FibraHotel Day 2015 December 3 rd, 2015 @FibraHotel
2 Disclaimer This presentation has been prepared by FibraHotel (or the Trust ) for informational and discussion purposes. It does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any Certificados Bursátiles Fiduciarios Inmobiliarios (or the CBFI ) in the Trust, nor shall any part of it nor the fact of its dissemination form part of or be relied on in connection with any contract or investment decision relating thereto. Any such offering may be made only by an offering memorandum and the information contained herein will be superseded in its entirety by such offering memorandum in final form. This presentation does not contain all the information you should consider before investing in CBFIs of the Trust and no representation or warranty, express or implied, is made by any party as to the accuracy, fairness, completeness or materiality of the information furnished in this presentation, which remains subject to verification, completion and change without notice. Investors should review the offering memorandum (including the information therein as to risks) prior to making an investment decision and should rely only on the information contained in the offering memorandum. The Trust has not authorized anyone to provide you with information different from that contained in the offering memorandum. The securities mentioned in this document have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act ), and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. The information in this presentation includes forwardlooking statements which are based on current expectations, beliefs, and predictions about future events. These forward looking statements are subject to known and unknown risks, uncertainties and assumptions about the Trust, its prospects and the economic environment in which it operates that may prove to be incorrect. Accordingly, the events described in such forward-looking statements may not occur and the Trust s objectives may not be realized. By attending this presentation you agree to be bound by the foregoing limitations and not to distribute, disclose or provide any information discussed today to any other person.
3 FibraHotel s 3rd Investor Day Agenda Start Finish Speaker Title Topic 09:00 09:25 Simon Galante FIHO - CEO Introduction FibraHotel strategy and 2016 Path 09:25 09:55 Richard Katzman HVS - Managing Director Lodging situation and Mexico outlook 09:55 10:20 Eduardo Lopez Guillermo Bravo 10:20 10:40 Victor de Anda 10:40 10:50 BREAK FIHO - General Director FIHO - Head of Development Aset Architecture and design Founder 2015 Portfolio Openings Overview of hotel design 10:50 11:10 Eduardo Lopez Guillermo Bravo FIHO - General Director FIHO - Head of Development Pipeline and cash deployment 11:10 11:20 Alberto Galante FIHO - Co-chairman Balance sheet and capital allocation 11:20 11:55 Edouard Boudrant Jose Luis Jacome FIHO - CFO FIHO - Director of Operations Financial and operating results Market trends and expectations 11:55 12:00 Simon Galante FIHO - CEO Closing remarks
4 FibraHotel day 2015 objectives 1 Continue leading investor communication, transparency and corporate governance 2 Overview of business plan execution in 2015 3 FibraHotel s strategy and growth pipeline 4 Review of financial results
2015 business plan execution 1 Will reach 69 operating hotels with 2015 portfolio In 2015, developed/acquired 13 hotels with 1,833 rooms and almost Ps. 2.7bn invested Focus now turns to ramp-up of the 2015 development portfolio Portfolio enhancement including five new full-service hotels and landmark assets in Monterrey, Guadalajara and Queretaro 2 3 4 Funded pipeline continues to build. Ability to develop 10-15 hotels a year 11 hotels with ~1,450 rooms to open in 2016/17 Including six hotels with GICSA FIHO would reach 86 hotels with 11,886 rooms Fully funded pipeline; With 80 hotels, FIHO would have ~Ps. 1.7bn of net debt Property asset management to maximize cash flows Four hotels with >500 rooms renovated in 2015; >Ps. 225mm in capex invested One hotel rebranding and one hotel conversion Strong operating results with 7.4% RevPAR growth (3Q 2015 LTM) Strong organic growth across the board; >3x Mexico GDP growth and >2x inflation Operating margin improvement of 112bps with 46% flow-through Invested all cash on the balance sheet. First credit line draw-downs in Q4 2015 Note: (i) 2015 portfolio includes: Fairfield Inn & Suites Saltillo and Villahermosa; One Perisur; Fiesta Inn Lofts and Courtyard by Marriott Cd. del Carmen; Fiesta Inn Villahermosa Cencali; Fairfield Juriquilla; One Durango; Fiesta Americana Pabellon M; AC by Marriott Guadalajara and Queretaro; FAG Monterrey Trebol; Live Aqua Monterrey Trebol 5
