fibrahotel ), the first real estate investment trust specialized in … · 2016. 3. 25. · both...

http://www.fibrahotel.com 1

@FibraHotel

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 and year end 2013.

México City, February 19, 2014 --- 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 2013 and year end 2013. Except where noted, all figures included herein were prepared in accordance with IFRS and are stated in nominal Mexican pesos.

4th Quarter 2013 Highlights

• FibraHotel ended 2013 with 47 hotels and 6,446 rooms, including 39 hotels in operation (5,547 rooms) and 8 hotels under development1 (899 rooms).

• During the quarter we signed a strategic agreement with Marriott International, with plans to reach 20 hotels with them in the next few years, and additionally, we acquired: (i) a piece of land and ballroom adjacent to the Fiesta Inn Monclova Hotel, (ii) rights of a piece of land in Mexico City for the development of two hotels with 245 rooms in the Via Vallejo shopping center, (iii) rights to a piece of land in Monterrey for the development of two full service hotels with 226 rooms in the Trebol Monterrey mixed use project.

• On a comparable property basis of 30 hotels2, the average daily rate (“ADR”) was Ps. $869, representing an increase of 6.0% versus the fourth quarter of 2012, the occupancy rate was 66.0% representing a decrease of (1.5%) versus the fourth quarter of 2012 and the revenue per available room (“RevPAR”) was Ps. $574 representing an increase of 3.8% versus the fourth quarter of 2012.

• For the 37 hotels in operation at the end of the fourth quarter, excluding the two hotels opened during 2013 and in a ramp-up period3, the ADR was Ps. $867, the occupancy rate was 65.1% and the RevPAR was Ps. $564.

• Total revenues of Ps. $318.6 million.

• Lodging Contribution4 of Ps. $116.8 million.

• Adjusted funds from operation (“AFFO”)5 of Ps. $105.0 million.

1 Not considering the acquisition of the Fiesta Americana Aguascalientes hotel and the opening of the Camino Real Hotel & Suites announced on January 14 and 21, 2014, respectively. 2 Includes FibraHotel’s 30 hotels from the Initial Portfolio, all in operation during the fourth quarter 2012. 3 Real Inn Morelia and One Guadalajara Tapatio, part of the Development Portfolio. 4 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 5 Adjusted funds from operation defined as net income plus depreciation plus non-operating adjustments less maintenance Capex reserve of the period. AFFO is not an IFRS figure.


@FibraHotel

• FibraHotel will pay a distribution of Ps. $105.0 million, equivalent to 21.34 cents (Ps. $0.2134) per CBFI6.

• As of December 31th, 2013, FibraHotel had a net cash position of Ps. $4,747 million, or Ps. $4,952 million including the reimbursement of VAT.

• As of December 31st, 2013, total owners’ equity of Ps. $9,931 million.

“During the fourth quarter of 2013, we continued executing our business plan with the signing of a strategic agreement with Marriott International, adding an international operator and international brands into our portfolio and validating our open architecture model. During the quarter we added five hotels with 576 rooms under development, and during the full year 2013, we added 12 hotels with 1,700 rooms on top of our Initial Portfolio, or a growth of 36% y-o-y in rooms. From an operating perspective, we continued to see an increase in ADR above inflation, with our comparable property hotels growing ADR at 5.7% in 2013, with occupancy almost stable at 66.2% and RevPAR growth of 5.6% for the year. During the fourth quarter, our comparable property hotels grew RevPAR at 3.8%, mainly driven by an ADR growth of 6.0% coupled with a decrease in occupancy of 1.5%. In addition, we are happy to announce a distribution of 21.34 cents per CBFI for the fourth quarter of 2013, notwithstanding the fact that almost half of our capitalization, or almost Ps. $ 5,000 million is currently held in cash", said Simon Galante, CEO of Fibra Hotel.

6 Calculated based on the number of outstanding CBFIs as of December 31, 2013, excluding the CBFIs issued in exchange of the Development Portfolio that are not entitled to receive distributions until such properties are in operation.


@FibraHotel

Agreement with Marriott International

On November 14th 2013, FibraHotel and Marriott signed a strategic agreement with aggressive growth plans. In the following years, FibraHotel will acquire or develop 20 hotels operated by Marriott and with Marriott brands. Six contracts were initially signed, with the 152 room Fairfield Inn & Suites Vallejo and the 93 room Courtyard Vallejo communicated to the market.

Development portfolio

To date, we have seven hotel in different stages of development7:

- Cancun Extended-Stay: The 74-room extended-stay hotel is located at Malecon Americas Cancún shopping mall. Currently, the construction of the building is completed. We continue working to determine the best alternative for the project in terms of brand and operator. The hotel is in the equipment stage with an expected opening furing the first or second quarter of 2014.

- Fiesta Inn & Suites / One Monclova: The project, located adjacent to the Fiesta Inn Monclova hotel is currently contemplating a mixture of 66 limited service rooms under the One brand and 39 extended stay rooms under the Fiesta Inn & Suites brand. Construction will begin during the first quarter of 2014 with an opening during the fourth quarter of 2014. The ballroom acquired with the land for Ps. $16.5 million will continue operating as part of the building complex with no changes.

