicali. 3Q , , > Q 2013 Oct. 18, 2013: acquisition of the Fundición Ballroom in Monclova. Nov. 14, 2013: announcement of a strategic alliance with Marriott International for the development of 20 hotels. Dec. 2, 2013: acquisition of a lot in Vía Vallejo (Mexico City) for the construction of two Marriott hotels. Dec. 17, 2013: announcement of the development of two hotels in Monterrey (Fiesta Americana Grand and Live Aqua). 4Q , , Chronology: July 31, 2012: Trust formed. Nov. 30, 2012: FibraHotel s IPO on the Mexican Stock Exchange December 2012 to February 2013: completion of the acquisition of the Acquisition Portfolio > Nov. 19, 2012: acquisition of the Fiesta Inn Torreón (146 rooms investment of MXN $111 million). > Jan. 21, 2013: acquisition of 11 hotels (1,625 rooms investment of MXN $1,487 million). > Feb. 28, 2013: acquisition of the Fiesta Inn Monclova (150 rooms investment of MXN $168 million). March 1, 2013: opening of the Real Inn Morelia with 155 rooms (part of the Contribution Portfolio under Development) May 1, 2013: acquisition of the Fiesta Inn Toluca Tollocan (144 rooms investment of MXN $152 million) including adjacent land for the development of an additional hotel. May 30, 2013: Follow-on on the Mexican Stock Exchange for a total amount of MXN $4.878 billion. June 24, 2013: > acquisition of the Fiesta Inn Tlalnepantla (131 rooms investment of MXN $87 million). > opening of the One Guadalajara Tapatío of 126 rooms (part of the Contribution Portfolio under Development) July 1, 2013: acquisition of the Plaza Genova Guadalajara (197 rooms investment of MXN $132 million including MXN $10 million for the renovation and repositioning of the hotel under the Real Inn brand). July 2, 2013: acquisition of the hotel One Puebla FINSA (126 rooms investment of MXN $90 million). July 3, 2013: acquisition of the Fiesta Inn Puebla FINSA (123 rooms investment of MXN $130 million). July 5, 2013: acquisition of the Fiesta Inn Oaxaca (145 rooms investment of MXN $170 million). Aug. 1, 2013: acquisition of the Real Inn Mexicali (158 rooms investment of MXN $130 million including MXN $10 million for the renovation and positioning of the hotel). Oct. 18, 2013: acquisition of the Fundición Ballroom in Monclova (investment of MXN $16.5 million) for the construction of a hotel adjacent to the Fiesta Inn Monclova. Nov. 14, 2013: announcement of a strategic alliance with Marriott International for the development of 20 hotels. Dec. 2, 2013: acquisition of a lot in Vía Vallejo (Mexico City) for the construction of two Marriott hotels (Courtyard by Marriott and Fairfield Inn 245 rooms investment of MXN $230 million). Dec. 17, 2013: announcement of the development of two hotels in Monterrey (Fiesta Americana Grand and Live Aqua rooms investment of MXN $600 million). 6. Fiesta Inn Cuautitlán This select-service, 128-room hotel is located in Cuautitlán, in the State of Mexico. It is located along the México-Querétaro Highway, nearby one of the most important industrial corridors in the state. This property is located within the Plaza San Marcos shopping center, which has a food court, cinemas, and a gym. As of Dec. 31, 2013, the number of employees was 59. Hotel is leased as of the date of this Annual Report. Annual Report F IBRAH OTEL 9

Structure The following diagram outlines the FibraHotel structure: CBFIs Holders Assembly CBFIs Holders Control Trust Elects Technical Committee and appoints Common Representative.

12 Structure The following diagram outlines the FibraHotel structure: CBFIs Holders Assembly CBFIs Holders Control Trust Elects Technical Committee and appoints Common Representative. Able to amend Trust Agreement or liquidate trust assets. Able to terminate Advisory Agreement without cause. Approves CBFIs issuance, delisting or cancel registration of CBFIs with CNBV. Approve large Real Estate transactions. 83.7% 16.3% Deutsche Bank México, S.A. (Trustee) The Bank of New York Mellon S.A. (Common Representative) Administradora Fibra Hotelera Mexicana, S.A. de C.V. (Advisor) Advisory Agreement Annual fee of 1.00 % of undepreciated book value of assets, net of debt, payable quarterly. Hotel Management Agreements Hotel Management Companies Receives rental revenue from rooms and pays related costs and expenses as well as real estate expenses. Receives after tax dividend from the Management Subsidiary and pays any expense shortfall. Provides hotel services and property management services (with assistance form third parties). Receives revenue from non-room related hotel services and pays related costs and expenses. Pays expenses related to its own operation Taxable entity. Pays after-tax dividends to FibraHotel or receives distributios to cover shortfall. Management Subsidiary Agreement Fibra Hotelera, S.C. (Management Subsidiary) Service Agreements Compensation of 5% of Gross Payroll Rental Revenue (lodging) Services Companies Guests Revenue from non-room hotel services Hotel Portfolio Provides personnel services Empoyees: operating staff of hotel portfolio 7. Fiesta Inn Durango This select-service, 138-room hotel is located in the city of Durango, in the State of Durango. It is located in the city center, within the most important fashion mall of its kind in the city, Paseo Durango. There are various types of entertainment nearby, like restaurants, prestigious boutiques, and cinemas. This property is just 10 minutes from the city s industrial center, and 15 minutes from the international airport. As of Dec. 31, 2013, the number of employees was

FibraHotel s structure is composed of the following entities: Advisor. FibraHotel is externally advised by Administradora Fibra Hotelera, S.A. de C.V., the Advisor. The Advisor was founded on Sept.

The Advisor is responsible for, among other things, providing orientation and consulting to FibraHotel in its development and hotel acquisition strategies, long-term strategic planning and financial

13 FibraHotel s structure is composed of the following entities: Advisor. FibraHotel is externally advised by Administradora Fibra Hotelera, S.A. de C.V., the Advisor. The Advisor was founded on Sept. 20, 2012 for the purpose of providing advisory services to FibraHotel and said advisory services are the sole purpose of the Advisor s operations. The Advisor is responsible for, among other things, providing orientation and consulting to FibraHotel in its development and hotel acquisition strategies, long-term strategic planning and financial planning, implementation of important decisions, and the management of investor relations. the Advisor has the right to an annual commission, paid every quarter, equivalent to 1.00% of the undepreciated book value of assets, net of debt. No other commission is paid to the Advisor (acquisition commission, development commission or any other type of commission). Administrator. FibraHotel is internally managed by Fibra Hotelera S.C., the Administrator. The Administrator was founded on Oct. 5, 2012 for the sole purpose of taking responsibility for the dayto-day management of FibraHotel s business. As of Dec. 31, 2013, the Administrator has a management team of 13 (Senior management, Administration, Finance, Legal, Development, and Operations). The Administrator is responsible, among other things, for the day-to-day management of FibraHotel s business, maintenance of the properties and hotels, acquisition of the necessary permits and licenses, implementation of the auditing tasks necessary for the pre-assessment of acquisition opportunities and development, supervision of renovations / development / re-development projects, supervision of matters related to stock insurance, negotiations in the name of FibraHotel, and the organization and signing of hotel management contracts associated with the hotels. The Administrator is also responsible for providing certain services unrelated to the renting of rooms, such as food and beverage, phone, Internet and similar services, which are billed to hotel guests separately in that such services are subject to taxation. The Administrator is not subject to the FIBRA fiscal structure and pays taxes, as any business organization is required to do. The Administrator pays its portion of the general costs of FibraHotel and its taxes as a result of the profits generated by activities not related to the rental of rooms. Any profits left over after the Administrator s taxes are distributed to FibraHotel, which is responsible for any deficits resulting from the costs and income of the Administrator. Services Companies. Services companies are responsible for providing FibraHotel with the personnel necessary to operate the hotels, excluding the Executive Committee of each hotel (general manager, the controller, sales personnel, and housekeeping). The services of the Executive Committee are provided directly by the hotel operators and are subject to the supervision and monitoring of the Administrator. In conformance with the services contracts terms, the Services Companies have the right to receive a consideration of 5% calculated based upon the total payroll that they administer, for the purposes of covering their operational costs and expenditures. FibraHotel reimburses the Services Companies on a monthly basis for the salaries that they pay to the employees that deliver the Services Companies at the hotels. Fiesta Inn Monterrey La Fe / Aeropuerto 8. Fiesta Inn Ecatepec This select-service, 143-room hotel is located in Ecatepec, in the State of Mexico, in one of the state s most dynamic commercial and industrial zones. It is located within the Centro Comercial Las Américas, which is a popular shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. As of Dec. 31, 2031, the number of employees was 47. Hotel is leased as of the date of this Annual Report. Annual Report F IBRAH OTEL 11

Management Team FibraHotel s management team is made up of the following persons: Simón Galante Zaga: is Chief Executive Officer of the Advisor and a member of the FibraHotel Technical Committee.

Galante Zaga has more than 20 years of experience in the hotel, commercial and residential sectors as both a developer and in real estate management as well as in acquisitions and the development and

14 Management Team FibraHotel s management team is made up of the following persons: Simón Galante Zaga: is Chief Executive Officer of the Advisor and a member of the FibraHotel Technical Committee. Founding Member and CEO of Grupo GDI, Mr. Galante Zaga has more than 20 years of experience in the hotel, commercial and residential sectors as both a developer and in real estate management as well as in acquisitions and the development and financing of these types of projects. Mr. Galante Zaga is a member of the Board of Directors of the Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, and Bosque Real and Mercap, which are Grupo GDI companies. He has a specialty in business administration from IPADE. Eduardo López García: is CEO of the Administrator. Mr. López García served as the investment and development manager at Grupo Posadas beginning in 1993 and up until he joined Grupo GDI as Director of Hotels in 2006 when the group had just six hotels. Eduardo López Garcia negotiated a contract with the leading real estate developer in Mexico and with Grupo Posadas for the development of additional hotels to be operated by Grupo Posadas. He has 20 years of experience in hotel development and management. Edouard Boudrant: is CFO of the Administrator. He has a Bachelor s Degree in Business Management from the Universidad de las Américas (UDLA) in Puebla and from the Centre d Études Supérieures Européennes de Management (CESEM) in Reims, France, and a Master s Degree in Corporate Law from the École Supérieure des Sciences Économiques et Commerciales (ESSEC) in Paris. His professional experience includes eight years working in investment banking in both France (Société Générale and Lazard-NATIXIS) and in Mexico (BBVA Bancomer). Guillermo Bravo Escobosa: is Head of Corporate Development & Investors Relations of the Administrator. He has a Bachelor s Degree in Industrial Engineering from the Universidad Iberoamericana de México and an MBA from the Universidad de Chicago Booth School of Business and his professional experience includes working as a Credit Analyst and Executive Relations Manager at Scotiabank Inverlat in Mexico as well as Associate in M&A and US Diversified Industries at J.P. Morgan in New York. Lorena García Núñez: is Legal Counsel of the Administrator. She joined Grupo GDI in 2002 and has more than 15 years of experience in both the hotel and real estate industries. José Luis Jacome Herrera: is Chief Operations Officer of the Administrator. He has a Bachelor s Degree in Business Administration in Tourism from the Universidad Anáhuac del Sur and the École Supérieure de Gestion (ESG) in Paris specializing in Hotel, International and Luxury Marketing. He is currently enrolled in a Financial Management specialty at the Instituto Tecnológico de Estudios Superiores de Monterrey (ITESM). His professional experience includes more than eight years in operations at different hotel chains including Fairmont, Posadas, and Las Brisas, among others holding different positions from Hotel Director to General Manager, Reception Manager and Food and Beverage Manager. César Chávez González: is Corporate Development & Acquisitions Manager of the Administrator. He has Fiesta Inn Naucalpan 9. Fiesta Inn Guadalajara Expo This select-service, 158-room hotel is located in the city of Guadalajara, in the State of Jalisco. It is within the most important commercial district of the city, just 25 minutes from the Guadalajara International Airport. Across from the hotel is the famous Expo Guadalajara, and the Plaza del Sol shopping center is just steps away. Its excellent location makes getting to downtown Guadalajara easy. As of Dec. 31, 2013, the number of employees was 63. This hotel was remodeled in

a Bachelor s Degree in Tourism Business Management from the Universidad Anáhuac del Sur, and a specialization in finance from the Universidad Iberoamericana, as well as a diploma in Hotel Real Estate

The complete team for the FibraHotel Administrator is made up of 13 individuals with the following functions, including the senior management team: Controlling, Treasury, Administration, Maintenance

15 a Bachelor s Degree in Tourism Business Management from the Universidad Anáhuac del Sur, and a specialization in finance from the Universidad Iberoamericana, as well as a diploma in Hotel Real Estate Investments and Asset Management from Cornell University. His professional experience includes work as a consulting broker in the area of Tourism and Hospitality for Cushman & Wakefield. The complete team for the FibraHotel Administrator is made up of 13 individuals with the following functions, including the senior management team: Controlling, Treasury, Administration, Maintenance and Fixed Assets. Accounting is done by an external company (Shared Service Center) that has more than 10 years of experience in the hotel industry. Industry overview Type of hotels Affiliated to international brands Affiliated to Mexican brands Independent hotels Number of hotels % of the total number of hotels Number of rooms % of the total number of rooms % 44,511 35% % 28,285 22% % 54,131 43% Total 1, % 126, % The urban hotel or hospitality industry in Mexico has had a presence in the international market for decades, principally because of the fact that international brands operate in the Mexican market because of the importance of the Mexican tourism industry in the Mexican economy. Commercial and industrial activities in Mexico have also created an important increase in the demand for hotels, which we believe, is not being adequately met. The unmet demand can be seen in the low levels of the hospitality industry s per-capita penetration in Mexico when compared with more developed markets. One Aguascalientes The urban hospitality industry continues to be an expanding market but is quite fragmented, especially when looked at in relation to offer options among less-expensive hotels. A market study by HVS looking at vacation hotels and business hotels shows that the inventory of establishments in the principal markets in Mexico totals 1,495 hotels with 210,141 rooms of which 1,154 hotels and 126,927 rooms are designated to serve the business traveler in 40 select markets across Mexico. Of these 1,154 hotels, 690 are independently owned and 464 belong to hotel brands. According to the HVS study, today, the Mexican hotel sector has 30 hotel groups and more than 60 recognized brands at the national (Camino Real, Fiesta Americana, Quinta Real, Fiesta Inn, One Hotels, Real Inn, City Express) and international (Marriott, Hilton, Holiday Inn, Ibis, Fairfield, Hampton Inn, Courtyard) levels. The most important hotel group in Mexico is the InterContinental Hotels Group with 10. Fiesta Inn Hermosillo This select-service, 155-room hotel is located in Hermosillo, in the State of Sonora. This property is located within the hotel district, 10 minutes from downtown Hermosillo, and 15 minutes from the city s international airport. It is nearby the principal business district, as well as the city s principal industrial corridor, where the Ford assembly plant is located. As of Dec. 31, 2013, the number of employees was 64. Annual Report F IBRAH OTEL 13

16 25% of the total urban branded hotels followed by two Mexican hotel groups, Grupo Posadas with 22% and City Express with 14%. Fiesta Inn Querétaro According to HVS, the urban hospitality industry in Mexico continues to be characterized by a high penetration of independent hotels except in the most important cities such as Mexico City or Monterrey. Today, 60% of the sample HVS analyzed is made up of independent hotels (representing 43% of the total number of rooms), while in the United States it is estimated that the total inventory of branded hotels makes up approximately 65% of total inventory, and up to 70% / 80% in the principal urban and industrial centers. Moreover, the Mexican hotel market has a limited number of owners with significant portfolios. Many of them are franchise operators and in general terms, the hotel market is relatively fragmented. Hotel industry trends in Mexico Consideration must be paid to the relation that exists between overall economic activity in Mexico and the evolution of the urban hospitality industry. The established trend in recent years in terms of direct foreign investment is of particular importance as it directly impacts the development of regional markets in distinct parts of the country. This phenomenon, among others, drives growth in the sector as well as the transition to greater participation of hotel industry offerings by international brands. In the case of both national and international hotel groups that principally target the business traveler, there is a clear interest in increasing their presence not only in the principal urban centers in Mexico but as well in cities where economic activity centers on industry, and FibraHotel continues to be a catalyst of this trend. For example, the recent reforms in the energy sector could increase demand in the petroleum regions of the Gulf of Mexico, which would increase demand for business occupancy, and FibraHotel is looking to acquire and develop hotels in order to capitalize on this opportunity. In recent years, the hotel industry in Mexico has been affected by a diversity of internal and external factors, including: the financial crisis in the U.S. in which negatively impacted the Mexican economy and caused a dip in hotel occupancy nationwide, the outbreak of the H1N1 virus in the second quarter of 2009 (which significantly impacted the aviation and tourism sector), and the bankruptcy of Grupo Mexicana de Aviación in 2010, (one of the most important airlines in Mexico) which had an impact on hotel occupancy and rates. As a result of these successive events that negatively impacted the hotel industry in Mexico, the average daily rate (ADR) is lower in Mexico than it is in U.S. or Brazil: Limited service hotels ADR: US $49.4 in Mexico vs. US $79.3 in the U.S. (60% higher than Mexico) and US $82.0 in Brazil (67% higher than in Mexico). Select service hotels ADR: US $92.0 in Mexico vs. US $108.9 in the U.S. (18% higher than in Mexico) and US $128.0 in Brazil (39% higher than in Mexico). According to a Jones Lang LaSalle study, the Mexican economy for various years now has been maturing and transitioning to a services economy. For example, 30 years ago the services sector represented a third of GDP while in 2010 the sector had grown to approximately 62% of GDP. Various factors are driving these changes including 11. Fiesta Inn León This select-service, 160-room hotel is located in the city of León, in the State of Guanajuato. This hotel is adjacent to the CentroMax shopping center, offering access to various entertainment options. It is five minutes from La Plaza del Zapato, which is recognized as the most important exposition center for the national footwear industry, and five minutes from the city s Historic Center. As of Dec. 31, 2013, the number of employees was

Market Opportunity the NAFTA trade agreement, important improvements in Mexican infrastructure, macroeconomic policies, the stable growth of the middle class (it is estimated that 17% of the

In accordance with the Jones Lang LaSalle study which included the analysis of more than 200 investment projects in Mexico totaling more than $135 billion U.S. dollars, the Mexican economy is maturing and transitioning to a services economy which historically has produced more hotel occupancy demand.

17 Market Opportunity the NAFTA trade agreement, important improvements in Mexican infrastructure, macroeconomic policies, the stable growth of the middle class (it is estimated that 17% of the population moved into the middle class between 2000 and 2010), and an important growth in the national and international tourism sectors. In accordance with the Jones Lang LaSalle study which included the analysis of more than 200 investment projects in Mexico totaling more than $135 billion U.S. dollars, the Mexican economy is maturing and transitioning to a services economy which historically has produced more hotel occupancy demand. Therefore, robust growth in the hotel industry in Mexico is expected in the coming years. In 2012, there were approximately 315,000 quality hotel rooms in Mexico (2.7 rooms for every 1,000 inhabitants) and this number is expected to reach 506,000 in 2022 (four rooms per 1,000 inhabitants) which represents a growth of 191,600 rooms. For the markets that are of the most importance to FibraHotel, the expected increase is as follows: (i) large cities will add 13,588 rooms (from 21,577 rooms in 2012 to 37,288 in 2022), (ii) secondary cities will add 17,237 rooms (from 30,329 rooms in 2012 to 48,106 in 2022) and (iii) tertiary cities will add 28,814 rooms (from 45,956 rooms in 2012 to 74,770 in 2022). FibraHotel is in an excellent position as an investment vehicle that is capable of offering investors a growth platform for value creation. Since FibraHotel is a hotel owner only, it offers attractive opportunities for synergy with partners in the market such as international hotel companies, hotel operators and other participants in the real estate market in Mexico. The hotel market offers interesting and sustainable growth opportunities for both FibraHotel and its CBFI holders as a result of trends in the hospitality industry in Mexico and our ability to execute on strategy. Moreover, FibraHotel is capable of continuing to take advantage of these opportunities thanks to the experience of its Advisor, its management team, its relations with the hotel industry in Mexico and the advantage of being a Lodging REIT that is listed on the Mexican Stock Exchange with access to capital and fiscal benefits for future assets contributors. The competitive advantages FibraHotel offers and the strategies it is implementing and intends to continue implementing will permit it to differentiate itself with other competitors in Mexico and will strengthen its goal of building a hotel portfolio of the finest quality in Mexico. Fiesta Inn Oaxaca As a result of good economic conditions and favorable hotel offerings in Mexico, demand levels should increase and a gradual increase in average rates could be produced thanks to consolidation of demand trends, such as in 2013 when room rates in our portfolio (at comparable perimeter) tended to increase above the inflation rate. 12. Fiesta Inn Mexicali This select-service, 150-room hotel is located in the city of Mexicali, in the State of Baja California. It is located just steps from the Civic Center, and nearby both the bullfighting ring and the Plaza de los Tres Poderes. This hotel is just 20 minutes from the Mexicali International Airport, and only five minutes from the United States border. As of Dec. 31, 2013, the number of employees was 62. Annual Report F IBRAH OTEL 15

Fiesta Americana Aguascalientes FibraHotel s Strategy FibraHotel s Competitive Strengths FibraHotel has the following competitive strengths: Leader in the market with a portfolio of highquality

FibraHotel has the largest highquality portfolio of hotels in the limited-service, select-service, and full-service market segments for business customers in Mexico.