6 The most attractive hotel portfolio in Mexico Business hotel portfolio tracking the Mexican economy Including six hotels with GICSA FIHO would reach 86 hotels with 11,886 rooms
7 Open architecture with access to the best brands Broad range of alternatives across categories, brands and operators
A continuously improving, diversified portfolio Room breakdown based on FibraHotel s current portfolio of 80 hotels with 11,006 rooms Rooms by segment Rooms by Operator Rooms un operation/development Added five new fullservice hotels in key markets (two luxury) Increased exposure to extended stay segment Posadas continues to be main partner with 60 hotels Reached 12 hotels with Marriott International 69 hotels with 9,557 rooms operating (including 2015 development portfolio) 11 hotels with 1,449 rooms under development Increased exposure to full-service hotels and landmark assets At IPO FIHO had 2 operators, 3 brands, 1 full service hotel and no extended stay hotels Notes: Company estimates 8
Landmark properties in portfolio 9
1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Growth story in an attractive segment Rooms in operation RevPAR of stabilized properties +84% 25% CAGR +16% 6% CAGR 4,397 4,798 5,547 5,547 6,115 6,664 6,944 7,656 7,777 7,921 8,077 522 569 541 547 530 569 567 596 561 611 607 Revenues (Ps. $ million) NOI (Ps. $ million) +184% +145% 46% CAGR 380 396 447 449 501 504 36% CAGR 126 130 148 143 155 162 177 250 295 310 309 66 90 102 103 99 Notes: Company financials 10
FibraHotel s price is correct? Annualized dividend yield Q3 2015 7.7% 8.0% 6.3% 6.4% 6.7% 5.3% 5.5% 5.6% 5.7% 0% HCity FUNO FINN Danhos FIHO FSHOP Terra Prologis MQ FIHO PF 1 Considerations: - FIHO is currently in investment phase, and thus its dividend yield is not normalized - For comparison purposes, need to analyze the company by separating the development portfolio - Even in this scenario, the analysis does not take into account further upside such as: i. Organic growth (7.4% RevPAR growth y-o-y) ii. Attractive returns from developments iii. Use additional debt to lever up the balance sheet and invest in accretive projects Note: Illustrative calculation estimations: FIHO PF assumes that the ~2.5bn in cash and development properties at Q3 15 is used to repurchase shares at current price (~165mm shares). For FIHO, PF yield based on Q3 distribution net of interest income, annualized (Ps. 24.4mm for Q3) divided by adjusted market capitalization after share repurchase (Ps. 5.0bn including 329mm shares with economic rights) Notes: Illustrative example only. Prices as of December 1, 2015. 11
FibraHotel s price is correct? Real estate valuation Price per key Price per square meter FIHO - Q3 2015 Total Operating # of hotels 80 60 # of rooms 11,006 8,210 # of shares with econ. rights (mm) 494.3 Considerations of per key values: - FIHO portfolio cost of Ps. 0.9mm (US$54k) - Avg. market transactions: Ps. 1.4mm (US$85k) - Cost to develop Ps. mm: (i) select service ~1.0, (ii) limited service ~0.75, (iii) full service ~1.5 Ps. US$ Cash on hand 849.0 51.5 Dividend payable for results in Q3 (106.0) (6.4) Net cash 743.0 45.0 Cash invested in development 1,750.0 106.1 Pro-forma cash (op.) properties 2,493.0 151.1 Calculations Ps. Hotels 60 60 US$ Rooms 8,210 8,210 Market Cap 7,458.6 452.0 Pro-forma cash for operating hotels (2,493.0) (151.1) Enterprise Value 4,965.6 300.9 Ps. / key US$ / key EV per operating hotel key 604,818.7 36,655.7 Discount to FIHO historical cost (32.5%) Operating hotels FIHO including 2015 portfolio # of hotels 69 # of rooms 9,557 Real Estate constructed (m2/ft2) 570,000 6,135,423 # of shares with econ. rights (mm) 494.3 Considerations of construction costs: - FIHO 2015 portfolio cost per m2 Ps. 27,539 (excluding Trebol and Pabellon M: Ps. 21,480) Ps. US$ Cash on hand 849.0 51.5 Dividend payable Q3 (106.0) (6.4) Remaining Investment to develop (1,183.2) (71.7) PF debt w / 69 open hotels (440.2) (26.7) Calculations FIHO including 2015 portfolio Ps. / m2 US$ / ft2 Hotels 69 69 Rooms 9,557 9,557 Real Estate constructed (m2/ft2) 570,000 6,135,423 Market Cap 7,458.6 452.0 Pro-forma cash for operating hotels 440.2 26.7 Enterprise Value 7,898.8 478.7 Ps. US$ EV per m2 constructed 13,857.5 839.8 EV per ft2 constructed 1,287.4 78.0 Discount to 2015 Development Portfolio cost (49.7%) Notes: Illustrative example only. Company estimates. 12