- Trebol Monterrey (Fiesta Americana Grand Monterrey y Aqua Monterrey): Two hotels to be constructed within the Trebol mixed use project, a 180 room Fiesta Americana Grand and a 46 room Live Aqua. Both hotels will be operated by Posadas and will open in conjunction with the project in the fourth quarter of 2015. Currently the project is under construction.

7 Spent by FibraHotel as of December 31st, 2013

Expected Number of Cost to FibraHotel (Ps. $ millions)

Hotel Statetermination

date rooms under construction

Total Spent by FibraHotel

Remaining

1 Cancún Extended-Stay Quintana Roo 1T/2T 2014 74 130.0 94.9 35.1 2 Fiesta Inn Suites / One Monclova Coahuila Q4 2014 105 100.0 16.5 83.5 3 Fiesta Americana Grand Monterrey Nuevo Leon Q4 2015 180 4 Live Aqua Monterrey Nuevo Leon Q4 2015 46 5 Courtyard Vallejo Mexico Q4 2015 93 6 Fairfield Inn Vallejo Mexico Q4 2015 152 7 Hotel en Toluca Tollocan Mexico TBD 100 TBD 8.2 TBD

Total 750 1,060.0 213.1 855.1

600.0 59.5 540.5

230.0 34.0 196.0


@FibraHotel

- Via Vallejo (Courtyard y Fairfield Inn & Suites Vallejo): Two hotels to be constructed within the Vial Vallejo shopping center, a 152 room Fairfield Inn & Suites and a 93 room Courtyard. Both hotels will be operated by Marriott International and will open in conjunction with the project in the fourth quarter of 2015. Currently the project is under construction.

- Hotel in Toluca Tollocan: The land is located adjacent to the Fiesta Inn Toluca Tollocan hotel. The project is currently being defined to be either or an extended-stay hotel and/or a limited service hotel. We are currently evaluating the market to determine an expected opening date.

Recent events after December 31th 2013

On January 14th, 2013, FibraHotel concluded the acquisition of the Fiesta Americana Aguascalientes hotel, with an investment of Ps. 227 million. The hotel has 192 rooms and is located in the historic downtown of Aguascalientes. Aguascalientes is a strategic city given the large industrial investment received over the last few years led by the automotive industry. FibraHotel currently has 443 rooms in Aguascalientes, including the One Aguascalientes (limited services), the Fiesta Inn Aguascalientes (selected services) and the Fiesta Americana Aguascalientes (full service).

On January 21st, 2014, FibraHotel announced that the Camino Real Hotel & Suites Puebla of the Development Portfolio was complete.

On February 17th, 2014, FibraHotel signed a Ps. $1,000 million credit line from one of the main financial institutions in Mexico. FibraHotel has 12 months to make disbursements, and the credit line has 12-year duration since the first disbursement, 12 month grace period after disbursement, and no prepayment costs for the life of the loan. The credit line will be used for the acquisition and development of new hotels, giving FibraHotel flexibility to achieve its growth objectives while maintaining very conservative leverage levels.


@FibraHotel

FibraHotel’s Portfolio as of December 31th, 2013

Hotel StateNumber of Rooms Operator Brand Segment

Selected-Service Hotels - Managed1 Fiesta Inn Aguascalientes Aguascalientes 125 Grupo Posadas Fiesta Inn Selected-Service2 Fiesta Inn Ciudad Juarez Chihuahua 166 Grupo Posadas Fiesta Inn Selected-Service3 Fiesta Inn Chihuahua Chihuahua 152 Grupo Posadas Fiesta Inn Selected-Service4 Fiesta Inn Durango Durango 138 Grupo Posadas Fiesta Inn Selected-Service5 Fiesta Inn Guadalajara Expo Jalisco 158 Grupo Posadas Fiesta Inn Selected-Service6 Fiesta Inn Hermosillo Sonora 155 Grupo Posadas Fiesta Inn Selected-Service7 Fiesta Inn Leon Guanajuato 160 Grupo Posadas Fiesta Inn Selected-Service8 Fiesta Inn Mexicali BCN 150 Grupo Posadas Fiesta Inn Selected-Service9 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-Service11 Fiesta Inn Naucalpan State of Mexico 119 Grupo Posadas Fiesta Inn Selected-Service12 Fiesta Inn Nuevo Laredo Tamaulipas 120 Grupo Posadas Fiesta Inn Selected-Service13 Fiesta Inn Oaxaca Oaxaca 145 Grupo Posadas Fiesta Inn Selected-Service

