FibraHotel ( FibraHotel ), the first real estate investment trust specialized in business-class hotels in Mexico, announces its financial results and distribution corresponding to the fourth quarter of 2016. Mexico City, February 27 th, 2016 --- FibraHotel (BMV: FIHO 12), the first real estate investment trust specialized in business-class hotels in Mexico, announces its results and distribution corresponding to the fourth quarter of 2016. Except where noted, all figures included herein were prepared in accordance with IFRS and are stated in nominal Mexican pesos. 4 th Quarter 2016 Highlights FibraHotel ended the fourth quarter of 2016 with 85 hotels and 12,023 rooms, including 75 hotels in operation (10,422 rooms) and 10 hotels in development (1,601 rooms). During the quarter, FibraHotel added 415 rooms in operation with the opening of the Fairfield Inn & Suites Nogales, One Cuautitlán and Fiesta Inn Los Mochis. During the fourth quarter, FibraHotel announced the developments of the Live Aqua San Miguel de Allende and Fiesta Americana Tlalnepantla hotels. On a comparable property basis of 56 hotels 1, the average daily rate ( ADR ) was Ps. $1,025, representing an increase of 7.9% versus the fourth quarter of 2015, the occupancy rate was 68.5%, representing an increase of 131bp versus the fourth quarter of 2015 and the revenue per available room ( RevPAR ) was Ps. $702, representing an increase of 10.0% versus the fourth quarter of 2015. For the Total FibraHotel Portfolio of 75 properties, average daily rate was Ps. $1,063, the occupancy rate was 64.1%, and RevPAR was Ps. $681. During the fourth quarter of 2015, RevPAR of the Total FibraHotel Portfolio of 62 properties was Ps. $617. For the Non Stabilized FibraHotel Portfolio of 19 properties, the average daily rate was Ps. $1,248, the occupancy rate was 48.9%, and the RevPAR was Ps. $611. During the third quarter of 2016, for a portfolio of 16 Non Stabilized hotels the same indicators were, respectively, Ps. $1,121, 43.2% and Ps. $484. Total revenues for the quarter were Ps. $770 million. Lodging contribution 2 for the quarter was Ps. $225 million. Adjusted funds from operations ( AFFO ) 3 for the quarter were Ps. $151 million. 1 Includes 47 stabilized properties as of the December 31 st, 2015 plus the following nine hotels: One Monclova, Gamma Ciudad Obregón, Gamma León, Gamma Tijuana, Fiesta Inn Lofts Monclova, Fiesta Inn Lofts Querétaro, Camino Real Hotel & Suites Puebla Fiesta Americana Hermosillo, and Fiesta Inn Monterrey Valle. 2 Lodging contribution equals total revenues (room rental, food and beverage, leasing and other) minus costs and general expenses directly related to the hotel operation, excluding real estate expenses and FibraHotel s administration expenses. Lodging contribution is not an IFRS figure. http://www.fibrahotel.com 1 @FibraHotel
FibraHotel will pay a distribution of Ps. $150 million, equivalent to 30.45 cents (Ps. $0.3045) per CBFI 4. As of December 31 th 2016, FibraHotel had a net cash position of Ps. $449 million, or Ps. $678 million including the reimbursement of VAT, and Ps. $2.697 million in debt. Net debt including recoverable VAT was Ps. $2,019 million. As of December 31 th 2016, total owner s equity was Ps. $9,388 million. For the fourth quarter of 2016 FibraHotel reported a distribution of over 30 cents per CBFI which represents a 22% growth year on year and 12% growth quarter on quarter an annualized dividend yield above 8%. For the full year 2016 the distribution was over one Peso per CBFI. Additionally, during FibraHotel s 4th Investor Day Event, we announced a guidance of AFFO growth above 25% for 2017 which would represent an AFFO above Ps. $1.25 and an AFFO yield above 8.5%. This growth in distribution was driven by several factors (i) the stabilized operating portfolio continues to post solid numbers with 10% y-o-y RevPAR growth from a 7.9% ADR growth and a 131 bps growth in occupancy. For the full year 2016 this portfolio grew RevPAR of comparable properties 12.3% y-o-y, (ii) EBITDA margin of 27% for the fourth quarter due to a continued focus on costs and the benefits of economies of scale, (iii) the progress in stabilizing recently opened hotels. As an example the five fullservice hotels opened in 2016 reached an occupancy rate of 46.5% and a contribution margin of 27.7% for the quarter, and (iv) the opening of hotels under development adding 415 rooms to the operating portfolio. On top of these financial results, during the quarter we added the developments of the Fiesta Americana Tlalnepantla and the Live Aqua San Miguel hotels giving further clarity to the pipeline. Given the changes in the macroeconomic situation we also communicated that the 2018 development projects are currently on hold until we see the proper conditions to continue with these projects. The positive results in the quarter continue proving our business plan which we have been executing since our IPO and is based on maximizing the AFFO per CBFI in the medium term. As I mentioned in the previous quarter, we are in an interesting stage for the Fibra as we now have almost 2,700 million pesos in leverage and a well-defined growth pipeline which is getting us close to finishing our first investment phase and entering a stabilization phase for the portfolio. said Simón Galante, CEO FibraHotel. 3 Adjusted funds from operation is defined as net income plus depreciation plus non-operating adjustments less maintenance Capex reserve of the period. AFFO is not an IFRS figure. 4 Calculated based on the number of outstanding CBFIs as of December 31 th, 2016, excluding the CBFIs issued that are not entitled to receive distributions until such properties are in operation. http://www.fibrahotel.com 2 @FibraHotel
FibraHotel s portfolio as of February 27 th, 2017 FibraHotel s portfolio Hotel # room 1 Fiesta Inn Culiacán 146 2 Fiesta Inn Durango 138 3 One Monterrey 126 4 One Acapulco 126 5 One Toluca 126 6 One Coatzacoalcos 126 7 Fiesta Inn Tepic 139 8 One Aguascalientes 126 9 Fiesta Inn Hermosillo 155 10 One Culiacán 119 11 Fiesta Inn Ecatepec 143 12 Fiesta Inn Perinorte 127 13 Fiesta Inn Nuevo Laredo 120 14 Fiesta Inn Naucalpan 119 15 Fiesta Inn Cuautitlán 128 16 Fiesta Inn Perisur 212 17 Camino Real Puebla 153 18 Fiesta Inn Chihuahua 152 19 Fiesta Inn Guadalajara 158 20 One Querétaro 126 21 Fiesta Inn Aguascalientes 125 22 Fiesta Inn Monterrey 161 23 Fiesta Inn Querétaro 175 24 Fiesta Inn Saltillo 149 25 One Patriotismo 132 26 Fiesta Inn Cd. Juárez 166 27 Fiesta Inn Mexicali 150 28 Fiesta Inn León 160 29 Fiesta Inn Monclova 121 30 Fiesta Inn Torreón 146 31 Real Inn Morelia 155 32 Camino Real Suites Puebla 121 33 One Tapatío 126 59 27 40 75 15 12 84 14 38 45 46 25 Operating 78 hotels 10,812 rooms 80 74 74 75 16 63 72 9 79 51 56 11 Mexico City 57 66 18 1 10 26 2 70 In 26 states 41 42 29 30 24 60 13 3 Total 85 hotels 11,023 rooms 82 76 73 64 20 38 69 47 7 58 8 21 34 36 17 78 28 53 83 84 19 33 32 37 61 5 39 31 48 49 54 55 67 68 81 71 77 50 6 4 35 22 43 44 23 52 62 56 stabilized hotels with 7,890 rooms 22 hotels in ramp-up period with 2,922 rooms 7 hotels under development with 1,211 rooms 65 FibraHotel s portfolio Hotel # room 34 Fiesta Inn Puebla Finsa 123 35 Fiesta Inn Oaxaca 145 36 One Puebla Finsa 126 37 Real Inn Guadalajara 197 38 