What changed? A better company at half the price Even with real assets, a better environment and more rooms in operation, the stock price decreased in 2015 FIHO stock price (US$) Rooms in operation $2.50 10,000 $2.25 9,000 $2.00 8,000 7,000 $1.75 6,000 $1.50 5,000 $1.25 4,000 $1.00 3,000 2,000 $0.75 1,000 $0.50-11/2012 02/2013 05/2013 08/2013 11/2013 02/2014 05/2014 08/2014 11/2014 02/2015 05/2015 08/2015 11/2015 Evolution of FibraHotel since the IPO Hotels are are real hard assets and have appreciated in in market value 2.5x larger portfolio: Added 49 49 hotels and >6,500 rooms (39 in in operation) Diversified by portfolio: adding Added international international brands brands, landmark landmark full-service assets in hotels gateway cities and exposure to full-service hotels Announced pipeline. Clear use of cash with proven development know-how Announced pipeline clear use of cash Lodging sector outperforming: Best KPIs in years across the board Lodging sector outperforming: Best KPIs in years across the board Built asset management team and optimized hotel level results Mexico economic prospects improved (structural reforms, attractive Mexico industrial, economic automotive prospects and manufacturing improved (structural investment reforms, prospects) FDI, etc.) >Ps. >Ps. 1,100mm returned to to shareholders (>Ps. (>Ps. $2.3 $2.3 per per CBFI) CBFI) Notes: Prices as of December 1, 2015 Considerations since IPO: Increased Interest rate uncertainty Capital deployment has been more focused on development than acquisitions (and slower) Peso depreciation More Fibras in the market 13
14 FibraHotel business plan What is next? 1 2 3 4 Growth story intact with a clear pipeline that continues to build Continue leveraging development expertise to grow in mixed use projects at right cost Announced 10 hotels for 2016/2017 with additional projects coming Looking for acquisition opportunities. Continues to be a sellers market Strong performance of stabilized portfolio. Bullish for 2016 Strong fundamentals for organic growth in 2016. FDI and manufacturing continue to supporting record KPI levels in the portfolio Focus on ramp-up of 2015 portfolio Strong balance sheet provides capital allocation alternatives Fully funded for announced portfolio, maintaining a conservative LTV of ~20% Alternatives to create shareholder value such as a CBFI buy-back Exploring alternatives to fund developments without impacting dividend Leading management team and sponsor aligned with investors Transparency and corporate governance are key components of our strategy Best-in-class team to manage existing hotel portfolio and execute growth Sponsor aligned with investors and with a strong position in the company FIHO is the leading company in the attractive business hotel segment with landmark assets
2015 portfolio 15
2015 portfolio overview Geographic location Room breakdown by: Segment Region By investment, almost 70% represents full-service hotels Right cost Price per Key Developed nine brands (six not fully developed in Mexico) Category Ps. mm US$ k Full Service 2.0 121.6 Select Service 1.0 60.1 Limited Service 0.8 47.7 Total 1.4 83.5 Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD 16
2015 portfolio overview (cont d) Live Aqua Monterrey Location - Monterrey Type - 74 luxury rooms Inv. 250mm Per key US$205k (Ps. 3.4mm) Brand/Operator - Aqua / Posadas Fiesta Americana Grand Monterrey Location - Monterrey Type - 180 full-service rooms Inv. 460mm Per key US$155k (Ps. 2.5mm) Brand/Operator - FAG / Posadas Fiesta Americana Monterrey Pabellon M Location - Monterrey Type - 177 full-service rooms Inv. 425mm Per key US$145k (Ps. 2.4mm) Brand/Operator Fiesta Americana / Posadas AC by Marriott Antea Queretaro Location - Queretaro Type - 175 full-service rooms Inv. 212mm Per key US$73k (Ps. 1.2mm) Brand/Operator - AC / Marriott AC by Marriott Torre Americas 1500 Guadalajara Location - Guadalajara Type - 188 full-service rooms Inv. 246mm Per key US$80k (Ps. 1.3mm) Brand/Operator - AC / Marriott Courtyard Ciudad del Carmen Location Ciudad del Carmen Type - 133 select-service rooms Inv. 135mm Per key US$60k (Ps. 1mm) Brand/Operator - Courtyard / Marriott Fiesta Inn Lofts Ciudad del Carmen Location - Ciudad del Carmen Type - 120 extended-stay rooms Inv. 120mm Per key US$60k (Ps. 1mm) Brand/Operator Fiesta Inn Lofts / Posadas Fairfield Inn & Suites Saltillo Location - Saltillo Type - 139 limited-service rooms Inv. 112mm Per key US$50k (Ps. 0.8mm) Brand/Operator - Fairfield / Marriott Fairfield Inn & Suites Juriquilla Location Juriquilla (Queretaro) Type - 134 limited-service rooms Inv. 110mm Per key US$50k (Ps. 0.8mm) Brand/Operator - Fairfield / Marriott Fairfield Inn & Suites Villahermosa Location - Villahermosa Type - 134 limited-service rooms Inv. 110mm Per key US$50k (Ps. 0.8mm) Brand/Operator - Fairfield / Marriott One Perisur Location Mexico City Type - 144 limited-service rooms Inv. 120mm Per key US$50k (Ps. 0.8mm) Brand/Operator - One / Posadas One Durango Location - Durango Type - 126 limited-service rooms Inv. 72.5mm Per key US$35k (Ps. 0.6mm) Brand/Operator - One / Posadas Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD 17