14 Fiesta Inn Perinorte (1) State of Mexico 123 Grupo Posadas Fiesta Inn Selected-Service15 Fiesta Inn Puebla FINSA Puebla 123 Grupo Posadas Fiesta Inn Selected-Service16 Fiesta Inn Queretaro Queretaro 175 Grupo Posadas Fiesta Inn Selected-Service17 Fiesta Inn Saltillo Coahuila 149 Grupo Posadas Fiesta Inn Selected-Service18 Fiesta Inn Tepic Nayarit 139 Grupo Posadas Fiesta Inn Selected-Service19 Fiesta Inn Tlalnepantla State of Mexico 131 Grupo Posadas Fiesta Inn Selected-Service20 Fiesta Inn Torreon Galerias Coahuila 146 Grupo Posadas Fiesta Inn Selected-Service21 Fiesta Inn Toluca Tollocan State of Mexico 144 Grupo Posadas Fiesta Inn Selected-Service22 Real Inn Guadalajara Centro (1) Jalisco 197 Grupo Real Turismo Real Inn Selected-Service23 Real Inn Morelia Michoacan 155 Grupo Real Turismo Real Inn Selected-Service24 Real Inn Mexicali BCN 158 Grupo Real Turismo Real Inn Selected-Service

Sub Total Portfolio Selected Service 3,510

Limited-Service Hotel - Managed25 One Acapulco Costera (1) Guerrero 126 Grupo Posadas One Limited-Service

26 One Aguascalientes Sur (1) Aguascalientes 126 Grupo Posadas One Limited-Service27 One Coatzacoalcos Forum Veracruz 126 Grupo Posadas One Limited-Service28 One Culiacan Forum Sinaloa 119 Grupo Posadas One Limited-Service29 One Guadalajara Tapatio Jalísco 126 Grupo Posadas One Limited-Service

30 One Monterrey Aeropuerto (1) Nuevo Leon 126 Grupo Posadas One Limited-Service31 One Puebla FINSA Puebla 126 Grupo Posadas One Limited-Service32 One Queretaro Plaza Galerias Queretaro 126 Grupo Posadas One Limited-Service33 One Toluca Aeropuerto State of Mexico 126 Grupo Posadas One Limited-Service34 One Ciudad de Mexico Patriotismo Mexico DF 132 Grupo Posadas One Limited-Service

Sub Total Portfolio Limited Service 1,259

Leased Hotels35 Fiesta Inn Cuautitlan State of Mexico 128 Grupo Posadas Fiesta Inn Selected-Service36 Fiesta Inn Culiacan Sinaloa 142 Grupo Posadas Fiesta Inn Selected-Service37 Fiesta Inn Ecatepec State of Mexico 143 Grupo Posadas Fiesta Inn Selected-Service38 Fiesta Inn Perisur Mexico DF 212 Grupo Posadas Fiesta Inn Selected-Service39 Camino Real Puebla Puebla 153 Grupo Real Turismo Camino Real Full-Service

Sub Total Portfolio Leased 778

Total Operating Hotels as of December 31, 2013 5,547

(1) Includes retail component.


@FibraHotel

Selected information and highlights for the year ended 2013

• FibraHotel ended the year with 47 hotels and 6,446 rooms, including 39 hotels in operation (5,547 rooms) and 8 hotels under development (899 rooms).

• On a comparable property basis of 30 hotels, the ADR was Ps. $866, representing an increase of 5.7% versus 2012, the occupancy rate was 66.2% representing a decrease of (0.1%) versus 2012 and RevPAR was Ps. $574 representing an increase of 5.6% versus 2012.

• For the 37 hotels in operation in 2013, excluding the two hotels opened this year and in a ramp-up period, the ADR was Ps. $863, the occupancy rate was 64.8% and the RevPAR was Ps. $559.

• The following table shows the main financial indicators during 20138:

8 Lodging Contribution, NOI, EBITDA, FFO and AFFO are not IFRS figures

(In thousand pesos except per CBFI data) 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013

Total revenues 177,463 249,671 295,366 318,573 1,041,073

Revenues - Managed hotels 153,508 228,901 269,832 284,256 936,497% of total revenues 86.5% 91.7% 91.4% 89.2% 90.0%

Lodging contribution 70,137 93,212 105,943 116,779 386,070Margin 39.5% 37.3% 35.9% 36.7% 37.1%

Lodging contribution - Managed hotels 46,181 72,498 80,352 82,463 281,495Margin 30.1% 31.7% 29.8% 29.0% 30.1%

Net Operating Income 66,321 89,706 101,824 111,501 369,352Margin 37.4% 35.9% 34.5% 35.0% 35.5%

EBITDA 49,510 68,327 71,310 79,264 268,411Margin 27.9% 27.4% 24.1% 24.9% 25.8%

Consolidated net (loss) income 28,379 1,922 58,304 74,148 162,753Margin 16.0% 0.8% 19.7% 23.3% 15.6%

Funds From Operation 48,051 33,980 92,806 107,957 282,795FFO / CBFI with economic rights 0.1633 0.0691 0.1886 0.2194 0.6404

Adjusted Funds From Operation 56,435 75,237 100,371 105,022 337,065AFFO / CBFI with economic rights 0.1918 0.1529 0.2040 0.2134 0.7622

Distribution 58,990 74,414 99,542 105,001 337,948Distribution / CBFI with economic rights 0.2005 0.1512 0.2023 0.2134 0.7674


@FibraHotel

Results for the fourth quarter of 2013 FibraHotel had 39 hotels in operation during the quarter.