18 Fiesta Americana Aguascalientes FibraHotel s Strategy FibraHotel s Competitive Strengths FibraHotel has the following competitive strengths: Leader in the market with a portfolio of highquality hotels that includes multiple brands and operators, geographically diversified and difficult to replicate. FibraHotel has the largest highquality portfolio of hotels in the limited-service, select-service, and full-service market segments for business customers in Mexico. The hotels are focused on serving business travelers and the hotels operate in attractive segments in the hotel industry in Mexico characterized not only by their potential to generate attractive returns on invested capital but also by the opportunity to enjoy important growth as a result of the unsatisfied demand for these types of facilities in Mexico. FibraHotel hopes to diversify its portfolio with the acquisition and development of new hotels. FibraHotel hotels are associated with recognized brands, such as Fiesta Americana, Fiesta Inn, Fiesta Inn Lofts, Gamma by Fiesta Inn, One Hotels, Camino Real, Camino Real Hotel & Suites, Real Inn and Fairfield Inn and in the future with other Marriott International brands (Courtyard by Marriott, AC by Marriott ) as well as other operators which will provide important advantages. Demand will further be generated by the quality of service, loyalty programs, reservation systems and national distribution channels. FibraHotel hotels are located principally in markets characterized by significant industrial and business activates which generate considerable demand for hotel services oriented to the business traveler. FibraHotel hotels are also located in strategic locations with distinct barriers to entry, including within or near malls, airports, and/or industrial parks generally characterized by their location in areas with a shortage of buildable land for development. These strategic locations are not easy to replicate and they provide guests with access to a wide range of complementary services, which improve the guest experience. 13. Fiesta Inn Monclova This select-service, 121-room hotel is located in the city of Monclova, in the State of Coahuila. This hotel is located along the main avenue, Harold R. Rape Avenue. It is five minutes from the international airport, 10 minutes from the city s business district, and nearby the entrances to highways travelling to Saltillo, Monterrery, Torreón, and Piedras Negras. As of Dec. 31, 2013, the number of employees was

The team has deep knowledge of the real estate market in Mexico and has created and maintains a wide network of contacts in the hotel industry, including long-term relationships with hotel owners,

19 Solid relations of the management team and the Control Group provide wide access to investment opportunities. The FibraHotel management directors have wide experience in the acquisition, development, financing, renovation, repositioning, redevelopment and management of hotels. The team has deep knowledge of the real estate market in Mexico and has created and maintains a wide network of contacts in the hotel industry, including long-term relationships with hotel owners, hotel operating companies, hotel brokers and other key market participants such as the most important real estate developers in Mexico (malls, offices, industrial parks ). As a result of these significant relationships, the management team has identified and evaluated and will continue to identify and evaluate numerous potential acquisition and development opportunities for continuing to grow the FibraHotel portfolio. The solid relationships the management team has with hotel operating companies gives FibraHotel valuable knowledge related to branding and opens access to numerous development and attractive acquisition opportunities of which many may not be available to competitors. It should also be mentioned that through its relationship with Grupo GDI, FibraHotel has access to potential acquisition and development project opportunities. Asset ownership based upon an efficient and aligned operating model. A key element in FibraHotel s strategy is signing contracts with hotel operators who are paid predominantly variable commissions based upon the gross operating profits which results in aligning FibraHotel s interests with the interests of the hotel operating companies and minimizes costs and expenses in down cycles which provides great flexibility and makes it possible to take advantage of a break-even point which is relatively low. An open architecture policy allows FibraHotel to associate itself with hotel operating companies and hotel brands as are convenient for each hotel and circumstance. Hotels being developed have been and will continue to be developed based on architectural plans that seek to maximize the use of space that generates income and minimizes the both construction and operating costs. FibraHotel is committed to rigorously managing its assets for improved operational returns. For example, rigorous management of assets means the proactive monitoring and evaluation of the hotel operating companies, and all aspects of the hotels operations including positioning and repositioning of real estate assets, analysis of operations, physical design, renovations and fundamental improvements. As a result of the aforementioned, FibraHotel has developed an operating model that is efficient and that provides a substantial operating leverage in a variety of market conditions and cycles. FibraHotel considers that there exists a potential to increase RevPAR, principally ADR, which with operating leverage will help to increase the profitability of the FibraHotel portfolio as economic conditions improve in Mexico. FibraHotel can also and will also continue to increase RevPAR and profit margins in the future as more hotels are added to the operating platform. The advantage of being first with a strong balance sheet overall and access to capital. FibraHotel was the first Lodging REIT listed on the Mexican Stock Exchange and is considered the best-positioned investment vehicle for growing a portfolio of business hotels. As a company that is listed on the Mexican Stock Exchange, FibraHotel has and will have better access to capital and the opportunity to issue CBFIs to possible sellers in exchange for their properties, providing them with an additional liquid option that is tax efficient. As of Dec. 31, 2013, FibraHotel has a solid cash position and no debt. As a result, together with a solid asset base, FibraHotel has and will have the capacity to incur debt in a conservative manner and without surpassing its debt limits, which will permit it to take advantage of favorable development, acquisition and investment opportunities. As a result of the stable presence of FibraHotel in the Mexican hotel market, its advantage as a forerunner in the market, its scale of operations, the high quality of its portfolio and its solid financial situation, FibraHotel believes it is well positioned to take advantage of the acquisitions and development opportunities that exist in the highly fragmented 14. Fiesta Inn Monterrey La Fe / Airport This select-service, 161-room hotel is located in the municipality of San Nicolás de los Garza, Monterrey, In the State of Nuevo León. It is located along Highway Miguel Alemán nearby the area s principal industrial parks, just seven minutes from the Monterrey International Airport, and two minutes from the La Fe shopping center. As of Dec. 31, 2013, the number of employees was 73. Annual Report F IBRAH OTEL 17

FibraHotel s Strategy hotel industry in Mexico and to associate itself with the largest hotel operators that are looking for an institutional equity partner. Solid growth trajectory.

30, 2012) Grupo GDI increased its operations portfolio from 1 to 17 hotels and from 123 to 2,321 rooms mainly through the development of properties.

20 FibraHotel s Strategy hotel industry in Mexico and to associate itself with the largest hotel operators that are looking for an institutional equity partner. Solid growth trajectory. The FibraHotel management team has a solid growth trajectory. From 1994 to the date of the FibraHotel s IPO (Nov. 30, 2012) Grupo GDI increased its operations portfolio from 1 to 17 hotels and from 123 to 2,321 rooms mainly through the development of properties. Grupo GDI s growth was possible through the disciplined use of resources and limited access to capital during various market cycles in the hotel industry. Additionally, since the initial IPO the Fibra- Hotel portfolio has grown from 17 hotels and 2,321 rooms in operation to 47 hotels and 6,666 rooms in operation up to the date of this Annual Report. Alignment of long-term interests with the Control Group and management team. Relations between FibraHotel, its Advisor and Grupo GDI are structured in a manner such that all of their interests are closely aligned. In conformance with the Trust Contract and the Adherence Contracts, the Relevant Adherent Trustors have agreed to authorize preferential rights for acquiring any hospitality investment opportunity in the future generated by any of them, in the manner that such opportunity substantially comply with all of the established investment eligibility requirements contained in the trust contract, as long as the Control Trust is the beneficiary of at least 15% of the CBFIs in circulation. CBFIs that are owned by the relevant directors of Grupo GDI, outside Advisor executives and the CBFIs of certain members of our Technical Committee that were received as part of the initial operations, were transferred to a Control Trust and are subject to certain restrictions on their sale or transfer. FibraHotel believes that the important capital participation by the Advisor executives and the Relevant Adherent Trustors, restrictions on the sale of said CBFIs which are applied to the Advisor executives and the Relevant Adherent Trustors, and the pre-emptive rights over investment opportunities generated by the Relevant Adherent Trustors and the Work Contract, together, create a long-term alignment of FibraHotel s interests, those of its Advisor, and Grupo GDI s. The goal of FibraHotel is to generate attractive risk-adjusted returns for its holders (owners of the CBFIs) principally through distribution of the net taxable income as determined by the Technical Committee and through the CBFI s capital appreciation (for the year 2013, FibraHotel distributed MXN $338 million to holders). FibraHotel s plan is to achieve this goal by the ownership, expansion and efficient operation of a portfolio of high-quality hotels of distinct brands that is geographically diversified and operated by independent and prestigious hotel operators in all of Mexico and that can generate attractive investment returns and generate increased value over the long term through the efficient management of assets. FibraHotel intends to achieve this objective by way of the following investment and development strategies: One Acapulco 15. Fiesta Inn Naucalpan This select-service, 119-room hotel is located in the municipality of Naucalpan, in the State of Mexico. It is located at the intersection of Gustavo Baz Avenue and Periférico Norte, just steps from the Naucalpan District Council, and nearby one of the most important industrial corridors of Mexico City. Nearby attractions include shopping centers like City Shops, Mundo E, and Plaza Satélite, and an important convention center. As of Dec. 31, 2013, the number of employees was 58. This hotel was fully remodeled in

21 Grow and consolidate the market for limited-, select-, full- and extended-stay hotels. FibraHotel plans to continue growing in large and mature markets as well as in markets characterized by strong industrial and commercial activities through the acquisition and development of hotel assets. FibraHotel s focus will be on limited-, select-, and extendedstay hotels as well as full-service hotels that serve the business traveler in markets where there is significant business and industrial activity. In this sense, FibraHotel plans to invest in strategic locations that offer a convenient alternative to the business traveler. FibraHotel also intends to continue to have a presence in strategic locations such as malls, airports and industrial centers, looking to improve FibraHotel s operations platform and maximize actual RevPAR. As well, FibraHotel plans to focus on opportunities where it can improve value through proactive investment strategies such as renovations, repositioning or brand switching as in the case of un-branded or poorly managed hotels. FibraHotel believes that, with our wide knowledge of and relationships within the local industry of its Advisor s and its management team, it has the ability to secure opportunities with independent and smaller hotel owners as well as with hotel owners who are looking to transfer ownership of the their hotels. FibraHotel believes that with disciplined growth focused on building value for its CBFI holders, its portfolio can grow to 100 hotels in the medium term. Real Inn Morelia Look for opportunities using FibraHotel s unique access to hotel investment opportunities. Through its relationship with Grupo GDI, FibraHotel has access to a wide range of possible acquisitions including preemptive rights with respect to hotel investment opportunities. These opportunities, as well as the wide relationships that FibraHotel has established in the hotel industry in Mexico, generate a continual source of attractive investment opportunities outside of the competitive market with which FibraHotel can grow its portfolio in a disciplined manner and increase value its CBFIs holders. The use of independent hotel operating companies provides FibraHotel with access to investment opportunities since, as these companies guide FibraHotel to possible investments, the companies have the expectation that they may receive the operating contract if FibraHotel acquires a hotel. Take advantage of organic growth opportunities. FibraHotel believes that it can and will be able to take advantage of organic growth opportunities since: i) its focus is on the business traveler and the strategic location of its hotels in business and industrial centers which will permit it to participate in the growth of the Mexican economy; 16. Fiesta Inn Nuevo Laredo This select-service, 120-room hotel is located in Nuevo Laredo, in the State of Tamaulipas. Nuevo Laredo is a border city, and is characterized by a significant flow of business travelers crossing the international border. This property is located along the most important avenue of the city, Avenue Reforma, just 15 minutes from the Nuevo Laredo- Laredo border crossing. As of Dec. 31, 2013, the number of employees was 45. Annual Report F IBRAH OTEL 19

ii) it will continue to apply its efficient operating platform and the disciplined management of the assets in its portfolio and any acquisition or development that it carries out; and iii) its

FibraHotel believes that there is an opportunity to increase RevPAR at its hotels. In 2013, based on a parameter of properties comparable of 30 hotels, the RevPAR was MXN $574, representing a 5.

22 ii) it will continue to apply its efficient operating platform and the disciplined management of the assets in its portfolio and any acquisition or development that it carries out; and iii) its larger size as a result of its hotel acquisitions gives it the advantage of looking for ways to improve operating margins at the hotels in its portfolio. FibraHotel believes that there is an opportunity to increase RevPAR at its hotels. In 2013, based on a parameter of properties comparable of 30 hotels, the RevPAR was MXN $574, representing a 5.6% increase over 2012 (MXN $543), compared with an inflation rate of 3.9%. Positive trends in the Mexican manufacturing sector together with structural reforms being carried in Mexico are making the country an attractive target for investment in manufacturing and capital-intensive industry. With the lowering of risk in the country, a dynamic creation of jobs, a solidly capitalized banking sector, low leverage in the private sector and decreases in demographic dependency index, FibraHotel believes that the Mexican economy is on a path to growth which will result in increased demand for hotel services for business travelers. Moreover, proposed structural reforms can provide stimulus to the Mexican economy, which can be capitalized on. It could and will increase the operating efficiency of the acquired hotels as they are integrated into the platform. Operating efficiencies include operating under hotel management contracts structured with variable commissions, disciplined management of assets and an open architecture policy. Opportunities for investing in the hotels will also be reviewed on a regular basis with the goal of improving their quality and attractiveness, increasing their value over the long run and generating attractive returns on investment. A rigorous focus on the management of the hotel assets will also be applied to hotels acquired in the future. Association with leading hotel brands and hotel operating companies. The use of topof-the-line hotel brands and leading hotel operating companies such as Grupo Posadas, Grupo Real Turismo and in the near future with Marriott International, among others, provides important advantages because these brands and hotel operators enjoy prestige. They have loyalty programs, modern reservation systems, effective segmentation of products, national distribution and a clear understanding of guests needs that stimulates demand and can result in higher occupancy rates, and higher ADR and RevPAR. As a result of our open architecture strategy, we can create relationships with the hotel operating companies that are best suited to each hotel and circumstance. The strong relationships that the Advisor s management team has with the principal hotel operating companies, together with the management team s more than 20 years of experience will facilitate the ability to work efficiently with the operating companies, and will provide valuable knowledge related to brand initiatives as well as provide access to acquisition and development opportunities, many of which will not be available to competitors. 17. Fiesta Inn Oaxaca This select-service, 145-room hotel is located in the city of Oaxaca, in the State of Oaxaca. It is located in the most developed commercial district of the city, across from the Plaza del Valle and Plaza Oaxaca shopping centers, nearby main tourist attractions like the temple of Santo Domingo de la Soledad, and the cathedral. The hotel is 15 minutes from the city s Historic Center, and ten minutes from Benito Juárez Airport. As of Dec. 31, 2013, the number of employees was

difficult to replicate such as mixed-use projects and malls that will diversify FibraHotel s portfolio, always looking to maximize the holder s long-term return on investment.

23 Real Inn Guadalajara Wide experience for growth in hotel development in Mexico. The important growth in hotel demand in Mexico during the coming years will create attractive opportunities for developing hotels targeting the business traveler in strategic locations that are difficult to replicate such as mixed-use projects and malls that will diversify FibraHotel s portfolio, always looking to maximize the holder s long-term return on investment. FibraHotel will be able to capitalize on this opportunity because its Advisor and management team have wide experience in the development of hotels serving the business traveler in Mexico. Additionally, the cost per key for FibraHotel to develop hotels are highly competitive. FibraHotel uses independent companies for the construction and development of its hotels, eliminating conflicts of interest and maximizing its ability to develop different hotels throughout Mexico while at the same time strategically maintaining the structure and supervision of its hotel projects. This combination of factors helps to ensure that projects are more profitable, starting from the selection of the most advantageous sites for each project to the best brands and operators, and hotel size including space allocated to rooms and amenities. All of the developments are focused on succeeding at maximizing the return on investment for the CBFI holders and diversifying the FibraHotel portfolio over the long term. Acquisitions A central part of FibraHotel s growth is based on a proven strategy of acquiring operating hotels and incorporating them into the portfolio, and that they add value for the holders, increasing distributions over the long term. The acquisitions strategy is based on a disciplined approach to acquiring high-quality hotels in strategic locations at the right price, and hotels that generate adequate cash flow (cap rate) and can be repositioned at the right cost (cost per key). All acquisitions are internally evaluated to ensure that they add value to holders. FibraHotel looks for hotels that are not only established but that can be integrated into the platform under the arrangement of predominantly variable commissions, as well as independent hotels of high real estate value in which the opportunity to reposition them under new branding can be identified and transferred to a professional operator in order maximize cash flow and be added to the portfolio. FibraHotel has a development group that is continually generating a pipeline of opportunities that comply with its investment requirements. FibraHotel enjoys a unique position in its ability to take advantage of these opportunities given the relationships its management team and Advisor have with participants in the hotel industry and the real estate industry in Mexico. FibraHotel looks for high-quality business hotels in strategic locations throughout the country that complement FibraHotel s portfolio and generate value for holders. An internal acquisitions committee analyzes all investment alternatives and alternatives are updated based upon executive management s different negotiations. Only opportunities that increase value over the long term are selected. FibraHotel believes it has a sustainable acquisitions strategy that will allow it to capitalize on opportunities as business cycles change and that is sustainable and will succeed at growing with the acquisition of hotels. 18. Fiesta Inn Perinorte This select-service, 123-room hotel is located in Mexico City. This property is located along the México-Querétaro Highway, one of the city s principal highways, nearby the industrial corridors of Tultitlan, Cuautitlán, and Tepotzotlán, and the Ford automotive plant. This property is located within a shopping center with a cinema and café. This hotel is nearby shopping centers like Perinorte, Premium Outlets, City Shops, Mundo E, and Plaza Satélite, and 25 minutes from the Mexico City International Airport via the new Circuito Exterior Mexiquense highway. Leased component included. As of Dec. 31, 2013, the number of employees was 60. Annual Report F IBRAH OTEL 21

Developments FibraHotel looks to develop hotels serving business guests in strategic locations, principally at iconic development sites and mixed-use highly dynamic commercial centers that will

24 Developments FibraHotel looks to develop hotels serving business guests in strategic locations, principally at iconic development sites and mixed-use highly dynamic commercial centers that will maximize the return on investment in the long term. The development strategy complements the acquisitions strategy. In situations where all things are equal, FibraHotel gives preference to the acquisition of operating hotels over new hotel developments. However, it continues to develop hotels in situations in which it provides entry to a commercial center where acquisition would be expensive in terms of repositioning the hotel. FibraHotel develops hotels when it provides the best return on investment and when a new development is located in a mixed-use project with competitive advantages over the alternatives. The process of developing a new hotel begins with identifying strategic locations and large mixed-use projects that are being developed. Once the location has been selected, a market study is undertaken to evaluate the hotel project in order define the hotel service segment, its size, the appropriate amenities and the different branding and operating company options. The development of new hotels helps to diversify the portfolio with the growth of brands of international operators with hotels that are built to fit needs based on the requirements of the brands. The Advisor and FibraHotel s management team have wide experience in hotel development and based upon the current number of hotels in the portfolio, they are achieving attractive turnkey costs and maintaining general supervision and hotel project structuring. As of the date of this Annual Report, the portfolio of hotels in development by FibraHotel consists of the following: Hotel Descripción 1. Cancun Extended-Stay 74-room extended-stay hotel. Located in the Malecón Américas Cancún shopping mall. Construction of the building is complete. Selection of the best operator and branding is underway. 2. Monclova: Fiesta Inn Lofts / One 3. Fiesta Inn Lofts Queretaro 4. Fairfield Inn & Suites Villahermosa 5. and 6. Ciudad del Carmen: Courtyard by Marriott / Fiesta Inn Lofts 7. and 8. Trebol Monterrey: Live Aqua / Fiesta Americana Grand 9. and 10. Vía Vallejo: Courtyard by Marriott / Fairfield Inn & Suites 11. Hotel in Toluca Tollocan Project with a mixture of 66 limited-service rooms (One Hotels) and 39 extended-stay rooms (Fiesta Inn Lofts). The project is located next to the Hotel Fiesta Inn and is on schedule for opening in the third quarter of room extended-stay hotel. This hotel will share common areas with the recently renovated Fiesta Inn Queretaro hotel, and will be developed in the existing parking lot. The hotel construction began in May 2014 and is estimated to start operating during the fourth quarter of Limited-service hotel with 135 rooms, which will be operated by Marriott International. The project is in the permitting and licensing stage. The start of construction is planned for the second quarter of 2014 and the opening of the hotel for the first quarter of A limited-service hotel, Courtyard by Marriott with 130 rooms, and an extended-stay hotel, Fiesta Inn Lofts with 124 rooms, built on the same building. Both hotels are part of a mixed use project with offices and mall and the estimated opening is during the first semester of Two, full-service hotels: Fiesta Americana Grand with 180 rooms and Live Aqua with 46 rooms. The hotels are part of the Trebol Monterrey mixed-use development. Both hotels will be operated by Grupo Posadas and will open together with the project in the fourth quarter of Construction is underway on both towers. Two, select-service hotels: Courtyard by Marriott with 93 rooms and Fairfield Inn & Suites with 152 rooms, both built in the same building. Both hotels will be operated by Marriott International and are part of the Vía Vallejo project (Mexico City). The opening date for both the hotels and the project is planned for the third quarter of The project is currently at the stage of foundation construction for the shopping mall. The lot is located adjacent to the Hotel Fiesta Inn Toluca Tollocan. Plans currently call for the hotels to be either one extended-stay and/or one limited-service hotel. The market is being evaluated to determine the optimal date for opening. 19. Fiesta Inn Perisur This select-service, 212-room hotel is located in Mexico City. It is next to Gran Sur, one of the most frequented shopping centers in Mexico City, and nearby universities, hospitals, and Perisur, one of the city s most prestigious shopping centers. It is the only hotel on the final stretch of Periférico Sur. As of Dec. 31, 2013, the number of employees was 105. Hotel is leased as of the date of this Annual Report. 22

All FibraHotel developments are put out to bid and built by independent contractors who aren t associated with Fibra- Hotel or its Advisor.

The strategy is to use different developers, which permits projects to be carried out simultaneously.

Once open, the hotels go through a stabilization period of between six and 18 months.

) Rooms in construction Total Spent Remaining 1 Cancun Extended-Stay Quintana Roo 2014 74 130.0 94.9 35.1 2 Fiesta Inn Lofts / One Monclova Coahuila Q4 2014 105 100.0 21.0 79.

4 5 Courtyard Ciudad del Carmen Campeche H1 2015 130 255.6 30 225.6 6 Fiesta Inn Lofts Ciudad del Carmen Campeche H1 2015 124 230.0 34.9 195.

0 34.9 195.1 230.0 34.9 195.1 10 Fairfield Inn & Suites Vallejo México DF Q4 2015 152 11 Hotel in Toluca Tollocan Estado de México TBD 100 TBD 8.2 TBD TOTAL 1,184 1,470.6 345.9 1,124.

25 All FibraHotel developments are put out to bid and built by independent contractors who aren t associated with Fibra- Hotel or its Advisor. Each project looks for the best-cost alternatives, experience and ability to carry out the project. The strategy is to use different developers, which permits projects to be carried out simultaneously. Generally speaking, hotels under development have a construction period of between nine and 12 months after permits and licenses are secured. Once open, the hotels go through a stabilization period of between six and 18 months. As of the date of this Annual Report, FibraHotel has invested MXN $346 million with respect to these 11 properties: Hotel State Opening Date Cost for FibraHotel (MXN $ mill.) Rooms in construction Total Spent Remaining 1 Cancun Extended-Stay Quintana Roo Fiesta Inn Lofts / One Monclova Coahuila Q Fiesta Inn Lofts Queretaro Querétaro Q Fairfield Inn & Suites Villahermosa Tabasco Q Courtyard Ciudad del Carmen Campeche H Fiesta Inn Lofts Ciudad del Carmen Campeche H Fiesta Americana Grand Monterrey Nuevo León Q Liva Aqua Monterrey Nuevo León Q Courtyard Vallejo México DF Q Fairfield Inn & Suites Vallejo México DF Q Hotel in Toluca Tollocan Estado de México TBD 100 TBD 8.2 TBD TOTAL 1,184 1, ,124.7 Trebol Monterrey: Live Aqua / Fiesta Americana Grand Fairfield Inn & Suites Vallejo Fiesta Inn Loft / One Monclova Fairfield Inn & Suites Villahermosa 20. Fiesta Inn Puebla FINSA This select-service, 123-room hotel is located in the City of Puebla, in the State of Puebla. Its location is five minutes from FINSA industrial park, which houses major automotive companies. It is nearby the México-Puebla highway at the main entrance to Hermanos Serdán Boulevard. This hotel is 20 minutes from the city center, and 15 minutes from important shopping centers. As of Dec. 31, 2013, the number of employees was 64. Annual Report F IBRAH OTEL 23

26 Real Inn Guadalajara FibraHotel Portfolio 21. Fiesta Inn Querétaro This select-service, 175-room hotel is located in the city of Querétaro, in the State of Querétaro. It is located in the city s principal commercial district, ten minutes from the most important industrial parks, ten minutes from downtown, and 40 minutes from the international airport. As of Dec. 31, 2013, the number of employees was 103. This hotel was fully remodeled in

Presentation of the FibraHotel Portfolio FibraHotel began 2013 with 22 hotels and 2,956 rooms, of which: 18 hotels (2,467 rooms) are being operated.

