FibraHotel Day November 20,

Transcription

1 FibraHotel Day 2014 November 20,

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 Any such offering may be made only by an offering memorandum and the information contained herein will be superseded in its entirety by such offering memorandum in final form.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

3 FibraHotel day 2014 objectives 1 Continue leading investor communication, transparency and corporate governance Yearly investor day event to overview results and strategy 2 Business plan execution Fully committed with clear pipeline Continue diversifying our portfolio of leading business hotels in Mexico with new operators, brands, cities and segments Developments have been delivered in time and on budget 3 FibraHotel s strategy Disciplined cash deployment to maximize dividend per certificate in the long term Overview of near-term and long-term growth expectations Asset management to maximize cash-flow 4 Review of financial results 3

4 FibraHotel in November 2012 hotel growth 4

5 FibraHotel in November 2013 hotel growth 5

6 FibraHotel in November 2014 hotel growth 6

7 FibraHotel in November 2012 brand and operator growth 7

8 FibraHotel in November 2013 brand and operator growth 8

9 FibraHotel in November 2014 brand and operator growth 9

10 Operations Growth Execution Overview of : Fully committed cash on hand, invested >Ps.2.5bn and added a new operating partner Cash deployment In 2014 to date, 12 hotels with 1,715 rooms acquired for a total investment of Ps. 1.7bn ~Ps 500mm invested in developments during the year Signed additional Ps. 1,000mm credit line agreement for firepower Developments on time and budget Announced 15 new developments with 1,981 rooms and an investment of ~Ps. 2.0bn Opened 4 hotels with 306 rooms on time and budget Strategic partnerships New operator - partnership with Sheraton to operate FIHO hotels in Mexico Development agreement with Grupo Favier and Grupo Plan Diversification Addition of extended-stay and full service hotels to complement segments New states such as Baja California, San Luis Potosi, Veracruz Added Starwood s international brands to portfolio Organic growth Same store ADR growth in 9mo 2014 y-o-y of 3.9% Same store RevPAR growth in 9mo 2014 y-o-y of 2.5% Management team and information systems Efficient team in place to manage 100 hotels Integrated systems with all operators. Conectum systems platform (Oracle) Asset management and margin expansion Focus on same store managed hotels operating margin (40 bps improvement y-o-y) Increased ancillary rents (celular towers, etc.) ~10% y-o-y Distributions To date in 2014 Ps per CBFI in distributions 10 Note: Company estimates

11 Overview of recent announcements 1 Development of a select-service hotel in Guadalajara. The 189-room hotel will be located inside the iconic mixed-use project Torre Americas Total investment of Ps. 246mm October 21, Development of the 144-room limited-service One Perisur hotel. Located adjacent to Fiesta Inn Perisur hotel in Mexico City. Total investment with Courtyard Toreo of Ps. 285mm October 22, Development of the 130-room select-service Courtyard Toreo hotel in Mexico City. Total investment with One Perisur of Ps. 285mm October 22, Agreement with Grupo Plan and Grupo Favier to acquire five Aloft hotels to be developed over the next 24 months and delivered turn-key. The hotels will have between 140 and 170 rooms and could represent a total investment of over Ps million - October 28,

12 Overview of recent announcements (cont d) 5 Development of a 175 room select-service hotel in the mixed use project Antea Lifestyle Queretaro. The hotel will be an AC by Marriott and will be operated by Marriott International and will open in by the end of Total investment of Ps. 212mm October 31, Opening of two hotels in Monclova, the 66-room One Monclova and the 37-room Fiesta Inn Lofts Monclova, on time and below budget - November 4, Opening of the 50-room extended-stay Fiesta Inn Lofts Queretaro hotel on time and budget - November 14, Acquisition of the 229-room full-service Sheraton Ambassador Monterrey hotel from Starwood for US$13.5mm (including full renovation). Announced partnership with Starwood including the 5 Favier/Plan hotels to be Aloft and operated by Starwood - November 18,

13 Overview of recent announcements (cont d) 9 Announces international brands in three hotels. The 139-room limited service Saltillo hotel currently in repositioning to be a Fairfield Inn & Suites, the 189-room select-service Torre Americas 1500 hotel to be an AC by Marriott and the 130-room select-service Toreo hotel to be a Courtyard by Marriott November 18, Acquisition of the 60-room full-service boutique Cacao hotel in Playa del Carmen for US$15.0mm (plus a potential earn-out). The hotel recently opened for operations and represents a strategic investment in a boutique hotel in Mexico - November 19, Development of a 125-room select-service hotel in the mixed use project Paseo Los Mochis. The hotel will be a Fiesta Inn and will be operated by Grupo Posadas and will open in by the end of Total investment of Ps mm November 20,