Fiesta Inn Tlalnepantla 131 39 Fiesta Inn Toluca Tollocan 144 40 Real Inn Mexicali 158 41 Fiesta Inn Lofts Monclova 37 42 One Monclova 66 43 Grand Fiesta Americana Monterrey 180 44 Live Aqua Monterrey 74 45 Courtyard Vallejo 125 46 Fairfield Inn Vallejo 121 47 Fiesta Americana Aguascalientes 192 48 Fiesta Inn Xalapa 119 49 One Xalapa 126 50 Fairfield Inn Villahermosa 134 51 Fiesta Inn Cd. Obregon 141 52 Fiesta Inn Lofts Querétaro 50 53 Gamma León 159 54 Courtyard Cd. Del Carmen 133 55 Fiesta Inn Lofts Cd. Del Carmen 120 56 Gamma Valle Grande 135 57 Fairfield Inn Los Cabos 128 58 Fiesta Inn San Luis Potosi Oriente 140 59 Gamma Tijuana 140 60 Fairfield Inn Saltillo 139 61 AC Torre Americas Guadalajara 188 62 AC Antea Querétaro 175 63 One Perisur 144 64 Sheraton Ambassador Monterrey 229 65 Live Aqua Boutique Playa del Carm 60 66 Fiesta Inn Los Mochis 125 67 Fiesta Inn Cuernavaca 155 68 One Cuernavaca 125 69 Fairfield Inn & Suites Juriquilla 134 70 One Durango 126 71 Aloft Veracruz 166 72 Fairfield Inn & Suites Nogales 134 73 Fiesta Inn Lofts Monterrey 48 74 Fiesta Americana Viaducto 255 75 One Cuautitlan 156 76 Fiesta Americana Pabellon M 178 77 Fiesta Inn Villahermosa 159 78 Fiesta Inn Puerto Vallarta 144 79 Fiesta Americana Hermosillo 220 80 Fiesta Inn Buenavista 129 81 Full Service Villa del Mar Veracruz 173 82 Fiesta Inn Monterrey Valle 177 83 Live Aqua San Miguel de Allende 134 84 Fiesta Americana Tlalnepantla 224 85 Courtyard Toreo 130 Note: Shaded gray properties represent under development, green represents non-stabilized properties Additional portfolio information: On November 1 st 2016, FibraHotel announced the development of the Live Aqua San Miguel de Allende, adding 134 full-service rooms to the development portfolio. On November 8 th 2016, FibraHotel announced the opening for the Fairfield Inn & Suites by Marriott Nogales, adding 134 limited-service rooms in operation. On November 17 th 2016, FibraHotel announced the opening of the One Cuautitlán in Mexico City, adding 156 limited-service rooms in operation. On November 17 th 2016, FibraHotel announced the development of the Fiesta Americana Tlalnepantla, inside the mixed-use project Sentura Tlalnepantla in Mexico City. The hotel added 224 full-service rooms to the development portfolio. On December 5 th 2016, FibraHotel announced the opening of Fiesta Inn Los Mochis, inside the Paseo Los Mochis shopping mall, adding 125 select-service rooms in operation. http://www.fibrahotel.com 3 @FibraHotel
At the date of this report, the Courtyard by Marriott Vallejo and the Fairfield Inn & Suites by Marriott Vallejo are in pre-operation and waiting for the final operating license. We expect the hotels to open to the public shortly hereafter. FibraHotel restructured the Viaducto Via 515 development with a more attractive project. The development will now have one Fiesta Americana hotel with 255 full-service rooms instead of a Fiesta Inn and Fiesta Inn Lofts hotels. The budget for this development was updated for this change, and it also removes one hotel and 31 rooms from the development portfolio. During the quarter FibraHotel finished the repositioning of the Fiesta Americana Hermosillo and the Lat 20 Playa del Carmen was rebranded as Live Aqua Boutique Playa del Carmen. Development portfolio: As of February 27 th, 2016, FibraHotel had 7 hotels in different stages of development plus other projects yet to be announced. It is important to mention that during FibraHotel s 4 th Investor Day event we announced the stoppage of the 2018 development projects including the Full Service Veracruz, Fiesta Americana Viaducto, Fiesta Americana Tlalnepantla and Live Aqua San Miguel until the macroeconomic situation is right for continuing with these projects. As such, we are eliminating an estimated opening date for these projects and we note that only a portion of the remaining investment will have to be made until the projects are restarted: Expected Number of Investment by FibraHotel (Ps. $ millions) Hotel State termination date rooms under Invested as of Total construction December 31 2017 Remaining* 1 Aloft Veracruz Veracruz 2H 2017 166 170.0 102.1 67.9 2 Fiesta Inn Buenavista Ciudad de México 2H 2017 129 185.0 72.0 113.0 3 Courtyard Toreo Ciudad de México 2017 130 45.5-45.5 4 Fiesta Americana Viaducto (VIA 515) Ciudad de México TBD 255 600.0 100.9 499.1 5 Full Service Villa del Mar Veracruz Veracruz TBD 173 275.0 36.8 238.2 6 Live Aqua San Miguel de Allende Guanajuato TBD 134 550.0 137.4 412.6 7 Fiesta Americana Tlalnepantla Ciudad de México TBD 224 475.0 87.8 387.2 Otros incluyendo GICSA Varios 189.7 Total 1,211 2,300.5 726.7 1,763.5 *Until the projects are restarted FibraHotel will only have to invest a portion of the remaining investment - Aloft Veracruz: The 166-room select-service hotel in Boca del Río Veracruz will be operated by Starwood. After the Starwood/Marriott merger FibraHotel is analyzing the best brand alternative. The hotel structure is finished and the façade and civil works have 75% progress. The estimated opening is the second half of 2017. http://www.fibrahotel.com 4 @FibraHotel
- Fiesta Inn Forum Buenavista: The 129-room select-service hotel is located inside GICSA s Forum Buenavista shopping center will be operated by Grupo Posadas. The steel structure is in process and the development is about to start façade and civil works. The estimated opening for the hotel is in the second half of 2017. - Courtyard Toreo: The 130-room select-service hotel is located in Mexico City and will be operated by Marriott International. The hotel s structure is finished and the façade is currently in progress. We are reviewing this project based on the current macroeconomic conditions and we expect to open the hotel during 2017. - Full-Service Villa del Mar Veracruz: The 173-room full-service hotel with brand and operator to be announced is located inside Artha Capital s Villa del Mar Veracruz mixed-use project. The development is currently in the structure phase of the shopping center and about to start the transfer slab to the hotel. This project is currently on hold and at this point will advance until the structure and façade are finished. - Fiesta Americana Viaducto Via 515: The 255-room full-service Fiesta Americana hotel will be located inside the Via 515 mixed-use project in Mexico City. The project is in the foundation process. This project is currently on hold and at this point will advance until the structure and façade are finished. - Live Aqua San Miguel de Allende: The 134-room full-service Live Aqua San Miguel hotel is located in the Historic Center of San Miguel de Allende and will be operated by Grupo Posadas. The hotel will be part of a project with residential, hotel, cultural and ecological components. Part of the structure is complete and this project is currently on hold. - Fiesta Americana Tlalnepantla: The 224-room full-service hotel with will be located inside the Sentura Tlalnepantla mixed-use project in Mexico City and will be operated by Grupo Posadas. The development is currently in the structure phase of the shopping center. This project is currently on hold and at this point will advance until the structure and façade are finished. http://www.fibrahotel.com 5 @FibraHotel
