fibrahotel day 20134 fibrahotel day 2015 objectives continue leading investor communication,...
TRANSCRIPT
FibraHotel Day 2015
@FibraHotel
December 3rd, 2015
2
Disclaimer
This presentation has been prepared by FibraHotel
(or the “Trust”) for informational and discussion
purposes. It does not constitute or form part of any
offer or invitation to sell or issue, or any solicitation of
any offer to purchase or subscribe for, any
Certificados Bursátiles Fiduciarios Inmobiliarios (or
the “CBFI”) in the Trust, nor shall any part of it nor
the fact of its dissemination form part of or be relied
on in connection with any contract or investment
decision relating thereto. Any such offering may be
made only by an offering memorandum and the
information contained herein will be superseded in its
entirety by such offering memorandum in final form.
This presentation does not contain all the information
you should consider before investing in CBFIs of the
Trust and no representation or warranty, express or
implied, is made by any party as to the accuracy,
fairness, completeness or materiality of the
information furnished in this presentation, which
remains subject to verification, completion and
change without notice. Investors should review the
offering memorandum (including the information
therein as to risks) prior to making an investment
decision and should rely only on the information
contained in the offering memorandum. The Trust
has not authorized anyone to provide you with
information different from that contained in the
offering memorandum.
The securities mentioned in this document have not
been registered under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), and may not be
offered or sold in the United States absent registration
or exemption from registration under the Securities Act.
The information in this presentation includes forward-
looking statements which are based on current
expectations, beliefs, and predictions about future
events. These forward looking statements are subject to
known and unknown risks, uncertainties and
assumptions about the Trust, its prospects and the
economic environment in which it operates that may
prove to be incorrect. Accordingly, the events described
in such forward-looking statements may not occur and
the Trust’s objectives may not be realized.
By attending this presentation you agree to be bound by
the foregoing limitations and not to distribute, disclose or
provide any information discussed today to any other
person.
3
Start Finish Speaker Title Topic
09:00 09:25 Simon Galante FIHO - CEO Introduction
FibraHotel strategy and 2016 Path
09:25 09:55 Richard Katzman HVS - Managing Director Lodging situation and Mexico outlook
09:55 10:20Eduardo Lopez
Guillermo Bravo
FIHO - General Director
FIHO - Head of Development2015 Portfolio Openings
10:20 10:40 Victor de AndaAset Architecture and design
FounderOverview of hotel design
10:40 10:50 BREAK
10:50 11:10Eduardo Lopez
Guillermo Bravo
FIHO - General Director
FIHO - Head of DevelopmentPipeline and cash deployment
11:10 11:20 Alberto Galante FIHO - Co-chairman Balance sheet and capital allocation
11:20 11:55Edouard Boudrant
Jose Luis Jacome
FIHO - CFO
FIHO - Director of Operations
Financial and operating results
Market trends and expectations
11:55 12:00 Simon Galante FIHO - CEO Closing remarks
FibraHotel´s 3rd Investor Day Agenda
4
FibraHotel day 2015 objectives
Continue leading investor communication, transparency and
corporate governance
1
3 FibraHotel´s strategy and growth pipeline
4 Review of financial results
2 Overview of business plan execution in 2015
5
2015 business plan execution
Will reach 69 operating hotels with 2015 portfolio
• In 2015, developed/acquired 13 hotels with 1,833 rooms and almost Ps. 2.7bn invested
• Focus now turns to ramp-up of the 2015 development portfolio
• Portfolio enhancement including five new full-service hotels and landmark assets in
Monterrey, Guadalajara and Queretaro