14 Devel. Operat. Cash committed 100% Clear pipeline with cash on hand fully committed Additional acquisitions 14 hotels 1,714 rooms 64 hotels 8,694 rooms 9 hotels 1,369 rooms 73 hotels 10,063 rooms 13 hotels 1,870 rooms 86 hotels 11,933 rooms 49 hotels 6,962rooms Q3 Operating portfolio + Q3 Development portfolio = FibraHotel Q3 Portfolio + Announced transactions = FibraHotel current Portfolio + Commitments by year end = FibraHotel pro-forma Portfolio 49 hotels 6,962rooms 49 hotels 6,962rooms 2 hotels 289 rooms 54 hotels 1 7,404 rooms 1 2 hotels 280 rooms 56 hotels 7,684 rooms 14 hotels 1,714 rooms 15 hotels 1,732 rooms 7 hotels 1,080 rooms 19 hotels 2,659 rooms 11 hotels 1,590 rooms 30 hotels 4,249 rooms Cash of ~Ps. 3.1bn Investment of ~(Ps. 1.3bn) PF cash of ~Ps. 1.9bn Investment of ~(Ps. 1.6bn) PF cash of ~Ps. 0.2 bn Investment of ~(Ps. 2.2bn) PF net debt of ~Ps. 2.0bn 14 Note: Company estimates. Current portfolio includes the opening of three hotels after Q3 2014; 1 Includes the opening of the Monclova hotels and the FI Lofts Queretaro.

15 Execution based on core tenets Invest in a disciplined manner Solid balance sheet to take advantage of market opportunities Asset management. Working with operators to maximize property level cash flows Quality of assets demonstrated in operating indicators above market Open architecture to work with the best available operator and brand 15

16 Discipline in cap rates and replacement costs FibraHotel transactions Initial portfolio Acquisition date Category Investment ( Ps. mm) # rooms Price / key ( Ps.) Total portafolio inicial FibraHotel Dec 2012 / Feb ,671,814 4, ,585 Additional acquisitions Acquisition date Investment ( Ps. mm) # rooms Price / key ( Ps.) FIHO acquisitions in /07/ ,647 1, ,960 Fiesta Americana Aguascalientes 15/01/2014 full-service 227, ,184,003 Fiesta Inn Xalapa 27/03/2014 select-service 140, ,184,178 One Xalapa 27/03/2014 limited-service 80, ,921 Fiesta Inn Cd Obregon 07/04/2014 select-service 148, ,049,645 Fussion 5 Leon (Gamma) 16/05/2014 select-service 120, ,273 Gamma Valle Grande Cd Obregon 30/05/2014 select-service 110, ,815 Fairfield Inn Los Cabos 20/06/2014 limited-service 110, ,375 Fiesta Inn San Luis Oriente 21/07/2014 select-service 126, ,000 Gamma Lausana Tijuana 24/07/2014 select-service 120, ,143 Microtel Saltillo (to be repositioned) 25/09/2014 limited-service 112, ,000 Sheraton Ambassador Monterrey 17/11/2014 full-service 182, ,852 Cacao Playa del Carmen 19/11/2014 Boutique / full-service 202, ,375,000 Sub-total acquisitions 2, 561, 643 2, , 247 FibraHotel total portfolio 6, 233, 456 6, , 917 Other market announced transactions Acquisitions announced in 2013 and 2014 to date Investment (Ps. mm) 1 # rooms Price / key (Ps.) Hilton Centro Historico Jun 2013 full-service 1,170, ,554,585 Marriott Puebla Jul 2013 full-service 370, ,927,083 Mexico Plaza Irapuato Aug 2013 limited-service 102, ,005,784 Camino Real Guanajuato Aug 2013 full-service 230, ,190,476 Holiday Inn Coyoacan Dec 2013 full-service 381, ,780,374 Melia Reforma Ciudad de Mexico Dec 2013 full-service 910, ,860,941 Mexico Plaza Leon Jan 2014 limited-service 156, ,245,238 Mexico Plaza Celaya Jan 2014 limited-service 139, ,667 Aloft Guadalajara Jan 2014 select-service 220, ,549,296 Holida Inn Tampico Altamira Mar 2014 select-service 110, ,130,612 Mexico Plaza Silao May 2014 limited-service 87, ,888 Microtel hotels Sep 2014 limited-service 432, ,676 Crown Plaza Monterrey Airport Sep 2014 full-service 358, ,634,703 Market transaction average 4, 667, 790 3, 105 1, 503, 314 Continue investing at the right cost. FIHO s Interests are aligned with investors 16 (1) Estimated investment based on public disclosure including acquisition fees