Continue with bolt-on acquisitions at right cost FibraHotel acquisitions Initial portfolio Acquisition date Category Investment Price / key Price / key # rooms (Ps. mm) (Ps. 000 s) (US$000 s) 1 IPO Portfolio FibraHotel Dec 2012 / Feb 2013 3,671.8 4,242 866 52.5 FIHO acquisitions in 2013 2013 882.6 1,024 862 52.2 Fiesta Americana Aguascalientes 15/01/2014 full-service 227.3 192 1,184 71.8 Fiesta Inn Xalapa 27/03/2014 select-service 140.9 119 1,184 71.8 One Xalapa 27/03/2014 limited-service 80.0 126 635 38.5 Fiesta Inn Cd Obregon 07/04/2014 select-service 148.0 141 1,050 63.6 Fussion 5 Leon (Gamma) 16/05/2014 select-service 120.0 165 727 44.1 Gamma Valle Grande Cd Obregon 30/05/2014 select-service 110.0 135 815 49.4 Fairfield Inn Los Cabos 20/06/2014 limited-service 110.0 128 859 52.1 Fiesta Inn San Luis Oriente 21/07/2014 select-service 126.0 140 900 54.5 Gamma Lausana Tijuana 24/07/2014 select-service 120.0 140 857 51.9 Microtel Saltillo (to be repositioned) 25/09/2014 limited-service 125.0 139 899 54.5 Sheraton Ambassador Monterrey 17/11/2014 full-service 182.3 229 796 48.2 Lat 20 by Live Aqua Playa del Carmen 19/11/2014 Luxury 202.5 60 3,375 204.5 Fiesta Inn y One Cuernavaca 15/12/2014 select & limited service 268.0 280 957 58.0 Fiesta Inn Villahermosa Cencali 01/12/2015 select-service 2 285.0 159 1,792 108.6 Fiesta Americana Monterrey Pabellon M 02/12/2015 full-service 425.0 177 2,401 145.5 FibraHotel total portfolio $7,224.5 7,596 $951.1 $57.6 Overview by segment FibraHotel 4 Price / key (Ps. 000 s) Price / key (US$ 000) Limited service 713 43.2 Select service 952 57.7 Full service 1,729 104.8 Overall 1,003 60.8 Market announced acquisition transactions since 2013 3 Acquisitions since 2013 Acquisition date Category Investment Price / key Price / key # rooms (Ps. mm) (Ps. 000 s) (US$000 s) 1 Hilton Centro Historico Jun 2013 full-service 1,170.0 458 2,555 154.8 Marriott Puebla Jul 2013 full-service 370.0 192 1,927 116.8 Mexico Plaza Portfolio (4 hotels) 2014 limited-service 492.9 521 946 57.3 Camino Real Guanajuato Aug 2013 full-service 230.0 105 2,190 132.8 Holiday Inn Coyoacan Dec 2013 full-service 381.0 214 1,780 107.9 Melia Reforma Ciudad de Mexico Dec 2013 full-service 910.0 489 1,861 112.8 Aloft Guadalajara Jan 2014 select-service 220.0 142 1,549 93.9 Holida Inn Tampico Altamira Mar 2014 select-service 112.5 100 1,125 68.2 Microtel portfolio (6 hotels) Sep 2014 limited-service 432.0 667 648 39.3 Crown Plaza Monterrey Airport Sep 2014 full-service 351.0 219 1,603 97.1 Mexico Plaza Guadalajara Sep 2014 limited-service 192.0 186 1,032 62.6 Krystal Urbano Cancun Nov 2014 full-service 263.4 212 1,242 75.3 Maria Barbara Satelite Apr 2015 select-service 305.0 215 1,419 86.0 Holiday Inn Reynosa June 2015 full-service 103.6 95 1,091 66.1 Hampton Inn Hermosillo June 2015 select-service 175.0 151 1,159 70.2 Staybridge Suites Guadalajara July 2015 extended stay 142.5 117 1,218 73.8 Aryba Guadalajara July 2015 select-service 179.4 181 991 60.1 Courtyard Chihuahua November 2015 select-service 234.4 152 1,542 93.5 Hampton Inn Chihuahua November 2015 select-service 327.2 190 1,722 104.4 City Express and City Junior Chihuahua November 2015 limited-service 126.1 209 603 36.6 Market transaction average $6,718.0 4,815 $1,395.2 $84.6 Market Price / key (Ps. 000 s) Price / key (US$ 000) Limited service 785 47.6 Select service 1,359 82.4 Full service 1,905 115.4 Overall 1,395 84.6 Notes: (i) Assumes FX of 16.5 Ps. per USD; (ii) Fiesta Inn Villahermosa Cencali includes land for an additional hotel; (iii) Estimated investment based on public disclosure; (iv) Includes 2015 portfolio of developments 18
19 Development of One Perisur hotel - case study One Perisur General information One Periferico Sur Ciudad de Mexico 144 limited service rooms operated by Grupo Posadas Opened in July 2015 Located in Mexico City (Center region) Location Mexico City, on Periferico Sur In a hotel complex with the Fiesta Inn Perisur hotel
20 Overview of the One Perisur construction November 2014 January 2015 March 2015 May 2015