Illustrative non-stabilized portfolio of full service hotels As part of its investment process, FibraHotel has added a significant number of developed rooms to its portfolio during 2015 and 2016. These hotels are currently in their stabilization period and therefore their contribution to quarterly results does not show their real potential for generating cash flow. FibraHotel selected a sample of its five largest development hotels opened during 2016 to illustratively show their operating trends. This is an illustrative portfolio and only a portion of the Ps. 2,768mm in investments in non-stabilized hotels, or over 25% of FibraHotel s properties. The see more detail on the entire non-stabilized portfolio please refer to pages 9 and 10 of this document. Portfolio Summary: The portfolio is composed of five full-service hotels developed by FibraHotel and opened during 2016. These hotels represent over Ps. $1,500 million invested or over 14% of FibraHotel s total assets. Ilustrative non-stabilized portfolio of full service hotels Hotel Opening date Rooms Investment (Ps. mm) Operator AC by Marriott Antea Queretaro March 2016 175 $212.0 Marriott Fiesta Americana Pabellon M April 2016 178 $425.0 Posadas AC by Marriott Guadalajra June 2016 188 $246.0 Marriott Grand Fiesta Americana Monterrey Valle June 2016 180 Posadas $710.0 Live Aqua Monterrey Valle June 2016 74 Posadas Sub-total Portafolio 795 $1,593.0 Portfolio s Results: During the fourth quarter of 2016 the illustrative portfolio of non-stabilized full service hotels showed an occupancy rate of 46.5%, an ADR of Ps. $1,865 a RevPAR of Ps. $867 and a lodging contribution of Ps. $22.6 million. In the chart below you see the monthly occupancy and lodging contribution trends and we can see that: (i) the KPI s are growing in line with expectations, (ii) the lodging contribution is still marginal (less than 10% of overall lodging contribution for the quarter), but the margins are reaching interesting levels (27.7%) for the hotels of recent opening. Contribution Occupancy 60% 20% $0-20% Dec Nov Oct Sep Ago Jul Jun May April http://www.fibrahotel.com 6 @FibraHotel
FibraHotel s Portfolio as of December 31 th, 2016 Hotels in operation Hotel State Rooms Operator Brand Segment Selected-Service Hotels - Managed 1 Fiesta Inn Aguascalientes Aguascalientes 125 Grupo Posadas Fiesta Inn Selected-Service 2 Fiesta Inn Ciudad Juárez Chihuahua 166 Grupo Posadas Fiesta Inn Selected-Service 3 Fiesta Inn Ciudad Obregón Sonora 141 Grupo Posadas Fiesta Inn Selected-Service 4 Fiesta Inn Chihuahua Chihuahua 152 Grupo Posadas Fiesta Inn Selected-Service 5 Fiesta Inn Cuernavaca Morelos 155 Grupo Posadas Fiesta Inn Selected-Service 6 Fiesta Inn Culiacán Sinaloa 146 Grupo Posadas Fiesta Inn Selected-Service 7 Fiesta Inn Durango Durango 138 Grupo Posadas Fiesta Inn Selected-Service 8 Fiesta Inn Ecatepec State of Mexico 143 Grupo Posadas Fiesta Inn Selected-Service 9 Fiesta Inn Guadalajara Expo Jalísco 158 Grupo Posadas Fiesta Inn Selected-Service 10 Fiesta Inn Hermosillo Sonora 155 Grupo Posadas Fiesta Inn Selected-Service 11 Fiesta Inn León Guanajuato 160 Grupo Posadas Fiesta Inn Selected-Service 12 Fiesta Inn Mexicali BCN 150 Grupo Posadas Fiesta Inn Selected-Service 13 Fiesta Inn Los Mochis Sinaloa 125 Grupo Posadas Fiesta Inn Selected-Service 14 Fiesta Inn Monclova Coahuila 121 Grupo Posadas Fiesta Inn Selected-Service 15 Fiesta Inn Monterrey La Fe Nuevo Leon 161 Grupo Posadas Fiesta Inn Selected-Service 16 Fiesta Inn Monterrey Valle Nuevo Leon 177 Grupo Posadas Fiesta Inn Selected-Service 17 Fiesta Inn Naucalpan State of Mexico 119 Grupo Posadas Fiesta Inn Selected-Service 18 Fiesta Inn Nuevo Laredo Tamaulipas 120 Grupo Posadas Fiesta Inn Selected-Service 19 Fiesta Inn Oaxaca Oaxaca 145 Grupo Posadas Fiesta Inn Selected-Service 20 Fiesta Inn Perinorte (1) State of Mexico 127 Grupo Posadas Fiesta Inn Selected-Service 21 Fiesta Inn Puebla FINSA Puebla 123 Grupo Posadas Fiesta Inn Selected-Service 22 Fiesta Inn Querétaro Querétaro 175 Grupo Posadas Fiesta Inn Selected-Service 23 Fiesta Inn Saltillo Coahuila 149 Grupo Posadas Fiesta Inn Selected-Service 24 Fiesta Inn San Luis Potosí Oriente San Luis Potosí 140 Grupo Posadas Fiesta Inn Selected-Service 25 Fiesta Inn Tepic Nayarit 139 Grupo Posadas Fiesta Inn Selected-Service 26 Fiesta Inn Tlalnepantla State of Mexico 131 Grupo Posadas Fiesta Inn Selected-Service 27 Fiesta Inn Torreón Galerías Coahuila 146 Grupo Posadas Fiesta Inn Selected-Service 28 Fiesta Inn Toluca Tollocan State of Mexico 144 Grupo Posadas Fiesta Inn Selected-Service 29 Fiesta Inn Villahermosa Tabasco 159 Grupo Posadas Fiesta Inn Selected-Service 30 Fiesta Inn Xalapa Veracruz 119 Grupo Posadas Fiesta Inn Selected-Service 31 Real Inn Guadalajara Centro (1) Jalisco 197 Grupo Real Turismo Real Inn Selected-Service 32 Real Inn Morelia Michoacan 158 Grupo Real Turismo Real Inn Selected-Service 33 Real Inn Mexicali (1) BCN 155 Grupo Real Turismo Real Inn Selected-Service 34 Gamma Ciudad Obregón Sonora 135 Grupo Posadas Gamma Selected-Service 35 Gamma León Guanajuato 159 Grupo Posadas Gamma Selected-Service 36 Gamma Tijuana (1) BCN 140 Grupo Posadas Gamma Selected-Service 37 Courtyard Ciudad del Carmen Campeche 133 Marriott Int'l Courtyard Selected-Service Sub Total 5,386 Limited-Service Hotels - Managed 38 One Acapulco Costera (1) Guerrero 126 Grupo Posadas One Limited-Service 39 One Aguascalientes Sur (1) Aguascalientes 126 Grupo Posadas One Limited-Service 40 One Coatzacoalcos Forum Veracruz 126 Grupo Posadas One Limited-Service 41 One Cuautitlan Estado de México 156 Grupo Posadas One Limited-Service 42 One Cuernavaca Morelos 125 Grupo Posadas One Limited-Service 43 One Culiacán Forum Sinaloa 119 Grupo Posadas One Limited-Service 44 One Durango Durango 126 Grupo Posadas One Limited-Service 45 One Guadalajara Tapatío Jalisco 126 Grupo Posadas One Limited-Service 46 One Monclova Coahuila 66 Grupo Posadas One Limited-Service 47 One Monterrey Aeropuerto (1) Nuevo León 126 Grupo Posadas One Limited-Service 48 One Puebla FINSA Puebla 126 Grupo Posadas One Limited-Service 49 One Querétaro Plaza Galerías Querétaro 126 Grupo Posadas One Limited-Service 50 One Toluca Aeropuerto State of Mexico 126 Grupo Posadas One Limited-Service 51 One Ciudad de México Patriotismo Mexico City 132 Grupo Posadas One Limited-Service 52 One Perisur Mexico City 144 Grupo Posadas One Limited-Service 53 One Xalapa Veracruz 126 Grupo Posadas One Limited-Service 54 Fairfield Inn & Suites Juriquilla Querétaro 134 Marriott Int'l Fairfield Inn Limited-Service 55 Fairfield Inn Los Cabos BCS 128 Marriott Int'l Fairfield Inn Limited-Service 56 Fairfield Inn & Suites Nogales Sonora 134 Marriott Int'l Fairfield Inn Limited-Service 57 Fairfield Inn & Suites Saltillo Coahuila 139 Marriott Int'l Fairfield Inn Limited-Service 58 Fairfield Inn & Suites Villahermosa Tabasco 134 Marriott Int'l Fairfield Inn Limited-Service Sub Total 2,671 Full-Service Hotels - Managed 59 Fiesta Americana Aguascalientes (1) Aguascalientes 192 Grupo Posadas Fiesta Americana Full-Service 60 Fiesta Americana Hermosillo (2) Sonora 220 Grupo Posadas Fiesta Americana Full-Service 61 Fiesta Americana Pabellón M Nuevo León 178 Grupo Posadas Fiesta Americana Full-Service 62 Grand Fiesta Americana Monterrey Valle Nuevo León 180 Grupo Posadas Grand Fiesta Americana