17 Discipline in cap rates and replacement costs (cont d) FibraHotel announced developments FibraHotel developmen ts Category Investment (Ps. mm) 1 # rooms Price / key (Ps.) Fiesta Inn Lofts / One Monclova limited-service / ext. stay 80, ,699 Fiesta Inn Lofts Queretaro extended stay 45, ,000 Microtel Saltillo (reposicionamiento) limited-service 115, ,338 Fairfield Inn & Suites Villahermosa limited-service 110, ,896 Courtyard Ciudad del Carmen select-service 255, ,003,937 Fiesta Inn Lofts Ciudad del Carmen extended stay 124 One Perisur limited-service 285, ,040,146 Toreo servicios selectos select-service 130 Fiesta Americana Grand Monterrey full-service 600, ,654,867 Live Aqua Monterrey Boutique / full-service 46 Torre Americas 1500 select-service 246, ,301,587 Courtyard Vallejo select-service 230, ,776 Fairfield Inn & Suites Vallejo limited-service 124 AC Antea Queretaro select-service 212, ,211,429 Fiesta Inn Los Mochis select-service 112, ,000 Negociacion con Plan/Favier select-service 900, ,153,846 FibraHotel developmen ts 3, 190, 500 2, 694 1, 184, 298 Development at the right prices as core strength 17 Note: Company estimates

18 Takeaways and 2015 Path 1 Cash fully committed. Strong room growth in the near-future Development hotels to represent an important driver of 2015 and 2016 growth Continue to be active in acquisitions. We have an attractive pipeline of opportunities Available credit lines for short-term growth 2 Diversification as a core strength of the Fibra Open architecture as core tenet. Added leading international operator and brands Presence throughout the country to get full economic exposure Continue to focus on select-service. Selectively add full-service, boutique and extended stay segments 3 Development continues to be a core focus Mixed-use projects with high quality developers (Vallejo, Torre Americas 1500, Trebol Monterrey) 4 Organic growth - focus on increasing ADR and operating margins Expected tail-winds from an improved Mexican economy in 2015 Optimize results with hotel campuses (such as Queretaro, Monclova, Xalapa). Better customer segmentation, cost sharing, ability to service groups, etc. Asset management to increase profitability at hotel level 18

19 Developments and key strategic partnerships 1 Development is a core focus and strength of FibraHotel Access to markets with lack of supply with investment discipline Ability to grow with international brands in unique mixed use projects 2 We continue to grow through strategic partnerships Partnership with Grupo Plan and Grupo Favier for 5 Aloft hotels in Mexico Partnership to grow Starwood hotels in Mexico Currently negotiating a partnership with a leading shopping mall developer to acquire eight hotel pads in leading shopping centers (existing and new) 3 Expertise to minimize development considerations Understand and supervise the development process, from planning and land acquisition to hotel opening Local contacts and real estate know-how to achieve results Strong focus on project cost and efficiencies Leading execution team focusing on structuring and supervision 19

20 Development continues to be a core focus Access to selected markets with higher returns, international brands and new hotels Why development? Development characteristics Business lodging in Mexico is a growth market currently offering attractive development opportunities and returns Prime assets in strategic locations and unique mixed-use projects Proprietary deal flow - access to best real estate projects Maintains price discipline 20 year development expertise the cost is right Access highly dynamic cities at the right price Balance portfolio with new assets Ability to build efficiencies to maximize returns and margins Criteria for development Prime assets in unique projects At least ~ bps higher return than acquisitions All projects are bid out to third parties with FIHO supervising the process Considerations After permits and licenses, proper construction time of 9-15 months and ramp-up of months Preference of acquisitions vs. developments Develop in locations difficult to penetrate through acquisitions (i.e. Villahermosa) Growth with international brands 20

21 Development partnership with Grupo Plan/Favier Agreement with Grupo Plan and Grupo Favier to acquire five Aloft hotels Five Aloft hotels turn-key with ~780 rooms and a total investment of ~Ps. 900mm Two hotels have permits and licenses and are expected to begin construction in The remainder is expected to begin construction during 2015 Partner with well-known developers with extensive hotel experience including projects such as the W hotel Mexico City, the Aloft Guadalajara hotel, the Torre Americas 1500 project (FibraHotel recently acquired the hotel component) and the Haciendas among others Agreement expected to be FIHO s developer of Aloft hotels in Mexico The Aloft brand provides a select-service brand with a style designed to accommodate today s trends and the lifestyle of tomorrow s traveler. 21

22 Starwood as new operating partner to FibraHotel Partnership with Starwood to collaborate on hotels in Mexico General agreement for FibraHotel to develop, acquire or convert hotels to be operated by Starwood under their international brands with a long-term management agreements Agreement anchored by (i) five hotel deal with Grupo Favier/Grupo Plan; (ii) Sale by Starwood to FibraHotel of the Sheraton Ambassador Monterrey hotel (closed November ) Second partnership with an international operator looking to grow their presence in the country with a recognized partner 22

23 Overview of development process FIHO strategic growth plan. Site monitoring in target markets Strategic relationships with developers Independent third party market study Technical committee authorization Land acquisition &/or development agreement Design: segment, number of rooms, room-mix, amenities Detailed budget and operator/brand estimates Brand and operator decision. Maximize the value of the property Licenses and permits (time dependent on location) Development bidding process with third parties Hotel construction. Between 9 and 18 months Hotel opening and delivery to operator Stabilization period. Between 12 and 24 months depending on the location 23