27 Presentation of the FibraHotel Portfolio FibraHotel began 2013 with 22 hotels and 2,956 rooms, of which: 18 hotels (2,467 rooms) are being operated. Four hotels (489 rooms) are in various stages of development. Throughout 2013, FibraHotel increased the number of hotels in operation and projects in development thanks to: The acquisition of 14 hotels (2,050 rooms) to Grupo Posadas. The acquisition of five hotels (749 rooms) to other hotel owners. The opening of two hotels (281 rooms) in the Development Portfolio. The acquisition of six hotel development projects (676 rooms) under construction and an increased inventory of rooms at the Camino Real Hotel & Suites Puebla (15 rooms). FibraHotel began 2013 with 47 hotels and 6,446 rooms, of which: 39 hotels (5,547 rooms) are being operated. eight hotels (899 rooms) are in various stages of development. Between January 2014 and the date of this Annual Report, FibraHotel: Acquired seven operating hotels, Fiesta Americana Aguascalientes, Fiesta Inn Xalapa, One Xalapa, Fiesta Inn Ciudad Obregón, Fussion 5 León, Valle Grande Ciudad Obregón and Fairfield Inn Los Cabos (970 rooms in operation and 36 rooms to be added). Opened the Camino Real Hotel & Suites Puebla (149 rooms) which was part of the Development Portfolio. Acquired four hotel projects under development (434 rooms). As of the date of this Annual Report, FibraHotel had 58 hotels and 7,886 rooms, of which: 47 hotels (6,666 rooms are in operation and 36 rooms are to be added) in operation. 11 hotels (1,184 rooms) are in various stages of development. As of the date of this Annual Report, FibraHotel has a well-diversified portfolio within the Mexican Republic with a presence in 24 states and the three most important hotels in terms of number of rooms (Fiesta Inn Perisur, Real Inn Guadalajara and Fiesta Americana Aguascalientes) represent 9.0% of the total number of rooms in operation. The distribution of the operating hotels in the portfolio was the following: SEGMENT Hotels Rooms # % # % Limited-Service % 1, % Select-Service % 4, % Full-Service 2 4.3% % Extended-Stay 1 2.1% % TOTAL % 6, % REGION Hotels Rooms # % # % Center and South % 3, % Northeast % % Northwest % 1, % West 4 8.5% % TOTAL % 6, % 22. Fiesta Inn Saltillo This select-service, 149-room hotel is located in the city of Saltillo, in the State of Coahuila. Its location is just 10 minutes from the Saltillo International Airport, nearby the city center. It offers easy access to the Ramos Arizpe industrial zone. As of Dec. 31, 2013, the number of employees was 63. Annual Report F IBRAH OTEL 25

28 The following table and graphics show the evolution of the FibraHotel portfolio between the fourth quarter of 2012 and the date of this Annual Report: FIBRAHOTEL PORTFOLIO IN OPERATION FIESTA INN / GAMMA BY FIESTA INN Num. of rooms Acquisition Date 4Q 2012 Number of rooms at end of quarter 1Q Q Q Q 2013 Date of the Report 1 Fiesta Inn Aguascalientes 125 Acquisition IPO 1/21/ % 2 Fiesta Inn Ciudad Juárez 166 Acquisition IPO 1/21/ % 3 Fiesta Inn Ciudad Obregón 123 Acquisition Post IPO 4/7/ % 4 Fiesta Inn Chihuahua 152 Acquisition IPO 1/21/ % 5 Fiesta Inn Culiacán 142 Contribution IPO 12/1/ % 6 Fiesta Inn Durango 138 Contribution IPO 12/1/ % 7 Fiesta Inn Guadalajara 158 Acquisition IPO 1/21/ % 8 Fiesta Inn Hermosillo 155 Contribution IPO 12/1/ % 9 Fiesta Inn León 160 Acquisition IPO 1/21/ % 10 Fiesta Inn Mexicali 150 Acquisition IPO 1/21/ % 11 Fiesta Inn Monclova 121 Acquisition IPO 2/28/ % 12 Fiesta Inn Monterrey 161 Acquisition IPO 1/21/ % 13 Fiesta Inn Naucalpan 119 Contribution IPO 12/1/ % 14 Fiesta Inn Nuevo Laredo 120 Contribution IPO 12/1/ % 15 Fiesta Inn Oaxaca 145 Acquisition Post IPO 7/5/ % 16 Fiesta Inn Perinorte 123 Contribution IPO 12/1/ % 17 Fiesta Inn Puebla FINSA 123 Acquisition Post IPO 7/3/ % 18 Fiesta Inn Querétaro 175 Acquisition IPO 1/21/ % 19 Fiesta Inn Saltillo 149 Acquisition IPO 1/21/ % 20 Fiesta Inn Tepic 139 Contribution IPO 12/1/ % 21 Fiesta Inn Tlalnepantla 131 Acquisition Post IPO 6/24/ % 22 Fiesta Inn Torreón 146 Acquisition IPO 12/19/ % 23 Fiesta Inn Toluca 144 Acquisition Post IPO 4/30/ % 24 Fiesta Inn Xalapa 119 Acquisition Post IPO 3/27/ % 25 Fussion 5 León (Gamma by Fiesta Inn) 165 Acquisition Post IPO 5/22/ % 26 Valle Grande Ciudad Obregón (Gamma by Fiesta Inn) 135 Acquisition Post IPO 5/30/ % Subtotal 3,684 1,082 2,599 2,874 3,142 3,142 3, % REAL INN 27 Real Inn Guadalajara 197 Acquisition Post IPO 8/1/ % 28 Real Inn Mexicali 158 Acquisition Post IPO 7/1/ % 29 Real Inn Morelia 155 Development IPO 3/1/ % Subtotal % ONE 30 One Acapulco 126 Contribution IPO 12/1/ % 31 One Aguascalientes 126 Contribution IPO 12/1/ % 32 One Coatzacoalcos 126 Contribution IPO 12/1/ % 33 One Culiacán 119 Contribution IPO 12/1/ % 34 One Guadalajara Tapatío 126 Development IPO 6/24/ % 35 One Xalapa 108 Acquisition Post IPO 3/27/ % 36 One Monterrey 126 Contribution IPO 12/1/ % 37 One Puebla FINSA 126 Acquisition Post IPO 7/2/ % 38 One Querétaro 126 Acquisition IPO 1/21/ % 39 One Toluca 126 Contribution IPO 12/1/ % 40 One Patriotismo 132 Acquisition IPO 1/21/ % Subtotal 1, ,007 1,133 1,259 1,259 1, % MARRIOTT INTERNATIONAL 41 Fairfield Inn Los Cabos 128 Acquisition Post IPO 6/20/ % Subtotal % OTHER 42 Camino Real Puebla 153 Contribution IPO 12/1/ % 43 Camino Real Hotel & Suites Puebla 149 Development IPO 3/1/ % 44 Fiesta Americana Aguascalientes 192 Acquisition Post IPO 1/14/ % Subtotal % LEASED HOTELS 45 Fiesta Inn Cuautitlán 128 Contribution IPO 12/1/ % 46 Fiesta Inn Ecatepec 143 Contribution IPO 12/1/ % 47 Fiesta Inn Perisur 212 Contribution IPO 12/1/ % Subtotal % % of rooms TOTAL OPERATING ROOMS TOTAL OPERATING HOTELS 6,666 2,467 4,397 4,798 5,547 5,547 6, %

29 FIBRAHOTEL PORTFOLIO IN DEVELOPMENT Num. of rooms Opening Date 4Q 2012 Number of rooms at end of quarter 1Q Q Q Q 2013 Date of the Report Real Inn Morelia - Opened Development IPO 1/1/ One Tapatío - Opened Development IPO 6/24/ Camino Real Hotel & Suites Puebla - Opened Development IPO 3/1/ Cancún Extended Stay 74 Development IPO % 49 Fiesta Inn Lofts / One Monclova 105 Acquisition Post IPO 4Q % 50 Fiesta Inn Lofts Querétaro 45 Acquisition Post IPO 4Q % 51 Fairfield Inn & Suites Villahermosa 135 Acquisition Post IPO 1Q % 52 Courtyard Ciudad del Carmen 130 Acquisition Post IPO 1H % 53 Fiesta Inn Lofts Ciudad del Carmen 124 Acquisition Post IPO 1H % 54 Courtyard Vallejo 93 Acquisition Post IPO 4Q % 55 Fairfield Inn & Suites Vallejo 152 Acquisition Post IPO 4Q % 56 Fiesta Americana Grand Monterrey Trebol 180 Acquisition Post IPO 4Q % 57 Live Aqua Monterrey Trebol 46 Acquisition Post IPO 4Q % 58 Toluca Tollocan Hotel 100 Acquisition Post IPO TBD % One Xalapa / Fiesta Inn Ciudad Obregón expansion 36 Acquisition Post IPO 2H % TOTAL DEVELOPMENT 1, , % % of rooms TOTAL PORTFOLIO FIBRAHOTEL - ROOMS 7,886 2,956 4,731 5,132 5,870 6,446 7,886 PORTAFOLIO TOTAL FIBRAHOTEL - HOTELES Evolution of the number of hotels Number of total hotels Number of hotels in development Number of hotels in operation % Q Q Q Q Q 2013 Date of the report Evolution of the number of rooms Number of total rooms 2,956 4,731 5,132 5,870 6, % 7,886 1,220 Number of rooms in development Number of rooms in operation ,467 4,397 4,798 5,547 5,547 6,666 4Q Q Q Q Q 2013 Date of the report Annual Report F IBRAH OTEL 27

FibraHotel Portfolio - Map The following graphic shows the distribution of the

today has: 58 hotels (47 in operation) 7,886 rooms (6,666 in operation) Presence

44 11 45 48 18 35 9 28 42 20 43 38 Mexico City 15 24 55 54 8 29 27 36 40 26 58

30 FibraHotel Portfolio - Map The following graphic shows the distribution of the FibraHotel portfolio as of the date of this Annual Report: FibraHotel today has: 58 hotels (47 in operation) 7,886 rooms (6,666 in operation) Presence in 24 states Mexico City Represents hotels in development. (1) Including Mexico City 28

FibraHotel Portfolio in operation Hotel # rooms 1 Fiesta Inn Aguascalientes 125 2 Fiesta Inn City of Juárez 166 3 Fiesta Inn City of Obregón 123 (+18) 4 Fiesta Inn Chihuahua 152 5 Fiesta Inn Culiacán

Fiesta Inn Monclova 121 14 Fiesta Inn Monterrey la Fe / Airport 161 15 Fiesta Inn Naucalpan 119 16 Fiesta Inn Nuevo Laredo 120 17 Fiesta Inn Oaxaca 145 18 Fiesta Inn Perinorte 123 19 Fiesta Inn

31 FibraHotel Portfolio in operation Hotel # rooms 1 Fiesta Inn Aguascalientes Fiesta Inn City of Juárez Fiesta Inn City of Obregón 123 (+18) 4 Fiesta Inn Chihuahua Fiesta Inn Culiacán Fiesta Inn Cuautitlán Fiesta Inn Durango Fiesta Inn Ecatepec Fiesta Inn Guadalajara Fiesta Inn Hermosillo Fiesta Inn León Fiesta Inn Mexicali Fiesta Inn Monclova Fiesta Inn Monterrey la Fe / Airport Fiesta Inn Naucalpan Fiesta Inn Nuevo Laredo Fiesta Inn Oaxaca Fiesta Inn Perinorte Fiesta Inn Perisur Fiesta inn Puebla FINSA Fiesta Inn Querétaro Fiesta Inn Saltillo Fiesta Inn Tepic Fiesta Inn Tlalnepantla Fiesta Inn Torreón Fiesta Inn Toluca Fiesta Inn Xalapa Real Inn Guadalajara Centro Real Inn Morelia Real Inn Mexicali One Acapulco One Aguascalientes One Coatzalcoalcos One Culiacán One Guadalajara Tapatío One Xalapa 108 (+18) 37 One Monterrey Airport One Puebla FINSA One Querétaro Plaza Galerías One Toluca Airport One Patriotismo Camino Real Puebla Camino Real Hotel & Suites Puebla Fiesta Americana Aguascalientes Fussion 5 León Valle Grande Ciudad Obregón Fairfield Inn Los Cabos 128 Sub-total 6,666 (+36) 7,886 rooms Rooms by type 85% Operation 15% Development FibraHotel Portfolio in development Hotel # rooms 48 Cancún Extended Stay Fiesta Inn Lofts/One Monclova Fiesta Inn Lofts Querétaro Fairfield Inn & Suites Villahermosa Courtyard Ciudad del Carmen Fiesta Inn Lofts Ciudad del Carmen Courtyard Vallejo Fairfield Inn Vallejo Fiesta Americana Grand Monterrey Live Aqua Monterrey Hotel in Toluca 100 Sub-total 1,184 Annual Report F IBRAH OTEL 29

32 FibraHotel Portfolio Brands and Operators Brand affiliations The hotels in the FibraHotel portfolio operate under solid, top-notch brands. As of the date of this Annual Report, the hotels were operating under the following brands: One Hotels (limited-service), Grupo Posadas Fiesta Inn (select-service), Grupo Posadas Fiesta Americana (full-service), Grupo Posadas Real Inn (select-service), Grupo Real Turismo Camino Real (full-service), Grupo Real Turismo Camino Real Hotel & Suites (extended-stay), Grupo Real Turismo Fairfield Inn (limited-service), Marriott International The following table shows the brand affiliations of FibraHotel hotels in operation as of the date of this Annual Report: Number of hotels % of hotels Number of rooms % of rooms One Hotels % 1, % Fiesta Inn + Gamma % 4, % Fiesta Americana 1 2.1% % Grupo Posadas % 5, % Real Inn 3 6.4% % Camino Real 1 2.1% % Camino Real Hotel & Suites 1 2.1% % Grupo Real Turismo % % Fairfield Inn 1 2.1% % Marriott International 1 2.1% % Total FibraHotel % 6, % ASÍ ES MI MUNDO DE LOS NEGOCIOS. Hotel operating companies Grupo Posadas. Grupo Posadas, S.A.B. de C.V. is the largest operator of the hotels in Mexico with respect to the number of hotels, number of rooms, geographic coverage, sales and market penetration. As of Dec. 31, 2013, the com- 23. Fiesta Inn Tepic This select-service, 139-room hotel is located in the city of Tepic, in the State of Nayarit. It is located in the most dynamic part of the city, just ten minutes from downtown Tepic, and 20 minutes from the Tepic International Airport. This hotel is located within Plaza Fórum, a shopping center offering access to various entertainment options like restaurants, prestigious boutiques, and cinemas. As of Dec. 31, 2013, the number of employees was

pany operated 110 hotels and resorts, representing a total of 18,943 rooms at 45 destinations in the U.S. and Mexico and serving a wide base of tourism and business travelers.

33 pany operated 110 hotels and resorts, representing a total of 18,943 rooms at 45 destinations in the U.S. and Mexico and serving a wide base of tourism and business travelers. The company s business is primarily located in Mexico where it operates 109 hotels with a total of 18,740 rooms at 44 destinations, including the most important cities and beach destinations. The company also has a hotel with 203 rooms in Texas. As of Dec. 31, 2013, of the 110 hotels in operation, the company had a majority ownership in 16, operated 79 and leased 15. Grupo Real Turismo. Hoteles Camino Real is a Mexican hotel company founded in 1958 by the Banco Nacional de México (Banamex) and a group of private investors. In 1962 it affiliated with Western International Hotels (known afterwards as Westin ) in order to form the first group of luxury hotels in Mexico with international representation. In 1993, after 30 years of successful operations, the relation with Westin ended in June of 2000 and the company was acquired by Grupo Empresarial Ángeles and incorporated as Grupo Real Turismo. Camino Real is the owner of three brands: Quinta Real, Camino Real and Real Inn. It operates 37 hotels with approximately 6,475 rooms, including various world-renowned restaurants. It has a presence in 20 states in the Republic of Mexico including Mexico City and one hotel in El Paso, Texas. FibraHotel currently has agreements with companies that provide with hotel management services and that use their own brands for the hotels that they operate. In the future, besides continuing our association with these services companies, FibraHotel hopes to use other leading companies that are authorized to use third parties franchise brands as in the case of Marriott International with whom we signed an agreement at the end of 2013 to develop 20 hotels in future years. Operating framework Under FibraHotel s operating framework, hotels management is as follows: The hotel operating companies are responsible for the following tasks: managing the hotels with their own operations teams; establishing annual business plans for the hotels (revenues and costs/expenditures); determining rate policies and marketing, food and beverage sales strategies as well as for other income; providing the correct preventive maintenance of major machinery; providing property maintenance; proposing capital expenditures for maintaining the hotels physical structures in optimal conditions; hiring of personnel for operating the business units. FibraHotel performs the following tasks: approves the hotels annual business plans; revises the hotels financial results; approves capital expenditures for maintaining the physical structure of the hotels; is responsible for real-estate activities such as local property taxes, insurance, etc.; and the funding of the hotels operating costs, among others. 24. Fiesta Inn Tlalnepantla This select-service, 131-room hotel is located in Mexico City. It is nearby the Tlalnepantla Executive Center and the Convention Center, and is surrounded by important industrial zones like Atizapán and Vallejo. It also has shopping centers like Mundo E, Plaza Satélite, and Punta Norte nearby. This hotel is 60 minutes from the Mexico City airport, and 30 minutes from the bus station. As of Dec. 31, 2013, the number of employees was 64. Annual Report F IBRAH OTEL 31

As of the date of this Annual Report, of the 47 hotels in operations in the FibraHotel portfolio: 44 hotels were under management contracts with hotel operating companies who operate the hotels to

The hotel operating companies receive a variable rate of pay corresponding to a percentage of the operating results for each of the hotels.

34 As of the date of this Annual Report, of the 47 hotels in operations in the FibraHotel portfolio: 44 hotels were under management contracts with hotel operating companies who operate the hotels to the benefit of FibraHotel and who provide FibraHotel with the hotels monthly operating results. The hotel operating companies receive a variable rate of pay corresponding to a percentage of the operating results for each of the hotels. Three hotels 1 are under lease to hotel operating companies whom pay FibraHotel a fixed rent (which includes a variable component which depends upon the total income of the hotel) and FibraHotel alone is responsible for the real-estate costs. Fiesta Inn Querétaro Property maintenance policy As the owner of the hotels, FibraHotel looks to maintain the properties in optimal physical conditions and for that reason performs preventive maintenance on them. The internal policy of FibraHotel is to reserve 5% of the total revenues of the hotels being managed in reserve in order to pay the capital expenditures (Furniture, Fixtures & Equipment) necessary to maintain the properties and any associated equipment. Operators of hotels are responsible for preparing annual capital expenditures budgets that are validated by Fibra- Hotel and that are then executed during the year. FibraHotel, on the other hand, periodically visits and inspects the hotels with the goal of certifying their physical condition and to ensure that correct maintenance is being performed on the facilities. The results of these visits are then compared with third-party reports contracted by the hotel operators implementing regularly scheduled reviews of the physical conditions of each business unit. (1) As of Dec. 31, 2013 the leased hotels are the Fiesta Inn Cuautitlán, Fiesta Inn Culiacán, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla. On Feb. 1, 2014, leasing contracts for Fiesta Inn Culiacán and Camino Real Puebla expired and were automatically switched to hotel operating contracts. 25. Fiesta Inn Torreón Galerías This select-service, 146-room hotel is located in the city of Torreón, in the State of Coahuila. This hotel is located within the Galerías Laguna shopping center, offering access to various entertainment options like restaurants, prestigious boutiques, and cinemas. This hotel is five minutes from the Torreón International Airport along the Periférico, with access to entrances for the Matamoros, Saltillo, Durango, and Chihuahua highways. As of Dec. 31, 2013, the number of employees was

FibraHotel Portfolio Segments The types of hotels in the FibraHotel portfolio and hotels added to the portfolio through acquisitions or development are described in detail below: Limited-service:

They don t offer additional services but in recent years the trend has been for this class of hotels to offer a mixture of services including business centers, gyms, pools and a limited selection of

35 FibraHotel Portfolio Segments The types of hotels in the FibraHotel portfolio and hotels added to the portfolio through acquisitions or development are described in detail below: Limited-service: Limited-service hotels offer service that is convenient but don t traditionally have bars, restaurants or conference or meeting rooms. They don t offer additional services but in recent years the trend has been for this class of hotels to offer a mixture of services including business centers, gyms, pools and a limited selection of food (breakfast included) and limited space for meetings. As of the date of this Annual Report, Fibra- Hotel has 12 limited-service hotels in operation representing 1,495 rooms (approximately 22.4% of all rooms in operation), being operated by Grupo Posadas under the One Hotels brand and one operated under the Fairfield Inn brand. Select-service: These hotels provide certain additional services beyond that provided by limited-service hotels, including food and beverages, restaurants, bars, 24-hour room service, rooms for special events and business meetings as well as additional in-room services. As of the date of this Annual Report, Fibra- Hotel had 32 select-service hotels in operation representing 4,677 rooms (approximately 70.2% of all rooms in operation), 27 of which are being operated by Grupo Posadas under the Fiesta Inn brand as well as three being operated by Grupo Real Turismo under the Real Inn brand and two in the repositioning process. Full-service: These hotels have a robust offering of food and beverage with various locations for consumption (restaurants, bars), meeting rooms and conference rooms for social and business events that can accommodate more than 500 people, and additional services related with full-service hotel offerings, such as: spas, room service for much of the day and night, valet parking, concierge, bell hops, and roomier public areas. As of the date of this Annual Report, FibraHotel had two full-service hotels in operation representing 345 rooms (approximately 5.2% of all rooms in operation) operated by Grupo Real Turismo under the Camino Real brand and by Grupo Posadas under the Fiesta Americana brand. Extended-Stay: The hotels in this segment have one- or two-bedroom suites, each with a complete kitchen and a dining and work area. Among the services provided are laundry services, public leisure areas, but no restaurant services. However, the strategy calls for the possibility to be able to use a restaurant in an adjacent hotel. As of the date of this Annual Report, FibraHotel has an operating extended-stay hotel at Camino Real Hotel & Suites Puebla, operated by Grupo Real Turismo, with 149 rooms (approximately 2.2% of total rooms in operation), and which began operations in the first quarter of Fiesta Americana Aguascalientes 26. Fiesta Inn Toluca This select-service, 144-room hotel is located in the city of Toluca, in the State of Mexico. Its location is in Toluca s industrial zone, across from the Nestlé plant and just meters from the Daimler Chrysler plant. It is conveniently just five minutes from the residential, commercial, and financial districts of Metepec. There is nearby access to several major routes travelling to Mexico City, Morelia, and Querétaro. This hotel is 20 minutes from both the Toluca 2000 industrial park and the Toluca International Airport, and is 40 minutes from Santa Fe. As of Dec. 31, 2013, the number of employees was 82. Annual Report F IBRAH OTEL 33

