Corporate Presentation April 2018 1
Grupo Hotelero Santa Fe Ticker: HOTEL (BMV) Financial Highlights (LTM March 31, 2018 ) Revenue: Ps. 1,769 million (US 96 million) EBITDA: Ps. 603 million (US 33 million) EBITDA Margin: 34.1% Focus: a leading Mexican hotel company focused on acquiring, use conversion, operating owned and third-party hotels and development. Hilton Garden Inn Monterrey Aeropuerto Krystal: Proprietary Mexican brand with over 35 years of recognition which is an important competitive advantage Strong Management Team: abundant hotel experience and proven track record that have worked together for over 20 years 6,295 25 Hotels 16 Cities rooms Krystal Urban Guadalajara 2
HOTEL Timeline Grupo Chartwell joins Nexxus Capital and Walton St. Capital for the creation of Grupo Hotelero Santa Fe The Company becomes public with an IPO in the Mexican Stock Exchange for Ps. 750 million under the ticker HOTEL. HOTEL executes a follow-on for Ps. 1,832 million, reaching a float of 46% and improving ADTV by 13x HOTEL acquires its two largest hotels in Los Cabos and Nuevo Vallarta reaching over 6,000 rooms in operation 2010 2014 2016 2017 3
Hotel Snapshot Portfolio of 25 hotels with 6,295 rooms: 13 owned and 12 under management contracts 21 operating and 4 under construction # Keys Ownership Maturity Stage Segment # Keys # Keys * Includes hotels with 50% ownership # Keys Brand # Keys Category 4
The Mexican Tourism Industry Ranking Most visited countries in the World International 15% Nationality Travelers International Travelers 13th (2012) 8th (2017) Domestic 85% 38 Million (2017) Income from international tourists Tourism as % of GDP Ranking Countries that generate more tourism jobs US$ 21 Bn +5% vs 2016 Source: Datatur and World Tourism Organization 8.5% (2017) 6th place 9 million jobs 5
Our Footprint 6
Other Hotel Brands we Manage 7
Proven Business Strategy We have posted over 30% CAGR since IPO both in terms of Revenue and number of rooms Growth: via acquisitionsand conversions focusing on: 3x3 Geographic Focus Mexico City, Monterrey and Guadalajara Cancun /Riviera Maya, Puerto Vallarta / Riviera Nayarit and Los Cabos Operating capacity: leverage our skill set to continue providing extraordinary results Optimize asset utilization: create additional revenue opportunities within our properties Krystal Brand: Continue increasing our Mexican brand s presence, considering 2/3 of our customers are domestic. Third-party Management: Maximize hotel owner returns, increase our network and expand our margins. Shareholder returns: Focused on sustainable growth. Hilton Guadalajara 8
Focus on profitability with an efficient cost structure Krystal Brand: value, scale and profitability. Over 5 Billion pesos invested in Krystal assets in the last 48 months by GHSF and third party investors. Resort High Domestic Penetration: 65% domestic customers Krystal Urban Reduced seasonality: due to our balanced portfolio 4 5 European Plan Hybrid Diversification: Management of different categories, destinations and brands. All Inclusive Multifunctional personnel: allows us to get efficiencies. Our EPAR (Employee per Available room) is 0.6 when in Mexico the average is approximately 1. ~40% of our workforce is flexible. 9
Business Model and distribution Channels HOTEL has developed different products and concepts which maintain our brands within the preference of domestic and international travelers Commercial Models Examples Diversified Distribution Channels European Plan Urban Hotels 2017 Krystal Grand Suites Hilton Garden Inn Monterrey Hilton Guadalajara Krystal Urban Ciudad Juárez Commissionable, 42% Hybrid (European Plan and All Inclusive) Krystal Grand Punta Cancún Krystal Ixtapa Krystal Puerto Vallarta Krystal Beach Acapulco Resorts Hotels 2017 Noncommissionable, 58% All Inclusive Commissionable, 79% Hilton Puerto Vallarta Krystal Grand Los Cabos Noncommissionable, 21% Increasing Strength in Non-commissionable Distribution Channels such as our website benefits profitability 10