24 FibraHotel s development pipeline 24

25 FibraHotel s development pipeline Solid progress on development pipeline execution to date on time and budget Overview of FibraHotel developments Hotel Name Total rooms Cash Investment (Ps. mm) Under Opening Total Remaining constructio Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Microtel Saltillo (full repositioning) 139 Q1/ Fairfield Inn & Suites Villahermosa 134 Q Courtyard Ciudad del Carmen 130 Q Fiesta Inn Lofts Ciudad del Carmen One Perisur 144 Q Toreo servicios selectos 130 Q Fiesta Americana Grand Monterrey 180 Q Live Aqua Monterrey Torre Americas Q AC Antea 175 Q Fiesta Inn Los Mochis 125 Q Courtyard Via Vallejo 121 Q Fairfield Inn & SuitesVia Vallejo Hotel en Toluca Tollocan 100 TBD TBD TBD Aloft Hotels Favier/Plan / FIHO s development portfolio 2,641 3,009 2, ,852 2,241 2,341 2,641 2, Note: Company estimates

26 Fairfield Inn & Suites Saltillo Fairfield Inn & Suites Saltillo (previously Microtel Saltillo) Full repositioning and expansion of a Microtel hotel Opening of 103 rooms and refurbished public areas on Q1 2015, new tower with 36 rooms on Q Model room in process Refurbishing and expanding public areas Redeveloping rooms with new furniture, bathroom and AC Second hotel to be operated by Marriott (first conversion) Project overview Investment: Ps. 58mm Opening:Q1/ Region: Northwest Rooms: 139 Brand(s): Fairfield Inn & Suites Segment: limited-services Operator: Marriott International 26

27 Fairfield Inn & Suites Villahermosa Fairfield Inn & Suites Villahermosa Construction and foundation preparations in progress Permits and licenses obtained and construction started Given Villahermosa terrain, 24 pillars ~30 meters deep are required First new-build Fairfield Inn & Suites by FIHO to serve as prototype Project overview Investment: Ps. 110mm Opening:Q Region: South Rooms: 134 Brand(s): Fairfield Inn & Suites Segment: limited-services Operator: Marriott International 27

28 Courtyard and Fiesta Inn Lofts Ciudad del Carmen Courtyard and Fiesta Inn Lofts Ciudad del Carmen Currently building foundations of the hotel, with most of the pillars finished Structure to start rising in December with delivery by February 2015 Side-by-side hotels are expected to maximize property returns Project overview Investment: Ps. 255mm Opening:Q Region: South Rooms: 245 Brand(s): Courtyard / Fiesta Inn Lofts Segment: select-service/extended stay Operators: Marriott International and Grupo Posadas 28

29 One Perisur One Perisur Currently building foundations of the hotel, with the pillars finished and pouring the first floor Structure started rising in November with delivery by January 2015 Ahead of time, with potential opening Q2 or Q Will help Fiesta Inn optimize rate and groups Project overview Investment: Ps. 285mm (including Toreo) Opening:Q Region: Center (Mexico City) Rooms: 144 Brand(s): One Hotels Segment: limited-service Operator: and Grupo Posadas 29

30 AC by Marriott Torre Americas 1500 AC by Marriott Torre Americas 1500 Construction is currently under way with the foundations finished and cement poured in the parking floors and several hotel floors FIHO to receive the structure finished for all the hotel levels by February/March 2015 Project overview Investment: Ps. 246mm Opening:Q Region: Center Rooms: 189 Brand(s): AC by Marriott Segment: select-service lifestyle Operator: Marriott International 30

31 Trebol Monterrey FA Grand and Live Aqua Trebol Monterrey FA Grand and Live Aqua Construction is currently under way with the foundations finished, and the structure of 11 hotel floors finished Model room in progress FIHO to receive the structure finished for all the hotel levels by February/March 2015 Studying the possibility of growing 2 floors in the Aqua hotel Project overview Investment: Ps. 600mm Opening:Q Region: Northeast Rooms: Brand(s): Fiesta Americana Grand and Live Aqua Segment: full-service / boutique Operator: Grupo Posadas AZOTEA NIVEL 23 NIVEL 22 NIVEL 21 NIVEL 20 NIVEL 19 NIVEL 18 NIVEL 17 NIVEL 16 NIVEL 15 NIVEL 14 NIVEL 12 NIVEL 11 NIVEL 10 NIVEL 9 NIVEL 8 NIVEL 7 NIVEL 6 NIVEL 5 AMENIDADES PLANTA LIBRE PLANTA ALTA PLANTA BAJA 31

32 AC by Marriott Antea Queretaro AC by Marriott Antea Queretaro The land is currently being prepared to begin foundations Product, rooms and brand defined Second AC by Marriott hotel and first property that can serve as a prototype Permits and licenses in process Synergies with other potential developments near-by Project overview Investment: Ps. 212mm Opening:Q Region: Center-Bajio Rooms: 175 Brand(s): AC by Marriott Segment: select-service lifestyle Operator: Marriott International 32