Full-Service 63 Live Aqua Monterrey Valle Nuevo León 74 Grupo Posadas Live Aqua Full-Service 64 Camino Real Puebla Puebla 153 Grupo Real Turismo Camino Real Full-Service 65 Sheraton Ambassador Monterrey (1) Nuevo León 229 Starwood Sheraton Full-Service 66 AC by Marriott Querétaro Querétaro 175 Marriott Int'l AC by Marriott Full-Service 67 AC by Marriott Guadalajara Jalisco 188 Marriott Int'l AC by Marriott Full-Service Sub Total 1,589 Full-Service / Extended-Stay Hotels - Managed 68 Camino Real Hotel & Suites Puebla Puebla 121 Grupo Real Turismo CR Hotel & Suites Extended-Stay 69 Fiesta Inn Lofts Ciudad del Carmen Campeche 120 Grupo Posadas Fiesta Inn Lofts Extended-Stay 70 Fiesta Inn Lofts Monclova Coahuila 37 Grupo Posadas Fiesta Inn Lofts Extended-Stay 71 Fiesta Inn Lofts Monterrey la Fe Nuevo Leon 48 Grupo Posadas Fiesta Inn Lofts Extended-Stay 72 Fiesta Inn Lofts Querétaro Querétaro 50 Grupo Posadas Fiesta Inn Lofts Extended-Stay Sub Total 376 Leased Hotels 73 Fiesta Inn Cuautitlan State of Mexico 128 Grupo Posadas Fiesta Inn Selected-Service 74 Fiesta Inn Perisur Mexico City 212 Grupo Posadas Fiesta Inn Selected-Service 75 Live Aqua Playa del Carmen (2) Quintana Roo 60 Grupo Posadas Lat20 by Live Aqua Full-Service Sub Total 400 Total Operating Hotels as of September 30, 2016 10,422 (1) Includes retail component (2) Hotel in renovation process during the quarter In blue: non stabilized hotels http://www.fibrahotel.com 7 @FibraHotel
Selected quarterly information The following table shows the main financial indicators for the last quarters 5 : (In thousand pesos except per CBFI data) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Year 2016 Total revenues 533,516 635,322 696,070 770,097 2,635,004 Revenues - Managed hotels 514,921 617,697 674,189 748,388 2,555,196 % of total revenues 96.5% 97.2% 96.9% 97.2% 97.0% Lodging contribution 165,387 201,486 221,121 255,440 843,433 Margin 31.0% 31.7% 31.8% 33.2% 32.0% Lodging contribution - Managed hotels 146,792 183,861 199,240 234,006 763,899 Margin 28.5% 29.8% 29.6% 31.3% 29.9% Net Operating Income 156,814 193,383 211,422 247,904 809,523 Margin 29.4% 30.4% 30.4% 32.2% 30.7% EBITDA 118,324 154,320 172,927 210,749 656,320 Margin 22.2% 24.3% 24.8% 27.4% 24.9% Consolidated net (loss) income 57,093 47,098 59,452 50,247 213,890 Margin 10.7% 7.4% 8.5% 6.5% 8.1% Funds From Operation 115,111 111,617 128,259 155,834 510,820 FFO / CBFI with economic rights 0.2329 0.2258 0.2595 0.3153 1.0335 Adjusted Funds From Operation 92,363 118,926 131,604 150,722 493,614 AFFO / CBFI with economic rights 0.1869 0.2406 0.2663 0.3049 0.9987 Distribution 98,981 119,008 134,746 150,485 503,220 Distribution / CBFI with economic rights 0.2003 0.2408 0.2726 0.3045 1.0181 Financial Debt 1,395,933 1,611,333 2,513,600 2,697,030 2,697,030 Net Debt 603,260 1,068,716 1,652,586 2,248,202 2,248,202 Net Debt / LTM EBITDA 1.2 x 2.0 x 2.8 x 3.4 x 3.4 x Loan to Value 12.4% 14.1% 20.4% 21.7% 21.7% 5 Lodging Contribution, NOI, EBITDA, FFO and AFFO are not IFRS figures. http://www.fibrahotel.com 8 @FibraHotel
Results for the fourth quarter of 2016 FibraHotel started the quarter with 72 hotels in operation and ended the quarter with 75 hotels in operation thanks to the opening of the Fairfield Inn & Suites Nogales, One Cuautitlán and Fiesta Inn Los Mochis. Total Revenues During this period, FibraHotel s total revenues were Ps. $770 million: Ps. $597 million of room rentals (77.6% of total revenues). Ps. $138 million of food and beverage (18.0% of total revenues). Ps. $22.6 million for the lease of (i) three hotels 6 and (ii) retail and other leases in hotel properties (combined, 2.9% of total revenues). Ps. $11.7 million (1.5% of total revenues) corresponded to other revenues. Compared with the fourth quarter of 2015, total revenues increased by 39.1%. Costs and General Expenses During this period, FibraHotel s costs and general expenses were Ps. $515 million: Ps. $309 million of administrative costs and expenses including the payment of the operators fees (60.1% of costs and general expenses). Ps. $120 million of room expenses (23.4% of costs and general expenses). Ps. $85.0 million of food and beverage expenses (16.5% of costs and general expenses). Lodging Contribution Lodging contribution was Ps. $255 million, representing 33.2% of total revenues: Ps. $234 million corresponded to managed hotels (the margin was 31.3%, versus 31.9% for the fourth quarter of 2015, even with a larger number of hotels in ramp-up period during the third quarter of 2016). It is noteworthy that, on one hand, the margin of stabilized hotels was 32.1% and on other hand, hotels in ramp-up period generated positive cashflow. Lodging contribution of Ps. $234 million is split between (i) stabilized hotels, (ii) hotels in ramp-up period and (iii) hotels under development as follows: 6 Leased hotels for the quarter are Fiesta Inn Cuautitlán, Fiesta Inn Perisur and Lat20 by Live Aqua. http://www.fibrahotel.com 9 @FibraHotel
Ps. $ thousand Stabilized Ramp-up Development Total Hotel properties, furniture and equip. 7,423,437 3,338,243 1,396,599 12,158,280 % of total 61.1% 27.5% 11.5% 100.0% Managed hotels revenues 605,386 143,003 0 748,388 % of managed hotels total revenues 80.9% 19.1% n.a. 100.0% Managed hotels lodging contribution 195,964 38,042 0 234,006 Margin 32.4% 26.6% n.a. 31.3% The Hotel properties, furniture and equip. item corresponds to non-depreciated asset value of managed hotels, as they appear in the balance sheet as of December 31 th, 2016, excluding the three leased hotels (Fiesta Inn Perisur, Fiesta Inn Cuautitlán and Lat20 by Live Aqua). Ps. $21.4 million corresponded to leases and other revenues (100% margin). Compared with the fourth quarter of 2015, the lodging contribution increased by 35.0%. The following table and graph present the evolution of non-stabilized managed hotels revenues and contribution during 2016: Ps. $ thousand 1Q 2016 2Q 2016 3Q 2016 4Q 2016 2016 YTD Non stabilized managed hotels revenues 35,216 63,448 104,633 142,923 346,220 % of total managed hotels revenues 6.8% 10.3% 15.5% 19.1% 11.2% Non stabilized managed hotels contribution 2,318 5,808 20,350 38,042 66,518 Margin 6.6% 9.2% 19.4% 26.6% 19.2% % of total managed hotels contribution 1.6% 3.2% 10.2% 16.3% 8.7% Non stabilized hotels: revenues / contribution trend $104.6 19.4% $143.0 26.6% $63.4 $35.2 9.2% 6.6% $2.3 $5.8 $20.3 $38.0 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Revenues Contribution Margin It s worth mentioning that during the first half of 2016, FibraHotel opened five full-service hotels, the AC by Marriott Querétaro, Pabellón M, AC by Marriott Guadalajara, Grand Fiesta Americana Monterrey Valle and Live Aqua Monterrey Valle together representing the largest development investment by FibraHotel. During the fourth quarter of 2016, these five hotels had a 46.5% occupancy rate, a Ps. $1,865 ADR and a Ps. $867 RevPAR, and contributed Ps. $22.6 million to the lodging contribution with a 27.7% margin. As these hotels ramp-up and get stabilized, cash flow generation should increase. http://www.fibrahotel.com 10 @FibraHotel