Total Revenues During this period, FibraHotel’s total revenue was Ps. $318.6 million:

• Ps. $225.8 million of room rentals (70.9% of total revenue). • Ps. $54.1 million of food and beverage (17.0% of total revenue). • Ps. $25.7 million for the lease of (i) 5 hotels9 and (ii) retail and other leases in hotel

properties (combined, 8.1% of total revenue). • Ps. $12.9 million (4.1% of total revenue) corresponded to other revenues of which Ps.

$8.6 million corresponded to the VAT actualization related to the Ps. $486 million reimbursement that FibraHotel received during the quarter.

Costs and General Expenses During this period, FibraHotel’s costs and general expenses were Ps. $201.8 million:

• Ps. $126.4 million of administrative costs and expenses (62.6% of costs and general expenses).

• Ps. $39.7 million of room expenses (19.7% of costs and general expenses). • Ps. $35.7 million of expenses related to food and beverages (17.7% of costs and general

expenses).

Lodging Contribution Lodging contribution amounted to Ps. $116.8 million, representing 36.7% of total revenues:

• Ps. $82.5 million corresponded to the managed hotels (29.0% margin). • Ps. $25.7 million corresponded to leases (100% margin). • Ps. $8.6 million corresponded to other revenues (100% margin).

Operating Profit Other operating expenses of Ps. $71.7 million consisted of: (i) Real estate expenses of Ps. $5.3 million; (ii) administrative expenses of Ps. $6.6 million; (iii) advisory fee of Ps. $25.6 million; and (iv) depreciation of Ps. $33.8 million.

The operating profit was Ps. $45.1 million, or 14.1% of total revenues.

9 Leased hotels are Fiesta Inn Cuautitlán, Fiesta Inn Culiacán, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla


@FibraHotel

Adjusted Operating Profit During the fourth quarter, FibraHotel had Ps. $10.8 million of non-operating expenses, which corresponded mainly to one-time expenses related to hotel acquisitions developments, including transaction taxes, appraisals and technical audits, among others.

The adjusted operating profit amounted to Ps. $34.3 million

Comprehensive Financial Cost FibraHotel closed the quarter with a cash position of Ps. $4,747 million and interest earned during the period of Ps. $40.9 million. The cash position was fully invested in Mexican Federal Government issued debt securities.

Consolidated Net Income Income taxes at the subsidiary level on the taxable profits generated by the ancillary hotel income such as food and beverage were Ps. $0.7 million. After these taxes, the consolidated net income was Ps. $74.1 million.

Adjusted funds from operation (“AFFO”) 10 During the fourth quarter 2013, FibraHotel generated adjusted funds from operation of Ps. $105.0 million calculated as follows:

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 2013, FibraHotel had the following key cash flow items:

• FibraHotel had a net operating cash flow excluding activities from hotel operations of Ps. $28.7 million. Taking into account the cash flow related to investment activities

10 AFFO is not an IFRS figure

Ps. $ thousand 4Q 2013 Year 2013

Consolidated net (loss) income 74,148 162,753

(+) Depreciation 33,809 120,041

Funds From Operation 107,957 282,795

(-) Maintenance CAPEX (14,349) (47,225) (+) Non operating result adjustments 11,414 101,495

Adjusted Funds From Operation 105,022 337,065


@FibraHotel

(reimbursement of VAT related to hotels acquisition), the net cash flow from operating activities was Ps. $500 million.

• The net cash flow from investment activities was a negative (Ps. $142 million), mainly due to the acquisition of the Salon Fundición, to payment related to the development portfolio of (Ps. $102 million), capital expenditures during the quarter of (Ps. $64.2 million), and interest generated from our cash position of Ps. $40.9 million. Payments during the quarter related to the development mainly corresponded to:

o The development of 2 full-service hotels in the Trebol project in Monterrey for (Ps. $59.5 million)

o The development of 2 hotels within the Vía Vallejo mall in Mexico City for (Ps. $34.0 million).

• The net cash flow from financing activities was a negative (Ps. $101 million), mainly due to the third quarter distribution payment during the quarter of (Ps. 99.5 million).

FibraHotel ended the fourth quarter of 2013 with no debt and a net cash position including VAT recoverable of Ps. $4,952 million (VAT recoverable totaled Ps. $204 million). Excluding VAT recoverable, FibraHotel had a cash position of Ps. $4,747 million compared to Ps. $4,491 million as of September 30th, 2013.

Capital Expenditures (“CapEx”)

As of December 31th, 2013, the available capital expenditures reserve amounted to Ps. $19.7 million compared with Ps. $24.9 million as of September 30th, 2013. The capital expenditure reserve is generated to maintain the standards of our hotels in operation and is constituted based on percentage of total revenues, on a monthly basis.