Acquisition Turnaround At HOTEL we focus on turning around poorly managed hotels by Improving the top line through sales and marketing plans Ramping up profitability through cost and expense synergies & operational efficiencies Improving quality standards Top & bottom line teams analyzing and implementing our strategy Turnaround examples: 1. Krystal Grand Punta Cancun 2. Krystal Satelite Maria 3. Ex-Krystal Grand Barbara (Mexico City) Reforma (Mexico City) EBITDA Growth EBITDA Growth EBITDA Growth 2013 2017 (Hyatt) (Krystal Grand) 2015 2017 2013 2016 11
Construction, Development and Use Conversion At HOTEL when we open a new property we focus on: Reaching the breakeven point quickly so the property starts generating returns in as less time as posible Increasing ocupancies to be more profitable, aiming to be above 60% Stabilizing EBITDA above 30% Reaching Breakeven Ocupancy >60% EBITDA Margin >30% Krystal Urban Guadalajara 3 to 6 months 12 to 18 months 12 to 24 months Hilton Puerto Vallarta 12
Krystal Grand Los Cabos & Nuevo Vallarta Acquisition HOTEL s largest acquisition since IPO Strategic locations where we were not present Two Grand Tourism hotels with 934 rooms Krystal Grand Los Cabos with 454 rooms Krystal Grand Nuevo Vallarta with 480 rooms Total value of the transaction was US 120 million Investment per room was ~128 thousand dollars US 60 million in equity and the rest in debt. We have 50% equity ownership All-Inclusive Krystal Grand Los Cabos Krystal Grand Nuevo Vallarta 13
Krystal Grand Suites (Mexico City) 50% ownership Gran Turismo category suites Investment per room was ~170 thousand dollars considering the product is oversized and includes kitchenet. 14
Krystal Grand Punta Cancún Expansión Altitude Tower 100 Gran Turismo category Suites 34% increase in room inventory The hotel has a 50% higher ADR than our portfolio Investment per room was ~115 thousand dollars (does not include pre-exiting property and common area costs) 15
The Hacienda at Hilton Puerto Vallarta 192 new suites (Hilton Hacienda) 100% ownership 74% increase in room inventory Investment per room was ~140 thousand dollars 16
Hotels under Construction Krystal Grand Insurgentes (Mexico City) 50% Ownership, 250 Grand Tourism rooms Building includes ~2,400 m 2 of gastrocenter and 86 condo-hotel rooms Investment of Ps. 1,115 million Investment per room ~US. 160 thousand Opens in 2H19 Zacatecas Centro Historico Curio Collection Third-party management contract 32 Deluxe Suites Opens 2H18 AC by Marriot Distrito Armida (Monterrey) Third-party management contract 168 rooms Opens 2Q19 Hyatt Place Aguascalientes Third-party management contract 144 rooms Opens in 1Q19 Krystal Grand Insurgentes Hyatt Place Aguascalientes Zacatecas Centro Historico Curio Collection by Hilton AC by Marriot Distrito Armida 17
Solid Financial Position Our leverage is 3.2x Net Debt to EBITDA Our Debt is 84% denominated in dollars which is matched by our operating cashflow which is 94% dollarized. YTD March 2018 MXN USD Debt 16% 84% Avg. Cost of Debt 10.4% 4.4% Revenues 58% 42% Operating Cashflow 6% 94% 18
Quarterly Results & Guidance 1Q18 Results: Revenue grew 49% to Ps. 575 million EBITDA grew 50% to Ps. 226 million EBITDA margin was 39.2% Occupancy was 68.7% Krystal Satelite Maria Barbara 2018 Guidance: 42% Revenue growth, reaching Ps. 2,250 million 52% EBITDA growth, reaching Ps. 803 million Average exchange rate : 19.0 Krystal Resort Ixtapa 19