33 Via Vallejo (Fairfield Inn & Suites and Courtyard) Via Vallejo (Fairfield Inn & Suites and Courtyard) The site is currently being prepared, undergoing excavations and foundation preparations for the shopping center Water tanks for the hotel in process Hotels to be developed in the same building and above the shopping center (solution for column displacement found) Project acquired by Fibra Danhos. Delayed a quarter from FIHO s initial expectations Project overview Investment: Ps. 246mm Opening:1H 2016 Region: Center (Mexico City) Rooms: 225 Brands: Courtyard/Fairfield Inn & Suites Segment: limited-service and selectservice Operator: Marriott International 33

34 Development case study Hotel cluster in Monclova Investment criteria Strategic location Adjacent to the leading Monclova hotel Campus to maximize returns (also in Puebla and Queretaro) Adequate price and return Land purchased for 10x the ballroom s cash flow New hotel to have synergies and share areas with the new tower High quality and unique assets New extended-stay rooms will improve asset perception, quality and segmentation Portfolio diversification Market with need for extended stay product offering 1 year ago Hotels: 1 Rooms: 96. Extended-stay Budget: 80mm (ex-ballroom) Opening: Q Status: Announced Hotels: 2 Today Rooms: 103; 37 extended stay and 66 limited-service Budget: <80mm (including renovation of public areas) Opening: Nov 4, 2014 Status: Operating Hotel campus Pictures of the development FI Public areas Fiesta Inn Monclova Salon Fundicion ballroom Fiesta Inn Lofts Monclova One Monclova 34

35 Development case study AC Torre Americas 1500 Investment criteria Strategic location Business district of Guadalajara, the third largest city in Mexico Inside mixed-use project Torre Americas 1500 Adequate price and return Attractive lifestyle segment for business district Price per key <US$100,000 High quality and unique assets Inside the 24-floor Sordo Madaleno LEED certified project, including, ~2,000 square meters of retail area, ~14,300 square meters of AAA offices and a hotel Portfolio diversification Expand AC by Marriott brand and presence in Guadalajara Started long-term relationship with quality developer Pictures of the development Hotel overview and strategic rationale 189-room select-service lifestyle hotel located in business district in Guadalajara, Jalisco AC by Marriott hotel operated by Marriott International. Looking to obtain attractive rates with this segment category Budget of Ps. $246mm (Ps. $1.3mm per key) Acquired the structure finished from Grupo Favier. Interiors and FF&E will be subcontracted through a bidding process Opening in Q Hotel location 35

36 Select Service lifestyle brands 36

37 Overview of 2014 acquisitions During 2014 we have added 12 properties with over 1,700 rooms with an investment of Ps. 1,700mm through a mix of stabilized properties and conversion of independent hotels Overview of FibraHotel s 2014 acquisitions Hotel Name Rooms Investment (Ps. mm) Contribution to results Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Stab. Comments 1 Fiesta Americana Aguascalientes Stabilized hotel 2 Fiesta Inn Xalapa Stabilized hotel 3 One Xalapa room expansion in Oct 4 Fiesta Inn Cd Obregon room expansion in Dec 5 Fussion 5 Leon (Gamma) Reconversion by YE Gamma Valle Grande Cd Obregon Reconversion by YE Fairfield Inn Los Cabos Hurricane impact. First Marriott hotel. Re-opening Nov Fiesta Inn San Luis Oriente Stabilized. Leased during transition 9 Gamma Lausana Tijuana Reconversion by Q Microtel Saltillo (to be repositioned Repositioning. Open Q1/ Sheraton Ambassador Monterrey Cacao Playa del Carmen In ramp-up hotel acquisitions 1,714 $1, ,233 1,504 1,714 Stabilized with full remodelation in 15. First Starwood hotel 37

38 Acquisition case study Fiesta Inn San Luis Oriente Investment Name Operator No. of Total Per key LTM cap Category Location rooms (Ps. mm) (Ps.000 s) rate Fiesta Inn San Luis Oriente Posadas 140 select-service San Luis Potosi, SLP $125.0 $ % Investment criteria Strategic location In the industrial corridor of San Luis Potosi, close to the main manufacturing plants Adequate price and return 10% LTM cap rate; Above that with the change to FIHO s management agreement and asset management Price per key of Ps. 893k High quality and unique assets Stabilized and well positioned hotel in San Luis Potosi, where on top of existing demand, important new investment is expected Portfolio diversification Adds presence in San Luis Potosi Hotel overview and strategic rationale 140-room select-service hotel in San Luis Potosi, SLP The hotel has a lease with Posadas, we received lease income during the two month transition period. After transition period, hotel changed to a traditional management agreement Price per key of ~Ps. 893k and cap rate above 10% Adds presence in San Luis Potosi, an important industrial city with strong growth expected, including the announcement of a US$1bn investment by BMW on a manufacturing plant with capacity for 150k cars a year Hotel pictures Location in San Luis 38