During the fourth quarter of 2013, FibraHotel had the following capital expenditures:

• Maintenance CapEx: During the quarter, Ps. $19.3 million were spent on maintenance CapEx at our operating hotels.

• CapEx investment in hotel repositioning: FibraHotel constantly analyzes opportunities to make capital investments in our portfolio hotels which have an opportunity to increase cash flows and provide an adequate return to our expected investment. In this light, during this quarter, FibraHotel invested Ps. $45.5 million in repositioning capital expenses mainly in the Fiesta Inn Querétaro and Fiesta Inn Naucalpan hotels:

o Fiesta Inn Querétaro: (i) improvement in 175 rooms to “Fiesta Inn 360” standards, (ii) changed air conditioning from in-window to central air conditioning, (iii) improvements to common areas to “Fiesta Inn 360” standards, and (iv) improvements to the motor lobby. The investment was done during the third and fourth quarters of 2013 with a budget of Ps. $41 million, out of which


@FibraHotel

Ps. 36.8 million were spent as of December 31st, 2013 (Ps. $20.4 million in the fourth quarter). The reposition finished in January 2014.

o Fiesta Inn Naucalpan: (i) improvement in 119 rooms to “Fiesta Inn 360” standard, (ii) changed air conditioning from in-window to central air conditioning, (iii) improvements in common areas to “Fiesta Inn 360” standards, (iv) improvements to the motor lobby, and (v) complete change of the hotel´s facade. The investment was done during the third and fourth quarters of 2013 with a budget of Ps. $35 million, out of which Ps. 29.4 million were spent as of December 31st, 2013 (Ps. $14.1 million in the fourth quarter). The reposition finished in January 2014.

o Investments were also made in other hotels such as the public areas in One Patriotismo and One Querétaro for a total of Ps. $4.0 million during the fourth quarter.

• CapEx to reposition and rebrand acquired hotels: o Real Inn Guadalajara: public areas were renewed to comply with the brand

standards of Real Inn for a total amount of Ps. $6.3 million during the quarter. o Real Inn Mexicali: The hotel is being repositioned to comply with the brand

standards of Real Inn with Ps. 3.0 million spent as of December 31st, 2013 (Ps. $0.6 million in the fourth quarter). The remaining investments will be done during the first semester of 2014.

Distribution corresponding to the fourth quarter 201311

FibraHotel looks to generate value for its certificate holders, and therefore on February 17th, 2014, FibraHotel’s Technical Committee approved a distribution of Ps. $105.0 million, equivalent to 21.34 cents (Ps. $0.2134) per CBFI, calculated based on the outstanding CBFIs excluding the CBFIs related to the Development Portfolio which currently do not have economic rights. This distribution is based on the results and operations of FibraHotel between October 1st and December 31st 2013. The distribution will be paid on March 10th, 2014.

The distribution payment is broken as follows12:

11 This Press Release is not a Distribution Notice 12 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

Amount

Concept per CBFI Total

Ps. $ Ps. $ million

Taxable Income - - Depreciation 0.2134 105.0 Total 0.2134 105.0


@FibraHotel

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.

Corporate Governance

On October 17st, 2014, there was an Audit Committee and Technical Committee meeting for the approval of the third quarter financial results and distribution, which were approved unanimously. As of to date, FibraHotel’s Technical Committee is comprised by 10 members, three of whom are independent.

Operating Highlights of FibraHotel´s Portfolio

The following graph shows the quarterly evolution, from 2007 to 2013, of the ADR, the occupancy rate and the RevPAR for the 30 hotels in FibraHotel’s Initial Portfolio (comparable properties).

As of December 31st, 2013, FibraHotel’s Portfolio in operation of 39 hotels reported the following:

• Occupancy rate of 63.8% for the fourth quarter and 63.5% for the full year • ADR of Ps. $862 for the fourth quarter and Ps. $860 for the full year • RevPAR of Ps. $549 for the fourth quarter and Ps. $546 for the full year

The following tables show selected operating information of FibraHotel’s hotels in operation for the fourth quarter and the 2013 year to date period on a comparable property basis of 30 hotels:

• Comparable properties: includes the 30 hotels in FibraHotel’s Initial Portfolio at IPO.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0100200300400500600700800900

1,000

2007 2008 2009 2010 2011 2012 2013

ADR RevPAR Ocupancy


@FibraHotel

• Total Portfolio: includes 39 hotels in operation as of December 31st, 2013. • Portfolio of stabilized hotels: includes 37 hotels in operation as of December 31st, 2013,

and excludes the Real Inn Morelia and One Guadalajara Tapatío hotels which opened during 2013 and are in a ramp-up period.