Non-Productive Assets 50% of our Fixed Furniture and Equipment have not generated EBITDA in the last twelve months which will drive important Revenue and EBITDA growth this year and 2019 Assets that have not generated EBITDA for the last twelve months: 4,324 rooms 6,295 rooms Hotel # keys KG Los Cabos (2Q17) 454 KG Suites (3Q17) 150 Expansion KG Cancún (3Q17) 100 KG Nuevo Vallarta (4Q17) 480 Expansion Hilton Vallarta (1Q18) 192 KG Insurgentes (2H19) 250 Total 1,626 20
Why to invest in HOTEL We are disciplined in valuation of acquisitions to maximize our shareholder returns We have more flexibility that FIBRAs, which translates into closing favorable negotiations including acquisitions, associations and third party management contracts Diversifies portfolio in terms of destinations and categories. Higher growth that peers considering that we had 30% CAGR in terms of Revenue and Room number growth. Our Krystal Brand as a competitive advantage. 2018 and 2019 growth Will be positively impacted by the incorporation of rooms which are not fully matured, in construction or expansion (50% of our portfolio) We have met and in some cases exceeded our IPO and follow-on promises to investors 21
Appendix Financial Statements and exhibits Hampton Inn & Suites Paraiso Tabasco Krystal Monterrey Krystal Urban Ciudad Juarez Krystal Pachuca 22
P&L Figures in thousand Mexican Pesos First Quarter 3 months ended March 31 Income Statement 2018 2017 Var. % Var. 2018 2017 Var. % Var. Room Revenue 314,670 218,857 95,813 43.8 314,670 218,857 95,813 43.8 Food and Beverage Revenue 200,937 104,785 96,152 91.8 200,937 104,785 96,152 91.8 Other Revenue from Hotels 40,800 37,737 3,063 8.1 40,800 37,737 3,063 8.1 Third-party Hotels' Management Fees 18,561 25,661 (7,100) (27.7) 18,561 25,661 (7,100) (27.7) Total Revenue 574,968 387,041 187,928 48.6 574,968 387,041 187,928 48.6 Cost and Operating Expenses 222,889 135,196 87,694 64.9 222,889 135,196 87,694 64.9 Sales and Administrative 119,365 96,461 22,903 23.7 119,365 96,461 22,903 23.7 Other Expenses 7,080 4,738 2,342 49.4 7,080 4,738 2,342 49.4 Depreciation 44,233 28,497 15,736 55.2 44,233 28,497 15,736 55.2 Total Costs and Expenses 393,568 264,893 128,675 48.6 393,568 264,893 128,675 48.6 Total Non Recurring Expenses 10,042 11,812 (1,770) (15.0) 10,042 11,812 (1,770) (15.0) EBITDA 225,634 150,646 74,988 49.8 225,634 150,646 74,988 49.8 EBITDA Margin(%) 39.2% 38.9% 0.3 pt 0.3 pt 39.2% 38.9% 0.3 pt 0.3 pt Operating Income 171,359 110,336 61,023 55.3 171,359 110,336 61,023 55.3 Operating Income Margin (%) 29.8% 28.5% 1.3 pt 1.3 pt 29.8% 28.5% 1.3 pt 1.3 pt Net Financing Result 93,900 98,220 (4,320) (4.4) 93,900 98,220 (4,320) (4.4) Total income taxes 61,219 24,265 36,953 NA 61,219 24,265 36,953 NA Net Income 204,949 184,926 20,023 10.8 204,949 184,926 20,023 10.8 Net Income Margin (%) 35.6% 47.8% (12.1 pt) (12.1 pt) 35.6% 47.8% (12.1 pt) (12.1 pt) Income attributable to: Controlling interest 151,504 146,523 4,980 3.4 151,504 146,523 4,980 3.4 Non-controlling interest 53,446 38,403 15,043 39.2 53,446 38,403 15,043 39.2 23
Balance Sheet 24
Cash Flow 25
Key Financial Highlights Figures in thousand Mexican Pesos Denominated in (currency): Debt* Pesos Dollars Total Short Term 29,302 140,223 169,525 Long Term 337,921 1,822,446 2,160,367 Total 367,223 1,962,669 2,329,892 % Total 15.8% 84.2% 100.0% Average rate of financial liabilities 10.42% 4.36% 5.32% Cash and equivalents 112,605 166,765 279,370 Restricted cash 9,798 87,447 97,245 Cash and equivalents** 122,403 254,211 376,615 Net Debt 244,820 1,708,457 1,953,277 Net Debt / LTM EBITDA (as of March 31, 2018) 3.2x *Includes accrued interests and effect of financial instruments related to financial debt. **Includes restricted cash related to bank debt. 26