39 Acquisition case study Repositioning of Gamma Leon Investment Name Operator No. of Total Per key Category Location rooms (Ps. mm) (Ps.000 s) Gamma Leon Grupo Posadas 165 limited-service Leon, Guanajuato $120.0 $727 Investment criteria Hotel overview and strategic rationale Adequate price and return Acquired for Ps. 730k per key after repositioning Strategic location In the entrance to Leon, a strategic city in the Bajio region Close to FIHO s Fiesta Inn and also serving the Bajio airport, the Guanajuato in-land port and the Silao area High quality and unique assets Well-built hotel with design opportunities. Attractive room size for a limited-service hotel Portfolio diversification Conversion of an independent hotel into the Gamma brand 165-room limited-service hotel in Leon Guanajuato Acquired by FibraHotel in May 22, 2014 for Ps. 104mm (Ps. 630k per key) Converted from the independent Fussion 5 to the Gama by Fiesta Inn Leon with a budget of Ps. 16mm Hotel did not close during repositioning. Currently in rampup stage with new operator and expected to fully contribute to results by the first quarter of 2015 During the first month after acquisition the hotel had >15% occupancy, by October occupancy was ~50% Fussion 5 Leon Gamma by Fiesta Inn Leon Location Leon, Guanajuato 2 Bajio International Airport 3 Guanajuato Inland Port 4 Silao, Guanajuato 39

40 Acquisition case study Sheraton Monterrey Investment Name Operator No. of Total Per key Category Location rooms (Ps. mm) (Ps.000 s) Sheraton Ambassador Monterrey Starwood 229 full-service Monterrey, Nuevo Leon $182.3 $796 Investment criteria Strategic location In the heart of downtown Monterrey, walking distance to the Macro Plaza. Monterrey is an industrial and global business hub Adequate price and return Acquired for Ps. 796k per key after full renovation After renovation, attractive expected cap rate High quality and unique assets Irreplaceable location, construction and available areas (over 13,000m2 constructed in a full city block) Historic hotel in Monterrey, with proposed renovation to bring the property to latest standards Portfolio diversification Expands full-service segment, new brand and operator Hotel pictures Hotel overview and strategic rationale 229-room full-service hotel in Monterrey, Nuevo Leon Acquisition closed in November with transition to the Fibra structure and new operator successfully finished Total investment of US$13.5mm including comprehensive property renovation (~Ps. 796k per key) Over 13,000 ft 2 of meeting space, full-service restaurant, lobby bar, health club, outdoor pool and tennis court Adds a new international brands and operator. Additionally, is part of a broader relationship with Starwood Renovation of the hotel to be executed in 2015 without a closing of the hotel in phases Location in MTY 40 Note: Company estimates

41 Acquisition case study Cacao Playa del Carmen Investment Name Operator No. of Total Per key Category Location rooms (US. mm) (US.000 s) Cacao Playa del Carmen Cornerstone 60Boutique/full-service Playa del Carmen, QR $15.0 $250 Investment criteria Strategic location In the 5 th Avenue of Playa del Carmen blocks from the beach Inside mixed-use project with shopping center and apartments Adequate price and return Luxury boutique hotel for US$250k per key Attractive real-estate value in the city High quality and unique assets Irreplaceable asset and location in the 5 th Avenue Portfolio diversification Adds a new state, boutique service segment and new operator Hotel pictures Hotel overview and strategic rationale 60-room boutique full-service hotel in Playa del Carmen, Quintana Roo, on the 5 th Avenue 2 blocks from the beach Acquired turnkey for US$250k/key, with a potential earnout of a percentage of the over performance above 10% of cash-flow (EBITDA-capex) in the first three years Property is currently in pre-operation Full-service restaurant, rooftop bar Located in a mixed-use project with shopping center (including high-end restaurants) and apartments Adds boutique segment and operator in strategic location Location Playa del Carmen 41 Note: Company estimates

42 Capex investments and portfolio renovations Camino Real Puebla Public areas of Fiesta Inn Leon Before After Before After Restaurant Lobby Restaurant Lobby Meeting rooms Lobby Meeting rooms Lobby Public Areas Facade Public Areas Facade Public Areas Facade Public Areas Facade Real Inn Mexicali Public areas of Fiesta Inn Monclova Before After Before After Hallways Lobby Hallways Lobby Public Areas Public Areas Public Areas Facade Public Areas Facade FIHO constantly analyzes investment opportunities in its portfolio with a proper return Above market capex reserve of 5% of sales yearly 42