Operating Profit Other operating expenses of Ps. $150 million consisted of: (i) real estate expenses of Ps. $7.5 million; (ii) administrative expenses of Ps. $10.9 million; (iii) advisory fee of Ps. $26.3 million; and (iv) depreciation of Ps. $106 million. The operating profit was Ps. $105 million, or 13.7% of total revenues. Compared with the fourth quarter of 2015, the operating profit increased by 38.5%. Adjusted Operating Profit During the fourth quarter, FibraHotel had Ps. $28.6 million of non-operating expenses, which corresponded mainly to pre-opening expenses related to recently opened hotels (Ps. $18.3 million), expenses related to developing hotels such as franchise fees, various legal fees and appraisals among others, and expenses related to mortgage guarantees. The adjusted operating profit was Ps. $76.5 million. Compared with the fourth quarter of 2015, the operating profit increased by 115.7%. Comprehensive Financial Cost FibraHotel ended the quarter with a net debt position of Ps. $2,248 million and a total indebtedness amounting to Ps. $2,697 million. During the quarter, the debt position generated a financing cost of Ps. $45.3 million. In accordance with the IFRS, financing costs related to development projects are capitalized as part of the investment in each project. During the fourth quarter of 2016, approximately 51.7% of the indebtedness was linked with development projects, therefore Ps. $23.9 million of interests were capitalized (the actual interest payment was made with the cash available for development). Once each development is open, its interest expense will stop being capitalized and the expense will be part of the profit and loss statement, in accordance with the IFRS. Consolidated Net Income During the quarter, the comprehensive financial cost was (Ps. $23.6 million), of which (Ps. $5.9 million) correspond to fees related with the Banorte credit line drawdown. Adjusted funds from operation ( AFFO ) 7 During the fourth quarter of 2016, FibraHotel generated adjusted funds from operation of Ps. $151 million: 7 FFO and AFFO are not IFRS figures. http://www.fibrahotel.com 11 @FibraHotel
Ps. $ thousand 4Q 2016 4Q 2015 Variation Consolidated net (loss) income 50,247 32,746 53.4% (+) Depreciation 105,587 69,651 Funds From Operation 155,834 102,397 52.2% (-) Maintenance CAPEX (39,676) (27,589) (+) Non operating result adjustments 34,565 40,453 Adjusted Funds From Operation 150,722 115,261 30.8% Note: Non-operating adjustments refer mainly to one-time expenses related to hotel acquisitions and developments including transaction taxes, appraisals, and technical audits among others. Cash flow and liquidity position During the fourth quarter of 2016, FibraHotel had the following key cash flow items: FibraHotel had a net operating cash flow excluding investment activities of Ps. $159 million. Taking into account the cash flow related to investment activities, such as nonoperating expenses, payment and reimbursement of VAT related acquisitions / developments, among others, the net cash flow from operations was Ps. $69.5 million. The net cash flow from investment activities was a negative (Ps. $558 million), mainly due to: (i) payments from properties under development of (Ps. $497 million), (ii) capital expenditures during the quarter of (Ps. $66.7 million), and (iii) interest generated from our cash position of Ps. $3.9 million. Payments related to development portfolio are as follows: o Live Agua San Miguel de Allende: Ps. $97.7 million. o Fiesta Americana Tlalnepantla: Ps. $87.6 million. o Fiesta Inn Puerto Vallarta: Ps. $68.5 million. o Via 515, Viaducto, Mexico City: Ps. $47.5 million. o Vallejo Project: Ps. $44.5 million. o One Cuautitlan: Ps. $24.5 million. o Aloft Veracruz: Ps. $22.6 million. o Fiesta Inn Los Mochis: Ps. $21.9 million. The net cash flow from financing activities was Ps. $76.1 million, mostly related to the drawdown of the credit lines for Ps. $183 million, the payment of the distribution of the third quarter of 2016 (Ps. $135 million) and the acquisition of a derivate instrument (Ps. $27.4 million). http://www.fibrahotel.com 12 @FibraHotel
Financial position FibraHotel ended the fourth quarter of 2016 with: A net cash position including recoverable VAT of Ps. $678 million (VAT recoverable totaled Ps. $229 million). Excluding recoverable VAT, FibraHotel had a cash position of Ps. $449 million compared to Ps. $861 million as of September 30 th, 2016. Ps. $2,697 million in debt. As of September 30 th, 2016 FibraHotel had Ps. $2,514 million in debt. Net debt position (including recoverable VAT) was Ps. $2,019 million. Approximately Ps. $302 million of available credit lines The following table presents a detailed status of FibraHotel s cash position: Ps. $ thousand 4Q 2016 Comment Cash, cash equivalents and restricted cash 448,828 Available cash and cash equiv. - Operation Restricted cash and cash equiv. - Operation Available cash and cash equiv. - Investment 207,725 Hotels' working capital 56,294 Available for maintenance CapEx 184,809 Cash available for investment Cash position without restricted cash 392,534 The following table presents a detailed status of FibraHotel s debt position: Ps. $ thousand 4Q 2016 Currency Interest rate Maturity BBVA Bancomer 178,964 MXN TIIE 28d + 150bps oct-27 BBVA Bancomer 123,133 MXN TIIE 28d + 150bps oct-27 BBVA Bancomer 153,400 MXN TIIE 28d + 150bps oct-27 BBVA Bancomer 202,400 MXN TIIE 28d + 150bps nov-27 BBVA Bancomer 341,067 MXN TIIE 28d + 150bps nov-27 Banorte 1 1,000,000 MXN TIIE 91d + 125bps* oct-24 Banorte 2 698,067 MXN TIIE 91d + 130bps** jul-26 Total debt position 2,697,030 * In November 2016, the spread will increase to 200bps ** The spread will increase to 200bps in September 2018 and to 250bps in Septmber 2021 http://www.fibrahotel.com 13 @FibraHotel
The following table presents a detailed of the debt payment schedule of FibraHotel s debt position (in Ps. $ thousand): Year Payment % 2017 98,288 3.6% 2018 102,149 3.8% 2019 195,977 7.3% 2020 200,097 7.4% 2021 306,790 11.4% 2021 and after 1,793,729 66.5% Total 2,697,030 100.0% As of December 31 th, 2016, and according to our credit contracts, FibraHotel contracted several derivative instruments in order to cover the variation of the TIIE rate, 74% of FibraHotel s debt is covered. The instruments cost were paid up-front, and they have a 5-year maturity with the following characteristics: Ps. $ thousand Disposal Type Strike Limit BBVA Bancomer 657,897 Cap Spread 5.0% 9.0% BBVA Bancomer 341,067 Cap Spread 5.0% 7.0% Banorte 1 1,000,000 Cap 6.0% Non covered 698,067 http://www.fibrahotel.com 14 @FibraHotel