Key Performance Indicators of FibraHotel s Portfolio 2 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 The following graph shows the quarterly evolution, from 2007 to 2013, of the ADR, the

36 Key Performance Indicators of FibraHotel s Portfolio 2 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 The following graph shows the quarterly evolution, from 2007 to 2013, of the ADR, the occupancy rate and the RevPAR for the 30 hotels in FibraHotel s Initial Portfolio ADR ($) RevPAR ($) Occupancy (%) As of December 31st, 2013, FibraHotel s Portfolio with 39 operating hotels reported the following: Occupancy rate of 63.5% ADR of MXN $860 RevPAR of MXN $546 The following tables show select FibraHotel hotel operating information with different perimeters (comparable basis) by quarter and yearly between 2012 and 2013: Comparable properties: includes the 30 hotels in FibraHotel s Initial Portfolio at IPO: 80% 70% 60% 50% 40% 30% 20% 10% 0% 1Q Q Q Q Q Q Q Q 2013 Year 2012 Year 2013 $ % $517 $ % $547 $ % $544 $ % $594 $ % $558 $ % $579 $ % $553 $ % $574 $ % $543 $ % $574 Occupancy ADR RevPAR -0.1 pp 2.2 pp -1.1 pp -1.5 pp -0.1 pp +5.9% +5.5% +5.4% +6.0% +5.7% +5.8% +9.1% +3.7% +3.8% +5.6% (2) Operating indicators of FibraHotel s portfolio as of December 31st, 2013 only includes the 39 hotels that FibraHotel had in its portfolio as of December 31st, Fiesta Inn Xalapa This select-service, 119-room hotel is located in the city of Xalapa, in the State of Veracruz. It is located in the division of Las Ánimas, between the Ánimas and la Torre Ánimas shopping centers, in the city s Esmeralda area. It is ten minutes from downtown, and nearby main tourist attractions like the Anthropology Museum, the Interactive Museum of Xalapa, the El Lencero hacienda, the City Ágora, and the Xalapeño Recreation Center. This hotel is 15 minutes from the airport, ten minutes from downtown, and 45 minutes from Puerto de Veracruz. The hotel was added to the FibraHotel portfolio in March of

Total portfolio of stabilized hotels: includes 37 hotels in operation as of December 31st, 2013, and excludes the Real Inn Morelia and One Guadalajara Tapatío hotels which opened during 2013 and are

37 Total portfolio of stabilized hotels: includes 37 hotels in operation as of December 31st, 2013, and excludes the Real Inn Morelia and One Guadalajara Tapatío hotels which opened during 2013 and are in a ramp-up period: 1Q Q Q Q Q Q Q Q 2013 Year 2012 Year 2013 $ % $518 $ % $534 $ % $541 $ % $571 $ % $556 $ % $567 $ % $549 $ % $564 $ % $541 $ % $559 Occupancy ADR RevPAR -1.2 pp 0.6 pp -1.7 pp -1.6 pp -1.0 pp +5.1% +4.6% +4.6% +5.5% +4.9% +3.0% +5.5% +1.9% +2.9% +3.3% The following table shows certain operating information by segment for the 39 hotels in operation for the years ending December 31st, 2010, 2011, 2012 and 2013: BY SEGMENT ADR RevPAR ADR RevPAR ADR RevPAR Occupancy Occupancy Occupancy Occupancy ADR RevPAR Limited-Service 60.1% $581 $ % $607 $ % $635 $ % $663 $415 Select-Service 61.9% $827 $ % $852 $ % $863 $ % $906 $577 Full-Service 54.6% $969 $ % $1,086 $ % $1,110 $ % $1,131 $749 TOTAL PORTFOLIO 61.3% $784 $ % $808 $ % $822 $ % $860 $546 The following table shows certain operating information by region 3 for the 39 hotels in operation for the years ending December 31st, 2010, 2011, 2012 and 2013: BY REGION ADR RevPAR ADR Northwest 57.4% $814 $ % $820 $ % $849 $ % $887 $532 Northeast 52.2% $630 $ % $624 $ % $642 $ % $683 $470 Center and South 65.3% $787 $ % $824 $ % $850 $ % $890 $584 West 59.9% $841 $ % $903 $ % $813 $ % $820 $467 TOTAL PORTFOLIO 61.3% $784 $ % $808 $ % $822 $ % $860 $546 RevPAR ADR RevPAR Occupancy Occupancy Occupancy Occupancy ADR RevPAR (3) Northwest corresponds to the following states: Baja California Norte, Chihuahua, Durango, Sinaloa and Sonora. Northeast corresponds to the following states: Coahuila, Nuevo León and Tamaulipas. Center and South corresponds to the following states: Aguascalientes, State of Mexico, Guanajuato, Guerrero, Oaxaca, Puebla, Querétaro, Veracruz, and Mexico City. West corresponds to the following states: Jalisco and Nayarit. 28. Real Inn Guadalajara Centro This select-service, 197-room hotel is located in the city of Guadalajara, in the State of Jalisco. It is located in the heart of Guadalajara, just steps from the San Juan de Dios Traditional Market and Centro Joyero. This hotel is located just 15 minutes from Expo Guadalajara, and is surrounded by various cultural attractions like Degollado Theater, the Wax Museum, Cabañas Cultural Institute, and the Metropolitan Cathedral of Guadalajara. As of Dec. 31, 2013, the number of employees was 73. Annual Report F IBRAH OTEL 35

It is located on Montaña Monarca Norte Avenue, within one of the newest shopping centers in the city,

38 Real Inn Mexicali Finance section Real Inn Morelia This select-service, 155-room hotel is located in Morelia, in the State of Michoacán. It is located on Montaña Monarca Norte Avenue, within one of the newest shopping centers in the city, Altozano, offering access to cinemas, restaurants, and prestigious boutiques. The hotel opened its doors to the public in March of As of Dec. 31, 2013, the number of employees was

Financial Results for the year 2013 Total revenues Financial results herein described are related to FibraHotel s financial statements that include 39 hotels: 34 hotels under management contracts.

39 Financial Results for the year 2013 Total revenues Financial results herein described are related to FibraHotel s financial statements that include 39 hotels: 34 hotels under management contracts. Five hotels under leasing contracts. Eight hotels in different stages of development. During the year 2013, FibraHotel s total revenues were MXN $1,032 million: MXN $758 million in room rentals (73.5% of total revenues). MXN $165 million in food and beverage sales (16.0% of total revenues). MXN $89 million for the lease of (i) 5 hotels 5 and (ii) retail and other leases (combined, 8.6% of total revenues). MXN $21 million (2.8% of total revenues) corresponding to other revenues. Between the first and the fourth quarter of 2013, revenues increased as, throughout the year, FibraHotel integrated hotels to its portfolio: FibraHotel started the year with 18 hotels: > 12 managed hotels in the Contribution Portfolio. > Five leased hotels in the Contribution Portfolio. > One managed hotel in the Acquisition Portfolio. January 2013: Acquisition of 11 hotels added to the Acquisition Portfolio. February 2013: Acquisition of one hotel added to the Acquisition Portfolio. March 2013: Opening of Real Inn Morelia. May 2013: Acquisition of the Fiesta Inn Toluca. June 2013: Opening of One Guadalajara Tapatío and acquisition of Fiesta Inn Tlalnepantla. July 2013: Acquisition of Plaza Genova in Guadalajara, One Puebla FINSA, Fiesta Inn Oaxaca and Fiesta Inn Puebla FINSA. August 2013: Acquisition of Real Inn Mexicali. October 2013: Acquisition of the Fundición Ballroom in Monclova (Adjacent to the Fiesta Inn). As a result, FibraHotel s revenues increased on a quarterly basis: 1Q Q Q Q 2013 Year 2013 Room Revenues Food and beverage Lease Other Total Revenue ,032.5 Revenues Managed Hotels , , % of total revenues 86.5% 91.7% 91.4% 91.7% 90.7% # of hotels in operation # of managed hotels # of leased hotels The following table shows the financial and operating information 6 of the managed hotels for the four quarters of 2013, considering only hotels that generated room rental revenues to FibraHotel (since acquisition or opening date, does not consider leased hotels): Period Available Rooms Occ. Rooms Occ. Room Revenues MXN $ Million ADR RevPAR Quarter 1 253, , % $806 $507 Quarter 2 338, , % $828 $549 Quarter 3 421, , % $811 $517 Quarter 4 438, , % $824 $514 Total 1,453, , % $818 $522 (4) Except where noted, all figures included herein were prepared in accordance with IFRS standards and are stated in nominal Mexican pesos. Due to presentation purposes, some accounting items in the financial results herein as presented may differ from the 2013 audited consolidated financial statements without any modification of the results and cash position of FibraHotel. (5) Leased hotels are Fiesta Inn Cuautitlán, Fiesta Inn Culiacán, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla. (6) There is a slight difference with the amount reported in the item Rooms in the table of revenues by quarter, the latter taking into account elements such as discounts, FX that are not included in the financial and operating information quarterly table. 30. Real Inn Mexicali This select-service, 158-room hotel is located in the city of Mexicali, in the State of Baja California Norte. It is located in the City Financial District, within the Civic Center, and is just five minutes from both Plaza Cachanilla and the international border. This hotel is 15 minutes from a golf course, and right next to a nationally recognized bullfighting ring, Plaza Calafia. As of Dec. 31, 2013, the number of employees was 89. Annual Report F IBRAH OTEL 37

Costs and general expenses During the year 2013, FibraHotel s costs and general expenses were MXN $655 million: MXN $414 million in costs and indirect expenses (63.

40 Costs and general expenses During the year 2013, FibraHotel s costs and general expenses were MXN $655 million: MXN $414 million in costs and indirect expenses (63.2% of total costs and general expenses), corresponding to administrative costs, sales and marketing, maintenance, utilities and fees paid to hotel management companies. MXN $130 million in room expenses (19.9% of costs and general expenses), corresponding to expenses directly related with room rentals MXN $110 million in expenses related to food and beverage sales (16.9% of costs and general expenses), corresponding to expenses directly non-related to room rentals (food & beverage and other). Lodging contribution Lodging contributions amounted to MXN $377 million, representing 36.6% of total revenues: MXN $281 million corresponded to the managed hotels (30.1% margin). MXN $89 million corresponded to leases (100% margin). MXN $7.5 million corresponded to other revenues (100% margin). Operating profit Other operating expenses of MXN $238 million mainly consisted of real estate expenses (MXN $17 million), FibraHotel administrative expenses (MXN $19 million), advisory fee (MXN $82 million), and depreciation (MXN $120 million). The operating profit was MXN $140 million, or 13.5% of total revenues. Adjusted operating profit During the year 2013, FibraHotel incurred MXN $102 million of nonoperating expenses, which correspond mainly to one-time expenses related to hotel acquisitions and development (transaction taxes, appraisals, technical audits and pre-operating expenses, among others). Adjusted operating profit amounted to MXN $38 million. Comprehensive financial result FibraHotel closed the year with a cash position of MXN $4,788 million and interest earned of MXN $120 million. According to the Tax Income Law, cash is fully invested in Mexican Federal Government issued debt securities. Consolidated net income Income taxes at the subsidiary level on the taxable profits generated by the ancillary hotel income such as food and beverage were MXN $2 million. After these taxes, and non-operating income of MXN $8.6 million, the consolidated net income was MXN $163 million. Consolidated net income per CBFI was centavos (the CBFIs related to the Development Portfolio which currently do not have economic rights at closing of each quarter of the year 2013). The following table shows the net income per CBFI for the four quarters and the year 2013 (in million of pesos except data per CBFI, in pesos): 1Q Q Q Q 2013 Year2013 Net Result Number of CBFIs (million) Outstanding n.a. With economic rights n.a. Net Result / CBFI Net Result / Outst. CBFI $ $ $ $ $ Net Res. / CBFI with eco. rig. $ $ $ $ $ One Acapulco This limited-service, 126-room, hotel is located in the city of Acapulco, in the State of Guerrero. Acapulco is one of the primer touristic beach destinations in Mexico. This property is on Avenue Costera Miguel Alemán in the heart of Acapulco city, just 20 minutes from Acapulco International Airport. It is nearby the Acapulco Convention Center, and has easy access to restaurants, nightclubs, and shopping centers. This hotel is an excellent alternative for business travelers during the week, and for tourists on weekends. Leased component included. As of Dec. 31, 2013, the number of employees was

2013, yearly and quarterly results (in million of pesos) 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Year 2013 Room Revenues 128.5 186.4 217.8 225.8 758.5 Food and Beverages 23.1 39.6 48.0 54.1 164.9 Leases 20.

41 2013, yearly and quarterly results (in million of pesos) 1Q Q Q Q 2013 Year 2013 Room Revenues Food and Beverages Leases Other Total Revenues ,032.5 Revenues - Managed Hotels % of Total Revenues 86.5% 91.7% 91.4% 91.7% 90.7% Rooms Food and Beverages Administrative Expenses Total Costs and General Expenses TOTAL LODGING CONTRIBUTION Margin 39.5% 37.3% 35.9% 34.9% 36.6% Lodging Contribution Managed Hotels Margin 30.1% 31.7% 29.8% 29.0% 30.1% Real Estate Expenses Net Operating Income Margin 37.4% 35.9% 34.5% 33.2% 34.9% Administrative Expenses Related to FibraHotel Advisory Fee EBITDA Margin 27.9% 27.4% 24.1% 22.8% 25.2% Depreciation INCOME / (LOSS) FROM OPERATIONS Margin 16.7% 14.5% 12.5% 11.9% 13.5% Extraordinary Expenses, Net ADJUSTED INCOME / (LOSS) FROM OPERATIONS 13.8 (16.5) Non Operating Income / (Loss) Comprehensive Financing Result INCOME BEFORE TAXES Tax CONSOLIDATED NET (LOSS) INCOME Margin 16.0% 0.8% 19.7% 23.9% 15.6% 32. One Aguascalientes This limited-service, 126-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. The property is on José Ma. Chávez Boulevard, just 20 minutes from the Aguascalientes International Airport, and ten minutes from downtown Aguascalientes. It is also located nearby a busy shopping center, with various entertainment options. It is just 100 meters from the Nissan assembly plant, as well as the Aguascalientes Convention Center. As of Dec. 31, 2013, the number of employees was 27. Annual Report F IBRAH OTEL 39

42 Cash flow and liquidity position Operating cash flow During the year 2013, FibraHotel generated an operating cash flow of MXN $332 million. Excluding activities related to investment (non-operating expenses, payment and recovery of VAT ), the operating cash flow was MXN $334 million. Investment cash flow During the year 2013, FibraHotel generated a negative investment cash flow of (MXN $2,806 million): MXN $2,677 million corresponding to acquisitions. > MXN $1,655 million for the 12 hotels in the Acquisition Portfolio. > MXN $879 million for the other hotel acquisitions and the Fundición Ballroom in Monclova. > MXN $144 million for the payment of two hotels in the Development Portfolio. MXN $127 million corresponding to the Development Portfolio. MXN $78 million corresponding to hotel repositioning. MXN $42 million corresponding to maintenance CAPEX. MXN $120 million corresponding to interest generated from the cash position. Financing cash flow During the year 2013, FibraHotel generated a financing cash flow of MXN $4,384 million: MXN $4,636 million corresponding to the net proceeds to the follow-on (May 2013). (MXN $251 million) corresponding to the distributions: > (MXN $19 million) corresponding to distributions of the fourth quarter of > (MXN $59 million) corresponding to distributions of the first quarter of > (MXN $74 million) corresponding to distributions of the second quarter of > (MXN $100 million) corresponding to distributions of the third quarter of Adjusted Funds From Operation During the year 2013, FibraHotel generated: Funds From Operations ( FFO ) of MXN $283 million. Adjusted Funds From Operations ( AFFO ) of MXN $337 million. Year 1Q Q Q Q Consolidated Net Income (+) Depreciation Funds From Operations (-) CAPEX Reserve (7.7) (11.5) (13.7) (14.3) (47.2) (+) Non Operating Adjustments Adjusted Funds From Operations Number of CBFIs (million) Outstanding n.a. With economic rights n.a. FFO / CBFI with econ. rights $ $ $ $ $ AFFO / CBFI with econ. rig. $ $ $ $ $ Liquidity position As of December 31st, 2013 FibraHotel has no debt and a net cash position of MXN $4,788 million, versus MXN $2,878 million of December 31st, Of this cash position MXN $4,658 million was available for hotel acquisitions and development. 33. One Coatzacoalcos This limited-service, 126-room hotel is located in the city of Coatzacoalcos, in the State of Veracruz. This property is located within Fórum Coatzacoalcos, a busy shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is located just 15 minutes from Minatitlán International Airport, as well as several industrial installations, and Pemex offices. As of Dec. 31, 2013, the number of employees was

Capital Expenditures One Puebla FINSA As of December 31st, 2013, FibraHotel has MXN $204 million of recoverable taxes, mainly corresponding to VAT related with acquisitions during the year, versus

On February 17th, 2014, FibraHotel signed a MXN $1,000 million credit line with one of the principal financial institutions in Mexico.

43 Capital Expenditures One Puebla FINSA As of December 31st, 2013, FibraHotel has MXN $204 million of recoverable taxes, mainly corresponding to VAT related with acquisitions during the year, versus MXN $303 million as of December 31st, Once recovered, this amount will be available for hotel acquisitions and development. On February 17th, 2014, FibraHotel signed a MXN $1,000 million credit line with one of the principal financial institutions in Mexico. FibraHotel has 12 months to make disbursements, and the credit line has a 12-year duration since the first disbursement, a 12-month grace period after disbursement, and no prepayment costs for the life of the loan. The credit line will be used for the acquisition and development of new hotels, giving FibraHotel flexibility to achieve its growth objectives while maintaining very conservative leverage levels. As of December 31st, 2013, the available maintenance capital expenditure reserve, generated to maintain the standards of our hotels in operation and constituted based on a percentage of total revenues of the managed hotels, was MXN $20 million versus MXN 14 million as of December 31st, During the year, FibraHotel had the following capital expenditures: Maintenance CapEx: MXN $42 million. CapEx investment in hotel repositioning: FibraHotel constantly analyzes opportunities to make capital investments in our portfolio hotels which have an opportunity to increase cash flows and provide an adequate return to our expected investment. During the year, FibraHotel invested MXN $78 million in repositioning CapEx, mainly in the Fiesta Inn Querétaro and Fiesta Inn Naucalpan hotels: > Fiesta Inn Querétaro: (i) improvements to 175 rooms to Fiesta Inn 360 standards, (ii) changed air conditioning from in-window to central air conditioning, (iii) improvements to common areas to Fiesta Inn 360 standards, and (iv) improvements to the motor lobby. The reposition has a budget of MXN $41 million, out of which MXN $36.8 million was spent as of December 31st, The reposition was finished in January > Fiesta Inn Naucalpan: (i) improvement to 119 rooms to Fiesta Inn 360 standard, (ii) changed air conditioning from in-window to central air conditioning, (iii) improvements in common areas to Fiesta Inn 360 standards, (iv) improvements to the motor lobby, and (v) complete change of the hotel s facade. The repositioning has a budget of MXN $35 million, out of which MXN $29.4 million was spent as of December 31st, The repositioning was finished in January > Investments were also made at other hotels such as the public areas in One Patriotismo and One Querétaro for a total of MXN $4.0 million. CapEx to reposition and rebrand acquired hotels:: > Real Inn Guadalajara: public areas were renovated to comply with the brand standards of Real Inn. As of December 31st, 2013, MXN $6.3 million was spent. > Real Inn Mexicali: The hotel is being repositioned to comply with the brand standards of Real Inn with MXN 3.0 million spent as of December 31st, One Culiacán This limited-service, 119-room hotel is located in Culiacán, in the State of Sinaloa. This property is located within Plaza Fórum, a shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is just 20 kilometers from the city s airport, with easy access to downtown Culiacán, and the principal agro-business district. As of Dec. 31, 2013, the number of employees was 31. Annual Report F IBRAH OTEL 41

2013 2013 Total Distribution 59.0 74.4 99.5 105.0 337.9 Taxable Income 22.0 33.2 16.1-71.3 Capital Return 37.0 41.2 83.4 105.0 266.6 Number of CBFIs (million) Outstanding 303.9 499.4 499.4 499.4 n.a. With Economic Rights 294.

44 Cash flow distribution Distribution for the year FibraHotel seeks to generate value for its CBFIs holders. As a result, for the year 2013, the Technical Committee of FibraHotel approved distributions for a total amount of MXN $338 million, detailed in the following table: Year 1Q Q Q Q Total Distribution Taxable Income Capital Return Number of CBFIs (million) Outstanding n.a. With Economic Rights n.a. Distribution / CBFI $ $ $ $ $ Taxable Income $ $ $ $ Capital Return $ $ $ $ $ CBFIs with economic restrictions During the IPO, additionally to the issuance of 223,611,110 CBFIs that were offered to investors, 80,290,656 CBFIs were issued for the Control Trust in Exchange for the 21 hotels in the Contribution Portfolio, out of which four were in different stages of development (Contribution Portfolio in Development), representing a total of 9,697,897 CBFIs: Real Inn Morelia: issuance of 2,342,667 CBFIs. One Guadalajara Tapatío: issuance of 688,564 CBFIs. Camino Real Hotel & Suites Puebla: issuance of 1,538,461 CBFIs. Cancún Extended Stay: issuance of 5,128,205 CBFIs. These 9,697,897 CBFIs would not have economic rights (distribution ) until the development of each of the four hotels is finished and the hotel is operating. As of December 31st, 2013, two hotels were operating (Real Inn Morelia and One Guadalajara Tapatío) and the economic rights of the CBFIs issued in exchange of the Real Inn Morelia hotel only were liberated. The following table details the information related to CBFIs with and without economic rights: One Toluca 1Q Q Q Q 2013 Total number of CBFIs (million) CBFIs without economic rights Real Inn Morelia One Guadalajara Tapatío Camino Real Hotel & Suites Puebla Cancún Extended Stay CBFIs with economic rights One Guadalajara Tapatío This limited-service, 126-room hotel is located in Tlaquepaque, in metropolitan Guadalajara, in the State of Jalisco. It is just ten minutes from the airport, and located within a shopping center that has convenience stores, restaurants, and cinemas. The hotel opened its doors to the public in June of As of Dec. 31, 2013, the number of employees was

It is located nearby a main shopping center, is ten minutes from the bus station, and is 20 minutes from the Xalapa Airport.