21 2015 portfolio main focus is now ramp-up Occupancy rate 54% 46% 48% 44% 29% 35% 40% 40% 42% 32% 34% 14% m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12 ADR $803 $756 $777 $795 $806 $785 $754 $776 $830 $810 $790 $784 Exercise based on a sample of 5 greenfield hotels: One Tapatío, One Cuernavaca, One Monclova, Real Inn Morelia, Camino Real Suites Puebla Occupancy during ramp-up: Phase 1: During the First 6-month period. Consists of positioning the new hotel in the market Result: 32% occupancy rate (accumulated) Phase 2: During the second 6-month period, the hotel is consolidated in the market Result: 46% occupancy rate (accumulated) Phase 3: From the 12 th month and until the 24/36 th month, the hotel is stabilized with penetration above 100% (occupancy rate similar to the stabilized portfolio) Result: 60% to 65% occupancy rate on a yearly basis m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12 RevPAR $445 $218 $268 $253 $277 $313 $360 $360 $379 $300 $328 $110 m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12 ADR: ADR is fairly stable during the first year of the hotel Additional increase in rates comes from revenue management once the hotel is stabilized RevPAR growth: Increase in RevPAR during ramp-up and first 12 months is mainly driven by the occupancy increase Further growth to come from above average market penetration
Announced pipeline of 2016/2017 projects Fiesta Inn Los Mochis (2016) Location Los Mochis (Sinaloa) Type - 125 select-service rooms Inv. 112.5mm Cost per key Ps. 900k Brand/Operator Fiesta Inn / Posadas Courtyard Toreo (2016) Location Mexico City (Toreo) Type - 130 select-service rooms Inv. 165mm Per key US$77k (Ps. 1.3mm) Brand/Operator Courtyard / Marriott Courtyard Via Vallejo Mexico City (2016) Location Mexico City Type - 121 select-service rooms Inv. 160mm Per key US$80k (Ps. 1.3mm) Brand/Operator Courtyard / Marriott Fairfield Inn & Suites Via Vallejo Mexico (2016) Location Mexico City Type - 125 limited-service rooms Inv. 130mm Per key US$63k (Ps. 1.0mm) Brand/Operator Fairfield Inn & Suites / Marriott Fiesta Inn Lofts Monterrey La Fe (2016) Location Monterrey Type - 48 extended stay rooms Inv. 48mm Per key US$61k (Ps. 1.0mm) Brand/Operator Fiesta Inn Lofts / Posadas Select Service Veracruz (2016) Location - Veracruz Type - 165 select-service rooms Inv. 188mm Per key US$69k (Ps. 1.1mm) Brand/Operator TBD Fairfield Inn & Suites Nogales (2016) Location Nogales Type - 134 limited-service rooms Inv. 120mm Per key US$54k (Ps. 0.9mm) Brand/Operator - Fairfield / Marriott Limited service Cuautitlan, Mexico City (2016) Location Mexico City Type - 115 limited-service rooms Inv. 125mm Per key US$66k (Ps. 1.1mm) Brand/Operator - TBD Fiesta Inn Viaducto - Via 515 (2017) Location Mexico City Type - 178 select-service rooms Inv. 210mm Per key US$71k (Ps. 1.2mm) Brand/Operator Fiesta Inn / Posadas Fiesta Inn Lofts Viaducto Via 515 (2017) Location Mexico City Type - 108 extended stay rooms Inv. 125mm Per key US$71k (Ps. 1.2mm) Brand/Operator Fiesta Inn Lofts / Posadas Fiesta Inn Villahermosa (2017) Location Villahermosa, Tabasco Type - 200 select-service rooms Inv. 220mm Per key US$67k (Ps. 1.1mm) Brand/Operator Fiesta Inn / Posadas Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD 22
Current 2016/2017 portfolio overview Geographic location Room breakdown by: Segment Region Right cost Potential brands Price per Key Category Ps. mm US$ k Extended stay 1.1 67.2 Select Service 1.1 67.0 Limited Service 0.9 57.5 Total 1.1 64.6 Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD 23
Additional pipeline alternatives 24
Overview of FibraHotel s portfolio FibraHotel portfolio Hotel Name Rooms Opening Investment (Ps. mm) Under 2015 2016 2017 Total By Q3 2015 Pending Constr. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 56 Current portfolio 7,674 634.7 849.0 (214.3) 7,674 7,674 7,674 7,674 7,674 7,674 7,674 7,674 7,674 2015 Portfolio 1 Fairfield Inn & Suites Saltillo 139 March 2015 112.0 112.0 0.0 139 139 139 139 139 139 139 139 139 2 One Perisur 144 June 2015 120.0 54.4 (65.6) 0 144 144 144 144 144 144 144 144 3 Fiesta Inn Lofts Cd del Carmen 120 Sep 2015 0 0 120 120 120 120 120 120 120 255.0 255.0 0.0 4 Courtyard by Marriott Cd. del Carmen 133 Nov 2015 0 0 0 133 133 133 133 133 133 5 Fairfield Villahermosa 134 Dec 2015 110.0 99.0 (11.0) 0 0 0 134 134 134 134 134 134 6 Fiesta Inn Villahermosa Cencali 159 Nov 2015 295.0 0.0 (295.0) 0 0 0 159 159 159 159 159 159 8 Fairfield Juriquilla 134 Dec 2015 110.0 108.8 (1.2) 0 0 0 134 134 134 134 134 134 7 One Durango 126 Dec 2015 72.5 30.6 (41.9) 0 0 0 126 126 126 126 126 126 9 Fiesta Americana Pabellon M 177 Q1 2015 425.0 39.0 (386.0) 0 0 0 0 177 177 177 177 177 10 AC by Marriott Guadalajara 188 Q1 2015 246.0 