Regulation applicable to FIBRAs Leverage level FibraHotel ended the fourth quarter of 2016 with a Ps. $2,697 million indebtedness and total assets value of Ps. $12,439 million, resulting in a 21.7% leverage level (LTV). Please note that FibraHotel s trust agreement establishes a maximum leverage of 40%, while the regulation for FIBRAs in general establishes a maximum leverage of 50%. Debt service coverage ratio As of December 31 th, 2016, the debt service coverage ratio for FibraHotel was 1.64x, complying with the required regulation of >1.0x. For FibraHotel, the estimated obligations correspond to: (i) debt service (principal and interests); (ii) capital expenditures (maintenance CapEx in hotels); y (iii) non-discretionary capital expenditures (developments), and available resources correspond to: (i) cash and cash equivalents (excluding restricted cash); (ii) VAT receivable; (iii) Operating result after distribution payment (including depreciation and interest income); and (iv) available credit facilities. Metrics used are as follows: Obligations: o Debt service: Ps. $390 million. o Estimated capital expenditures (maintenance): Ps. $265 million. o Estimated non-discretionary capital expenditures: Ps. $287 million 8. Available resources: o Cash and cash equivalents (excluding restricted cash): Ps. $392 million. o VAT recoverable: Ps. $229 million. o Estimated operating result after distribution payment (including depreciation and interest s income): Ps. $655 million. o Available credit facilities: Ps. $302 million. 8 Out of the Ps. $1,453 million to be invested in development, some projects are discretionary and are not included in the calculation and the calculation also takes into account the remaining remodeling CAPEX commitment of the Fiesta Americana Hermosillo hotel. http://www.fibrahotel.com 15 @FibraHotel
Capital Expenditures ( CapEx ) As of December 31 th, 2016, the available maintenance capital expenditures reserve was Ps. $56.3 million compared with Ps. $44.9 million as of September 30 st, 2016. The capital expenditure reserve is generated to maintain the standards of our hotels in operation and is constituted on a monthly basis based on percentage of total revenues. During the fourth quarter of 2016, FibraHotel had the following relevant capital expenditures: Maintenance CapEx: Ps. $30.7 million. CapEx investment in hotel repositioning: FibraHotel constantly analyzes opportunities to make capital investments in hotels which have an opportunity to increase cash flows. During the fourth quarter of 2016, FibraHotel invested Ps. $35.8 million in renovation and repositioning CapEx. Renovation CapEx was mainly invested in the following hotels: o o Fiesta Americana Hermosillo: (i) improvements in rooms, (ii) improvements in hallways, and (iii) improvements in common areas. The project has a budget of Ps. $85.0 million of which Ps. $70.6 million has been invested as of December 31 th, 2016 (Ps. $23.5 million during the fourth quarter). Sheraton Ambassador Monterrey: (i) Improvements in rooms, (ii) improvements in hallways, and (iii) improvements in common areas. The project has a budget of USD $5.0 million, of which Ps. 73.9 million has been invested as of December 31 th, 2016 (Ps. $3.9 million during the fourth quarter). http://www.fibrahotel.com 16 @FibraHotel
Distribution corresponding to the fourth quarter of 2016 9 FibraHotel looks to generate value for its certificate holders, and therefore on February 27 th, 2016, FibraHotel s Technical Committee approved a distribution of Ps. $150 million, equivalent to 30.45 cents (Ps. $0.3045) per CBFI, calculated based on the outstanding CBFIs excluding the CBFIs which currently do not have economic rights. This distribution is based on the results and operations of FibraHotel between October 1 st and December 31 th, 2016. The distribution will be paid on March 10 th, 2016. The distribution payment is broken as follows 10 : Amount Concept per CBFI Total Under Mexican law, FibraHotel is required to pay at least 95% of its annual taxable income to holders of CBFIs at least once a year. Ps. $ Ps. $ million Taxable Income - - Capital Return 0.3045 150.5 Total 0.3045 150.5 Corporate Governance On February 27 th, 2016, there was an Audit Committee, a Practices Committee and a Technical Committee meeting for the approval of the 2016 fourth quarter financial results and distribution, which were approved unanimously. As of today, FibraHotel s Technical Committee is comprised by 11 members, four of whom are independent. 9 This Press Release is not a Distribution Notice 10 The amount of the distribution per CBFI was calculated as follows: total distribution amount divided by the number of outstanding CBFIs, excluding the CBFIs corresponding to the Development Portfolio which currently do not have economic rights (499,401,766 5,128,205 = 494,273,561) http://www.fibrahotel.com 17 @FibraHotel
Operating Highlights of FibraHotel s Portfolio The following graph shows the quarterly evolution, from the first quarter of 2015 to the fourth quarter of 2016, of the ADR, the occupancy rate and the RevPAR for the 56 stabilized hotels of the portfolio. 58.3% 64.2% 65.0% 937 941 919 67.2% 68.3% 69.3% 68.5% 62.9% 950 980 1,001 980 1,025 546 604 597 638 616 684 679 702 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 ADR RevPAR Occupancy FibraHotel s total portfolio of 72 hotels in operation reported the following during the fourth quarter of 2016: Occupancy rate of 64.1% ADR of Ps. $1,063 RevPAR of Ps. $681 The following tables show selected operating information of FibraHotel s hotels in operation for the fourth quarter of 2016: 2016 Stabilized Portfolio: includes 56 stabilized hotels in operation as of December 31 th, 2016 (includes the 47 hotels of the Total Portfolio of stabilized hotels as of December 31 st, 2015 plus the following nine hotels: One Monclova, Gamma Ciudad Obregón, Gamma León, Gamma Tijuana, Fiesta Inn Lofts Monclova, Fiesta Inn Lofts Querétaro, Camino Real Hotel & Suites Puebla, Fiesta Americana Hermosillo, and Fiesta Inn Monterrey Valle. 2016 Stabilized Portfolio (56H) 4Q 2016 4Q 2015 3Q 2016 Ocupancy 68.5% 67.2% 69.3% ADR 1025 950 980 RevPAR 702 638 679 2016 Stabilized Portfolio (56H) 2016 LTM FY 2015 Ocupancy 67.2% 63.7% ADR 997 937 RevPAR 670 597 http://www.fibrahotel.com 18 @FibraHotel
The change in RevPAR between: The fourth quarter of 2015 and the fourth quarter of 2016 is +10.0%. The full year 2015 and full year 2016 is +12.3%. The following table shows certain operating information by segment for the hotels in operation for the fourth quarter of the years 2014, 2015 and 2016: Total Portfolio of Stabilized Hotels (56H) Total Portfolio (75H) 4 th Quarter 2014 4 th Quarter 2015 4 th Quarter 2016 4 th Quarter 2016 Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Limited-Service 59.7% $ 715 $ 426 67.4% $ 748 $ 504 64.0% $ 817 $ 523 59.9% $ 845 $ 506 Selected-Service 65.7% $ 935 $ 614 68.1% $ 974 $ 663 71.1% $ 1,044 $ 742 69.3% $ 1,038 $ 719 Full-Service 63.0% $ 1,096 $ 690 59.9% $ 1,179 $ 706 59.5% $ 1,296 $ 771 53.2% $ 1,569 $ 835 Extended-Stay 35.4% $ 1,083 $ 384 69.2% $ 1,066 $ 738 68.4% $ 1,094 $ 748 61.8% $ 978 $ 604 Total 63.5% $ 912 $ 579 67.2% $ 950 $ 638 68.5% $ 1,025 $ 702 64.1% $ 1,063 $ 681 Vs. previous year 286 bps 4.8% 9.8% 364 bps 4.1% 10.1% 131 bps 7.9% 10.0% The following table shows certain operating information by region 11 for the hotels in operation for the fourth quarter of the years 2014, 2015 and 2016: Total Portfolio of Stabilized Hotels (56H) Total Portfolio (75H) 4 th Quarter 2014 4 th Quarter 2015 4 th Quarter 2016 4 th Quarter 2016 Region Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Northwest 60.8% $ 883 $ 537 65.9% $ 918 $ 606 66.2% $ 964 $ 638 63.2% $ 954 $ 603 Northeast 65.4% $ 853 $ 558 65.3% $ 946 $ 617 66.0% $ 1,054 $ 696 59.2% $ 1,252 $ 741 Center and South 64.4% $ 960 $ 618 68.2% $ 978 $ 667 69.4% $ 1,065 $ 740 65.6% $ 1,048 $ 687 West 62.2% $ 811 $ 504 68.4% $ 870 $ 595 74.5% $ 894 $ 666 68.4% $ 1,035 $ 708 Total 63.5% $ 912 $ 579 67.2% $ 950 $ 638 68.5% $ 1,025 $ 702 64.1% $ 1,063 $ 681 Vs. previous year 