45 Real Inn Mexicali FibraHotel Corporate Governance 36. One Xalapa This limited-service, 108-room hotel is located in the city of Xalapa, in the State of Veracruz. It is located nearby a main shopping center, is ten minutes from the bus station, and is 20 minutes from the Xalapa Airport. It is also very close to important government offices like the Palacio de Justicia, Relaciones Exteriores, and the Ministry of Economy. The hotel was added to the FibraHotel portfolio in March of Annual Report F IBRAH OTEL 43

Technical Committee and FibraHotel Committees As of the date of this Annual Report, FibraHotel s Technical Committee consists of 11 proprietary members, four of which are independent members (36%).

a. 5 Sandor Walner Waxtein Member n.a. 6 Albert Galante Saadia Member n.a. 7 Mayer Zaga Bucay Member n.a. 8 Manuel Zepeda Payeras 9 Jaime Zabludowsky Kuper 10 Felipe de Iturbe Bernal 11 Pablo de la

46 Technical Committee and FibraHotel Committees As of the date of this Annual Report, FibraHotel s Technical Committee consists of 11 proprietary members, four of which are independent members (36%). Proprietary Members Position in the Technical Committee Position in Other Committees 1 Roberto Galante Totah Chairman n.a. 2 Alberto Galante Zaga Co-Chairman n.a. 3 Simón Galante Zaga Member n.a. 4 Benjamín Adolfo Fastlicht Kurián Member n.a. 5 Sandor Walner Waxtein Member n.a. 6 Albert Galante Saadia Member n.a. 7 Mayer Zaga Bucay Member n.a. 8 Manuel Zepeda Payeras 9 Jaime Zabludowsky Kuper 10 Felipe de Iturbe Bernal 11 Pablo de la Peza Berrios Independent Member Independent Member Independent Member Independent Member Audit Committee, Practice Committee, Nominee Committee Audit Committee, Practice Committee, Nomination Committee Audit Committee, Practice Committee, Nomination Committee n.a. Member / Biographic information 1. Roberto Galante Totah. Founding Partner and President of Grupo GDI. From 1989 to 2005 Roberto Galante Totah was founder and President of the Board of Directors of Super Jeans, a company focused on selling casual clothes in Mexico nationwide. He is currently an executive member of the Board of Directors of Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, Bosque Real and Mercap, Grupo GDI companies. 2. Alberto Galante Zaga. Partner and Vice President of Grupo GDI. From 1989 to 2005 Alberto Galante Zaga was a Founding Partner and Director of the Board of Directors of Super Jeans, a company focused on selling casual clothes in Mexico nationwide. He is currently an executive member of the Board of Directors of Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, Bosque Real y Mercap, Grupo GDI companies. Fiesta Inn Nuevo Laredo 37. One Monterrey Airport This limited-service, 126-room hotel is located on Boulevard Aeropuerto Avenue, in the city of Monterrey, in the State of Nuevo León. This property is just five minutes from the Monterrey International Airport. Its location is ideal for business travelers, due to its proximity to the airport, and to Cintermex, one of the most important business centers in Monterrey. Leased component included. As of Dec. 31, 2013, the number of employees was

developing and financing real estate projects.

47 3. Simón Galante Zaga. Founding Partner and CEO of Grupo GDI. Simón Galante Zaga has more than 20 years of experience in the hotel, residential and commercial real estate industries as real estate developer and property manager, as well as in acquiring, developing and financing real estate projects. He is an executive member of the Board of Directors of Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, Bosque Real and Mercap, Grupo GDI companies. He holds a specialized degree in Business Administration from the IPADE. One Patriotismo 4. Benjamín Adolfo Fastlicht Kurián. Founding Partner and CEO of Icon Group, a Mexican company focused on real estate development. Mr. Fastlicht was cofounder and co-ceo of Grupo Cinemex, today the second-most-important movie theater franchise in the country. He is also shareholder, director and a member of the Board of Directors of various Grupo GDI companies. He was President of the Association of Real Estate Developers (ADI, Asociación de Desarrolladores Inmobiliarios A.C.), the main real estate industry association in Mexico, and participates on the Boards of various philanthropic and educational institutions. Mr. Fastlicht earned a B.S. in Hotel Management from Boston University (1989) and an MBA from Harvard University (1993). 5. Sandor Walner Waxtein. CEO of Walton Street Capital, a global real estate private equity firm. Sandor Walner Waxtein was Director of Credit Suisse First Boston in Mexico and member of the Executive Committee for Latin America. He has been a partner of EMVA and Valor Consultores, investment banks, and has worked with JP Morgan in corporate finance and M&A. He is Cofounder and Vice President of the Mexican Association of Real Estate and Infrastructure Funds and a member of the administrative committee of various real estate companies in Latin America. He is an active member of the World s Presidents Organization. He received Engineering and MBA degrees from Stanford University. 6. Albert Galante Saadia. Has an Industrial Engineering degree from the Metropolitan Autonomous University of Mexico (UAM). Since 1991, Albert Galante Saadia has been a member of the Board of Directors of Mex Factor, Sofom E.N.R. He is Founding Partner of Normalización y Certificación Electrónica, S.C., and the electronics certification organization that was established in Mr. Galante has been CFO and Board Member of Ampliequipos, S.A. de C.V. a safety-testing laboratory since 1987 and since 1986 has been CFO and advisor of Ampliaudio, S.A. DE C.V., which imports and exports electronic equipment and supplies. 7. Mayer Zaga Bucay. CFO of Grupo Industrial Miro, a textile and clothing manufacturing company, and an Imports and Exports Broker for brands including Nike, Adidas and Victoria s Secret, among others, employing around 2,000 people. Mayer Zaga Bucay was co-founder in 1983 of the award-winning clothing company Ocean Pacific, opening close to 50 stores across Mexico and supplying to highly recognized department stores in Mexico. He is a Grupo GDI partner and an investor in various real estate projects. 38. One Puebla FINSA This limited-service, 126-room hotel features event spaces and a shopping plaza, and is located in the City of Puebla, in the State of Puebla. It is five minutes from FINSA industrial park, which houses major automotive companies. It is nearby the México-Puebla highway, and at the main entrance to Hermanos Serdán Boulevard. The hotel is 20 minutes from the city center, and 15 minutes from important shopping centers. As of Dec. 31, 2013, the number of employees was 27. Annual Report F IBRAH OTEL 45

For 12 years he presided over the Housing Fund (FOVI), which was created to offer financial support for the acquisition and construction of economic housing for social needs.

48 One Hotels Patriotismo Member / Biographic information 8. Manuel Zepeda Payeras. Mr. Zepeda has played a key role in most of Mexico s main housing and mortgage institutions and their regulatory framework. For 12 years he presided over the Housing Fund (FOVI), which was created to offer financial support for the acquisition and construction of economic housing for social needs. He was Founder and Director General of the Federal Mortgage Society, a financial institution created to develop primary and secondary mortgage markets. He was President of the Inter American Housing Union (UNIAPRAVI), an association that groups more than 100 financial intermediaries in Latin America for mortgage financing. Additionally, he was an advisor to various housing companies and mortgage financing companies such as SARE Holding, MARHNOS Vivienda, ARKO Promoción Inmobiliaria, Crédito Inmobiliario and Fondo Inmobiliario INMESP of BBVA. He was also Chief Economist of the Presidential Advisory Council between 1976 and 1982, and has been a member of various non-profit organizations. He holds Master s degrees in economics and Business Administration from the University of Chicago. 9. Jaime Zabludowsky Kuper. Currently Executive President of the Mexican Council for the Consumer Products Industry (ConMexico), an association that groups 46 of the most important consumer goods companies. Jaime Zabludowsky Kuper is also President of the Mexican Council of Foreign Relations (COMEXI), Vice President and Founding Partner of IQOM Inteligencia Comercial. He has been an independent advisor to the Board of Directors of PE- MEX Exploration and Production, and has served as Chairman of the Procurement, Leasing, Works and Services Committee. He has also held public positions including: Deputy Chief Negotiator for NAFTA, the free trade agreement between Mexico and the United States, Ambassador of Mexico to the European Union, Chief Negotiator for the Free Trade Agreement between Mexico and the European Union and an Economist at the Council of Economic Advisors to the President of Mexico (1985 and 1988). He has advised governments in Asia and Latin America and major international institutions, in international trade and competitiveness. He is an Advisory Board member for a variety of corporations, civic associations and public institutions. He holds a PhD in Economics from Yale University. 10. Felipe de Yturbe Bernal. Was Director General of the Brokerage arm for Scotiabank Inverlat Financial Group, as well as Assistant Director of Corporate Banking, Markets and Investment Banking, Business Banking, Treasury and Fiduciary at the same institution. Felipe de Yturbe Bernal was General Manager of Deustche Bank Mexico and General Manager of Banco Mexicano. He has been a partner at Yturbe, Laborde and Associates, a firm specializing in investment management. Mr. De Yturbe spent 12 years at the Banco Nacional de México, where he occupied various positions, including, among others, Associate Director General of Corporate Banking, Investment Banking and the Fiduciary Division. He also held the positions of Treasurer and Financial Director at Cementos Anáhuac and was Vice President of The First National Bank of Chicago at the representative office in Mexico City. He holds an MBA from Harvard University. 39. One Querétaro Plaza Galerías This limited-service, 126-room hotel is located in the city of Querétaro, in the State of Querétaro. It is ten minutes from downtown, 30 minutes from the international airport, and is nearby the city s principal industrial parks. As of Dec. 31, 2013, the number of employees was

Banamex, Director of Insurance Banamex, Director of AFORE Banamex, Strategic Planning and Corporate Development for Mexico and Citi businesses in Latin America.

49 11. Pablo de la Peza Berrios. Worked at Banamex from 1976 to 2013 and occupied a variety of positions in Mexico and abroad: International Treasury Director, Director of California Commerce Bank, Director of Financial Planning at Banamex, Director of Insurance Banamex, Director of AFORE Banamex, Strategic Planning and Corporate Development for Mexico and Citi businesses in Latin America. Pablo de la Peza Berrios has been a member of the Administration Committee for several investment funds administered by Banamex. In 2013 he retired from Banamex, although he still serves as a member of the Board of Directors and on the Administration Committees at some companies. He is an Endeavor Mentor and has an Industrial Engineering degree from Universidad Iberoamericana. For more information about the functioning of our committees (elections/removal of members, meetings and votes, role of the committees, payments to independent members ) please refer to the 2013 Annual Report available in Spanish at the FibraHotel web page ( or the Mexico Stock Exchange web page ( The Technical Committee met four times in 2013 to review and approve Financial Statements and distributions with the previous approval of the Audit Committee. The Nomination Committee met once to approve the proposal of the stockholders meeting for the designation of a member owner and their substitute to the Technical Committee. On April 24, 2013, the holders meeting approved the designation of Eduardo Reyes Esparza and José Arturo Medina Magaldi as proprietary members and substitute respectively (not independents), to the FibraHotel Technical Committee. On Oct. 10, 2013, Eduardo Reyes Esparza and José Arturo Medina Magaldi both resigned irrevocably from the Technical Committee due to the policies of Grupo Profuturo GNP to which they belong. As of Jan. 1, 2014, to the date of this Annual Report, the Technical Committee met two times to approve Financial Statements and distributions with the previous approval of the Audit Committee. On April 29, 2014, the Nomination Committee met to approve the holders meeting proposal to name a proprietary member. On April 30, 2014, the holders meeting approved the designation of Pablo de la Peza Berrios as an independent member of the FibraHotel Technical Committee. Alignment of long-term interests From its founding, FibraHotel has looked to build a longterm alignment of interest with its Advisor, Grupo GDI, and its CBFI s holders in the following manner: Grupo GDI passed all of its operating hotel assets to FibraHotel. Grupo GDI, through the Control Trust, is the majority stockholder and is subject to a long-term restriction period on the sale of its stock. Grupo GDI gave FibraHotel preemptive rights over all future hotel opportunities that fit FibraHotel s investment strategy. FibraHotel s Advisor is paid an advisory fee corresponding to 1.00% of the undepreciated book value of assets, net of debt. With respect to the CBFIs passed to the Control Trust in exchange for properties being developed, they have no economic rights (distribution) until said properties (hotels) are in operation. For more information about the FibraHotel Trust Contract, the Control Trust, restriction periods on sales, etc., please refer to the 2013 Annual Report available in Spanish at the FibraHotel website ( or the Mexico Stock Exchange website ( Fiesta Inn Guadalajara 40. One Toluca This limited-service, 126-room hotel is located in the city of Toluca, in the State of México. It is located on Aeropuerto Boulevard just three minutes from Toluca International Airport, 15 minutes from downtown Toluca, and 30 minutes from Metepec a commercial and residential zone that has grown dynamically over the last several years. As of Dec. 31, 2013, the number of employees was 24. Annual Report F IBRAH OTEL 47

Real Inn Guadalajara FibraHotel on the Mexican Stock Exchange Initial Public Offering and Follow-on Offering Initial Public Offering FibraHotel made its initial public offering ( IPO ) on the Mexican

14, 2012. The total CBFIs were distributed accordingly: Control Trust: 80,290,656 CBFIs representing 26.4% of the total. Public investors: 223,611,110 CBFIs representing 73.6% of the total.

50 Real Inn Guadalajara FibraHotel on the Mexican Stock Exchange Initial Public Offering and Follow-on Offering Initial Public Offering FibraHotel made its initial public offering ( IPO ) on the Mexican Stock Exchange on Nov. 30, 2012, issuing 303,901,766 CBFIs (for Certificados Bursátiles Fiduciarios Inmobiliarios in Spanish) including an overallotment option, which was fully exercised on Dec. 14, The total CBFIs were distributed accordingly: Control Trust: 80,290,656 CBFIs representing 26.4% of the total. Public investors: 223,611,110 CBFIs representing 73.6% of the total. FIHO La Bolsa Mexicana hace constar el listado de los Certificados Bursátiles Fiduciarios Inmobiliarios denominados FIBRAS emitidos por Concentradora Fibra Hotelera Mexicana, S.A. de C.V., en su carácter de Fideicomitente. Características de la Emisión: Clave de Cotización: Fecha de Listado en la BMV: Monto Total de la Oferta Global Inicial: (con sobreasignación) Monto Total de la Oferta en México: (con sobreasignación) Monto Total de la Oferta Internacional: (con sobreasignación) Casa de Bolsa BBVA Bancomer, S.A. de C.V. Grupo Financiero BBVA Bancomer Intermediarios Colocadores: Evercore Casa de Bolsa, S.A. de C.V FIHO 30 de noviembre de 2012 $ 4,136,805, $ 2,685,163, $ 1,451,642, Asesor y Agente Estructurador de la Oferta: Evercore Partners México, S. de R.L. J.P. Morgan Casa de Bolsa, S.A. de C.V. J.P. Morgan Grupo Financiero Casa de Bolsa Banorte IXE, S.A. de C.V. Grupo Financiero Banorte The 223,611,110 CBFIs issued as part of the IPO on the Mexican Stock Exchange and other international markets, were priced at MXN $18.50 each, raising MXN $4,137 million. Bookrunners of the IPO were: In Mexico: BBVA Bancomer, J.P. Morgan, Evercore and Banorte-Ixevercore y Banorte-Ixe Internationally: J.P. Morgan and BBVA 41. One Patriotismo This limited-service, 132-room hotel is located in Mexico City. It is located on one of the city s main avenues, Avenue Patriotismo, within the Plaza Metrópoli shopping center, offering access to restaurants, cinemas, prestigious boutiques, and a gym. It is located just six blocks from the World Trade Center of Mexico, which hosts numerous exhibitions and conventions, and nine kilometers from the international airport. As of Dec. 31, 2013, the number of employees was

Follow-on Offering On May 30, 2013, six months after the IPO, FibraHotel finalized its follow-on offer on the Mexican Stock Exchange for a total number of 195,500,000 CBFIs including an overallotment

The 195,500,000 CBFIs CBFIs issued as part of the follow-on offer on the Mexican Stock Exchange and other international markets were priced at MXN $24.95 each, raising a total of MXN $4,877 million.

Morgan, Evercore and Banorte-Ixe Internationally: J.P.

51 Follow-on Offering On May 30, 2013, six months after the IPO, FibraHotel finalized its follow-on offer on the Mexican Stock Exchange for a total number of 195,500,000 CBFIs including an overallotment option which was fully exercised on June 11, The 195,500,000 CBFIs CBFIs issued as part of the follow-on offer on the Mexican Stock Exchange and other international markets were priced at MXN $24.95 each, raising a total of MXN $4,877 million. Members of the FibraHotel Control Trust invested approximately MXN $50 million in this follow-on offer. Bookrunners of the follow-on offer were: In Mexico: BBVA Bancomer, J.P. Morgan, Evercore and Banorte-Ixe Internationally: J.P. Morgan and Goldman Sachs CBFI price The following graphic shows the evolution of the FibraHotel CBFI price and its volume of shares since the Nov. 30, 2012 IPO: $27.0 $24.0 $21.0 $ $ Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Ago 2013 Sep 2013 Price Volume (million) Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Volume FIHO Price FIHO Source: Bloomberg. The evolution of the CBFI price and the IPC since the IPO on Nov. 30, IPC Stock ownership FibraHotel stock ownership as of the date of this Annual Report is the following: 83.7% PUBLIC INVESTORS 16.3% CONTROL TRUST 42. Camino Real Puebla This full-service, 153-room hotel is located in the city of Puebla, in the State of Puebla. It is located in the fastest-growing area of the city, nearby Angelópolis shopping center, several universities, and the La Vista Golf Club. It offers easy access to the Volkswagen industrial complex. As of Dec. 31, 2013, the number of employees was 118. Annual Report F IBRAH OTEL 49

Renovations Fiesta Inn Querétaro In the second semester of 2013, the hotel Fiesta Inn

The budget totaled MXN$ $42 million and the following changes were made: 175 rooms were

Window-installed air conditioning units were switched out for central air conditioning.

Bar and restaurant areas were increased in anticipation of an expansion of the hotel.

Camino Real Hotel & Suites Puebla This extended-stay, 149-room, hotel and suites facility

52 Renovations Fiesta Inn Querétaro In the second semester of 2013, the hotel Fiesta Inn Querétaro was renovated to bring it up to Fiesta Inn 360 standard. The budget totaled MXN$ $42 million and the following changes were made: 175 rooms were improved to meet the Fiesta Inn 360 standard. Window-installed air conditioning units were switched out for central air conditioning. Common areas were brought up to the Fiesta Inn 360 standard. Bar and restaurant areas were increased in anticipation of an expansion of the hotel. Improvements were made to the motor lobby. 43. Camino Real Hotel & Suites Puebla This extended-stay, 149-room, hotel and suites facility is located in the city of Puebla, in the State of Puebla. It is next to the Camino Real Puebla hotel, with which it shares amenities like a pool, restaurant, gym, and bar. The hotel opened its doors to the public in March of

Fiesta Inn Naucalpan In the second semester of 2013, the hotel Fiesta Inn Naucalpan was renovated

The budget totaled MXN$ $35 million and the following changes were made: 119 rooms were improved to

Improvements were made to the facade and the motor lobby. 44.

Aguascalientes, in the State of Aguascalientes.

53 Fiesta Inn Naucalpan In the second semester of 2013, the hotel Fiesta Inn Naucalpan was renovated to bring it up to Fiesta Inn 360 standards. The budget totaled MXN$ $35 million and the following changes were made: 119 rooms were improved to meet the Fiesta Inn 360 standard. Window-installed air conditioning units were switched out for central air conditioning. Common areas were brought up to the Fiesta Inn 360 standard. Improvements were made to the facade and the motor lobby. 44. Fiesta Americana Aguascalientes This full-service, 192-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. It is strategically located in downtown Aguascalientes. It is one block from the bullfighting ring at the center of Feria de San Marcos, which has been an important historical Mexican landmark for more than 185 years, and attracts more than 8 million visitors a year. The hotel was added to the FibraHotel portfolio in Jan. of Annual Report F IBRAH OTEL 51

The hotel has 192 rooms and is located in the Aguascalientes historic center.

54 Real Inn Guadalajara Post-2013 events Acquisition of the Fiesta Americana Aguascalientes On Jan. 14, 2014, FibraHotel successfully completed the acquisition of the Fiesta Americana Aguascalientes representing a total investment of MXN $227 million. The hotel has 192 rooms and is located in the Aguascalientes historic center. This transaction strengthens FibraHotel s position in all hotel market segments and in one of the cities with the most industrial investment in Mexico in recent years, especially in the automobile manufacturing industry as the area is home to modern Nissan plants and industrial facilities. FibraHotel operates 443 rooms in the city of Aguascalientes, including the limited-service One Aguascalientes, the select-service Fiesta Inn Aguascalientes, and the fullservice Fiesta Americana Aguascalientes. Completion of the development of the Camino Real Hotel & Suites Puebla On Jan. 21, 2014, FibraHotel announced that the development of the Camino Real Hotel & Suites Puebla, part of FibraHotel s Development Portfolio, was complete. Signing of a credit line facility On Feb. 17, 2014, FibraHotel signed a MXN $1,000 million credit line from one of the main financial institutions in Mexico. FibraHotel has 12 months to make disbursements, and the credit line has 12-year duration since the first disbursement, a 12 month grace period after disbursement, and no prepayment costs for the life of the 45. Hotel Fussion 5 León Select-service hotel with 165 rooms located in the city of León in the state of Guanajuato. The hotel is 1.8 miles from the outlets mall and 12.4 miles from the bus terminal. It is 15 minutes from the Guanajuato international airport. The hotel is located at the entrance to the city on the Silao side and today is the closest hotel to the customs facility. The hotel was added to the FibraHotel portfolio in May of 2014 and will be repositioned under the Gamma by Fiesta Inn brand. 52

loan. The credit line will be used for the acquisition and development of new hotels, giving FibraHotel flexibility to achieve its growth objectives while maintaining very conservative leverage

55 loan. The credit line will be used for the acquisition and development of new hotels, giving FibraHotel flexibility to achieve its growth objectives while maintaining very conservative leverage levels. Acquisition of hotels in Xalapa On Mar. 27, 2014, FibraHotel successfully completed the acquisition of the Fiesta Inn Xalapa and One Xalapa hotels representing a total investment of MXN $221 million. The hotels have 119 and 108 rooms respectively. Of the total investment, MXN $8 million will be used to add 18 rooms to the One Xalapa hotel bringing the total number of rooms at that hotel to 126. Site acquisition in Villahermosa On Apr. 4, 2014, FibraHotel acquired the rights to a building site in the city of Villahermosa for the construction of a hotel to be part of the Plaza Sendero shopping mall, representing an investment of MXN $110.0 million. FibraHotel will develop a limited-service hotel of 135 rooms under the Fairfield Inn & Suites by Marriott brand to be operated by Marriott International under an agreement with FibraHotel announced on Nov. 14, The hotel launch is planned for the middle of Acquisition of a hotel in Ciudad Obregón On Apr. 7, 2014, FibraHotel successfully completed the acquisition of the Fiesta Inn Ciudad Obregón representing a total investment of MXN $141.5 million. The hotel has 123 rooms and 18 more will be added bringing the total to 141 rooms with the investment of an additional MXN $6.5 million. First Quarter 2014 results On Apr. 29, 2014, FibraHotel announced its financial results and distribution for the first quarter of Holders Meeting results On May 2, 2014, FibraHotel announced agreements adopted by the holders Meeting of April 30, Development of the hotel Fiesta Inn Lofts Querétaro On May 16, 2014, the development of the hotel Fiesta Inn Lofts Querétaro was announced. The hotel is an expansion of 45 extended-stay rooms at the hotel Fiesta Inn Querétaro. FibraHotel s total investment will be MXN $45.0 million and the hotel will open in the fourth quarter of Acquisition of the Fussion 5 hotel in León On May 22, 2014, FibraHotel successfully completed the acquisition of the Fussion 5 hotel in León representing a total investment of MXN $120 million (including a reposition investment of MXN $16 million). The hotel has 165 rooms. Development of two hotels in Ciudad del Carmen On May 28, 2014, FibraHotel announced the development of the two hotels in Ciudad del Carmen. The hotels will be a 130-room Courtyard by Marriott (Select-service), operated by Marriot International and a 124-room Fiesta Inn Lofts (extended-stay) operated by Grupo Posadas. The total investment for FibraHotel is MXN $255.5 million and the hotels are expected to open in the first half of Acquisition of the Valle Grande hotel in Ciudad Obregón On May. 1, 2014, FibraHotel successfully completed the acquisition of the Valle Grande hotel in Ciudad Obregón representing a total investment of MXN $110 million (including a reposition investment of MXN $20 million). The hotel has 135 rooms. Acquisition of the Fairfield Inn Los Cabos On Jun. 20, 2014, FibraHotel successfully completed the acquisition of the Fairfield Inn hotel in Los Cabos representing a total investment of MXN $110 million. The hotel has 128 rooms. This hotel represents the first operating hotel with Marriott International reinforcing the partnership signed in November Hotel Valle Grande Ciudad Obregón Select-service hotel with 135 rooms located in Ciudad Obregón in the state of Sonora. The hotel is located in the center of the city about a mile from the train station, five minutes by car from the Tutuli mall and 20 minutes by car from the Ciudad Obregón International Airport. The hotel was added to the FibraHotel portfolio in May of 2014 and will be repositioned under the Gamma by Fiesta Inn brand. Annual Report F IBRAH OTEL 53