212.3 (33.7) 0 0 0 0 188 188 188 188 188 11 AC by Marriott Queretaro 175 Q1 2015 212.0 146.4 (65.6) 0 0 0 0 175 175 175 175 175 12 FAG Monterrey Trebol 180 Q1 2015 0 0 0 0 180 180 180 180 180 710.0 535.1 (174.9) 13 Live Aqua Monterrey Trebol 74 Q1 2015 0 0 0 0 74 74 74 74 74 13 Sub-total 1,883 2,668 1,593 (1,074.9) 139 283 403 1,089 1,883 1,883 1,883 1,883 1,883 69 FibraHotel Portfolio 9,557 (440.2) 7,813 7,957 8,077 8,763 9,557 9,557 9,557 9,557 9,557 2016/2017 Portfolio 1 Fiesta Inn Lofts Monterrey 48 Q2 2016 48.0 0.5 (47.5) 0 0 0 0 0 48 48 48 48 2 Fiesta Inn Los Mochis 125 Q3 2016 112.5 24.1 (93.8) 0 0 0 0 0 0 125 125 125 3 Fairfield Inn & Suites Vallejo 125 Q3 2016 0 0 0 0 0 0 125 125 125 290.0 95.8 (194.2) 4 Courtyard Vallejo 121 Q3 2016 0 0 0 0 0 0 121 121 121 5 Fairfield Nogales 134 Q3 2016 120.0 10.2 (109.8) 0 0 0 0 0 0 134 134 134 6 Fairfield Cuautitlan 115 Q3 2016 160.0 50.0 (110.0) 0 0 0 0 0 0 115 115 115 7 Select Service Veracruz 165 Q4 2016 188.3 32.6 (155.6) 0 0 0 0 0 0 0 165 165 8 Courtyard Toreo 130 Q4 2016 45.5 0.9 (44.6) 0 0 0 0 0 0 0 130 130 9 Fiesta Inn Via 515 178 2017 0 0 0 0 0 0 0 0 178 335.0 50.0 (285.0) 10 Fiesta Inn Lofts Via 515 108 2017 0 0 0 0 0 0 0 0 108 11 Fiesta Inn Cencali 200 2017 220.0 0.0 (220.0) 0 0 0 0 0 0 0 0 200 11 Sub-total 1,449 1,519 264 (1,260.6) 0 0 0 0 0 48 668 963 1,449 80 FibraHotel Portfolio 11,006 (1,700.8) 7,813 7,957 8,077 8,763 9,557 9,605 10,225 10,520 11,006 6 GICSA 880 (900.0) 0 0 0 0 0 0 0 280 880 86 FibraHotel Portfolio 11,886 (2,600.8) 7,813 7,957 8,077 8,763 9,557 9,605 10,225 10,800 11,886 Notes: Estimated investment and cost per key for developments 25
Pabellon M case study 26
Pabellon M case study Investment criteria Strategic location Downtown Monterrey, inside Pabellon M complex Adequate price and return Leading penetration driven from strong project demand including 30k of offices, conference center for ~3,800 people, auditorium for 4,500 people, and 22k of retail Price per key US$145k High quality and unique assets Landmark hotel in the largest project and 50 level tower in Monterrey, by Agustin Landa New Fiesta Americana hotel design Portfolio diversification Adds exposure to Monterrey and full-service category Pictures of Pabellon M Hotel overview and strategic rationale 177-room full-service hotel located in business downtown district in Monterrey, Nuevo Leon Fiesta Americana hotel operated by Grupo Posadas Leading market penetration from a combination of project specific and market wide demand Budget of Ps. $425mm (US$145k per key) Acquired the structure finished from Pabellon M. Interiors and FF&E executed by FibraHotel through subcontractors Opening Q1 2016, just months after acquiring Hotel location Office Hotel Note: Company estimates 27
Fiesta Inn & Lofts Via 515 case study Investment criteria Strategic location Mexico City on Viaducto, one of the main highways Inside mixed-use project Via 515 Adequate price and return Two hotels with 278 rooms and conference center Price per key <US$75,000 High quality and unique assets Inside mixed use project with 35k of office GLA, 15k of retail GLA and the two hotels Portfolio diversification Expand presence in Mexico City. New location in the east part of the city Continue expanding extended stay segment Renders of Via 515 Hotel overview and strategic rationale 178-room select-service Fiesta Inn hotel and 108-room extended stay Fiesta Inn Lofts hotel Fiesta Inn and Fiesta Inn Lofts hotels operated by Grupo Posadas, looking to leverage local distribution Over 500m2 of meeting space Budget of Ps. $335mm (US$73k per key) Acquired the core and shell of the structure finished from project developer. Interiors and FF&E executed by FibraHotel through subcontractors Estimated for year end 2017 Hotel location in Mexico City 1 3 2 4 1) Mexico City International airport 2) Autódromo Hermanos Rodríguez 3) Palacio de los Deportes 4) México-Puebla highway and Ignacio Zaragoza industrial zone Via 515 project with Fiesta Inn and Fiesta Inn Lofts hotels Note: Company estimates 28
Villahermosa Cencali case study Investment criteria Strategic location Tabasco 2000 area in Villahermosa On 19,200m2 of land. FIHO to develop a new hotel Adequate price and return Strong performance of Posadas hotels in the city Price per key combined of ~US$90k High quality and unique assets In the main business district, and on the Laguna de las Ilusiones Premium land plot to develop Portfolio diversification Operating hotel converted to Fiesta Inn Exposure to the Gulf region and the oil industry Pictures of the Cencali Villahermosa hotel Hotel overview and strategic rationale 339 room hotel complex. Initially a 159-room select-service Fiesta Inn hotel. Additional 200 rooms to be developed Convert an independent hotel to Fiesta Inn First Posadas hotel in Villahermosa (Fiesta Inn had leading penetration in the market in the past) Investment in first phase of Ps. $295mm (US$112k per key including land plot). Full project investment estimated at Ps. 515mm (US$87k per key) Develop a conference center of 1,300m2 New hotel tower expected for 2017 Hotel location Note: Company estimates 29