286 bps 4.8% 9.8% 364 bps 4.1% 10.1% 131 bps 7.9% 10.0% The following table shows FibraHotel s Total Portfolio distribution (72 hotels) as of December 31 th, 2016 by segment, region, number of hotels and rooms: SEGMENT Hotels Rooms REGION Hotels Rooms # % # % # % # % Limited-Service 21 28.0% 2,671 25.6% Center and South 39 52.0% 5,333 51.2% Selected-Service 39 52.0% 5,726 54.9% Northeast 14 18.7% 1,805 17.3% Full-Service 10 13.3% 1,649 15.8% Northwest 17 22.7% 2,476 23.8% Extended-Stay 5 6.7% 376 3.6% West 5 6.7% 808 7.8% TOTAL 75 100.0% 10,422 100.0% TOTAL 75 100.0% 10,422 100.0% 11 Northwest corresponds to the following states: Baja California Norte, Baja California Sur, Chihuahua, Durango, Sinaloa and Sonora. Northeast corresponds to the following states: Coahuila, Nuevo León and Tamaulipas. Center and South corresponds to the following states: Aguascalientes, Campeche, Mexico City, State of Mexico, Guanajuato, Guerrero, Michoacán, Morelos, Oaxaca, Puebla, Querétaro, Quintana Roo, San Luis Potosí, Tabasco and Veracruz. West corresponds to the following states: Jalisco and Nayarit. http://www.fibrahotel.com 19 @FibraHotel
Quarterly Operating Portfolio Highlights (excluding leased hotels) Year 2016 Available Occupied Room Revenues Occup. Rooms Rooms Ps. $ Million ADR RevPAR 1st quarter 750,630 442,090 58.9% $ 420.3 $ 951 $ 560 2nd quarter 815,681 506,294 62.1% $ 492.8 $ 973 $ 604 3rd quarter 878,446 555,836 63.3% $ 546.9 $ 984 $ 623 4th quarter 899,291 571,656 63.6% $ 597.2 $ 1,045 $ 664 Total 3,344,048 2,075,876 62.1% $ 2,057.3 $ 991 $ 615 Timeline of hotel additions generating room revenue by month during 2016 (managed hotels): January: includes the 60 managed hotels as of December 31 st, 2015 less Lat20 by Live Aqua (ex-cacao, now hotel under lease contract) and Fairfield Inn & Suites Juriquilla is added to the portfolio (opening). February: The One Durango hotel id added to the portfolio (opening). March: The AC by Marriott Querétaro and the Fiesta Americana Pabellón M are added to the portfolio (opening). May: The Americana Hermosillo hotel is added to the portfolio (acquisition). June: The AC by Marriott Guadalajara, Grand Fiesta Americana Monterrey Valle and Live Aqua Monterrey Valle are added to the portfolio (opening). July: The Fiesta Inn Lofts Monterrey la Fe is added to the portfolio (opening). August: The Fiesta Inn Monterrey Valle is added to the portfolio (acquisition). November 2016: Fairfield Inn & Suites Nogales and One Cuautitlán are added to the portfolio (opening). December 2016: Fiesta Inn Los Mochis is added to the portfolio (opening). http://www.fibrahotel.com 20 @FibraHotel
FibraHotel s Portfolio evolution by quarter: Hotels and Rooms Acquisition Number of rooms at end of period % of SELECTED SERVICE - MANAGED Date 2012 2013 2014 2015 1Q 2016 3Q 2016 3Q 2016 2016 rooms 1 * Fiesta Inn Aguascalientes 21/01/2013 125 125 125 125 125 125 125 1.2% 2 * Fiesta Inn Ciudad Juárez 21/01/2013 166 166 166 166 166 166 166 1.6% 3 * Fiesta Inn Ciudad Obregón 07/04/2014 123 141 141 141 141 141 1.4% 4 * Fiesta Inn Chihuahua 21/01/2013 152 152 152 152 152 152 152 1.5% 5 * Fiesta Inn Cuernavaca 15/12/2014 155 155 155 155 155 155 1.5% 6 * Fiesta Inn Culiacán 01/12/2012 142 142 146 146 146 146 146 146 1.4% 7 * Fiesta Inn Durango 01/12/2012 138 138 138 138 138 138 138 138 1.3% 8 * Fiesta Inn Ecatepec 01/12/2012 143 143 143 143 143 143 143 143 1.4% 9 * Fiesta Inn Guadalajara 21/01/2013 158 158 158 158 158 158 158 1.5% 10 * Fiesta Inn Hermosillo 01/12/2012 155 155 155 155 155 155 155 155 1.5% 11 * Fiesta Inn León 21/01/2013 160 160 160 160 160 160 160 1.5% 12 * Fiesta Inn Mexicali 21/01/2013 150 150 150 150 150 150 150 1.4% 13 Fiesta Inn Los Mochis 05/12/2016 125 1.2% 14 * Fiesta Inn Monclova 28/02/2013 121 121 121 121 121 121 121 1.2% 15 * Fiesta Inn Monterrey 21/01/2013 161 161 161 161 161 161 161 1.5% 16 * Fiesta Inn Monterrey Valle 01/08/2016 177 177 1.7% 17 * Fiesta Inn Naucalpan 01/12/2012 119 119 119 119 119 119 119 119 1.1% 18 * Fiesta Inn Nuevo Laredo 01/12/2012 120 120 120 120 120 120 120 120 1.2% 19 * Fiesta Inn Oaxaca 05/07/2013 145 145 145 145 145 145 145 1.4% 20 * Fiesta Inn Perinorte 01/12/2012 123 123 123 127 127 127 127 127 1.2% 21 * Fiesta Inn Puebla FINSA 03/07/2013 123 123 123 123 123 123 123 1.2% 22 * Fiesta Inn Querétaro 21/01/2013 175 175 175 175 175 175 175 1.7% 23 * Fiesta Inn Saltillo 21/01/2013 149 149 149 149 149 149 149 1.4% 24 * Fiesta Inn San Luis Potosi Oriente 21/07/2014 140 140 140 140 140 140 1.3% 25 * Fiesta Inn Tepic 01/12/2012 139 139 139 139 139 139 139 139 1.3% 26 * Fiesta Inn Tlalnepantla 24/06/2013 131 131 131 131 131 131 131 1.3% 27 * Fiesta Inn Torreón 19/12/2012 146 146 146 146 146 146 146 146 1.4% 28 * Fiesta Inn Toluca 30/04/2013 144 144 144 144 144 144 144 1.4% 29 Fiesta Inn Villahermosa 02/12/2015 159 159 159 159 159 1.5% 30 * Fiesta Inn Xalapa 27/03/2014 119 119 119 119 119 119 1.1% 31 * Real Inn Guadalajara 01/08/2013 197 197 197 197 197 197 197 1.9% 32 * Real Inn Mexicali 01/07/2013 158 158 158 158 158 158 158 1.5% 33 * Real Inn Morelia 01/03/2013 155 155 155 155 155 155 155 1.5% 34 * Gamma Ciudad Obregón (Valle Grande) 30/05/2014 135 135 135 135 135 135 1.3% 35 * Gamma León (Fussion 5) 22/05/2014 159 159 159 159 159 159 1.5% 36 * Gamma Tijuana (Lausana Tijuana) 27/07/2014 140 140 140 140 140 140 1.3% 37 Courtyard Ciudad del Carmen 25/11/2015 133 133 133 133 133 1.3% Subtotal 1,225 3,795 4,770 5,084 5,084 5,084 5,261 5,386 51.7% LIMITED SERVICE - MANAGED 38 * One Acapulco 01/12/2012 126 126 126 126 126 126 126 126 1.2% 39 * One Aguascalientes 01/12/2012 126 126 126 126 126 126 126 126 1.2% 40 * One Coatzacoalcos 01/12/2012 126 126 126 126 126 126 126 126 1.2% 41 One Cuernavaca 15/12/2014 125 125 125 125 125 125 1.2% 42 One Cuautitlán 17/11/2016 156 1.5% 43 * One Culiacán 01/12/2012 119 119 119 119 119 119 119 119 1.1% 44 One Durango 29/02/2016 126 126 126 126 1.2% 45 * One Guadalajara Tapatío 24/06/2013 126 126 126 126 126 126 126 1.2% 46 * One Xalapa 27/03/2014 126 126 126 126 126 126 1.2% 47 * One Monclova 01/11/2014 66 66 66 66 66 66 0.6% 48 * One Monterrey 01/12/2012 126 126 126 126 126 126 126 126 1.2% 49 * One Puebla FINSA 02/07/2013 126 126 126 126 126 126 126 1.2% 50 * One Querétaro 21/01/2013 126 126 126 126 126 126 126 1.2% 51 * One Toluca 01/12/2012 126 126 126 126 126 126 126 126 1.2% 52 * One Patriotismo 21/01/2013 132 132 132 132 132 132 132 1.3% 53 One Perisur 16/07/2015 144 144 144 144 144 1.4% 54 Fairfield Inn & Suites Juriquilla 28/01/2016 134 134 134 134 1.3% 55 * Fairfield Inn Los Cabos 20/06/2014 128 128 128 128 128 128 1.2% 56 Fairfield Inn & Suites Nogales 08/11/2016 134 1.3% 57 Fairfield Inn & Suites Saltillo 31/03/2015 139 139 139 139 139 1.3% 58 Fairfield Inn & Suites Villahermosa 09/12/2015 134 134 134 134 134 1.3% Subtotal 749 1,259 1,704 2,121 2,381 2,381 2,381 2,671 25.6% - FULL SERVICE - MANAGED 59 * Fiesta Americana Aguascalientes 15/01/2014 192 192 192 192 192 192 1.8% 60 * Fiesta Americana Hermosillo 01/05/2016 220 220 220 2.1% 61 Fiesta Americana Pabellón M 31/03/2016 178 178 178 178 1.7% 62 Grand Fiesta Americana Monterrey Valle 13/06/2016 180 180 180 1.7% 63 Live Aqua Monterrey Valle 13/06/2016 74 74 74 0.7% 64 * Camino Real Puebla 01/12/2012 153 153 153 153 153 153 153 153 1.5% 65 * Sheraton