FibraHotel ( FibraHotel ), the first real estate investment trust specialized in urban business-class hotels in Mexico, announces its financial results and distribution corresponding to the second quarter of 2013. Mexico City, July 23 rd, 2013 --- FibraHotel (BMV: FIHO 12), the first real estate investment trust specialized in urban business-class hotels in Mexico, announces its results and distribution corresponding to the second quarter of 2013. All figures included herein were prepared in accordance with IFRS and are stated in nominal Mexican pesos. 2nd Quarter 2013 Highlights FibraHotel ended the quarter with 37 hotels and 5,132 rooms, with 34 hotels in operation (4,798 rooms) and 3 hotels under development (334 rooms). During the quarter, FibraHotel closed the acquisition of the Fiesta Inn Toluca Tollocan and Fiesta Inn Tlalnepantla hotels and opening the One Guadalajara Tapatio hotel, part of the development portfolio. On a same-store basis of 30 hotels 1 RevPAR for Q2 2013 increased 9.1% y-o-y. For Q2 2013, the average daily rate ( ADR ) was Ps. $873, the occupancy rate was 68.0% and the revenue per available room ( RevPAR ) was Ps. $594. For the 33 hotels in operation, excluding One Guadalajara Tapatio recently opened, the average daily rate was Ps. $869, the occupancy rate was 66.1% and the revenue per available room was Ps. $575. FibraHotel will pay a distribution of Ps. $74.4 million, equivalent to 15.12 cents (Ps. $0.1512) per CBFI 2. Total revenue amounted to Ps. $249.7 million. Lodging contribution 3 amounted to Ps. $93.2 million. As of June 30, 2013, FibraHotel had a net cash position of Ps. $5,295 million, and approximately Ps. $5,890 million including the reimbursement of VAT. 1 Includes the 30 hotels from FibraHotel s Initial Portfolio which were fully operational since Q2 2012. 2 Calculated based on the number of outstanding CBFIs as of June 30, 2013, excluding the CBFIs issued in exchange of the Development Portfolio that are not entitled to receive distributions until such properties are in operation. 3 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 (property taxes, insurance, property acquisition taxes, as well as notary and registration expenses) and FibraHotel s administration expenses. http://www.fibrahotel.com 1 @FibraHotel
The second quarter of 2013 marked a very important milestone for FibraHotel since we were able to continue positioning the company towards the goal of owning 100 hotels in the medium term by successfully raising Ps. $4,878 million in a follow-on offering only six months after our IPO. Operationally, our hotels continued to show positive operating trends, with a yoy RevPAR growth of 9.1% on a same-store basis, mainly from our ability to increase rates. We are happy to announce that notwithstanding the full dilution impact of follow-on offering the distribution for the second quarter of 2013 will be 15.12 cents per CBFI, commented Simon Galante, CEO of FibraHotel. Closing of the Fiesta Inn Toluca Tollocan and Fiesta Inn Tlalnepantla acquisitions During the second quarter, FibraHotel successfully concluded the acquisitions of the Fiesta Inn Toluca Tollocan (144 rooms) and Fiesta Inn Tlalnepantla (131 rooms) hotels on April 30 th and June 24 th respectively. These acquisitions represented a total investment of Ps. 238.6 million (including a piece of land adjacent to the Fiesta Inn Toluca Tollocan hotel for the development of an additional hotel). Opening of the One Tapatio hotel part of the Development Portfolio FibraHotel announced the opening of One Guadalajara Tapatio hotel, a limited-service 126- room hotel operated by Grupo Posadas on June 24 th. This hotel is located in the Chapala highway in Tlaquepaque (Guadalajara), in the state of Jalisco, and it is located inside the Espacio Tlaquepaque shopping center near Guadalajara s most important industrial parks. FibraHotel will pay Ps. $57.3 million in cash, in addition to the 688,564 CBFIs received by the sellers at the time of their contribution in the IPO. Follow-On Offering of 195,500,000 CBFIs raising Ps. $4,878 million On May 30 th, six months after its Initial Public Offering, FibraHotel successfully issued 195,500,000 CBFIs (including the overallotment option which was fully executed on June 11 th ) through a follow-on offering priced at Ps. 24.95 per certificate, and raising a total consideration of Ps. $4,878 million. http://www.fibrahotel.com 2 @FibraHotel