Currency Hedging Figures in thousands of Mexican Pesos Denominated in Pesos First Quarter 2018 YTD March 31, 2018 Denominated Total in Denominated Denominated in USD Pesos in Pesos in USD Total in Pesos Total Revenue 330,651 244,317 574,968 330,651 244,317 574,968 % of Total Revenue 57.5% 42.5% 100.0% 57.5% 42.5% 100.0% ( - ) Total Costs and Expenses 352,657 40,911 393,568 352,657 40,911 393,568 ( - ) Non-recurring Expenses 10,042-10,042 10,042-10,042 Operating Income (32,047) 203,406 171,359 (32,047) 203,406 171,359 ( + ) Depreciation 44,233-44,233 44,233-44,233 Operating Cashflow 12,186 203,406 215,592 12,186 203,406 215,592 % of Operating Cashflow 5.7% 94.3% 100.0% 5.7% 94.3% 100.0% Interest 3,227 33,091 36,318 3,227 33,091 36,318 Principal 7,359 25,488 32,847 7,359 25,488 32,847 Total Debt Service 10,586 58,579 69,165 10,586 58,579 69,165 Interest Coverage ratio 1 3.8x 6.1x 5.9x 3.8x 6.1x 5.9x Debt Service Coverage Ratio 2 1.2x 3.5x 3.1x 1.2x 3.5x 3.1x 1) Operating Cashflow / Interest; 2) Operating Cashflow / Total Debt Service 27
Key Operating Statistics Occupancy Average Daily Rate (ADR) Revenue per Available Room (RevPAR) Total Rooms Note: Figures include owned hotels, third-party operated hotels and under construction, excluding KPI s. 28
Key Financial Metrics Solid revenue growth and strong EBITDA generation. Revenue Breakdown EBITDA % of Total 29
HOTEL Shareholder Structure Public Float 20.69%) 19.32%) 13.87%) 46.12%) Strategic Local Partner One of the largest Mexican private equity firms Private equity real estate investment firm based in Chicago Outstanding shares - 491,084,530 30
Properties incorporated since IPO Krystal Urban Guadalajara Opened 2Q16 140 Rooms Owned Krystal Grand Los Cabos Opened 2Q17 454 Rooms Owned @ 50% Krystal Grand Nuevo Vallarta Opened 4Q17 480 Rooms Owned @ 50% Hilton Garden Inn Monterrey Aepto Opened 3Q15 134 Rooms Co-investment @15% Krystal Monterrey Opened 1Q17 207 Rooms Third-party AC by Marriot Distrito Armida Opens 2Q19 168 Rooms Third Party Krystal Urban Cancun Opened 4Q14 245 Rooms Third-party Paraíso, Tabasco Opened 4Q15 117 Rooms Third-party 3,146 Rooms incorporated % 3+3 Strategy: 84% % Krystal Brand: 73% % Urban Destinations: 62% % Resort Destinations: 38% % Use Conversion: 8% Ibis Irapuato Opened 2Q17 140 Rooms Third-party Krystal Pachuca Opened 1Q17 124 Rooms Third-party Krystal Satelite Maria Bárbara Opened 2Q15 215 Rooms Owned Krystal Grand Insurgentes Mexico City Opens 2H19 250 Rooms Owned @ 50% Kystal Mexico City Airport Opened 4Q15 96 Rooms Third-Party Krystal Grand Suites Mexico City Opened 3Q17 200 Rooms Owned @ 50% Hyatt Place Aguascalientes Opens 1Q19 144 Rooms Third-party Curio Collection Zacatecas Opens 2H18 32 Rooms Third-party 31
Krystal Brand Arquitecture 4 Cities 6 Cities 4 Cities 1 City 5 Hotels 1,729 Rooms Resort and Urban 6 Hotels 1,779 Rooms Resort and Urban 4 Hotels 601 Rooms Urban 1 Hotel 400 Rooms Resort 17 Hotels 4,509 Rooms Grand Tourism 5 Stars 4 Stars 4 Stars Note: Figures include owned hotels with 50% or more ownership, third-party operated hotels and developments. 32
Krystal Urban Guadalajara (use conversion) 33
Contact Information Maximilian Zimmermann Investor Relations Director mzimmermann@gsf-hotels.com +52 (55) 5261-0800 Enrique Martínez Guerrero CFO emartinez@gsf-hotels.com Visit our website: www.gsf-hotels.com Krystal Beach Acapulco Hilton Garden Inn Monterrey Krystal Urban Aeropuerto Ciudad de Mexico Krystal Resort Cancun 34