December 31, 2012, and Independent Auditors Report Dated April 3, 2014 Independent Auditors Report and Consolidated Financial Statements 2013 and 2012 Table of contents Page Independent Auditors

56 Fiesta Inn Guadalajara Consolidated Financial Statements Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary Consolidated Financial Statements for the Year Ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012, and Independent Auditors Report Dated April 3, 2014 Independent Auditors Report and Consolidated Financial Statements 2013 and 2012 Table of contents Page Independent Auditors Report 51 Consolidated Statements of Financial Position 52 Consolidated Statements of Income and Other Comprehensive Income 53 Consolidated Statements of Changes in Trustees Equity 54 Consolidated Statements of Cash Flows 55 Notes to Consolidated Financial Statements Hotel Fairfield Inn Los Cabos Select-service hotel with 128 rooms located on Avenida Lázaro Cárdenas in Cabo San Lucas in the state of Baja California. The hotel is close to the beaches and the Los Cabos and center-city tourism corridors. The hotel is 20 miles from the Los Cabos International Airport (SJD). The hotel was added to the FibraHotel in June of

57 Independent Auditors Report to the Technical Committee and Trustees of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) We have audited the accompanying consolidated financial statements of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary ( FibraHotel ), which comprise the consolidated statements of financial position as of December 31, 2013 and 2012, and the related consolidated statements of income and other comprehensive income, changes in trustees equity and cash flows for the year then ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Consolidated Financial Statements Management of FibraHotel is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, and for such internal control as management of FibraHotel determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to FibraHotel s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of FibraHotel s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidation financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary as of December 31, 2013 and 2012, and its financial performance and its cash flows for the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012, in accordance with International Financial Reporting Standards. Galaz, Yamazaki, Ruiz Urquiza, S. C. Member of Deloitte Touche Tohmatsu Limited C. P. C. Marco Antonio Arellano Alfaro México City, México April 3, 2014 Financial Statements F IBRAH OTEL 55

58 Consolidated Statements of Financial Position As of December 31, 2013 and 2012 (In thousands of Mexican pesos) Assets Notes Current assets: Cash, cash equivalents and restricted cash 5. $ 4,787,793 $ 2,877,775 Trade accounts receivable and other receivables ,396 21,664 Due from related parties 11. 2,816 11,429 Recoverable taxes, mainly Value-Added Tax 204, ,389 Prepaid expenses 1,961 - Total current assets 5,103,285 3,217,257 Non-current assets: Hotel properties, furniture and operating equipment Net 7. 4,734,606 2,017,470 Properties under development , ,411 Security deposits Advances to suppliers - 52 Deferred income taxes 13. 2, Total non-current assets 4,988,578 2,197,054 Total $ 10,091,863 $ 5,414,311 Liabilities and trustees equity Current liabilities: Suppliers and accrued expenses 10. $ 157,160 $ 27,004 Taxes payable 3,414 2,779 Total current liabilities 160,574 29,783 Total liabilities 160,574 29,783 Trustees equity: Contribution from the trustees 12. 9,846,459 5,374,170 Unsubscribed equity (15) (15) Retained earnings 84,845 10,373 Total trustees equity 9,931,289 5,384,528 Total $ 10,091,863 $ 5,414,311 See accompanying notes to consolidated financial statements. 56

59 Consolidated Statements of Income and Other Comprehensive Income For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 (In thousands of Mexican pesos) Notes Revenues from: $ 758,495 $ 18,942 Rooms 88,433 7,015 Real Estate Rentals 164,869 3,815 Food and beverages 20, Other income 1,032,481 30,053 Costs and expenses: Rooms (130,404) (3,934) Food and beverages (110,816) (2,211) General and administrative (452,695) (6,397) Property (16,791) (547) Corporate (82,168) (4,518) Depreciation (120,041) (7,246) Business acquisition 7. (79,857) (3,869) (992,772) (28,722) Other income, Net 6,960 - Interest income 119,126 9,503 Foreign exchange (loss) gain, Net (964) 4 Income before net income taxes 164,831 10,838 Income taxes 13. 2, Consolidated net comprehensive income $ 162,753 $ 10,373 Net income per weighted average CBFIs with economic rights (pesos) $ $ Net income per weighted average CBFIs (pesos) $ $ Weighted average CBFIs with economic rights 411,704, ,203,869 Weighted average outstanding CBFIs 419,059, ,901,766 See accompanying notes to consolidated financial statements. Financial Statements F IBRAH OTEL 57

60 Consolidated Statements of Changes in Trustees Equity For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 (In thousands of Mexican pesos) Number of CBFIs Contribution from the trustees Unsubscribed equity Retained earnings Total trustees equity Initial capital contribution (July 31, Inception date) 80,290,656 $ 15 $ (15) $ - $ - Issuance of CBFIs 223,611,110 5,374, ,374,155 Consolidated net comprehensive income ,373 10,373 Balance, December 31, ,901,766 5,374,170 (15) 10,373 5,384,528 Issuance of CBFIs 195,500,000 4,635, ,635,490 Distribution to trustees - (163,201) - (88,281) (251,482) Consolidated net comprehensive income , ,753 Balance, December 31, ,401,766 $ 9,846,459 $ (15) $ 84,845 $ 9,931,289 See accompanying notes to consolidated financial statements. 58

61 Consolidated Statements of Cash Flows For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 (In thousands of Mexican Pesos) Operating activities: Consolidated net comprehensive income $ 162,753 $ 10,373 Adjustments for non-cash items: Income taxes recognized in comprehensive income 2, Investing activities: Loss in furniture and hotel equipment sale Depreciation 120,041 7,246 Interest income (119,126) (9,503) Total 166,614 8,581 (Increase) decrease in: Trade accounts receivable and other receivables (84,732) (20,292) Due from related parties 8,613 - Recoverable taxes, mainly Value-Added Tax 106,220 (306,389) Prepaid expenses (1,961) - Security deposits (905) - Advances to suppliers 52 (52) (Decrease) increase in: Suppliers and accrued expenses 130,153 26,535 Taxes payable 635 2,658 Taxes payable paid (4,150) - Net cash flows provided by (used in) operating activities 320,539 (288,959) Investing activities: Businesses acquired (2,533,386) (131,546) Acquisition of hotel properties, furniture and operating equipment (253,108) - Furniture and hotel operating equipment sale Investment in projects development (127,538) - Interest received 119,126 9,503 Net cash flows used in investing activities (2,794,529) (122,043) Financing activities: Payments of loans acquired by Contribution Portfolio - (600,000) Issuance of CBFIs 4,877,725 4,136,805 Issuance expenses (242,235) (248,028) Distribution to trustees (251,482) - Net cash flows from financing activities 4,384,008 3,288,777 Cash, cash equivalents and restricted cash Net increase in cash, cash equivalents and restricted cash 1,910,018 2,877,775 Cash, cash equivalents and restricted cash at beginning of period 2,877,775 - Cash, cash equivalents and restricted cash at end of period (Including restricted cash of $4,658,355 and $1,931,456 as of December 31, 2013 and 2012, respectively) $ 4,787,793 $ 2,877,775 See accompanying notes to consolidated financial statements. Financial Statements F IBRAH OTEL 59

62 Notes to Consolidated Financial Statements For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 (In thousands of Mexican Pesos) 1. General information Fideicomiso F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary ( FibraHotel ) was established as a real estate investment trust on July 31, 2012 by Concentradora Fibra Hotelera Mexicana, S. A. de C. V., (the Trustor ) and Deutsche Bank México, S. A., Institución de Banca Múltiple, División Fiduciaria (the Trustee ). FibraHotel was established mainly for the acquisition and/or construction of real estate to be used as accommodation in the lodging industry and the acquisition of rights to receive revenues from the related operating and/or lease agreements. It began operations on December 1, FibraHotel, as a real estate investment trust ( FIBRA ), qualifies to be treated as a pass-through entity for Mexican federal income tax purposes in accordance with the Mexican Income Tax Law ( LISR ). Therefore, all income derived from FibraHotel s operations is attributed to the holders of its real estate trust certificates ( CBFIs for their initials in Spanish) and FibraHotel itself is not subject to income tax in Mexico. In order to maintain FIBRA status, the Mexican Tax Administration Service ( SAT ) has established in Articles 187 and 188 of the LISR, FibraHotel must, among other requirements, distribute at least 95% of its net taxable income each year to the holders of its CBFIs. On October 12, 2012, FibraHotel obtained a ruling from the Mexican Treasury Department, published in the Federal Official Gazette, formally establishing FibraHotel as a FIBRA. To carry out its operation, FibraHotel entered into the following contracts: i. A planning advisory contract with Administradora Fibra Hotelera Mexicana, S. A. de C. V. ( Administradora Fibra Hotelera ) (related party); ii. iii. Service agreements with Prestación de Servicios Hoteleros GG, S. de R. L. de C. V. ( Prestación de Servicios Hoteleros GG ), Grupo Empresarial Hermosillo, S. de R. L. de C. V. ( Grupo Empresarial Hermosillo ), and Soluciones y Administración Estratégica, S. de R. L. de C. V. ( Soluciones y Administración Estratégica ) (related parties) for the provision of operating and administrative personnel; Services agreements with, Servicios de Recursos Integrales FH, S. de R. L. de C. V. ( Servicios de Recursos Integrales FH ), Alterturismo, S. de R. L. de C. V. ( Alterturismo ), Eficiencia en Capital Humano FH, S. de R. L. de C. V. ( Eficiencia en Capital Humano FH ), Compañía Desarrolladora de Nómina FH, S. de R. L. de C. V. ( Compañía Desarrolladora de Nómina FH ), Administradora de Recursos Humanos FH, S. de R. L. de C. V. ( Administradora de Recursos Humanos FH ), Administración de Personal Profesional FH, S. de R. L. de C. V. ( Administración de Personal Profesional FH ), Administradora Mexicana de Recursos Humanos, S. de R. L. de C. V. ( Administradora Mexicana de Recursos Humanos ), Solución en Recursos Humanos FH, S. de R. L. de C. V. ( Solución en Recursos Humanos FH ), Calidad en Administración de Recursos FH, S. de R. L. de C. V. ( Calidad en Administración de Recursos FH ), Empresa Mexicana Especializada en RH, S. de R. L. de C. V. ( Empresa Mexicana Especializada en RH ), Administradora Especializada en Servicios de Nómina FH, S. de R. L. de C. V. ( Administradora Especializada en Servicios de Nómina FH ), Ingeniería en la Prestación de Recursos Humanos FH; S. de R. L. de C. V. ( Ingeniería en la Prestación de Recursos Humanos FH ), RH Compañía Desarrolladora, S. de R. L. de C. V. ( RH Compañía Desarrolladora ) y Administradora de Recursos Corporativos FH, S. de R. L. de C. V. ( Administradora de Recursos Corporativos FH ) for the provision of operating and administrative personnel; iv. Hotel operating and lease agreements with Grupo Posadas, S. A. de C. V. and Grupo Real Turismo, S. A. de C. V. ( Operadoras ) in relation to the 39 properties in operation which belong to the portfolio of FibraHotel. In each of the hotels under a hotel operating agreement, the respective operator is responsible for, among other things, the operation of the hotel, establishing an annual business plan and annual expense budget, setting the room rates, payment of operating expenses with a charge to the accounts of FibraHotel, advising on necessary disbursements, preparing marketing plans and hiring the employees for each of the hotels. Based on such agreements, the payment to the operator for its services will be based on variable rates derived from the gross operating profit of the respective hotel. 60

63 Fibra Hotelera S. C. is a 99.99% owned subsidiary of Fideicomiso F/1596 of the Trustees Equity. Its responsibilities include managing the business, maintaining the real estate properties and hotels, obtaining necessary licenses and permits, supervising projects involving renovation, development and redevelopment, providing insurance coverage, oversight of public services, and negotiating hotel management contracts. The address of FibraHotel is Santa Fe No. 481 Piso 7 Col. Cruz Manca, Cuajimalpa de Morelos, C.P , Mexico City. a. Portfolio Composition Detail of the hotels owned by FibraHotel is as follows: Hotel and location Activity Portfolio 1. Fiesta Inn Tepic Hotel operations (1) Contribution 2. Fiesta Inn Hermosillo Hotel operations (1) Contribution 3. Fiesta Inn Nuevo Laredo Hotel operations (1) Contribution 4. Fiesta Inn Durango Hotel operations (1) Contribution 5. Fiesta Inn Naucalpan Hotel operations (1) Contribution 6. Fiesta Inn Perinorte Hotel operations (1) Contribution 7. One Coatzacoalcos Hotel operations (1) Contribution 8. One Monterrey Hotel operations (1) Contribution 9. One Acapulco Hotel operations (1) Contribution 10. One Aguascalientes Hotel operations (1) Contribution 11. One Toluca Hotel operations (1) Contribution 12. One Culiacán Hotel operations (1) Contribution 13. One Guadalajara Tapatío Hotel operations (1) Contribution 14. Real Inn Morelia Hotel operations (1) Contribution 15. Fiesta Inn Perisur Leasing (2) Contribution 16. Fiesta Inn Ecatepec Leasing (2) Contribution 17. Fiesta Inn Cuautitlán Leasing (2) Contribution 18. Fiesta Inn Culiacán Leasing (2) Contribution 19. Camino Real Puebla Leasing (2) Contribution 20. Fiesta Inn Tlalnepantla Hotel operations (1) Acquisition 21. Fiesta Inn Toluca Tollocan Hotel operations (1) Acquisition 22. Fiesta Inn Torreón Hotel operations (1) Acquisition 23. Fiesta Inn Aguascalientes Hotel operations (1) Acquisition 24. Fiesta Inn Ciudad Juárez Hotel operations (1) Acquisition 25. Fiesta Inn Chihuahua Hotel operations (1) Acquisition 26. Fiesta Inn Guadalajara Expo Hotel operations (1) Acquisition 27. Fiesta Inn León Hotel operations (1) Acquisition 28. Fiesta Inn Monclova Hotel operations (1) Acquisition 29. Fiesta Inn Mexicali Hotel operations (1) Acquisition 30. Fiesta Inn Monterrey La Fe/Aeropuerto Hotel operations (1) Acquisition 31. Fiesta Inn Querétaro Hotel operations (1) Acquisition 32. Fiesta Inn Saltillo Hotel operations (1) Acquisition 33. Fiesta Inn Oaxaca Hotel operations (1) Acquisition 34. Fiesta Inn Puebla Finsa Hotel operations (1) Acquisition 35. One Querétaro Hotel operations (1) Acquisition 36. One Patriotismo Hotel operations (1) Acquisition 37. One Puebla Finsa Hotel operations (1) Acquisition 38. Real Inn Guadalajara Hotel operations (1) Acquisition 39. Real Inn Mexicali Hotel operations (1) Acquisition 40. Extended stay Cancún Under development stage (3) Contribution 41. Extendedstay Puebla Under development stage (3) Contribution (1) 34 hotel properties are under a hotel operating agreement, for which the respective operator is responsible for the operation of the hotel, establishment of an annual business plan and an annual expense budget, setting the room rates, payment of operating expenses with a charge to the accounts of FibraHotel, advising on any necessary disbursements, preparing marketing plans and hiring the employees for each of the hotels. Additionally, each operator establishes and maintains reservation and occupancy records via a centralized reservation system which includes software developed by the operator. Each operator administers a call center which includes each hotel and a webpage, implements loyalty programs and promotes advertising designed by the operator itself. Under the hotel operating agreement, the payment to the operator is based on variable rates derived from the gross operating profit and a fixed component for some hotels. Financial Statements F IBRAH OTEL 61

64 (2) Five hotels are operating under a lease agreement, executed between FibraHotel and the hotel operating entities which manage and operate those hotels. Real estate expenses, insurance and real estate property tax are on account of FibraHotel. (3) The Contribution Portfolio contains hotels under development under a construction contract executed with Grupo GDI, which establishes the commitment to perform the construction and development of the hotels comprising the Contribution Portfolio under Development. The maximum total cost of the four and three properties at December 31, 2013 and 2012 under development is $255,000 and from de four properties under development to $455,000, respectively. Grupo GDI received, as a consideration for its contribution of those hotels, 9,697,897 CBFIs, equivalent to $179,411. Additionally, FibraHotel will pay to Grupo GDI the remainder of the development costs until the construction of these hotels is complete and the hotels are open to the public. b. Business Acquisition During 2013, Fibra Hotel concluded the acquisition of 19 hotels and one saloon which are part of the Acquisition Portfolio, the main activity is the hotel operation. Consideration transferred and Acquired properties Acquisition date paid in cash 1. Salón Fundición Monclova October 2, 2013 $ 16, Real Inn Mexicali August 2, , Fiesta Inn Oaxaca July 5, , Fiesta Inn Puebla Finsa July 3, , One Puebla Finsa July 2, , Real Inn Guadalajara July 1, , Fiesta Inn Tlalnepantla June 24, , Fiesta Inn Toluca Tollocan April 30, , Fiesta Inn Monclova February 28, , Fiesta Inn Querétaro January 21, , Fiesta Inn León January 21, , Fiesta Inn Guadalajara January 21, , One Patriotismo January 21, , Fiesta Inn Monterrey January 21, , Fiesta Inn Aguascalientes January 21, , Fiesta inn Saltillo January 21, , One Querétaro January 21, , Fiesta Inn Mexicali January 21, , Fiesta Inn Chihuahua January 21, , Fiesta Inn Ciudad Juárez January 21, ,085 $ 2,542,039 62

65 Assets acquired and recognized at acquisition date The fair value of the net assets is shown as follows: Acquired property Land Building Furniture and hotel equipment Under development Total 1. Salón Fundición Monclova $ 7,794 $ 7,730 $ $ 16, Real Inn Mexicali 25,763 84,703 9, , Fiesta Inn Oaxaca 30, ,000 10, , Fiesta Inn Puebla Finsa 20, ,000 10, , One Puebla Finsa 6,200 77,999 5,801-90, Real Inn Guadalajara 20,000 80,000 22, , Fiesta Inn Tlalnepantla 15,300 58,527 12,847-86, Fiesta Inn Toluca Tollocan 50,000 75,375 18,346 8, , Fiesta Inn Monclova 12, ,510 27, , Fiesta Inn Querétaro 64, ,633 37, , Fiesta Inn León 18, ,004 29, , Fiesta Inn Guadalajara 37,159 96,459 21, , One Patriotismo 21,010 98,719 14, , Fiesta Inn Monterrey 25,000 86,433 18, , Fiesta Inn Aguascalientes 17,000 85,671 18, , Fiesta inn Saltillo 11,625 89,831 19, , One Querétaro 6,704 99,072 14, , Fiesta Inn Mexicali 13,776 78,575 17, , Fiesta Inn Chihuahua 17,000 56,297 12,358-85, Fiesta Inn Ciudad Juarez 11,937 33,741 7,407-53,085 $ 431,484 $1,772,279 $ 330,076 $ 8,200 $2,542,039 On December 17, 2012, FibraHotel acquired the hotel Fiesta Inn Torreón, which were property of Inmobiliaria de la Comarca, S. A. de C. V., an affiliated entity of Grupo Marhnos, obtaining control over its operations via the rights to the hotel operating agreements outstanding with Grupo Posadas, S. A. de C. V. The only asset included in the purchase was the hotel property, for which the cash, accounts receivable and accounts payable generated before the hotel s acquisition were not transferred and will be administered by the previous owner. The employees were transferred to Administradora GDI, S. A. de C. V. and the operating contract with Grupo Posadas, S. A. de C. V. was also transferred to FibraHotel. The fair value of the assets acquired is shown below: Principal activity Acquisition date Consideration transferred and paid in cash Fiesta Inn Torreón Hotel operation December 17, 2012 $ 111,103 Fair value of assets acquired as of the acquisition date Fiesta Inn Torreón Long-term assets Land $ 22,724 Building 81,807 Hotel furniture and equipment 6,572 $ 111,103 The fair value of the assets acquired aforementioned is determined based on the paid price at fair value using the income focus and the market focus. The income focus is commonly used to determine the value of this type of properties which are generator of cash flows through the property operation, which is obtained from the present value of future benefits based on the proper characteristics of the business, such as income, costs, expenses, among others. As of December 31, 2013, necessary market valuations and Financial Statements F IBRAH OTEL 63