43 Overview of investments and deployment FibraHotel pro-forma cash position NOI contribution Cash deployment Room contribution Hoteles Rooms Cash Q operating portfolio 49 6,962 $3, % 100% 100% 100% 100% 100% 87% 95% 100% 100% Q development portfolio 15 1,732 ($1,226.7) 18% 58% 97% 98% 100% 100% 0% 19% 54% 85% Fiesta Inn Lofts / One Monclova % 100% 100% 100% 100% 100% 0% 60% 100% 100% Fiesta Inn Lofts Queretaro % 100% 100% 100% 100% 100% 0% 60% 100% 100% Microtel Saltillo (reposicionamiento) % 90% 100% 100% 100% 100% 0% 60% 90% 100% Fairfield Inn & Suites Villahermosa % 60% 100% 100% 100% 100% 0% 20% 60% 100% Courtyard Ciudad del Carmen % 60% 100% 100% 100% 100% 0% 20% 60% 100% Fiesta Inn Lofts Ciudad del Carmen % 60% 100% 100% 100% 100% 0% 20% 60% 100% One Perisur % 70% 100% 100% 100% 100% 0% 30% 70% 100% Toreo servicios selectos % 60% 100% 100% 100% 100% 0% 20% 60% 100% Fiesta Americana Grand Monterrey % 60% 100% 100% 100% 100% 0% 20% 60% 100% Live Aqua Monterrey % 40% 90% 100% 100% 100% 0% 0% 40% 90% Torre Americas % 40% 90% 100% 100% 100% 0% 0% 40% 90% Courtyard Vallejo % 40% 90% 80% 100% 100% 0% 0% 40% 90% Fairfield Inn & Suites Vallejo % 40% 90% 80% 100% 100% 0% 0% 40% 90% Hotel en Toluca Tollocan % 25% 50% 30% 70% 100% 0% 0% 25% 50% Q3 FibraHotel portfolio 64 8,694 $1, % 90% 99% 99% 100% 100% 70% 80% 92% 99% Announcements since Q3 AC Queretaro (212.0) 0% 50% 100% 100% 100% 100% 0% 0% 50% 100% Fiesta Inn Los Mochis (112.5) 0% 50% 100% 100% 100% 100% 0% 0% 50% 100% Negociacion con Plan/Favier (900.0) 0% 40% 90% 80% 100% 100% 0% 0% 40% 90% Sheraton Monterrey ($183.6) 70% 100% 100% 100% 100% 100% 0% 70% 100% 100% Cacao Playa del Carmen 1 60 ($204.0) 50% 100% 100% 100% 100% 100% 0% 50% 100% 100% Additional announcements 9 1,369 ($1,612.1) 14% 56% 94% 89% 100% 100% 0% 14% 55% 94% FIHO portafolio Nov ,063 $ % 84% 98% 98% 100% 100% 60% 71% 87% 98% Cash in developments to be spent in 2015, with NOI contribution in 2016/ Note: Illustrative estimates

44 Overview of investments and deployment FibraHotel pro-forma cash position Type Hoteles Rooms Cash Q operating portfolio Operation 49 6,962 $3,100.0 Q development portfolio Development 15 1,732 ($1,226.7) Q3 FibraHotel portfolio 64 8,694 $1,873.3 Announcements since Q3 AC Queretaro Development (212.0) Fiesta Inn Los Mochis Development (112.5) Negociacion con Plan/Favier Development (900.0) Sheraton Monterrey Operation ($183.6) Cacao Playa del Carmen Operation 1 60 ($204.0) Additional announcements 9 1,369 ($1,612.1) FIHO portafolio Nov ,063 $261.2 Commited and to be anounced before year end Acquisition of two hotels in Cuernavaca Acquisition ($267.0) Development hotel in Queretaro Development ($110.0) Development hotel in Durango Development ($70.0) Development partnership in shopping malls Development 8 1,200 ($1,500.0) Development hotel in San Miguel de Allende Development ($260.0) FIHO pro-forma portafolio 86 11,933 ($1,945.8) On top of cash commitment, solid pipeline of opportunities 44

45 Portfolio overview - positive trends in ADR 1, / 2013 Yearly KPIs + 3Q 2014 LTM 80.0% 70.0% 60.0% 50.0% 40.0% Since 2012 (FIHO IPO), our stabilized portfolio demonstrated the following: ADR from Ps. $835 to Ps. $898, a 7.5% increase, demonstrating our hotels portfolio s Pricing Power During the period, inflation rate was 6.2% % 20.0% 10.0% Occupancy Rate from 65.6% to 63.6%, a (2.0%) decrease, due to a weakness in the Mexican economy since August LTM ADR RevPAR Occupancy 0.0% RevPar increased 4.3%, from Ps. $548 to Ps. 571 FibraHotel is mainly focused on increasing RevPAR through increase in ADR 45

46 2014 FIHO s KPI at a glance 1 st quarter nd quarter rd quarter % 59.7% % 63.6% % 66.2% Q Q 2014 ADR: +4.0% Occupancy: (0.5%) RevPAR: +3.1% 2Q Q 2014 ADR: +4.2% Occupancy: (2.2%) RevPAR: +0.7% 3Q Q 2014 ADR: +3.7% Occupancy: (0.1%) RevPAR: +3.6% 64.1% 63.2% January to September ADR: +3.9% Occupancy: (0.9%) RevPAR: +2.5% 9M M

