Results 2 nd Quarter 2004

Grupo Posadas, s, S.A. de C.V. & Subsidiaries July 28 th, 2004 Results 2 nd Quarter 2004 Cosolidated revenues increased 11% EBITDA increased 15% Recovery on REVPAR 3 new openings in the 2Q04, which sum up 6 hotels for first semester of 04 COUNTRY Relevant Figures Million pesos as of June 30th. 2004 2Q04 % Real Var. AA % 2004 % Var. Real AA % Net Sales 1,072 100 11 2,144 100 6 Operating Profit 152 14 41 357 17 14 EBITDA 248 23 15 551 26 4 Majority Net Income (9) (1) na 114 5 (7) Grupo Posadas Today Fiesta Americana Fiesta Americana Fiesta Inn Caesar Park Caesar Business Other Total Vacation Club Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Mexico 21 5,673 41 6,233 2 300 1 212 65 12,418 USA 1 151 5 932 6 1,083 Brazil 4 736 7 1,392 11 2,128 Argentina 1 170 1 170 Total 21 5,673 42 6,384 5 906 7 1,392 2 300 6 1,144 83 15,799 % 36% 40% 6% 9% 2% 7% Country Mexico USA Brazil Urban Coastal Hotels Rooms Hotels Rooms 50 8,762 14 3,656 4 582 2 501 10 1,898 1 230 Argentina 1 170 Total 65 11,412 17 4,387 % 72% 28% ROOM DISTRIBUTION Owned (7,445 rooms) Managed (6,168 rooms) 47% Lea s e d (2,186 ro o m s ) 14 % 39% For more information please contact: investorrelations@posadas.com.mx Oliver Iriarte Tel.: 5326-6919 oiriarte@posadas.com.mx Cicialli Rivas Tel.: 5201-8393 crivasm@posadas.com Jorge Martínez Tel.: 5326-6805 jmartinezm@posadas.com 1

Total Revenues Unlike previous quarters when the Fiesta Americana Vacation Club and the fees collected by our hotel operation business were the main sources of revenue, in this quarter, we observed an improvement in the results from our owned hotels, which had a 2.6 percentage points (pp) increase in occupancy levels as well as an Average Daily Rate (ADR) very similar to the same period in 2003, in real terms. This improvement in owned hotels, as well as another good quarter for the Fiesta Americana Vacation Club and greater management fees -explained forward- resulted in an improvement of 11% in consolidated revenues. Owned Hotels Statistics Owned Hotels Total Urban Coastal % Real Var. % Real Var. % Real Var. 2Q04 Average No. of Rooms 9,352 3 7,479 3 1,873 1 Average Daily Rate 870 0 824 (0) 1,052 0 Occupancy 62 3 62 2 63 5 REVPAR 541 4 510 3 662 9 Accumulated Average No. of Rooms 9,312 3 7,433 3 1,879 1 Average Daily Rate 901 (3) 837 (1) 1,151 (9) Occupancy 61 1 61 0 61 2 REVPAR 550 (1) 510 0 707 (5) Numbers shown include Owned and Leased Hotels The decrease of 1.5% in revenue of owned hotels is the result of the sale of the Caesar Park Sao Paulo and the Holiday Inn McAllen Civic Center made last year, which, in the first half of 2003 contributed with 40 million pesos of revenue approximately. On a comparable basis (same hotels), the growth would have been 6%. In owned urban hotels, we observed a greater demand in cities, which in recent quarters had been stagnated, such as those in the northern, central and western regions of Mexico, which mainly cover the business travel sector. This, added to ADR s that are practically at the same level as last year, caused an increase of 3% in the effective ADR in owned urban hotels. 2

The more favorable economic environment as well as the dynamic platform for maximizing room revenue implemented by the Company since 2002 have begun to show results. An already fully integrated Central Inventory and centralized reservations, as well as systematized sales processes and techniques for the Groups and Incentives segment, have allowed us to operate on a platform on which Grupo Posadas sales force s response is immediate in terms of availability and rates. The outstanding fact is that Company has a price integrity that implies offering the best available rate in all the distribution channels. In addition, our more aggressive commercial strategies as well as a more extensive media coverage have increased our hotels revenue. In particular, commercial efforts such as the Boleto Gratis (Free Ticket) promotion, launched last May, have had a very favorable impact on the occupancy levels, both urban and coastal. In the latter category, occupancy increased 5 percentage points (pp) in the quarter. In terms of the contribution margin, despite of the increase of energy prices in Mexico and its impact on our hotels, the margin improved by half a percentage point when compare to 2Q03. In this sense, we have started to see the results of migrating the administration of the hotels to a centralized and shared services model through Conectum. All the owned hotels in Mexico were fully integrated into this platform in May. Moreover, growth in revenue from leased hotels was driven mainly by the new openings under this scheme in the last 12 months, which include the Fiesta Inn (FI) Centro Histórico (Mexico City), Fiesta Inn Insurgentes (Mexico City), Cesar Business Belo Horizonte, Fiesta Inn Culiacán and recently, in May, a Caesar Park in the Faria Lima zone of Sao Paulo, with 131 rooms. In comparison, direct costs have grown more than revenue due to the fixed rents of these new additions. However, greater contribution margins of this business will be seen as these hotels mature. Management Statistics Management Total Urban Coastal % Real Var. % Real Var. % Real Var. 2Q04 Average No. Of Rooms 15,036 9 11,504 12 3,532 1 Average Daily Rate 935 0 831 (1) 1,246 3 Occupancy 62 1 60 (1) 66 5 REVPAR 576 1 500 (3) 821 12 Accumulated Average No. Of Rooms 14,793 8 11,255 10 3,538 0 Average Daily Rate 963 (2) 840 (2) 1,339 (3) Occupancy 60 (1) 59 (1) 62 2 REVPAR 578 (3) 498 (4) 830 0 3