66 other calculations have been completed. Fair value has been determined based on the best management s estimate as of December 31, Details of the assets acquired and the assumed liabilities as of the acquisition date corresponding to the hierarchy of the fair value as of December 31, 2013, is established as Level 2. For tax purposes, market values could have also an effect on the recognized fair values of the other assets acquired, as part of the business combinations Income and net income of the real estate properties aforementioned included in the accompanying consolidated financial statement with its respective acquisitions are of $566,707 and $155,799, respectively. If the real estate property aforementioned would have been acquired on January 1, 2013, income and net income of FibraHotel for the period from January 1, 2013 to December 31, 2013, would have been for $1,782,582 and $379,489, respectively. Acquisition costs of the acquired hotels as of December 31, 2013 and 2012 are of $63,442 and $19,876, respectively; recognized in the consolidated statement of income and other comprehensive income. FibraHotel has established growth and expansion plans, and based on its investment policies will evaluate future acquisition projects that will be submitted for approval by the Technical Committee of FibraHotel. c. Relevant events i. On December 17, 2013, FibraHotel executed an agreement for the development of two hotels with complete services with 226 rooms in San Pedro Garza García, in Monterrey City, which form part of the Project of Mixed Use Trebol Monterrey. Those hotels will be set in one building inside the development and will be part of Fiesta Americana Grand with 180 rooms and a Live Aqua with 46 rooms. Both will be operated by Grupo Posadas and will open with the project on the fourth quarter of Those hotels of complete services will represent a total estimated investment of $600,000 of which as of December 31, 2013, Fibra Hotel has invested $59,500. ii. On December 2, 2013, FibraHotel acquired the rights of a land at the north of Mexico City for the construction of two hotels with a total of 245 rooms inside of Centro Comercial Vía Vallejo. Those hotels will be set in one building, over the mall and will be a Courtyard by Marriot with 93 rooms and a Fairfield Inn & Suites with 152 rooms. Both hotels will be operated by Marriot International as part of the association announced on November 14, 2013 and it is expected to start operations with the mall on the fourth quarter of Those two hotels will represent a total estimated investment of $230,000 of which FibraHotel, as of December 31, 2013 has spent $34,000. iii. iv. On June 24, 2013, FibraHotel opened to the public the hotel One Guadalajara Tapatío, which is part of the Contribution Portfolio under Development. The total price for FibraHotel is of $70,000, of which $12,738 were paid in exchange of 688,564 CBFIs and $57,262 were paid in cash on the delivery of the hotel. On May 30, 2013, FibraHotel conducted a subsequent offer of CBFIs through the Mexican Stock Exchange (BMV for its acronyms in Spanish) and in other international markets. The amount of the global offering is of $4,877,725, offering 195,500,000 CBFIs, including over allocation, at a price of $ The trust of control of FibraHotel participated on the subscription 2,000,000 CBFIs. v. On April 19, 2013, FibraHotel celebrated an agreement for the development and operation of ten hotels in the following three years with Hoteles Camino Real, S. A. de C. V., to execute the operation of the hotel. Hotels could be operated under the branches Real Inn and Camino Real Suites, and together will have a total of 1,503, rooms. vi. On March 4, 2013, FibraHotel opened to the public, the hotel Real Inn Puebla, which formed part of the Contribution Portfolio under development. The total price for FibraHotel was of $130,000, of which $43,339 were paid in exchange of 2,342,667 CBFIs and on March 7, 2013 were paid $86,661 in cash over the delivery of the hotel. 64

67 vii. On November 30, 2012, FibraHotel held an initial public offering ( IPO ) of CBFIsa in the BMV)and abroad, and entered into a series of constitution transactions, from which 21 properties were contributed to FibraHotel in exchange of its CBFIs, from Fondo Controladora Cabi/HM, S. de R. L. de C. V. ( Controladora Cabi ), and Fondo Hotelero Mexicano, S. de R. L. de C. V. ( FHM ) (collectively FibraHotel Holding), of which seventeen are already finished and operating and four hotels are still under development. 2. Basis of presentation a. New and revised IFRSs affecting amounts reported and/or disclosures in the financial statements The impact of the application of these standards is set out below. Impact of the application of IFRS 10 IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated financial statements and SIC-12 Consolidation Special Purpose Entities. IFRS 10 changes the definition of control such that an investor has control over an investee when a) it has power over the investee, b) it is exposed, or has rights, to variable returns from its involvement with the investee and c) has the ability to use its power to affect its returns. All three of these criteria must be met for an investor to have control over an investee. Previously, control was defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Additional guidance has been included in IFRS 10 to explain when an investor has control over an investee. Some guidance included in IFRS 10 that deals with whether or not an investor that owns less than 50% of the voting rights in an investee has control over the investee. The management of FibraHotel held an evaluation on the initial application date of the IFRS 10 (January 1, 2013) in order to determine if FibraHotel has control over the entities that renders it professional services entities. As such, inaccordance with the corresponding guidance established in the IFRS 10. FibraHotel s management concluded that it has no control. Therefore, according to the requirements of the IFRS 10, those professional services entities must not be considered as subsidiaries. Comparative figures for 2012 have not been updated in accordance with the applicable transitional provisions set out in IFRS since the effect was immaterial. IFRS 13 Fair Value Measurement FibraHotel has applied IFRS 13 for the first time in the current year. IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The scope of IFRS 13 is broad; the fair value measurement requirements of IFRS 13 apply to both financial instrument items and non-financial instrument items for which other IFRSs require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of IFRS 2 Share-based Payment, leasing transactions that are within the scope of IAS 17 Leases, and measurements that have some similarities to fair value but are not fair value (e.g. net realizable value for the purposes of measuring inventories or value in use for impairment assessment purposes). IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under IFRS 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, IFRS 13 includes extensive disclosure requirements. IFRS 13 requires prospective application from January 1, In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard. Financial Statements F IBRAH OTEL 65

68 b. Reclassifications The accompanying consolidated financial statements for the year ended December 31, 2012 have been reclassified in certain fields to conform its presentation with the utilized on The fields which were reclassified in the consolidated statement of income and other comprehensive income as of 2012, are as follows: Effect of changes in 2012 Retrospectively reclassified Amounts of 2012 Originally reported Administrative costs and expenses $ 63 $ (6,397) $ (6,460) Real estate expenses $ (547) $ (547) $ - Corporate expenses $ (4,518) $ (4,518) $ - Business acquisition expenses $ (3,869) $ (3,869) $ - Advertising and promotion $ 1,871 $ - $ (1,871) Electric energy $ 1,529 $ - $ (1,529) Maintenance $ 953 $ - $ (953) Administration fees $ 4,518 $ - $ (4,518) 3. Summary of significant accounting policies a. Statement of Compliance The consolidated financial statements of FibraHotel have been prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ). b. Basis of measurement The consolidated financial statements of FibraHotel have been prepared on the historical costs basis, except for hotel properties, furniture and equipment, and properties under development, which are valued at fair value at the date of contribution and acquisition, as explained in greater detail in the accounting policies below. i. Historical cost Historical cost is usually based on the fair value of the consideration given in exchange for assets. ii. Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. 66

69 c. Basis of consolidation The consolidated financial statements include those of FibraHotel and of its subsidiary over which it exercises control. Control is obtained when FibraHotel has the power over the investment, is exposed, or has the rights, to variable returns from its involvement, and has the ability to affect those returns through its power over the entity that invests. FibraHotel reassesses whether it controls an entity if the facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The subsidiary is consolidated from the date on which control is transferred to FibraHotel, and is no longer consolidated from the date that control is lost. When necessary, adjustments to the financial statements of the subsidiary are made to align its accounting policies in accordance with the accounting policies of FibraHotel. All balances and transactions between the subsidiary and FibraHotel have been eliminated in the consolidation. Entity Ownership percentage 2013 and 2012 Activity Fibra Hotelera, S. C % Provision of advisory services and technical, legal, tax, commercial and administrative consulting related to the purchase and sale, management, leasing and subletting of all kinds of land, houses, buildings, warehouses, hotels, malls and commercial premises and offices as well as provision of personnel services. FibraHotel reassessed if it has maintained effective control over the entities mentioned in Note 1 paragraphs ii) and iii); based on its assessment, management concluded that in accordance with IFRS 10 FibraHotel does not have effective control due to the following: (i) power, FibraHotel has current ability to direct the relevant activities, (ii) it has no exposure nor has it rights over variable returns, the trustors of the payroll entities have not received distributions, given that it is not the object of payroll entities, administrative services fees are 5% of the hotel gross profit and is recognized at fair value. This fee is not modified to the interests of FibraHotel. The fee covers the expenses incurred by the payroll entities for its operation and is sufficient, therefore payroll entities prevent losses, the assets of the payroll entities are different in such a manner that these cannot be used in combination with FibraHotel for its operation.. The operators and managers act as agents of FibraHotel on the decision making relevant activities; however, FibraHotel is not considered as an investor because the payroll entities act independently and FibraHotel has not exposition to the variable returns. Given the obligation of paying the services provided, salaries of the personnel, plus a 5%, FibraHotel has to recognize the respective benefits related to retirement and employee benefits. As of December 31, 2013, the provision for employee benefits is not recognized in the financial information of FibraHotel given the immateriality of the account. Significant intercompany balances and transaction have been eliminated. The main accounting policies applied by FibraHotel are as follows: d. Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the fair values of the assets transferred by FibraHotel, plus the liabilities incurred by FibraHotel to the previous owners of the entity acquired and the equity issued by FibraHotel in exchange for control over the entity acquired at the acquisition date. The costs related to the acquisition are generally recognized in the statement of income and other comprehensive income as incurred. Financial Statements F IBRAH OTEL 67

70 As of the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at fair value. Goodwill is measured as the excess over the sum of the consideration transferred, the amount of any noncontrolling interest in the entity acquired, and the fair value of the acquirer s previous shareholding in the entity acquired (if any) over the net of the amounts of identifiable assets acquired and liabilities assumed at the acquisition date. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. e. Financial instruments Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Cash and cash equivalents Cash and cash equivalents mainly consist of bank deposits in checking accounts and short-term investments. Cash is presented at fair value and cash equivalents are valued at fair value. FibraHotel considers as cash equivalents all highly liquid debt instruments acquired with an original maturity of three months or less. Cash equivalents are represented mainly by government securities in which the resources are paid at maturity. Restricted cash Restricted cash consists on cash corresponding to the fund for the investment in real estate, which will be used for the acquisition of the real estate of the contribution portfolio and the fund of the allowance for equity expenses which will be used for the repairs payments, major replacements and other equity expenses. Financial assets Financial assets are classified into the following specified categories: financial assets at fair value with changes through profit or loss (FVTPL, for its acronym in English), amortized cost, preserved to maturity investments, financial assets available for sale (AFS, for its acronym in English), loans and accounts receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of its initial recognition. All purchases or sales of financial assets are carried routinely identified and removed based on the trade date. Purchases or sales routinely performed are those purchases or sales of financial assets that require the delivery of assets within the time frame established by law or custom in that market. At the date of these consolidated financial statements, FibraHotel has only instruments classified as cash and cash equivalents and accounts receivable. Accounts receivable Accounts receivable and other receivables which have fixed or determinable payments that are not listed in an active market are classified as loans and accounts receivable, which are measured at amortized cost, using the effective interest method, minus any impairment. 68

71 Impairment in the value of financial assets For financial assets other than financial assets at fair value through profit or loss, impairment indicators are evaluated at each reporting date. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows from the investment have been affected. For AFS equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment. For all other financial assets, objective evidence of impairment could include: Significant financial difficulty of the issuer or counterparty; or Breach of contract, such as a default or delinquency in interest or principal payments; or It becoming probable that the borrower will enter bankruptcy or financial re-organization; or The disappearance of an active market for that financial asset because of financial difficulties. Derecognition of financial assets The Entity derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Entity neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Entity recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Entity retains substantially all the risks and rewards of ownership of a transferred financial asset, the Entity continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts. The key feature in determining whether a financial instrument is a liability is the existence of a contractual obligation of FibraHotel to deliver cash or another financial asset to the holder, or to exchange financial assets or liabilities under conditions that are potentially unfavorable. In contrast, in the case of an equity instrument the right to receive cash in the form of dividends or other distributions is at the Fibra Hotel s discretion and, therefore, there is no obligation to deliver cash or another financial asset to the holder of the instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the net assets of FibraHotel. The equity instruments issued by FibraHotel are recognized for the proceeds received, net of direct issuance costs. Financial Statements F IBRAH OTEL 69

72 Financial liabilities Financial liabilities are classified as financial liabilities at fair value through profit or loss or other financial liabilities. Other financial liabilities are recognized initially at fair value, net of transaction costs. Other financial liabilities are valued subsequently at their amortized cost using the effective interest method, with interest expense recognized based on the effective interest method. f. Hotel properties, furniture and operating equipment Properties, furniture and operating equipment of the hotel are recorded initially at their acquisition cost. As of the date the IPO, land and buildings related to the hotels contributed to FibraHotel were recorded at their fair value, as permitted by certain transition options established in IFRS. Subsequent acquisitions or construction of hotel properties, furniture and operating equipment are recorded initially at acquisition cost. Hotel properties, furniture and operating equipment are presented at cost, less accumulated depreciation and any accumulated loss from impairment. Depreciation is calculated using the straight-line method based on the remaining useful life of the asset, considering any residual values and of its bigger components, since FibraHotel considers more appropriated and consistent in relation to the methods used for the most representative entities of the sector. Based on technical studies, FibraHotel concluded that its buildings and their different components have different useful lives and will be subject to replacements in different periods, 15 years in the case of certain common areas and up to 55 years for metallic structures of the building. The residual value is 24% in the case of the buildings; other fixed assets do not have significant residual values, as determined by independent appraisers. Estimated useful lives, residual values and the depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Depreciation rates of hotel properties, furniture and operating equipment is: % Building finishes 10 Building improvements 10 Building components 7 Building civil construction 1 Furniture and equipment 10 The gain or loss derived from the sale or disposal of an item of the hotel s properties, furniture and operating equipment is calculated as the difference between the resources received from the sale and the carrying value of the asset, and is recognized in results. g. Impairment in the value of long-lived assets At the end of each reporting period, FibraHotel reviews the carrying values of its long-lived assets to determine whether there is any indication that such assets have suffered a loss from impairment. If there is any such indication, the recoverable amount of the asset is calculated to determine the amount of the loss from impairment (if any). When it is not possible to estimate the recoverable amount of an individual asset, FibraHotel estimates the recoverable amount of the cash generating unit to which such asset belongs. When a reasonable and consistent distribution basis can be identified, corporate assets are also assigned to the individual cash generating units; otherwise, they are assigned to the smallest group of cash generating units for which a reasonable and consistent distribution basis can be identified. The recoverable amount is the higher of the fair value less the cost to sell the asset and its value in use. When evaluating the value in use, the estimated future cash flows related to the asset are discounted at present value using a discount rate before taxes which reflects the current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. 70

73 If it is estimated that the recoverable amount of an asset (or cash generating unit) is lower than its carrying value, the carrying value of the asset (or cash generating unit) is reduced to its recoverable amount. Losses from impairment are recognized immediately in results. When a loss from impairment subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. h. Provisions Provisions are recognized when FibraHotel has a present obligation (legal or implied) as a result of a past event, it is probable that FibraHotel will be required to liquidate the obligation and it can be reliably estimate that the amount of the obligation. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting period under review, taking into account the risks and uncertainties surrounding the obligation. When a provision is valued using the estimated cash flows to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the value of money over time is material). When recovery from a third party of some or all of the economic benefits required to settle a provision are expected, an account receivable is recognized as an asset if it is virtually certain that the disbursement and the amount of the account receivable may be valued reliably. i. Revenue recognition Revenues are obtained from the hotel operation, and include room rentals, leasing, food and beverages and other revenues, which are recognized as such services, and rendered. j. Leasing revenues Leases are classified as capital leases when the terms of the lease substantially transfer to the lessee all the risks and benefits inherent to ownership. All other leases are classified as operating leases. Properties under operating leases are included in the heading of hotel properties, furniture and equipment in the statement of financial position. The revenues from operating leases are recognized on accounting, are substantially equals to those determined reducing the given incentives such as grace periods, and are recognized on a straight-line basis over the term of the relevant lease, considering any incentives granted, such as grace periods. Contingent rentals (such as inflation) are recognized when they are earned. The lease term is the non-cancelable period of the related lease, including any periods for which the lessee has the option to extend, only when at the commencement of the lease, management has reasonable certainty that the lessee will exercise its renewal option. k. Income taxes As discussed in Note 1, FibraHotel is classified as and intends to maintain its classification as a FIBRA for income tax purposes; accordingly, it does not recognize a provision for income taxes. The subsidiary Fibra Hotelera, S. C is subject to the payment of regular Income Tax ( ISR ) and the Business Flat Tax ( IETU ). See Note 13. l. Foreign currency Transactions performed in foreign currency are recorded at the exchange rate in effect on the date each transaction took place. Monetary assets and liabilities denominated in foreign currency are valued in Mexican pesos at the exchange rate in effect at the date of the financial statements. Exchange rate fluctuations are recorded in results. m. Classification of costs and expenses The costs and expenses presented in the consolidated statement of comprehensive income were classified on their combined nature and function. Financial Statements F IBRAH OTEL 71

74 n. Statement of cash flows FibraHotel presents its statement of cash flows using the indirect method. Interest received is classified as an investing cash flow. o. Net income per weighted average CBFI Net income per weighted average CBFI with economic rights is determined by dividing consolidated net income by the weighted average number of outstanding CBFIs with economic rights, during the period. Net income from weighted average CBFIs with economic rights as of December 31, 2013 and 2012 subtracting to the total of 499,401,766 of CFIS and 303,901,766 outstanding CBFIs, respectively to 7,355,230 and 9,697,897 corresponding outstanding CBFIs related to the Contribution Portfolio under Development, which are not entitled to receive economic rights until the construction of the hotels has concluded and the hotels are opened to the public. 4. Critical accounting judgments and key sources of estimation uncertainty a. Critical judgments involving the application of accounting policies Business combinations Management uses its professional judgment to determine whether the acquisition of a hotel or hotel portfolio represents a business combination or an asset acquisition. Management specifically evaluates the extent to which FibraHotel acquires the processes needed to ensure that the assets acquired generate benefits. This determination can have a significant effect on the manner in which acquired assets and liabilities are recognized in financial information, both as of the acquisition date and subsequent thereto. Assets acquired in the Acquisition Portfolio were determined to be and were thus accounted for as business combinations. Those operations made over hotels that do not represent common control were classified as business combinations. Hotel classification (investment/asset ownership) Investment property is held to earn rentals or for capital appreciation or both. Therefore, an investment property generates cash flows independently of other assets held by FibraHotel. This distinguishes investment property from owner-occupied property. If FibraHotel is the owner of the property and manages services provided to the hotel guests by holding operating and leasing contracts and the services provided to the guests are significant. A hotel managed by the owner is an occupied property, rather than an investment property. It can be difficult to determine whether the services provided are significant enough that a property does not qualify as investment property. For example, the owner of a hotel sometimes transfers some responsibilities to third parties under an operating agreement. The owner s position could be, in essence, a passive investor or the owner may simply have outsourced day to day functions while retaining significant exposure to variations in cash flows from the hotel operations. Management uses its professional judgment to classify the contributed and acquired hotels as hotel property, plant and equipment, given that each hotel is used in its normal course of business and is, therefore, not considered as an investment property. Transactions that occurred during the period presented in the financial statements are posted as business acquisition and presented in property, plant and equipment of the hotel. Lease classification As explained in Note 3j, leases are classified based on the extent to which the risks and rewards inherent to the ownership of the asset under lease are transferred to FibraHotel or the tenant, depending on the substance, rather than the legal form, of the lease. Based on its evaluation of contractual terms and conditions, FibraHotel has concluded that it essentially assumes all the significant risks and rewards inherent to the hotels under lease and therefore classifies the respective lease agreements as operating leases. 72

75 b. Main sources of estimation uncertainty Estimated useful and residual lives of fixed assets Taking into consideration the opinion of internal experts from its development area, FibraHotel evaluates the useful and residual lives of assets at the end of each reporting period based on its operating experience, the characteristics of its assets and their operation at date of the review. Any changes in estimate are recognized prospectively, within accumulated depreciation in the consolidated statement of financial position and depreciation expense in the consolidated statement of comprehensive income. Allowance for doubtful accounts FibraHotel has not recognized an allowance for doubtful accounts because credit ratings of its customers have not significantly changed and outstanding amounts are deemed to be recoverable. FibraHotel does not hold any collateral or other credit improvements with regard to these balances; likewise, it does not have the legal right to offset these amounts against its debts with the counterparty. Fair value measurements and valuation processes Some of the assets and liabilities of FibraHotel are measured at fair value in the consolidated financial statements. In estimating the fair value of an asset or a liability, FibraHotel uses observable market data as far as they are available. When the input data of level 1 are not available, FibraHotel hire a qualified appraiser to conduct an independent valuation. The Management works closely with the independent qualified appraiser to establish the valuation techniques and appropriate input data for the model. Information about the valuation techniques and inputs used in determining the fair value of individual assets and liabilities are disclosed in Note Cash, cash equivalents and restricted cash Cash and bank deposits $ 88,885 $ 16,383 Cash equivalents 40, ,936 Restricted cash: Real property investment fund (i) 4,638,650 1,930,283 Capital expenditure reserve fund (ii) 19,705 1,173 Restricted cash $ 4,787,793 $ 2,877,775 (i) Represents amounts held in the real property investment fund which are restricted for purpose of funding an acquisition portfolio of real property in the amount of $4,383,650 and $1,654,694 as well as for the purpose of funding $255,000 and $275,589 at December 31, 2013 and 2012, respectively towards the real property contained in the development portfolio held by FibraHotel. As in the case of cash equivalents, this restricted cash is invested in government securities. 1. (ii) Represents amounts held in the capital expenditure reserve fund, which are restricted for the purpose of funding repairs, major replacements and other related capital expenditures. A total of 5% of operating income is deposited in this fund. As in the case of cash equivalents, this restricted cash is invested in government securities. Financial Statements F IBRAH OTEL 73

76 6. Trade accounts receivable and other receivables Clients $ 57,848 $ 7,471 Travel agencies 30,567 2,599 Credit cards 6,244 1,829 Other 2,582 2,418 97,241 14,317 Lease receivables from: Hoteles y Villas Posadas, S. A. de.c V. 4,676 - Inmobiliaria CR Juárez, S. A. de C. V. 1,501 1,450 Posadas de Latinoamérica, S. A. de C. V. 1,289 5,897 Others 1,689-9,155 7,347 a. Clients, lease receivables and credit risk management $ 106,396 $ 21,664 Accounts receivable from customers and other accounts receivable with fixed or determinable payments, which are not traded on an active market, are classified as notes and accounts receivable. Interest income is recognized by applying the effective interest rate, except in the case of short-term accounts receivable for which interest recognition is not significant. b. Accounts receivable aging FibraHotel currently has monthly collection levels that reflect its monthly billing; similarly, commercial and negotiating practices allow it to keep accounts receivable aging at less than 90 days. The accounts receivable subject to legal proceedings are insufficiently material to merit the creation of an allowance for bad debts days $ 4,601 $ - More than days 13,460 - Total $ 18,061 $ - Average Antique (days) Hotel properties, furniture and operating equipment Cost $ 4,857,914 $ 2,024,716 Less- Accumulated depreciation (123,308) (7,246) $ 4,734,606 $ 2,017,470 Land $ 827,570 $ 372,043 Building 3,532,018 1,547,458 Hotel furniture and operating equipment 498, ,215 $ 4,857,914 $ 2,024,716 74