FibraHotel s Portfolio as of June 30, 2013 Hotel State Number of Rooms Operator Brand Segment Selected-Service Hotels 1 Fiesta Inn Aguascalientes Aguascalientes 125 Grupo Posadas Fiesta Inn Selected-Service 2 Fiesta Inn Ciudad Juarez Chihuahua 166 Grupo Posadas Fiesta Inn Selected-Service 3 Fiesta Inn Chihuahua Chihuahua 152 Grupo Posadas Fiesta Inn Selected-Service 4 Fiesta Inn Durango Durango 138 Grupo Posadas Fiesta Inn Selected-Service 5 Fiesta Inn Guadalajara Expo Jalisco 158 Grupo Posadas Fiesta Inn Selected-Service 6 Fiesta Inn Hermosillo Sonora 155 Grupo Posadas Fiesta Inn Selected-Service 7 Fiesta Inn Leon Guanajuato 160 Grupo Posadas Fiesta Inn Selected-Service 8 Fiesta Inn Mexicali BCN 150 Grupo Posadas Fiesta Inn Selected-Service 9 Fiesta Inn Monclova Coahuila 121 Grupo Posadas Fiesta Inn Selected-Service 10 Fiesta Inn Monterrey La Fe Nuevo Leon 161 Grupo Posadas Fiesta Inn Selected-Service 11 Fiesta Inn Naucalpan State of Mexico 119 Grupo Posadas Fiesta Inn Selected-Service 12 Fiesta Inn Nuevo Laredo Tamaulipas 120 Grupo Posadas Fiesta Inn Selected-Service 13 Fiesta Inn Perinorte (1) State of Mexico 123 Grupo Posadas Fiesta Inn Selected-Service 14 Fiesta Inn Queretaro Queretaro 175 Grupo Posadas Fiesta Inn Selected-Service 15 Fiesta Inn Saltillo Coahuila 149 Grupo Posadas Fiesta Inn Selected-Service 16 Fiesta Inn Tepic Nayarit 139 Grupo Posadas Fiesta Inn Selected-Service 17 Fiesta Inn Tlalnepantla State of Mexico 131 Grupo Posadas Fiesta Inn Selected-Service 18 Fiesta Inn Torreón Galerías Coahuila 146 Grupo Posadas Fiesta Inn Selected-Service 19 Fiesta Inn Toluca Tollocan State of Mexico 144 Grupo Posadas Fiesta Inn Selected-Service 20 Real Inn Morelia Michoacan 155 Grupo Real Turismo Real Inn Selected-Service Sub Total Portfolio Selected Service 2,887 Limited-Service Hotel 21 One Acapulco Costera (1) Guerrero 126 Grupo Posadas One Limited-Service 22 One Aguascalientes Sur (1) Aguascalientes 126 Grupo Posadas One Limited-Service 23 One Coatzacoalcos Forum Veracruz 126 Grupo Posadas One Limited-Service 24 One Culiacan Forum Sinaloa 119 Grupo Posadas One Limited-Service 25 One Guadalajara Tapatio Jalisco 126 Grupo Posadas One Limited-Service 26 One Monterrey Aeropuerto (1) Nuevo Leon 126 Grupo Posadas One Limited-Service 27 One Queretaro Plaza Galerias Queretaro 126 Grupo Posadas One Limited-Service 28 One Toluca Aeropuerto State of Mexico 126 Grupo Posadas One Limited-Service 29 One Ciudad de Mexico Patriotismo Mexico DF 132 Grupo Posadas One Limited-Service Sub Total Portfolio Limited Service 1,133 Leased Hotels 30 Fiesta Inn Cuautitlan State of Mexico 128 Grupo Posadas Fiesta Inn Selected-Service 31 Fiesta Inn Culiacan Sinaloa 142 Grupo Posadas Fiesta Inn Selected-Service 32 Fiesta Inn Ecatepec State of Mexico 143 Grupo Posadas Fiesta Inn Selected-Service 33 Fiesta Inn Perisur Mexico DF 212 Grupo Posadas Fiesta Inn Selected-Service 34 Camino Real Puebla Puebla 153 Grupo Real Turismo Camino Real Full-Service Sub Total Leased Portfolio 778 Total Operating Portfolio 4,798 Development Hotels 35 Cancun Extended-Stay Quintana Roo 74 TBD TBD Extended-Stay 36 Puebla Camino Real Suites Puebla 134 Grupo Real Turismo CR Suites Extended-Stay 37 One Toluca Tollocan State of Mexico 126 Grupo Posadas One Limited-Service Total Development Hotels 334 Total FibraHotel Portfolio as of June 30, 2013 5,132 (1) Includes retail component. http://www.fibrahotel.com 3 @FibraHotel
Recent events after June 30 th 2013 On the first week of July 2013, FibraHotel closed four hotel acquisitions for a total investment of Ps. $522.2 million, taking its portfolio to 41 hotels, of which 38 hotels are in operation and 3 hotels are under development, with a total of 5,723 rooms, of which 5,389 rooms are in operation. The four hotels acquired in July are part of the Acquisition Portfolio No. 1 (which represented ~2,201 rooms with an estimated investment of Ps. $1,952 million), and with these acquisitions, FibraHotel has completed 7 of the 15 acquisitions. Hotel Segment State Acquisition Number of Inverstment date rooms (Ps. $000) 1 Fiesta Inn Toluca Tollocan Selected-Service State of Mexico 30/04/2013 144 143.7 2 