Comparable table for the fourth quarter of 2013 and the fourth quarter 2012

The change in RevPAR between the fourth quarter of 2012 and the fourth quarter of 2013 is as follows:

• Comparable properties: +3.8% • Total Portfolio: +0.1% • Portfolio of stabilized hotels: +2.9%

Comparable table for the year 2013 and the year 2012

The change in RevPAR between 2012 and 2013 is as follows:

• Comparable properties: +5.6% • Total Portfolio: +1.0% • Portfolio of stabilized hotels: +3.3%

The following table shows certain operating information by segment for the hotels in operation for the years ended December 31st, 2011, 2012 and 2013:

Initial Port. (30H) Total Portfolio (39H) Total Port. of stabilized hotels

4Q 2013 4Q 2012 3Q 2013 4Q 2013 4Q 2012 3Q 2013 4Q 2013 4Q 2012 3Q 2013

Ocupancy 66.0% 67.5% 67.8% 63.8% 66.8% 64.7% 65.1% 66.8% 66.6%ADR 869 820 854 862 822 847 867 822 850RevPAR 574 553 579 549 549 548 564 549 567

Initial Port. (30H) Total Portfolio (39H) Total Port. of stabilized hotels

FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012

Ocupancy 66.2% 66.3% 63.5% 65.8% 64.8% 65.8%ADR 866 819 860 822 863 822RevPAR 574 543 546 541 559 541

FY 2013FY 2011 FY 2012 Total Portfolio (39H) Total Portfolio of stabilized hotels

Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR

Limited Service 67% 607$ 409$ 64% 635$ 409$ 63% 663$ 415$ 64% 665$ 427$ Select Service 63% 852$ 539$ 66% 863$ 572$ 64% 906$ 577$ 65% 908$ 590$ Full Service 65% 1,086$ 701$ 63% 1,110$ 697$ 66% 1,131$ 749$ 66% 1,131$ 749$

Total 64% 808$ 518$ 66% 822$ 541$ 64% 860$ 546$ 65% 863$ 559$


@FibraHotel

The following table shows certain operating information by region13 for the hotels in operation of FibraHotel’s Portfolio for the years ended December 31st, 2011, 2012 and 2013:

The following table shows FibraHotel’s total Portfolio distribution (39 hotels) as of December 31st, 2013, by segment, region, number of hotels and rooms:

FibraHotel’s Initial Portfolio Financial Highlights

During the fourth quarter of 2013, FibraHotel’s Initial Portfolio of 30 hotels in operation generated14:

• Revenues of Ps. $231.8 million o Ps. $208.3 million for the 25 hotels in operation o Ps. $23.4 million for the 5 leased hotels

• A lodging contribution of Ps. $84.3 million (36.4% margin) o Ps. $60.9 million for the 25 hotels in operation (29.2% margin) o Ps. $23.4 million for the 5 leased hotels (100% margin)

During the full year 201315, FibraHotel’s Initial Portfolio of 30 hotels in operation generated:

• Revenues of Ps. $871.9 million o Ps. $791.6 million for the 25 hotels in operation o Ps. $80.4 million for the 5 leased hotels

• A lodging contribution of Ps. $321.8 million (36.9% margin) o Ps. $241.4 million for the 25 hotels in operation (30.5% margin) o Ps. $80.4 million for the 5 leased hotels (100% margin)

13 Northwest corresponds to the following states: Baja California Norte, 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, State of Mexico, Guanajuato, Guerrero, Oaxaca, Puebla, Querétaro, Veracruz, and Mexico City. West corresponds to the following states: Jalisco and Nayarit. 14 Does not take into account revenues not directly related with our hotels (commercial leases, cell towers leases, among others) 15 FibraHotel started the year with 18 hotels in operation. 11 hotels from the Acquisition Portfolio were acquired on January 21, 2013 and one hotel was acquired on February 28, 2013.

FY 2013FY 2011 FY 2012 Total Portfolio (39H) Total Portfolio of stabilized hotels

Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR

Northwest 59% 820$ 485$ 62% 849$ 527$ 60% 887$ 532$ 60% 887$ 532$ Northeast 65% 624$ 404$ 73% 642$ 469$ 69% 683$ 470$ 69% 683$ 470$ Center and South 67% 824$ 555$ 67% 850$ 570$ 66% 890$ 584$ 67% 892$ 602$ West 59% 903$ 530$ 62% 813$ 504$ 57% 820$ 467$ 60% 837$ 501$

Total 64% 808$ 518$ 66% 822$ 541$ 64% 860$ 546$ 65% 863$ 559$

SEGMENTHotels Rooms

REGIONHotels Rooms

# % # % # % # %Limited-Service 10 25.6% 1,259 22.7% Center and South 21 53.8% 2,924 52.7%Selected-Service 28 71.8% 4,135 74.5% Northeast 4 10.3% 556 10.0%Full-Service 1 2.6% 153 2.8% Northwest 10 25.6% 1,447 26.1%TOTAL 39 100.0% 5,547 100.0% West 4 10.3% 620 11.2%

TOTAL 39 100.0% 5,547 100.0%


@FibraHotel

Quarterly Operating Portfolio Highlights (excluding leased hotels)

Timeline of hotel additions generating room revenue by month during 2013:

• January 2013: 12 hotels of the Contribution Portfolio (excluding leased hotels) are added to our portfolio

• February 2013: 12 hotels from the Acquisition Portfolio are added to our portfolio • March 2013: Fiesta Inn Monclova and Real Inn Morelia are added to our portfolio • April 2013: Fiesta Inn Toluca is added to our portfolio • June 2013: One Guadalajara Tapatio is added to our portfolio during the last week of the

month • July 2013: Fiesta Inn Tlanepantla and Plaza Genova Guadalajara are added to our

portfolio • August 2013: One Puebla FINSA, Fiesta Inn Oaxaca, Fiesta Inn Puebla FINSA and Real

Inn Mexicali are added to our portfolio

PeriodAvailable

RoomsOccupied

RoomsOccup.