77 Cost Land Building Hotel furniture and equipment Total Balances as of July 31, 2012 $ - $ - $ - $ - Acquisitions: Contribution Portfolio (1) 349,319 1,465,651 98,643 1,913,613 Acquisition Portfolio (2) 22,724 81,807 6, ,103 Balances as of December 31, ,043 1,547, ,215 2,024,716 Acquisitions: Contribution Portfolio (3) 24, ,553 24, ,999 Acquisition Portfolio (4) 431,486 1,833, ,706 2,633,199 Balances as of December 31, 2013 $ 827,570 $3,532,018 $ 498,326 $4,857,914 Accumulated depreciation Building Hotel furniture and equipment Total Balances as of July 31, 2012 $ - $ - $ - Depreciation expense 6, ,246 Balances as of December 31, , ,246 Depreciation expense 59,434 56, ,062 Balances as of December 31, 2013 $ 65,858 $ 57,450 $ 123,308 (1) As discussed in Note 1, on November 30, 2012, FibraHotel carried out an IPO involving the placement of CBFIs in Mexico and in other international markets. The adherent s trustees contributed the properties to FibraHotel composing the Contribution Portfolio in exchange for 80,290,656 CBFIs. (2) On December 17, 2012, FibraHotel utilized the resources derived from the IPO to acquire ownership of the Fiesta Inn Torreón hotel. (3) During 2013, FibraHotel paid the remainder of the hotels One Guadalajara Tapatío and Real Inn Morelia, which were in the Portfolio under Development and are integrated into the Contribution Portfolio. (4) (5) During 2013, FibraHotel acquired a saloon and 19 hotels which form part of the Acquisition Portfolio, which were paid with the resources from the subsequent offering of CBFI s that occurred on May 30, 2013 (see Notes 1b and 12c). 8. Properties under development Cancún Estancia Prolongada Project(1) $ 94,872 $ 94,872 Mixto Trébol Monterrey Project 59,500 - Vía Vallejo Project 34,000 - Real Inn Morelia Proyect(1) - 43,339 Puebla Estancia Prolongada Proyect (1) 28,462 28,462 One Guadalajara Tapatio Proyect(1) - 12,738 One Toluca Tollocan Project 8,200 - Ciudad del Carmen Project 5,000 - Others 20,840 - $ 250,874 $ 179,411 (1) The Contribution Portfolio includes as of December 31, 2013 and 2012, two and four hotels, respectively for which distributions from the tax results of these hotels will not be made until such hotels commence operations. Financial Statements F IBRAH OTEL 75

78 9. Financial instruments Categories of financial instruments Financial assets: Cash, cash equivalents and restricted cash $ 4,787,793 $ 2,877,775 Trade accounts receivable and other receivables $ 106,396 $ 21,664 Due from related parties $ 2,816 $ 11,429 Financial liabilities: Suppliers and accrued expenses Cuentas por pagar a proveedores y otras $ 104,648 $ 13,326 Equity management FibraHotel manages its equity to ensure its ability to continue as a going concern, while maximizing the net worth of its trustors and distributions to the trustors by optimizing its use of debt and equity. The equity of FibraHotel is primarily composed by the net worth of its trustors. Equity Management objectives include ensuring the availability of operating funds to maintain the consistency and sustainability of distributions paid to trustors, while funding the required capital expenditure requirements and providing the resources needed to acquire and develop new properties. FibraHotel can acquire hotels subject to existing financial mortgages or other encumbrances; similarly, it can acquire new debt or refinance existing debt to acquire hotels, albeit subject to compliance with leverage policies. Under certain circumstances, it could have the obligation to pay distributions in excess of the cash available for this purpose; if necessary, it can utilize the resources generated by organizing future debt and equity offerings, selling assets or obtaining loans to make certain distributions. The debt service related to this financing or indebtedness takes priority over any distributions related to the CBFIs. The reason for liquidity requirement is determined on the stable funding available between the illiquid assets, the amount as of 31 December 2013 is.094. Financial risk management Financial risk management is intended to manage financial expectations, while generating results of operations and cash flows to improve the financial position of FibraHotel and ensure its ability to make distributions to the holders of the CBFIs and fulfill any future debt obligations. The Technical Committee of FibraHotel is responsible for advising and instructing the trustee with regard to the sale or cancellation of the CBFIs, analyzing and improving potential investments, sales and acquisitions, providing business services, coordinating access to national financial markets, as well as monitoring and managing the financial risks derived from the operations of FibraHotel through internal risk reports which provide an analysis of the level and magnitude of FibraHotel s risk exposure. These risks include the market risk (including exchange rate and interest rate risks), credit risk and liquidity risk. Market risk management The activities of FibraHotel essentially expose it to financial risks involving interest rates and foreign currencies. FibraHotel is able to obtain financing under different conditions, whether from third or related parties; however, variable interest rates are usually subject to market rate fluctuations. Foreign currency risk management As FibraHotel performs transactions denominated in U.S. dollars ( U.S. dollar ), it is exposed to exchange rate fluctuations involving the Mexican peso and the U.S. dollar. 76

79 a. As of December 31, 2013 and 2012 the foreign currency monetary position is as follows: Thousands of U.S. dollars: Monetary assets $ Monetary liabilities (250) - Long position Equivalent in Mexican pesos $ 8,557 $ 5,884 b. Mexican peso exchange rates in effect at the date of the consolidates statement of financial position and at the date of issuance of these consolidates financial statements were as follows: December 31, 2013 December 31, 2012 April 3, 2014 U.S. dollar $ $ $ Foreign currency sensitivity analysis Management considers that its exchange rate risk is not significant, given the amount of its long position in U.S. dollars. If the exchange rate increased or decreased by $1 peso per U.S. dollar and all other variables remained constant, the result of the year and net worth of FibraHotel for the period ended December 31, 2013 and 2012 would have decreased/increased by approximately $654 and $453, respectively. Credit risk management Credit risk refers to the situation in which counterparty defaults on its contractual obligations, thereby generating a financial loss for FibraHotel. Virtually all the revenues generated by FibraHotel are derived from the provision of hotel services. Consequently, its performance depends on its ability to collect revenues from hotel services from guests, as well as the capacity of the latter to make the required payments. FibraHotel s income and funds available for distribution would be adversely affected if a significant number of guests or its main leaseholders defaulted on their rental payments, closed their businesses or filed bankruptcy proceedings. FibraHotel has adopted the policy of negotiating hotel leases with solvent counterparties and obtaining sufficient guarantees, when necessary, as a means of mitigating the risk of losses generated by nonpayment. Credit risk is generated by the balances of cash and cash equivalents, trade accounts receivable and other receivables included in the consolidated statement of financial position. Liquidity risk management Liquidity risk represents the risk whereby FibraHotel faces certain difficulties when fulfilling obligations associated with financial liabilities which must be settled in cash or through the delivery of another financial asset. As FibraHotel is responsible for liquidity risk management, it has established a suitable liquidity risk management structure to manage its short, medium and long-term financing, while satisfying liquidity management requirements. FibraHotel manages its liquidity risk by maintaining adequate reserves, monitoring projected and actual revenue cash flows and reconciling the maturity profiles of financial assets and liabilities. The Treasury department monitors liability maturities so as to program the respective payments. The following table details the outstanding maturities of FibraHotel s financial liabilities according to payment periods. Financial Statements F IBRAH OTEL 77

80 Less than one year As of December 31, 2012 Suppliers and others $ 104,648 As of December 31, 2012 Suppliers and others $ 13,326 Fair value of financial instruments Fair value of financial instruments recorded at amortized cost Cash, cash equivalents and restricted cash, trade accounts receivable and other receivables, due from related parties, suppliers and accrued expenses are short-term in nature and, in certain cases, accrue interest at rates linked to market indicators. FibraHotel therefore considers that the carrying value of these financial assets and liabilities approximates their fair values. Fair value of financial instruments carried at FVTPL on a recurring basis Financial assents December 31, 2013 Fair value at December 31, 2012 Fair value hierarchy Investments in government securities $4,698,908 $2,861,392 Level 1 Fair value of lands and building Valuation techniques and key inputs Input(s) significant unobservable Market value. The fair value of investments is measured by quoted prices (unadjusted) in active markets for identical instruments. - - Relationship of unobservable input to the fair value Lands and buildings of FibraHotel are recorded at fair value, which is their fair value at acquisition date, minus accumulated depreciation and accumulated depreciation losses. Measurements of fair value of lands and buildings of FibraHotel as of December 31, 2013 are determined based on the paid value. The fair value of the lands and buildings is determined based on the income view. The fair value of the lands and buildings of FibraHotel and the information about the hierarchy of fair value as of December 31, 2013 is established as follows: Level 2 Fair value total Hotels of Acquisition Porfolio that includes: Lands $ 431,484 Buildings 1,772,279 $ 2,203,763 78

81 Valuation techniques and assumptions applied for purposes of determining the fair value The fair value of financial assets and financial liabilities with standard terms and traded in active liquid markets are determined with reference to quoted market prices (including unlisted redeemable notes, bills of exchange, perpetual and government bonds). The fair value of other financial assets and liabilities (excluding those described above) are determined in accordance with pricing models generally accepted, based on the analysis of discounted cash flows using prices from observable current transactions in the market and quotations for similar instruments. In particular, the fair value of long-term debt, which is calculated only for the purpose of this disclosure and not for the accounting of the debt, which is considered Level of measurement 3, as described below, it was determined using a model of discounted cash flows, using current rates estimates based on observable market TIIE curves and credit spread estimated using observable credit similar entities, which is adjusted as needed. The financial instruments that are subsequently measured at initial recognition at fair value, are grouped in 3 levels, based on the degree to which the fair value is observable: Level 1 valuations at fair value are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 valuations at fair value are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3 valuations at fair value are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable indicators). 10. Suppliers and accrued expenses Suppliers $ 94,550 $ 8,383 Accrued expenses 52,512 13,678 Other accounts payable 10,098 4,943 $ 157,160 $ 27, Transactions and balances with related parties Balances and transactions between FibraHotel and its subsidiary, which is a related party of FibraHotel, have been eliminated of the consolidation and are not revealed in this not. Further, transactions between FibraHotel and its related parties are detailed. a. Comercial transactions: During the year, FibraHotel and its subsidiary made the following transactions with related parties which are not members of FibraHotel: Administradora Fibra Hotelera: Management fee (1) $ 82,168 $ 4,518 Prestación de Servicios Hoteleros GG (2) Administrative services $ 20,405 $ 1,903 Soluciones y Administración Estratégica (2) Administrative services $ 3,512 $ 389 (1) FibraHotel pays an annual fee equal to 1% of the undepreciated carrying value of FibraHotel s net assets (total assets less outstanding indebtedness), plus any applicable value-added tax. (2) FibraHotel pays an annual fee for the administrative services provision corresponding to the amount of the economic benefit of the personnel and taxes plus 5 % of the total sum of that concepts. The above transaction is documented through an agreement executed with the entity, renewable for fiveyear periods. Financial Statements F IBRAH OTEL 79

82 b. Due from related parties: Controladora Cabi FHM $ 2,535 $ 9,698 Grupo Innovador Turístico y de Servicios, S. de R. L. de C. V Grupo Empresarial Hermosillo 48 1,149 $ 2,816 $ 11, Trustees equity Contributions a. Equity contributions of trustors at par value is as follows: Initial capital contribution Issuance of CBFIs Total $ 15 $ 10,009,645 $ 10,009,660 At December 31, 2013, the initial contributed net worth of FibraHotel has not been fully paid-in. b. The net worth of FibraHotel is represented by an initial contribution of $15, the Contribution Portfolio, the Contribution Portfolio under Development and the resources generated by issuing the CBFIs in the IPO, as discussed below: c. On May 30, 2013, FibraHotel held a subsequent offering of CBFIs in the BMV and in other international markets. The total amount of the offering was up to $4,877,725, offering 195,000,000 CBFIs, including over allocation at a price of $ The Trust of Control of FibraHotel participated in the subscription of 2,000,000 CBFIs. d. As discussed in Note 1, on November 30, 2012, FibraHotel carried out an OPI involving the placement of CBFIs in the Mexican Stock Market and other international markets. The global offering amount was $4,136,806 based on 223,611,110 CBFIs, including an overallotment option, at a price of $ In addition to the IPO, the trustors contributed hotels composing the Contribution Portfolio and Contribution Portfolio under Development to FibraHotel in exchange for 80,290,656 CBFIs, representing an amount of $1,485,377. e. At December 31, 2013 and 2012, there were 499,401,766 and 303,901,766 CBFIs outstanding, respectively. Distributions- The Technical Committee of FibraHotel has approved and paid distributions of the tax income accounts, to the CBFIs owners as follows: Date of distribution approval Distributions from equity redemption Distributions of taxable income Total Distributions October, 22, 2013 $ 83,445 $ 16,097 $ 99,542 July 22, ,248 33,166 74,414 April, ,952 22,038 58,990 January 22, ,556 16,980 18,536 Total December 2013 $ 163,201 $ 88,281 $ 251,482 These distributions are equal to 6.30 cents per CBFI and were calculated based on the number of outstanding CBFIs, excluding those CBFIs related to the Contribution Portfolio under Development at December 31, 2013 and 2012 of 7,355,230 and 9,697,897 CBFIs, respectively, which currently have no economic rights until the construction of the respective hotels has concluded and the hotels are opened to the public. 80

83 Issuance of CBFIs- At December 31, the issuance of CBFIs as a part of FibraHotel net worth is composed as follows: Price Trustees Price equity Trustees equity Initial contribution in cash $ - $ - $ - $ 15 Cash contribution (IPO): 195,500,000 issued CBFIs ,877, ,611,110 issued CBFIs ,136,806 Contribution in-kind: 80,290,656 issued CBFIs ,485,377 Issuance expenses - (242,235) - (248,028) Total CBFIs issuance $ - $ 4,635,490 $ - $ 5,374, Income taxes In order to maintain its status as a FIBRA, per requirements of SAT, in conformity with Articles 187 and 188 of the Income Tax Law (LISR), FibraHotel must annually distribute at least 95% of its taxable income to the holders of the CBFIs. Fibra Hotelera, S. C. is subject to income tax ( ISR for its acronyms in Spanish) and to business flat tax ( IETU for its acronyms in Spanish). ISR - The rate was 30% in 2013 and 2012 and as a result of the new 2014 ISR law (2014Tax Law), the rate will continue at 30% in 2014 and thereafter. IETU - IETU was eliminated as of 2014; therefore, up to December 31, 2013, this tax was incurred both on revenues and deductions and certain tax credits based on cash flows from each year. The respective rate was 17.5%. The current income tax is the greater of ISR and IETU up to Based on its financial projections, Fibra Hotelera, S. C. determined that it will basically pay ISR. Therefore, it only recognizes deferred ISR. a. Income taxes expense are as follows: ISR: Current tax $ 4,150 $ 586 Deferred tax (2,072) (121) $ 2,078 $ 465 b. At December 31, 2013 and 2012 the deferred income tax asset is composed solely of temporary differences resulting from accrued expenses of $2,193 and $121, respectively. 14. Minimum lease payments The aggregate annual future minimum lease payments expected to be received under existing operating leases are as follows: Period Fiesta Inn Camino Real Total Less than 1 year $ 43,044 $ 15,000 $ 58,044 1 to 5 years 172,177 60, ,177 $ 215,221 $ 75,000 $ 290,221 Financial Statements F IBRAH OTEL 81

84 The lease contracts have remaining terms ranging from five to ten years. The aforementioned minimum lease payments do not include amounts expected to be received with respect to contingent rentals, which is mainly comprised of rent increases based on inflation and variable income, if any. Additionally, the payments disclosed only consider the compulsory lease term and do not consider any renewal periods, related to minimum future rentals. 15. Business segment information Operating segment information is presented below, based on the focus given by management to evaluation of performance and allocation of resources. Analytical information by operating segment: 2013 F/1596 Fibra Hotelera Total Total revenues $ 854,471 $ 178,010 $ 1,032,481 Expenses: Rooms Food and beverages costs and (130,404) - (130,404) expenses - (110,816) (110,816) Management costs and expenses (397,126) (55,569) (452,695) Property expenses (13,201) (3,590) (16,791) Corporate expenses (80,668) (1,500) (82,168) Depreciation (119,974) (67) (120,041) Business acquisition expenses (79,857) - (79,857) (821,230) (171,542) (992,772) Other income, Net 7,002 (42) 6,960 Interest income 119, ,126 Foreign exchange, Net (959) (5) (964) Income before income taxes 158,410 6, ,831 Income taxes - 2,078 2, 078 Consolidated net and comprehensive income $ 158,410 $ 4,343 $ 162, F/1596 Fibra Hotelera, S. C. Total Total revenues $ 25,868 $ 4,185 $ 30,053 Expenses: Rooms Food and beverages costs and (3,934) - (3,934) expenses - (2,211) (2,211) Management costs and expenses (5,603) (794) (6,397) Property expenses (547) - (547) Corporate expenses (4,518) - (4,518) Depreciation (7,246) - (7,246) Business acquisition expenses (3,869) - (3,869) (25,717) (3,005) (28,722) Other income 9,503-9,503 Foreign exchange gain 4-4 Income before income taxes 9,658 1,180 10,838 Income taxes Consolidated net and comprehensive income $ 9,658 $ 715 $ 10,373 82

85 16. Commitments and contingencies Except as noted previously, neither FibraHotel nor its assets are subject to any type of legal action, other than those stemming from its routine operations and activity. As part of its incorporation transactions, FibraHotel acquired and has the obligation to acquire certain properties with the resources generated by the IPO. In accordance to the mentioned in Note 1c, FibraHotel has signed agreements to develop two hotels in Monterrey City and two hotels on the north of Mexico City. 17. Subsequent events to the reporting period a. On February 17, 2014, the Technical Committee of FibraHotel approved by authorization of the majority of its independent members distributions of the tax income accounts which correspond to the 95% of the tax income of the year; this distribution was paid by FibraHotel on March 10, 2014 in the amount of $105,001. b. On January 21, 2014, FibraHotel announced that the construction of the Camino Real Hotel & Suites Puebla is finished and that that the hotel is in a preoperation status. This is the third opening of the four hotels originally included in the Portfolio under development La inversión total en este hotel de 149 llaves fue de $125,000. De esta inversión, el grupo de control recibió 1,538,461 CBFIs sin derechos económicos en la oferta inicial, los cuales recuperaran sus derechos económicos con la distribución del primer trimestre de Adicionalmente, a la apertura del hotel FibraHotel se realizó un pago el 4 de marzo de 2014 en efectivo de $96,538. c. During 2014, FibraHotel concluded successfully the acquisition of three hotels which form part of the Acquisition Portfolio; the main activity is the hotel operation. Acquired property Acquisition date Consideration transferred and paid in cash 1. One Xalapa March 27, 2014 $ 69, Fiesta Inn Xalapa March 27, , Fiesta Americana Aguascalientes January 15, ,328 Assets acquired and recognized at the acquisition date The fair value of the net assets acquired is shown as follows: $ 440,245 Acquired property Land Building Furniture and hotel equipment Total 1. One Xalapa $ 4,050 $ 58,000 $ 6,950 $ 69, Fiesta Inn Xalapa 17, ,042 11, , Fiesta Americana Aguascalientes 54, ,958 23, ,328 $ 76,816 $ 321,000 $ 42,429 $ 440,245 The fair value of the acquired assets aforementioned, is determined provisionally based on estimates of fair value, as of March 27, 2014 the market valuations and other surveys have not been completed. The fair value has been determined based on the best estimate of the management as of March 27, Those amounts are subjects to changes until FibraHotel concludes its valuations, which will occur during the next twelve months over the acquisition date. Financial Statements F IBRAH OTEL 83

86 If the property aforementioned would have been acquired on January 1, 2013, with the properties acquired mentioned in Note 1, the income and net income of FibraHotel for the period from January 1 to December 31, 2013 would have been for $1,913,379 and 415, 924, respectively. The costs of acquisition are of $6,641 and recognized in the accompanying consolidated statement of comprehensive income. 18. New accounting pronouncements a. New and revised IFRSs in issue but not yet effective Fibra Hotel has not applied the following new and revised IFRSs that have been issued but are not yet effective: IFRS 9, Financial Instruments IFRS 9, issued in November 2009, introduced new requirements for the classification and measurement of financial assets. IFRS 9 was amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition. b. Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities The amendments to IFRS 10 define an investment entity and require a reporting entity that meets the definition of an investment entity not to consolidate its subsidiaries but instead to measure its subsidiaries at fair value through profit or loss in its consolidated and separate financial statements. To qualify as an investment entity, a reporting FibraHotel is required to: Obtain funds from one or more investors for the purpose of providing them with professional investment management services. Commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both. Measure and evaluate performance of substantially all of its investments on a fair value basis. Fibra Hotel s management does not anticipate that the investment entities amendments will have any effect on Fibra Hotel s consolidated financial statements as Fibra Hotel is not an investment entity. 19. Approval of financial statements On April 3, 2014, the issuance of the consolidated financial statements was authorized by Lic. Edouard Boudrant, Finance Director and Lic. Eduardo López, Finance Director and Lic. Eduardo López, Management Director These consolidated financial statements are subject to the approval at the General Ordinary Trustors meeting which may be modify them. * * * * * * 84

Directory FIHO ISSUER: FibraHotel Torre Corporativo World Plaza Avenida Santa Fe # 481

com www.twitter.com/fibrahotel www.linkedin.

Torre Corporativo World Plaza Avenida Santa Fe # 481 Piso 7 Colonia Cruz Manca,

, Institución de Banca Múltiple, División Fiduciaria Blvd.

Delegación Miguel Hidalgo, C.P. 11000, México D.F. COMMON REPRESENTAT

, Institución de Banca Múltiple Paseo de la Reforma # 115, Piso 23 Colonia Lomas de

87 Directory FIHO ISSUER: FibraHotel Torre Corporativo World Plaza Avenida Santa Fe # 481 Piso 7 Colonia Cruz Manca, Delegación Cuajimalpa, C.P , México D.F ADMINISTRATOR: Administradora Fibra Hotelera Mexicana, S.A. de C.V. Torre Corporativo World Plaza Avenida Santa Fe # 481 Piso 7 Colonia Cruz Manca, Delegación Cuajimalpa, C.P , México D.F. TRUSTEE: Deutsche Bank México, S.A., Institución de Banca Múltiple, División Fiduciaria Blvd. Manuel Ávila Camacho, #40 Piso 17, Torre Esmeralda I Colonia Lomas de Chapultepec, Delegación Miguel Hidalgo, C.P , México D.F. COMMON REPRESENTATIVE: CI Banco S.A., Institución de Banca Múltiple Paseo de la Reforma # 115, Piso 23 Colonia Lomas de Chapultepec, Delegación Miguel Hidalgo, C.P , México D.F. EXTERNAL AUDITOR: Deloitte Galaz Yamazaki, Ruiz Urquiza, S.C. Member of Deloitte Touche Tohmatsu Limited Paseo de la Reforma #115, Piso 6 Colonia Cuauthémoc, Delegación Cuauthémoc, C.P , México D.F. Diseño:

88 Torre Corporativo World Plaza Av. Santa Fe No. 481-Piso 7, Col. Cruz Manca, CP Del. Cuajimalpa

FibraHotel ended the quarter with 37 hotels and 5,132 rooms, with 34 hotels in operation (4,798 rooms) and 3 hotels under development (334 rooms).

FibraHotel ended the quarter with 37 hotels and 5,132 rooms, with 34 hotels in operation (4,798 rooms) and 3 hotels under development (334 rooms). FibraHotel ( FibraHotel ), the first real estate investment trust specialized in urban business-class hotels in Mexico, announces its financial results and distribution corresponding to the second quarter