Fiesta Inn Tlalnepantla Selected-Service State of Mexico 24/06/2013 131 86.7 3 Real Inn Plaza Genova Guadalajara (1) Selected-Service Jalisco 01/07/2013 197 132.3 4 One Puebla FINSA Limited-Servicce Puebla 02/07/2013 126 90.0 5 Fiesta Inn Puebla FINSA Selected-Service Puebla 03/07/2013 123 130.0 6 Fiesta Inn Oaxaca Selected-Service Oaxaca 05/07/2013 145 170.0 Sub Total Operating Hotels 866 752.6 7 One Toluca Tollocan Limited-Servicce State of Mexico 30/04/2013 126 8.2 Total Investment 992 760.8 (1) Includes a Ps. $10 million investment for renovation and rebranding of the hotel under the Real Inn brand Financial results for the second quarter of 2013 FibraHotel began the quarter with 31 hotels and ended with 34 hotels in operation thanks to the acquisition of two hotels, Fiesta Inn Toluca Tollocan and Fiesta Inn Tlalnepantla as well as the opening the One Guadalajara Tapatio hotel. It is important to note that the One Guadalajara Tapatio Hotel and the Fiesta Inn Tlalnepantla hotel were opened and acquired respectively during the last week of the quarter, so their results are not included for a full quarter in the results below. Total Revenues During this period, FibraHotel s total revenues reached Ps. $249.7 million: Ps. $186.4 million corresponded to revenues related to room rentals (74.7% of total revenues). Ps. $39.6 million corresponded to revenues related to food and beverage (15.9% of total revenues). http://www.fibrahotel.com 4 @FibraHotel
Ps. $20.6 million corresponded to revenues related to the lease of 5 hotels 4 and retail components (8.2% of total revenues). Ps. $3.1 million (1.2% of total revenues) corresponded to other revenues. Costs and General Expenses During this period, FibraHotel s costs and general expenses amounted to Ps. $156.5 million: Ps. $97.9 million corresponded to administrative costs and expenses (62.5% of costs and general expenses). Ps. $32.7 million corresponded to room expenses (20.9% of costs and general expenses). Ps. $25.9 million corresponded to expenses related to food and beverages (16.6% of costs and general expenses). Lodging contribution Lodging Contribution amounted to Ps. $93.2 million, representing 37.3% of total revenues. Operating Profit Other operating expenses amounted to Ps. $56.9 million and consisted of FibraHotel s real estate expenses (Ps. $3.5 million), FibraHotel s administrative expenses (Ps. $21.4 million), and depreciation (Ps. $32.1 million). The operating profit amounted to Ps. $36.3 million, representing 14.5% of total revenues. Adjusted Operating Profit During the second quarter, FibraHotel had non-operating expenses for Ps. $52.8 million, these expenses relate primarily to the Initial Portfolio (taxes, appraisals, and technical audits, among others), and were funded with resources from FibraHotel s IPO, as described in the Offering Memorandum. The adjusted operating profit was a loss of Ps. $16.5 million. Comprehensive Financial Cost As of March 31, 2013, FibraHotel had no debt and a cash position of Ps. $920 million. FibraHotel ended the second quarter with a cash position of Ps. $5,295 million, thanks to the CBFIs followon offering on May 30, 2013. For the second quarter 2013, interest income reached Ps. $18.5 million during the period, which generated a comprehensive financial income of Ps. $18.6 million. 4 Leased hotels are Fiesta Inn Cuautitlan, Fiesta Inn Culiacan, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla http://www.fibrahotel.com 5 @FibraHotel
Consolidated Net Income Consolidated net income reached Ps. $1.9 million. Dividend distribution corresponding to the second quarter 2013 5 One of the commitments of FibraHotel is to pursue the creation of value to its CBFIs holders, therefore on July 22, 2013, FibraHotel s Technical Committee approved a distribution of Ps. $74.4 million. This distribution is equivalent to 15.12 cents (Ps. $0.1512) per CBFI, and was calculated based on the outstanding CBFIs, excluding the CBFIs related to the Development Portfolio which currently do not have economic rights 5. This distribution is based on the results and operations of FibraHotel between April 1 st and June 30 th. The distribution will be paid on August 15 th. The distribution payment is broken as follows 6 : 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 