47 LTM Financials - Results - Total Last 12 months 1,032 Total Revenues (Ps. $ million) 1,164 1,294 1, % vs. 4Q 2013 LTM Last 12 months Lodging Contribution Total (Ps. $ million - margin) % vs. 4Q 2013 LTM 36.6% 35.4% 34.8% 34.4% 4Q Q Q Q Q Q Q Q 2014 Last 12 months 260 EBITDA (Ps. $ million - % of revenues) EBITDA per room (Ps. $) Last 12 months 46,838 45,249 45,240 47, % vs. 4Q 2013 LTM +4% vs. 2Q 2014 LTM 25.2% 23.8% 23.3% 23.5% 4Q Q Q Q Q Q Q Q 2014 Note: FibraHotel made an equity follow-on on May 2013 (impact on EBITDA, dilution due to CBFI issuance, increase in net cash position ) For more detailed information, please refer to 3Q 2014 Excel Fact Sheet ( 47

48 LTM Financials - Results - Managed Hotels Last 12 months 936 Managed Hotels Revenues (Ps. $ million) 1,073 1,206 1, % vs. 4Q 2013 LTM Last 12 months Managed Hotels Lodg. Contr. (Ps. $ mm - margin) % vs. 4Q 2013 LTM 30.1% 29.9% 30.0% 30.2% 4Q Q Q Q Q Q Q Q 2014 Last 12 months Managed Hotels Lodging Contribution per room (Ps. $) 59,026 56,974 58,526 62,670 Strong increase in LTM revenues External growth (M&A / Development) Organic growth (increase in RevPAR) Improvement in Contribution Margin and Contribution per room thanks to better 2Q / 3Q vs. last year Improvement while several hotels where acquired over the last two quarters and are in process of brand and/or operator substitution: Gamma León, Ciudad Obregón and Tijuana 4Q Q Q Q 2014 Fairfield Inn Los Cabos 48

49 Understanding FIHO s NOI margin trend Revenues (Ps. $ million) Net Operating Income (Ps. $ million) NOI margin 1, ,394 1, % 93.7% 34.9% 32.9% % 29.0% Fibra Hotel is mainly involved in hotels under management contracts 2. Revenues from managed hotels strongly increased from 3Q 2013 LTM to 3Q 2014 LTM 3. NOI margin from managed hotels increased from 3Q 2013 LTM to 3Q 2014 LTM and despite: Weaker economic conditions (RevPAR increasing 2.5% for the stabilized portfolio) Increased number of hotel under ramp-up period Decrease of NOI margin over the past quarters due to revenue mix change (not operating) 49

50 Operating Leverage: seeking efficiencies Note: The financial data presented in this slide is for Operating Leverage illustration purpose only, and does not take into account revenues/expenses other that items related to managed hotels and corporate expenses, we assume (illustration purpose) that corporate expenses are only related to managed hotels Top-line growth Asset Management Corporate Structure 936 1, % +19bp % +95bp 28.8% 18.1% Internal Growth: RevPAR increase 2. External Growth M&A Development Benchmark between hotels / brands / operator 2. Economies of scale 3. CAPEX deployment Corporate structure almost sized to reach the 100-hotel target Capped advisory fee Increase in administrative expenses but in lesser extent than NOI increase Fuelling FIHO s growth Enhancing value creation for FIHO s shareholders 50

51 Cash flow generation: Jan. to Sep Cash Dec Operating Activities (operating / leased hotels, other rents) Investing activities (acquisitions, development, VAT and related expenses) Distribution 4Q-13 / 1H-14 Cash Sept , (1,748) (318) 3,122 31/12/2013 Operating Activities Investing Activities Shareholders Return 30/09/2014 As of September 2014, Ps. $3.122 million available During the January-September, almost 37% of the end-2013 available cash deployed 51

52 A healthy financing structure As of September 30 th, 2014, Ps. 3,122 million of cash available Approximately 3,000 million available for the growth of FibraHotel Available cash is placed in debt instruments issued by the Mexican Federal Government Current leverage status No outstanding debt 2 credit line available for a total amount of Ps. $2,000 million at very attractive terms Tranche A: revolving / Tranche B: term loan up to 12 years Spread: les than 200bps over TIIE Indebtedness metrics (Q3 2014) FIHO bylaws FIBRA Regulation FIHO Level Loan to Value Max. 40% Max 50% 0% DSCR Min. 1.2x Min. 1.0x 3.7x As of today, available fire power of Ps. $5,000 million Pro Forma LTV of 17% with Ps. $2,000 million indebtedness 52

53 Ps. $650 million distributed since 1Q 2013 Quarterly distribution to holders (Ps. $ million) 2Q 2013: CBFIs issuance 4Q 2013: Mexican Central Bank cut rate from 4.0% to 3.5% 2Q 2014: Mexican Central Bank cut rate from 3.5% to 3.0% Distribution from non operating income (mainly interests income) Distribution from operating income Aver. % of balance sheet held in cash and dev. portfolio 1Q Q Q Q Q Q Q % 32% 50% 49% 48% 43% 39% Distribution / CBFI (Ps. $)