Ambassador 18/11/2014 229 229 229 229 229 229 2.2% 66 AC by Marriott Antea Quéretaro 21/03/2016 175 175 175 175 1.7% 67 AC By Marriott Guadalajara 01/06/2016 188 188 188 1.8% Subtotal 153 153 574 574 927 1,589 1,589 1,589 15.2% EXTENDED STAY - MANAGED 68 * Camino Real Hotel & Suites Puebla 01/03/2014 121 121 121 121 121 121 1.2% 69 Fiesta Inn Lofts Ciudad del Carmen 08/09/2015 120 120 120 120 120 1.2% 70 * Fiesta Inn Lofts Monclova 01/11/2014 37 37 37 37 37 37 0.4% 71 Fiesta Inn Lofts Monterrey la Fé 19/07/2016 48 48 0.5% 72 * Fiesta Inn Lofts Querétaro 01/11/2014 50 50 50 50 50 50 0.5% Subtotal - - 208 328 328 328 376 376 3.6% LEASED HOTELS 73 * Fiesta Inn Cuautitlán 01/12/2012 128 128 128 128 128 128 128 128 1.2% 74 * Fiesta Inn Perisur 01/12/2012 212 212 212 212 212 212 212 212 2.0% 75 Live Aqua Playa del Carmen 19/11/2014 60 60 60 60 60 60 0.6% Subtotal 340 340 400 400 400 400 400 400 3.8% TOTAL OPERATING ROOMS 2,467 5,547 7,656 8,507 9,120 9,782 10,007 10,422 100.0% TOTAL OPERATING HOTELS 18 39 56 62 66 70 72 75 * 2016 Stabilized Portfolio (56 stabilized hotels in operation) http://www.fibrahotel.com 21 @FibraHotel
FibraHotel s Portfolio evolution by quarter: Hotels and Rooms DEVELOPMENT Opening 76 Fiesta Inn La Isla Puerto Vallarta 01/30/2017 144 144 144 144 144 9.0% 77 Courtyard Vallejo 02/24/2017 93 121 125 125 125 125 125 7.8% 78 Fairfield Inn & Suites Vallejo 02/24/2017 152 125 121 121 121 121 121 7.6% 79 Aloft Veracruz 2H 2017 166 166 166 166 166 10.4% 80 Fiesta Inn Buenavista 2H 2017 130 130 129 8.1% 81 Courtyard Toreo 2017 130 130 130 130 130 130 8.1% 82 Fiesta Americana Viaducto 515**** TBD*** 269 269 286 286 255 15.9% 83 Full-Service Villa del Mar Veracruz TBD*** 179 179 173 10.8% 84 Live Aqua San Miguel de Allende TBD*** 134 8.4% 85 Fiesta Americana Tlalnepantla TBD*** 224 14.0% Other (expansions, opened hotels, etc.) 489 654 1,507 1,511 898 462 415 TOTAL DEVELOPMENT** 489 899 1,883 2,466 1,853 1,743 1,696 1,601 100.0% TOTAL PORTFOLIO FIBRAHOTEL 2,956 6,446 9,539 10,973 10,973 11,525 11,703 12,023 NUMBER OF HOTELS 22 47 70 80 80 83 84 85 http://www.fibrahotel.com 22 @FibraHotel
BALANCE SHEET As of December 31 st, 2016 and December 31 st, 2015 (figures in thousands pesos) Assets 31/12/2016 31/12/2015 Current assets Cash, cash equivalents and restricted cash 448,828 376,824 Trade accounts receivable and other receivables 242,684 207,911 Due from related parties 0 3,190 Prepaid expenses 16,626 5,787 Recoverable taxes, mainly value-added tax 228,709 288,544 Total currents assets 936,847 882,257 Non current assets Hotel properties, furniture and operating equip. - Net 9,970,023 7,535,661 Properties under development 1,396,599 2,310,688 Derivative instruments 120,887 11,441 Advance to suppliers 2,380 1,812 Deferred income taxes 3,298 4,054 Total non-current assets 11,493,186 9,863,656 Total assets 12,430,033 10,745,913 Liabilities and partners' equity Current liabilities: Borrowings 98,288 7,849 Suppliers and accrued expenses 318,906 313,667 Taxes payable 6,867 5,110 Other 29,199 3,265 Total current liabilities 453,261 329,890 Long term debt 2,598,743 844,618 Trustors' equity: Contribution from the trustors 8,737,635 9,160,093 Retained earnings 640,394 411,311 Total trustors' equity: 9,378,030 9,571,404 Total liabilities and trustors' equity 12,430,033 10,745,913 http://www.fibrahotel.com 23 @FibraHotel
INCOME STATEMENT From October 1 st to December 31 st, 2016 and 2016 year to date compared with previous year (figures in thousands pesos) 4Q 2016 4Q 2015 Year 2016 Year 2015 Revenue: Rooms 597,226 425,589 2,057,257 1,541,320 Food and beverages 138,489 102,166 468,397 367,524 Leases 22,639 17,624 79,832 75,392 Others 11,743 8,093 29,519 23,703 Total revenue 770,097 553,473 2,635,004 2,007,939 Costs and general expenses Rooms 120,257 82,355 402,675 288,706 Food and beverages 84,952 57,382 285,812 215,278 Administrative expenses 309,448 224,478 1,103,083 833,780 Total costs and general expenses 514,657 364,215 1,791,571 1,337,765 Lodging contribution 255,440 189,258 843,433 670,174 Real estate expenses 7,536 8,376 33,910 28,991 Advisory fee 26,296 25,940 104,673 103,378 Administrative expenses related to FibraHotel 10,859 9,369 48,530 39,361 Depreciation 105,587 69,651 296,930 213,782 Income from operations 105,162 75,921 359,390 284,663 Extraordinary expenses, net 28,642 40,453 106,931 77,688 Adjusted (loss) from operations 76,520 35,468 252,459 206,975 Non operating income 509 67 3,918 2,726 Comprehensive financing result (23,621) (327) (40,700) 29,759 Income before taxes 53,408 35,207 215,678 239,460 Tax 3,161 2,461 1,787 2,884 Consolidated net (loss) income 50,247 32,746 213,890 236,576 http://www.fibrahotel.com 24 @FibraHotel
CASH FLOW STATEMENT From October 1 st to December 31 st, 2016 and 2016 year to date compared with previous year (figures in thousands pesos) 4Q 2016 4Q 2015 Year 2016 Year 2015 Operating Activities Consolidated net income 50,247 32,746 213,890 236,576 Adjustments for non cash items Tax 3,161 2,884 1,787 2,884 Cost for asset sale (1,574) 3,357 (1,793) 2,439 Depreciation 105,587 69,651 296,930 213,782 Interest income (3,867) (2,994) (12,191) (34,327) Total 153,553 105,644 498,623 421,354 (Increase) decrease in: Trade accounts receivable and others 23,258 (30,312) (34,773) (39,173) Due from related parties 0 (0) 3,190 (0) Recoverables taxes, mainly VAT (57,040) (115,370) 59,835 (54,482) Prepaid expenses 20,671 7,942 (10,622) (2,738) Other assets (440) (119) (568) (159) Increase (decrease) in: Suppliers and accrued expenses (73,797) 54,838 5,239 84,299 Due to related parties (0) 0 (0) 0 Tax payable 3,336 4,167 1,272 (1,586) Net cash flow used in operating activities 69,541 26,791 522,197 407,516 Investing activities Business acquired, net of cash received 0 (189,358) (244,826) (189,358) Development portfolio (496,603) (767,202) (1,306,949) (2,074,292) Acquisition of other assets (66,655) (117,988) (265,949) (303,459) Asset sale 1,574 2,234 2,098 3,184 Interest income 3,867 2,994 12,191 34,327 Net cash flow used in investing activities (557,817) (1,069,321) (1,803,435) (2,529,598) Financing activities Ditributions to trustors (134,746) (106,428) (470,379) (429,089) Debt Issuance 183,430 852,467 1,844,564 852,467 Interests paid 27,406 (1,864) 25,389 (1,864) CBFIs issuance 0 0 0 0 Issuance expenses 0 0 0 0 Other 0 (207) (46,332) (14,513) Net cash flow used in financing activities 76,091 743,968 1,353,242 407,001 Net increase (decrease) in cash, cash equivalents and restricted cash (412,186) (298,562) 72,004 (1,715,081) Cash, cash equivalents and restricted cash at the beginning of the period Cash, cash equivalents and restricted cash at the end of the period 861,014 675,386 376,824 2,091,905 448,828 376,824 448,828 376,824 http://www.fibrahotel.com 25 @FibraHotel
Overview of development hotels currently under construction (as of February 27 th 2016): Aloft Veracruz: The hotel structure is finished and the façade and civil works have 75% progress. Fiesta Inn Buenavista: The steel structure is in process and the development is about to start façade and civil works. Courtyard Toreo: The hotel s structure is finished and the façade is currently in progress. http://www.fibrahotel.com 26 @FibraHotel
Conference call invite: http://www.fibrahotel.com 27 @FibraHotel