Room Revenues Ps. $ Million

ADR RevPAR

1st quarter 253,626 159,431 62.9% 128.6 806$ 507$ 2nd quarter 338,995 224,725 66.3% 186.1 828$ 549$ 3rd quarter 421,636 268,778 63.7% 217.9 811$ 517$ 4th quarter 438,748 273,872 62.4% 225.7 824$ 514$

Total 1,453,005 926,806 63.8% 758.3 818$ 522$


@FibraHotel

FibraHotel’s Portfolio evolution by quarter: Hotels and Rooms

FIESTA INNAcquisition

Date4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013

% of Rooms

1 * Fiesta Inn Aguascalientes 21/01/2013 125 125 125 125 2.3%2 * Fiesta Inn Ciudad Juárez 21/01/2013 166 166 166 166 3.0%3 * Fiesta Inn Chihuahua 21/01/2013 152 152 152 152 2.7%4 * Fiesta Inn Durango 01/12/2012 138 138 138 138 138 2.5%5 * Fiesta Inn Guadalajara 21/01/2013 158 158 158 158 2.8%6 * Fiesta Inn Hermosillo 01/12/2012 155 155 155 155 155 2.8%7 * Fiesta Inn León 21/01/2013 160 160 160 160 2.9%8 * Fiesta Inn Mexicali 21/01/2013 150 150 150 150 2.7%9 * Fiesta Inn Monclova 28/02/2013 121 121 121 121 2.2%

10 * Fiesta Inn Monterrey 21/01/2013 161 161 161 161 2.9%11 * Fiesta Inn Naucalpan 01/12/2012 119 119 119 119 119 2.1%12 * Fiesta Inn Nuevo Laredo 01/12/2012 120 120 120 120 120 2.2%13 Fiesta Inn Oaxaca 05/07/2013 145 145 2.6%14 * Fiesta Inn Perinorte 01/12/2012 123 123 123 123 123 2.2%15 Fiesta Inn Puebla FINSA 03/07/2013 123 123 2.2%16 * Fiesta Inn Querétaro 21/01/2013 175 175 175 175 3.2%17 * Fiesta Inn Saltillo 21/01/2013 149 149 149 149 2.7%18 * Fiesta Inn Tepic 01/12/2012 139 139 139 139 139 2.5%19 Fiesta Inn Tlalnepantla 24/06/2013 131 131 131 2.4%20 * Fiesta Inn Torreón 19/12/2012 146 146 146 146 146 2.6%21 Fiesta Inn Toluca 30/04/2013 144 144 144 2.6%

Subtotal 940 2,457 2,732 3,000 3,000 54.1%

REAL INN22 Real Inn Guadalajara 01/08/2013 197 197 3.6%23 Real Inn Mexicali 01/07/2013 158 158 2.8%24 Real Inn Morelia 01/03/2013 155 155 155 155 2.8%

Subtotal - 155 155 510 510 9.2%

ONE25 * One Acapulco 01/12/2012 126 126 126 126 126 2.3%26 * One Aguascalientes 01/12/2012 126 126 126 126 126 2.3%27 * One Coatzacoalcos 01/12/2012 126 126 126 126 126 2.3%28 * One Culiacán 01/12/2012 119 119 119 119 119 2.1%29 One Guadalajara Tapatío 24/06/2013 126 126 126 2.3%30 * One Monterrey 01/12/2012 126 126 126 126 126 2.3%31 One Puebla FINSA 02/07/2013 126 126 2.3%32 * One Querétaro 21/01/2013 126 126 126 126 2.3%33 * One Toluca 01/12/2012 126 126 126 126 126 2.3%34 * One Patriotismo 21/01/2013 132 132 132 132 2.4%

Subtotal 749 1,007 1,133 1,259 1,259 22.7%

LEASED HOTELS35 * Fiesta Inn Cuautitlán 01/12/2012 128 128 128 128 128 2.3%36 * Fiesta Inn Culiacán 01/12/2012 142 142 142 142 142 2.6%37 * Fiesta Inn Ecatepec 01/12/2012 143 143 143 143 143 2.6%38 * Fiesta Inn Perisur 01/12/2012 212 212 212 212 212 3.8%39 * Camino Real Puebla 01/12/2012 153 153 153 153 153 2.8%