The factors above mentioned motivated an increase of one percentage point in the occupancy of the chain hotels with the same ADR in real terms. This increase in occupancy levels includes the effect of 12 openings in the last year, all of urban hotels. Besides this better performance, the gradual transformation of the Company toward a business mix in which the service revenue contributes more to the consolidated figures, continues having a positive effect in the results. Revenue and the management contribution grew by 38.7% and 35.2%, respectively. Other Businesess Vacation Club continues with the favorable trend that it has maintained in recent quarters. Combined sales at the Los Cabos and Cancun developments reached approximately US$ 31 million in the half-year period, 30% greater than in the first half of 2003. In order to maintain the proportion of the contribution to the EBITDA of this business, expansion projects in other destinations are being considered. Operating Income and EBITDA The increases in the contribution of the 3 core businesses, combined with a lower depreciation, resulted in an increase of 41% in operating income. Moreover, EBITDA increased by 5% when compare to 2Q03 and the EBITDA margin improved by nearly 1 percentage point from 22.3 to 23.2% in the same period. Development We continue to add hotels in 2Q04. As previously mentioned, the Caesar Park and Caesar Business Faria Lima- a twin hotel in Sao Paulo, were opened under leasing and operating contracts, respectively, as well as a 105-room Fiesta Inn in Colima. These bring the total openings to six in 2004. The Company currently has 28 hotels with more than 4,200 rooms in development, either under construction or with operating contracts already signed, for the next two years. 4

Fiesta Americana Fiesta Inn Caesar Park Caesar Business Total Country Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms. Mexico 3 720 20 2,682 23 3,402 Brazil 1 187 4 671 5 858 Total 3 720 20 2,682 1 187 4 671 28 4,260 % 17 63 4 16 Room distribution by contract Total Investment US$ 306 M Leased Managed Owned Posadas Third Parties 59% 6% 6% 94% 34% Openings Last 12 Months Hotel No. of Rooms Type FI Centro Histórico 140 Leased FI Orizaba 103 Management FI Insurgentes Viaducto 210 Leased CB Botafogo 110 Management FA Querétaro 173 Management CB Belo Horizonte 158 Leased FI Celaya 124 Management FI Culiacán 142 Leased CB Paulista 400 Management CB São Paulo Faria Lima 213 Management CP São Paulo Faria Lima 131 Leased FI Colima 105 Management Total 2,009 5

Financial Situation By the end of June 2004, we had a total debt of US$ 331.5 millions and cash of 238.1 million Mexican pesos. The average term of the debt at the end of the second quarter is 2.5 years. We are currently progressing with some financing alternatives in order to extend said term. Moreover, the debt/ebitda ration was 3.9 times and our interest coverage, measured as EBITDA divided between net interest, was 3.4 times, which is the best in the Company s history. Approximately, 45% of the consolidated debt is under floating rates. In July, for the second consecutive year, we paid dividends of 11.5 cents per share to our stockholders. Grupo Posadas has specialized for more than 30 years in providing high quality hotel services aiming at covering the more specific needs of hotel guests. Currently, the Company operates 83 hotels and more than 15,000 rooms in the most important and visited urban and coastal destinations in Mexico, the United States and South America. Grupo Posadas operates under the Fiesta Americana, Fiesta Americana Grand, Fiesta Americana Vacation Club, Fiesta Inn, Caesar Park, Caesar Business and The Explorean brands. Grupo Posadas shares are quoted and traded on the Mexican Stock Exchange since 1992 under the ticker names POSADASA & POSADASL; in addition, series A & L are quoted and traded in the U.S. in the PORTAL system under the ticker names GRPALP y GRPYP, respectively. www.posadas.com 6