0.0674 33.2 Depreciation 0.0838 41.2 Total 0.1512 74.4 Cash Position FibraHotel ended the second quarter 2013 with no debt and a cash position of Ps. $5,295 million compared to Ps. $920 million as of March 31, 2013. During the second quarter 2013, FibraHotel closed the acquisition of 3 hotels with a total investment of Ps. $238.6 million and received a gross amount of Ps. $4,878 million from the issuance of CBFIs. The cash position at the end of the quarter does not include the reimbursement of VAT, which represents Ps. $595 million. As of June 30, 2013, the CapEx reserve, intended to maintain physical condition of the hotels in operation and constituted based on a percentage of total revenues of the hotels in operation totaled Ps. $21.4 million. 5 This Press Release is not a Distribution Notice 6 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 7,355,230 = 492,046,536) http://www.fibrahotel.com 6 @FibraHotel
FibraHotel s Ownership Breakdown As of June 30, 2013, the composition of CBFIs was as follows: CBFIs % Control Trust 82,290,656 16.5% Free Float 417,111,110 83.5% Total 499,401,766 100.0% Initial Portfolio s Operating Indicators 3 The following graph shows the quarterly evolution, for years 2007 to the second quarter of 2013, of the ADR, the occupancy rate and the RevPAR for FibraHotel s hotels in operation. 1,000 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 ADR RevPAR Ocupancy 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% For the second quarter of 2013, the 33 hotels in operation reported the following: Occupancy rate of 66.1% Average Daily Rate of Ps. $869 Revenue per Available Room of Ps. $575 3 Portfolio of 33 hotels in operation, without considering the One Guadalajara Tapatio Hotel which opened June 24, 2013 http://www.fibrahotel.com 7 @FibraHotel
The table below shows certain comparable operating information as described: Same-store hotels: includes the 30 hotels from FibraHotel s Initial Portfolio which were fully operational since Q2 2012 Total Portfolio: includes 33 hotels in operation as of June 30, 2013 (without integrating the One Guadalajara Tapatio Hotel, which opened the last week in June 2013) Total Portfolio of stabilized hotels: includes 32 hotels in operation as of June 30 th, but excludes recently opened development hotels (Real Inn Morelia and One Guadalajara Tapatio) Initial Port. (30H) Total Portfolio (33H) Total Port. of stabilized hotels 2Q 2013 2Q 2012 1Q 2013 2Q 2013 2Q 2012 1Q 2013 2Q 2013 2Q 2012 1Q 2013 Ocupancy 68.0% 65.8% 63.0% 66.1% 65.6% 62.2% 67.6% 65.6% 62.7% ADR 873 828 868 869 827 865 871 827 866 RevPAR 594 544 547 575 543 538 589 543 543 The increase in RevPAR between the second quarter of 2012 and the second quarter of 2013 was +9.1% on a Same-store hotels basis, +8.4% for the Total Portfolio of stabilized hotels, and +5.8% for the Total Portfolio Operating information by segment: 2nd quarter 2013 2011 2012 Total Portfolio (33H) Total Portfolio of stabilized hotels Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Limited Service 66% $ 607 $ 403 63% $ 632 $ 400 65% $ 663 $ 434 65% $ 663 $ 434 Select Service 63% $ 847 $ 536 67% $ 859 $ 578 67% $ 919 $ 612 69% $ 922 $ 633 Full Service 65% $ 1,086 $ 701 63% $ 1,110 $ 697 58% $ 1,096 $ 636 58% $ 1,096 $ 636 Total 64% $ 805 $ 515 66% $ 819 $ 543 66% $ 869 $ 575 68% $ 871 $ 589 Operating information by region 4 : 2nd quarter 2013 2011 2012 Total Portfolio (33H) Total Portfolio of stabilized hotels State Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Northwest 60% $ 808 $ 482 63% $ 835 $ 529 65% $ 900 $ 586 65% $ 900 $ 586 Northeast 65% $ 624 $ 404 73% $ 642 $ 469 73% $ 684 $ 500 73% $ 684 $ 500 Center and South 66% $ 826 $ 547 66% $ 851 $ 564 65% $ 898 $ 586 68% $ 902 $ 613 West 63% $ 964 $ 604 66% $ 862 $ 569 65% $ 880 $ 572 65% $ 880 $ 572 Total 64% $ 805 $ 515 66% $ 819 $ 543 66% $ 869 $ 575 68% $ 871 $ 589 4 Northwest corresponds to the following states: Baja California Norte, Chihuahua, Durango, Sinaloa and Sonora. Northeast corresponds to the following states: Coahuila, Nuevo Leon and Tamaulipas. Center and South corresponds to the following states: Aguascalientes, State of Mexico, Guanajuato, Guerrero, Puebla, Queretaro, Veracruz, and Mexico City. West corresponds to the following states: Jalisco and Nayarit. http://www.fibrahotel.com 8 @FibraHotel