Subtotal 778 778 778 778 778 14.0%

TOTAL OPERATING HOTELS 2,467 4,397 4,798 5,547 5,547 100.0%

NUMBER OF HOTELS 18 31 34 39 39

DEVELOPMENT Opening* Real Inn Morelia - Opened 01/01/2013 155 * One Tapatío - Opened 24/06/2013 126 126

40 * Puebla Extended Stay 1Q 2014 134 134 134 149 149 16.6%41 * Cancún Extended Stay 1Q / 2Q 2014 74 74 74 74 74 8.2%42 Toluca Tollocan Hotel TBD 126 100 100 11.1%43 Monclova Hotel 4Q 2014 105 11.7%44 Courtyard Vallejo 4Q 2015 93 10.3%45 Fairfield Inn & Suites Vallejo 4Q 2015 152 16.9%46 Fiesta Americana Grand Monterrey Trebol 4Q 2015 180 20.0%47 Live Aqua Monterrey Trebol 4Q 2015 46 5.1%

TOTAL DEVELOPMENT 489 334 334 323 899 100.0%

TOTAL PORTFOLIO FIBRAHOTEL 2,956 4,731 5,132 5,870 6,446

NUMBER OF HOTELS 22 34 37 42 47* Inicial Portfolio (30 operating hotels + 4 hotels in developmment)


@FibraHotel

Balance Sheet As of December 31st, 2013 (figures in thousands pesos)

Assets

Current assetsCash, cash equivalents and restricted cash 4,747,240Trade accounts receivable and other receivables 146,067Due from related parties 3,698Prepaid expenses 1,961Recoverable taxes, mainly value-added tax 204,319Total currents assets 5,103,284

Non current assetsHotel properties, furniture and operating equip. - Net 4,734,606Properties under development 250,874Advance to suppliers 905Deferred income taxes 2,193Total non-current assets 4,988,577

Total assets 10,091,861

Liabilities and partners' equity

Current liabilities:Suppliers and accrued expenses 157,158Due to related parties 0Taxes payable 3,414Total current liabilities 160,572

Trustors' equity:Contribution from the trustors 9,846,444Retained earnings 84,845Total trustors' equity: 9,931,289

Total liabilities and trustors' equity 10,091,861


@FibraHotel

INCOME STATEMENT From October 1st to December 31st, 2013 and full year 2013 (figures in thousands pesos)

January4Q 2013 December 2013

Revenue:Rooms 225,786 758,495Food and beverages 54,121 164,869Leases 25,716 88,523Others 12,949 29,186

Total revenue 318,573 1,041,073

Costs and general expensesRooms 39,747 130,426Food and beverages 35,685 110,829Administrative expenses 126,362 413,748

Total costs and general expenses 201,794 655,003

Lodging contribution 116,779 386,070

Real estate expenses 5,278 16,718Advisory fee 25,617 82,168Administrative expenses related to FibraHotel 6,620 18,773

Depreciation 33,809 120,041Cost for fixed asset sale 400 868

Income from operations 45,055 147,502

Extraordinary expenses, net 10,780 100,839

Adjusted (loss) from operations 34,275 46,663

Comprehensive financing result 40,593 118,168

Income before taxes 74,868 164,831

Tax 720 2,078

Consolidated net (loss) income 74,148 162,753


@FibraHotel

CASH FLOW STATEMENT From October 1st to December 31st, 2013 and full year 2013 (figures in thousands pesos)

4Q 2013 FY 2013

Operating ActivitiesConsolidated net income 74,148 162,753 Adjustments for non cash items

Depreciation 33,809 120,041 Interest income (40,877) (119,714)

Total 67,080 163,080

(Increase) decrease in:Trade accounts receivable and others (13,453) (125,757) Due from related parties 82 9,104 Recoverables taxes, mainly VAT 481,686 98,483 Prepaid expenses 4,998 14,619 Other assets 460 (864)

Increase (decrease) in:Suppliers and accrued expenses (11,652) 134,196 Due to related parties (29,000) (0) Tax payable (613) (1,930)

Net cash flow used in operating activities 499,587 290,932

Investing activitiesBusiness acquired, net of cash received (16,418) (2,677,216) Development portfolio (102,018) (127,540) Acquisition of other assets (64,403) (120,464) Interest income 40,877 119,744

Net cash flow used in investing activities (141,962) (2,805,475)

Financing activitiesDitributions to trustors (99,542) (251,486) CBIFs issuance 4,877,725 Issuance expenses 330 (242,232) Other (1,753) 0

Net cash flow used in financing activities (100,965) 4,384,008

Net increase (decrease) in cash, cash equivalents and restricted cash 256,661 1,869,464

Cash, cash equivalents and restricted cash at the beginning of the period 4,490,578 2,877,775

Cash, cash equivalents and restricted cash at the end of the period 4,747,240 4,747,240


@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

México D.F. Guillermo Bravo Tel: +52 (55) 5292 8050 E-mail: [email protected]

fibrahotel ), the first real estate investment trust specialized in … · 2016. 3. 25. · both...

Documents