Devel. Opera. Financing in place to continue growth 13 hotels 1,883 rooms 11 hotels 1,449 rooms 6 hotels 880 rooms 69 hotels 9,557 rooms 86 hotels 11,886 rooms 56 hotels 7,674 rooms Current Operating portfolio + 2015 Portfolio = FibraHotel Operating portfolio by YE 2015 + 2016/2017 development portfolio + GICSA = Portafolio pro-forma 56 hotels 7,674 rooms 5 hotels 695 rooms 69 hotels 9,557 rooms 69 hotels 9,557 rooms 8 hotels 1,188 rooms 11 hotels 1,449 6 hotels 880 17 hotels 2,329 rooms PF cash of + Ps. 650mm Remaining Investment of (-) Ps. 1,100mm PF debt of Ps. (440mm) Remaining Investment of (-) Ps. 1,260mm Remaining Investment of (-) Ps. 900mm PF debt of ~Ps. (2,600mm) Note: Company estimates 30
FibraHotel FibraHotel Service providers Advisor Administrator 31 Strong management team and growth structure Roberto Galante Alberto Galante Simón Galante Eduardo Lopez Chief executive Officer Finance Operations Development Legal Edouard Boudrant Chief Financial Officer José Luis Jacome Chief Operation Officer Guillermo Bravo Head of Dev. / IR Lorena Garcia Head Legal Counsel Team of 7 persons Controllers Treasurer Fixed Assets Administrative Team of 5 persons Operations Maintenance Capex Team of 2 persons Development managers Team of 3 persons Legal counsels
Cacao Playa del Carmen Rebranding case study 32
33 KPIs continue to be solid 2007 / 2015 Quarterly KPIs of 47 stabilized hotels 1,000 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 ADR RevPAR Occupancy 80% 70% 60% 50% 40% 30% 20% 10% 0% 3Q 2015: a 66.2%, occupancy rate, a Ps. 917 ADR, a Ps. 607 RevPAR Occupancy rate: +209bps vs. 3Q 2014 (64.1%) ADR: +3.6% vs. 3Q 2014 (Ps. 885) RevPAR: +7.0% vs. 3Q 2014 (Ps. 567) 3Q 2015 LTM: a 64.2% occupancy rate, a Ps. 925 ADR, a Ps. 594 RevPAR Occupancy Rate: +259bps vs. 3Q 2014 LTM (61.6%) ADR: +3.0% vs. 3Q 2014 LTM (Ps. 898) RevPAR: +7.4% vs. 3Q 2014 LTM (Ps. 553)
34 with positive growth across all regions and segments KPI breakdown per region 47 stabilized hotel portfolio % of 3Q 2014 LTM 3Q 2015 LTM Change y-o-y rooms Occupancy ADR RevPAR Occupancy ADR RevPAR Occupancy ADR RevPAR By region Northwest 23% 59.2% $897 $531 64.2% $911 $585 5.0% 1.5% 10.1% Northeast 13% 57.5% $790 $455 64.2% $845 $543 6.7% 6.9% 19.3% Central and South 54% 64.3% $934 $600 64.6% $966 $624 0.3% 3.5% 4.0% West 9% 57.9% $822 $476 61.7% $831 $513 3.8% 1.1% 7.8% Stabilized Portfolio (47H) 100% 61.6% $898 $553 64.2% $925 $594 2.6% 3.0% 7.4% By segment Limited-Service 22% 58.6% $702 $412 61.6% $730 $450 3.0% 4.0% 9.4% Select-Service 69% 63.2% $934 $590 65.6% $953 $626 2.4% 2.0% 6.0% Full-Service 8% 56.3% $1,097 $618 59.2% $1,203 $713 2.9% 9.6% 15.3% Stabilized Portfolio (47H) 100% 61.6% $898 $553 64.2% $925 $594 2.6% 3.0% 7.4% Results driven by (i) market dynamics (ii) penetration by the brands and operators; and (iii) asset management by FibraHotel Occupancy, ADR and RevPAR y-o-y growth is positive across all regions and categories All regions are above 60% occupancy (most near 65%) The northeast, led by Monterrey, continues to outperform in growth with almost 20% increase in RevPAR On a per segment basis, full service hotels are coming off a lower base and continue to have more room to grow in the near term Occupancy 3Q 2015 # of stabilized hotels with occupancy of: >65% 50%>65% <50% 40% 9% 51%
Key financial indicators 3Q LTM 3Q 2014 LTM 3Q 2015 LTM Var. 47 stabilized properties Occupancy 61.4% 64.2% +259bps ADR RevPAR Ps. 898 Ps. 925 Ps. 553 Ps. 594 +3.0% +7.4% Total Portfolio Total Revenues Ps. 1,394mm Ps. 1,901mm NOI Ps. 458mm Ps. 608mm +36.4% +32.6% EBITDA Margin Per room Ps. 327m 23.5% Ps. 47,092 Ps. 468mm 24.6% Ps. 57,913 +43.0% +115bps +23.0% AFFO Ps. 415mm Ps. 428mm +2.7% Note: Financial information as reported, as of Q3 2015 35