Balance Sheet As of June 30, 2013 (figures in thousand pesos) Assets Current assets Cash, cash equivalents and restricted cash 5,294,738 Trade accounts receivable and other receivables 111,794 Due from related parties 3,633 Recoverable taxes, mainly value-added tax 595,567 Prepaid expenses 7,136 Total currents assets 6,012,868 Non current assets Hotel properties, furniture and operating equip. - Net 4,052,117 Properties under development 131,533 Advance to suppliers 1,364 Deferred income taxes 1,790 Total non-current assets 4,186,804 Total assets 10,199,672 Liabilities and partners' equity Current liabilities: Suppliers and accrued expenses 166,282 Due to related parties 57,262 Taxes payable 3,198 Total current liabilities 226,741 Trustors' equity: Contribution from the trustors 9,971,278 Retained earnings 1,653 Total trustors' equity: 9,972,931 Total liabilities and trustors' equity 10,199,672 http://www.fibrahotel.com 9 @FibraHotel
Income Staetment From April 1 to June 30, 2013 (figures in thousand pesos) Revenue: Rooms 186,406 Food and beverages 39,633 Leases 20,570 Others 3,063 Total Revenue 249,671 Costs and general expenses Rooms 32,707 Food and beverages 25,900 Administrative expenses 97,852 Total Costs and General Expenses 156,459 Lodging contribution 93,212 Real estate expenses 3,516 Administrative expenses related to FibraHotel 21,369 Depreciation 32,058 Income from operations 36,269 Extraordinary expenses, net 52,754 Adjusted (loss) from operations (16,485) Comprehensive financing result 18,572 Income before taxes 2,087 Tax 165 Consolidated net income 1,922 http://www.fibrahotel.com 10 @FibraHotel
Cash Flow Statement From January 1 to June 30, 2013 (figures in thousands pesos) Operating Activities Consolidated net income 30,301 Adjustments for non cash items Income tax 165 Depreciation 51,730 Property acquisition costs 50,145 Interest income (33,865) Total 98,476 (Increase) decrease in: Trade accounts receivable and others (95,000) Due from related parties 9,168 Recoverables taxes, mainly VAT (289,178) Prepaid expenses (7,136) Advances to suppliers 52 Security deposits (1,364) Increase (decrease) in: Suppliers and accrued expenses 139,278 Tax payable 419 Net cash flow used in operating activities (145,285) Investing activities Business acquired, net of cash received (2,016,792) Development portfolio (8,200) Acquisition of other assets (4,727) Interest income 33,865 Net cash flow used in investing activities (1,995,854) Financing activities Ditributions to trustors (77,529) CBIFs issuance 4,877,725 Issuance expenses (242,094) Net cash flow used in financing activities 4,558,102 Net increase (decrease) in cash, cash equivalents and restricted cash 2,416,963 Cash, cash equivalents and restricted cash at the beginning of the period 2,877,775 Cash, cash equivalents and restricted cash at the end of the period 5,294,738 http://www.fibrahotel.com 11 @FibraHotel
About FibraHotel FibraHotel FibraHotel is a Mexican trust created primarily to acquire, develop and operate business-class hotels in the limited service, selected service, full service and extended-stay segments. Our objective is to provide attractive returns to our CBFI holders, through stable cash distributions and the appreciation of our real estate assets. Also, we will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned operators, as well as geographic and segment diversification. Under Mexican laws, Fibras must invest at least 70% of its assets in real estate for lease, among other requisites. Additionally, Fibras must distribute in cash at least once a year 95% of taxable income to its CBFI holders. Such characteristics, together with a solid performance of the real estate market in Mexico and a team with over two decades of real estate and hotel experience, make FibraHotel an attractive investment vehicle. FibraHotel is internally managed by Fibra Hotelera, S.C., and is externally advised by Administradora Fibra Hotelera Mexicana, S.A. de C.V whose key executives have over 60 years of combined experience in real estate development and operations and hotels in Mexico Investor Relations Contact Mexico City Guillermo Bravo Tel: +52 (55) 5292 8050 E-mail: gbravo@fibrahotel.com http://www.fibrahotel.com 12 @FibraHotel