Financial Statements 2 nd Quarter 2004 Income Statement 2Q04 2Q03 2004 2003 (constant million pesos as of Var% Var% $ % $ % $ % $ % June 30th 2004) Total Revenue 1,071.9 100.0 965.9 100.0 11.0 2,143.8 100.0 2,030.0 100.0 5.6 Owned Hotels Revenue 572.2 100.0 581.0 100.0 (1.5) 1,171.6 100.0 1,247.0 100.0 (6.0) Direct cost 439.5 76.8 449.3 77.3 (2.2) 877.2 74.9 922.0 73.9 (4.9) Contribution 132.8 23.2 131.7 22.7 0.8 294.4 25.1 325.1 26.1 (9.4) Leased Hotels Revenue 132.5 100.0 103.9 100.0 27.5 250.6 100.0 201.7 100.0 24.3 Direct cost 124.0 93.6 91.8 88.3 35.0 238.0 95.0 176.7 87.6 34.7 Contribution 8.5 6.4 12.1 11.7 (29.7) 12.6 5.0 25.0 12.4 (49.5) Hotel MaNAgement Revenue 180.4 100.0 130.0 100.0 38.7 338.6 100.0 287.8 100.0 17.7 Direct cost 106.9 59.3 75.7 58.2 41.3 197.7 58.4 149.9 52.1 31.9 Contribution 73.5 40.7 54.4 41.8 35.2 141.0 41.6 137.9 47.9 2.3 Other Businesses Revenue 186.7 100.0 150.9 100.0 23.7 382.9 100.0 293.5 100.0 30.5 Direct cost 136.9 73.3 118.3 78.4 15.7 254.7 66.5 221.5 75.5 15.0 Contribution 49.8 26.7 32.6 21.6 52.8 128.2 33.5 72.0 24.5 78.1 Corporate expenses 16.3 1.5 15.2 1.6 6.8 25.4 1.2 30.1 1.5 (15.6) Depreciation/amortization 97.0 9.1 108.5 11.2 (10.6) 195.6 9.1 219.6 10.8 (10.9) Goodwill amortization, net (0.7) (0.1) (1.0) (0.1) (24.0) (1.4) (0.1) (2.6) (0.1) (45.5) Operating Profit 152.1 14.2 108.0 11.2 40.8 356.6 16.6 312.8 15.4 14.0 EBITDA 248.4 23.2 215.6 22.3 15.2 550.8 25.7 529.8 26.1 4.0 Integral cost of financing 111.8 10.4 (15.2) (1.6) na 113.7 5.3 101.9 5.0 11.6 Other expenses (revenue) 8.4 0.8 3.4 0.4 143.6 13.5 0.6 23.7 1.2 (42.9) Profit Before Taxes 31.8 3.0 119.7 12.4 (73.4) 229.3 10.7 187.2 9.2 22.5 ISR & PTU 27.3 2.5 21.6 2.2 26.4 45.7 2.1 41.8 2.1 9.3 Deferred taxes (8.7) (0.8) 13.0 1.3 na 34.6 1.6 4.9 0.2 611.3 Part. in results of assoc. companies 0.4 0.0 0.7 0.1 (37.2) 0.4 0.0 0.5 0.0 (12.4) Net Income before Minority 13.7 1.3 85.9 8.9 (84.1) 149.4 7.0 141.0 6.9 6.0 Minority Interest 22.1 2.1 9.4 1.0 135.1 33.5 1.6 18.0 0.9 86.5 Net Majority Income (9.1) (0.9) 76.5 7.9 na 114.2 5.3 123.1 6.1 (7.2) 7

Financial Statements 2 nd Quarter 2004 Consolidated Balance Sheet as of June 30th. 2004 & 2003 (Constant million pesos as of June 30th. 2004) Jun-04 % Jun-03 % Var. (%) ASSETS Current Cash & marketable securities 238.1 2.3 238.4 2.3 (0.1) Notes & accounts receivable 831.1 8.1 498.8 4.8 66.6 Inventories 328.5 3.2 349.6 3.4 (6.0) Other assets 80.7 0.8 92.8 0.9 (13.1) Total current assets 1,478.4 14.4 1,179.6 11.4 25.3 Long-term Long-term notes receivable 148.8 1.4 209.9 2.0 (29.1) Long-term investments 26.4 0.3 31.1 0.3 (15.3) Other investments 0.0 0.0 100.1 1.0 (100.0) Prop. & Equip., net 7,956.3 77.3 8,174.0 79.1 (2.7) Deferred assets 680.6 6.6 636.0 6.2 7.0 Total Assets 10,290.5 100.0 10,330.6 100.0 (0.4) LIABILITIES Current Suppliers 351.8 3.4 353.4 3.4 (0.5) Short-term debt 680.0 6.6 251.3 2.4 170.6 Other current liabilities 496.6 4.8 345.9 3.3 43.6 Total current liabilities 1,528.4 14.9 950.7 9.2 60.8 Long-term Long-term debt 3,208.6 31.2 3,663.1 35.5 (12.4) Other long-term liabilities 82.5 0.8 87.6 0.8 (5.8) Deferred credits 1,409.3 13.7 1,257.1 12.2 12.1 Total Liabilities 6,228.7 60.5 5,958.4 57.7 4.5 Majority stockholders' equity 3,028.9 29.4 3,214.6 31.1 (5.8) Minority interest 1,032.9 10.0 1,157.6 11.2 (10.8) Total stockholders' equity 4,061.8 39.5 4,372.2 42.3 (7.1) Total Liabilities & Stockholders' Equity 10,290.5 100.0 10,330.6 100.0 (0.4) 8