Stabilized properties vs. ramp-up properties # of Rooms 3Q 2015 # of Hotels 3Q 2015 6,298 44 16% 20% 1,176 11 Stab. Ramp-up Stab. Ramp-up During the 2015 January to September period, FibraHotel s managed hotels generated: Ps. 1,392 million of total revenues 89% for stabilized hotels 11% for ramp-up hotels Ps. 419 million of lodging contribution (margin: 30.1%) 91% for stabilized hotels (margin: 30.7%) 9% for ramp-up hotels (margin: 25.3%) Jan-Sep 2015 Financial performance Portfolio Data in thousand of Ps. Total Stabilized Ramp-up # of hotels 55 44 11 # of rooms 7,474 6,298 1,176 Revenues 1,392,248 1,243,391 148,858 Lodging contribution 418,699 381,236 37,698 Margin 30.1% 30.7% 25.3% Lodging Contribution / room $ 56,021 $ 60,533 $ 32,056 +89% Lodging contribution per room of stabilized hotels is almost twice the lodging contribution per room of ramp-up hotels Ps. 60,533 vs. Ps. 32,056 The stabilization of the 11 ramp-up hotels should: Increase lodging contribution: Increase in RevPAR should lead to better results on a same store basis Increase in margins Increase in revenues from RevPAR growth supports margin growth driven from efficiencies of scale and operating leverage at the hotel level Note: Calculations only include managed hotels (e.g. excludes leased hotels). Data from January-September 2015 for illustrative purposes only 36
Operating leverage leading to better margins January to September KPIs January to September Financial performance 61.4% 64.7% 881 896 541 579 1,027 1,111 30.5% 31.7% 314 352 9M 2014 9M 2015 9M 2014 9M 2015 Occupancy: +329bps ADR: +1.7% RevPAR: +7.1% Revenues: +8.2% Lodging contribution: +12.2% Margin: +112bps Same store comparable margin for 9mo 2014 vs. 9mo 2015: 12.2% Lodging Contribution increase 112bps margin expansion Flow Though of 46% e.g. Ps. $100 of additional revenues generates Ps. $46 of additional Lodging Contribution Note: 2014 financial information as reported,, 2015 data presented on a comparable basis (e.g. the same # of hotels is used for each quarter, and thus exclude acquired or recently opened hotels) 37
Successful hotels renovations During 2014 and 2015, FibraHotel made 5 renovations: Fiesta Inn Naucalpan, Camino Real Puebla, Fiesta Inn Culiacan, Fiesta Inn Saltillo, Fiesta Inn Tlalnepantla Each hotel is evaluated for a possible renovation due to the returns on the invested capital coupled with the positioning of the hotel in the market. Benefits include Renew the property competitively in the market and with customers Update to new standards Cost efficiencies (LED, maintenance, etc.) On average, the investment made for full renovation is Ps. 25/30mm Results of renovated properties between 2014 and 2016E 1 Increase in occupancy rate of 302bps Increase in ADR of 18% Increase in RevPAR of 24% Increase in Lodging Contribution of 34% A 307bps margin improvement Revenue Per Available Room +24% $771 $623 2013 2016 Lodging Contribution (Ps. mm) +34% 85.5 63.7 2013 2016 Note: (i) In the beginning of 2014 none of the hotels was renovated, and by the beginning of 2016 all hotels are remodeled 38
AFFO growth notwithstanding cash deployment headwinds AFFO 9M 2014 (Jan-Sep) Cash position in billion of pesos: AFFO 9M 2015 (Jan-Sep) 4.8 4.2 3.6 3.1 2.1 1.9 1.5 0.7 2014 2015 310 27 314 30 40 (72) (22) Hotels NOI: +31.2% (leases excluded) AFFO 2014 Interest income Other M&A Stabilized Ramp-up AFFO 2015 Strong increase in hotels cash flow generation, partially offset by strong cash deployment effort leading to decrease in interest income Note: Other includes increase in CAPEX reserve (-), increase in corporate expenses (-) and increase in lease NOI (+) 39
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Strong balance sheet provides alternatives Debt overview As of Sept. 30 th, 2015, zero debt and Ps. 675mm of cash available (Ps. 849mm including VAT) Two available credit lines with two banks Ps. 1,000mm each Structure overview: Tranche A: revolving / Tranche B: term loan up to 12 years Spread: les than 200bps over TIIE 100% peso funding and repayment 100% floating rate (hedge to be contracted) Mortgage backed with hotels First drawdown in November 2015 Benchmarking of FIBRAs LTV as of 3Q2015 50% 40% 30% 20% 10% 0% MQ Terra FUNO SHOP FINN Danhos FIHO Illustrative maturity schedule with Ps. 2bn (Ps. mm) 600 41% 35% 31% 26% 20% 0% 0% Liquidity overview CL 2 CL 1 Cash ~Ps. 2,850 $1,000 $1,000 $850 Liquidity Pro Forma LTV of 17% with Ps. $2,000mm of debt ~Ps. 2.6bn in liquidity w/ working capital 400 200-179 188 197 207 217 228 239 251 105 110 116 121 127 134 140 147 109 114 71 71 74 78 82 86 90 94 99 104 109 114 Note: Company estimates. FINN is pro-forma for Ps. 1.9bn bond in October as illustrative 40
Milllion of Pesos 41 Cash deployed with leverage < 20% LTV 14,000 Cash positive Debt 12,000 Credit Lines 10,000 Excess cash 8,000 6,000 4,000 2,000-2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Available Cash + VAT Debt Hotels in Operation Development Portfolio