Funded pipeline continues to build. Ability to develop 10-15 hotels a year
• 11 hotels with ~1,450 rooms to open in 2016/17
• Including six hotels with GICSA FIHO would reach 86 hotels with 11,886 rooms
• Fully funded pipeline; With 80 hotels, FIHO would have ~Ps. 1.7bn of net debt
Property asset management to maximize cash flows
• Four hotels with >500 rooms renovated in 2015; >Ps. 225mm in capex invested
• One hotel rebranding and one hotel conversion
Strong operating results with 7.4% RevPAR growth (3Q 2015 LTM)
• Strong organic growth across the board; >3x Mexico GDP growth and >2x inflation
• Operating margin improvement of 112bps with 46% flow-through
• Invested all cash on the balance sheet. First credit line draw-downs in Q4 2015
1
3
4
2
Note: (i) 2015 portfolio includes: Fairfield Inn & Suites Saltillo and Villahermosa; One Perisur; Fiesta Inn Lofts and Courtyard by Marriott Cd. del Carmen; Fiesta Inn Villahermosa
Cencali; Fairfield Juriquilla; One Durango; Fiesta Americana Pabellon M; AC by Marriott Guadalajara and Queretaro; FAG Monterrey Trebol; Live Aqua Monterrey Trebol
6
The most attractive hotel portfolio in Mexico
Business hotel portfolio tracking the Mexican economy
• Including six hotels with GICSA FIHO would reach 86 hotels with 11,886 rooms
7
Open architecture with access to the best brands
Broad range of alternatives across categories, brands and operators
8
• Added five new full-
service hotels in key
markets (two luxury)
• Increased exposure to
extended stay segment
A continuously improving, diversified portfolio
Increased exposure to full-service hotels and landmark assets
Room breakdown based on FibraHotel´s current portfolio of 80 hotels with 11,006 rooms
Rooms by segment Rooms by Operator Rooms un operation/development
• Posadas continues to be
main partner with 60
hotels
• Reached 12 hotels with
Marriott International
• 69 hotels with 9,557 rooms
operating (including 2015
development portfolio)
• 11 hotels with 1,449 rooms
under development
• At IPO FIHO had 2 operators, 3 brands, 1 full service hotel and no extended stay hotels
Notes: Company estimates
9
Landmark properties in portfolio
10
Growth story in an attractive segment
4,397 4,798
5,547 5,547 6,115
6,664 6,944 7,656 7,777 7,921 8,077
1Q
´13
2Q
´13
3Q
´13
4Q
´13
1Q
´14
2Q
´14
3Q
´14
4Q
´14
1Q
´15
2Q
´15
3Q
´15
Rooms in operation RevPAR of stabilized properties
+84%
25% CAGR
522
569
541 547 530
569 567
596
561
611 607
1Q
´13
2Q
´13
3Q
´13
4Q
´13
1Q
´14
2Q
´14
3Q
´14
4Q
´14
1Q
´15
2Q
´15
3Q
´15
+16%
6% CAGR
177
250 295 310 309
380 396
447 449
501 504
1Q
´13
2Q
´13
3Q
´13
4Q
´13
1Q
´14
2Q
´14
3Q
´14
4Q
´14
1Q
´15
2Q
´15
3Q
´15
Revenues (Ps. $ million) NOI (Ps. $ million)
+184%
46% CAGR
66
90 102 103 99
126 130
148 143 155
162
1Q
´13
2Q
´13
3Q
´13
4Q
´13
1Q
´14
2Q
´14
3Q
´14
4Q
´14
1Q
´15
2Q
´15
3Q
´15
+145%
36% CAGR
Notes: Company financials
11
FibraHotel´s price is correct?
Annualized dividend yield – Q3 2015
Considerations:
- FIHO is currently in investment phase, and thus its dividend yield is not normalized
- For comparison purposes, need to analyze the company by separating the development portfolio
- Even in this scenario, the analysis does not take into account further upside such as:
i. Organic growth (7.4% RevPAR growth y-o-y)
ii. Attractive returns from developments
iii. Use additional debt to lever up the balance sheet and invest in accretive projects
Note: Illustrative calculation estimations: FIHO PF assumes that the ~2.5bn in cash and development properties at Q3´15 is used to repurchase
shares at current price (~165mm shares). For FIHO, PF yield based on Q3 distribution net of interest income, annualized (Ps. 24.4mm for Q3)
divided by adjusted market capitalization after share repurchase (Ps. 5.0bn including 329mm shares with economic rights)
5.3% 5.5% 5.6% 5.7%
6.3% 6.4% 6.7%
7.7%
8.0%
HCity FUNO FINN Danhos FIHO FSHOP Terra Prologis MQ FIHO PF1
0%
Notes: Illustrative example only. Prices as of December 1, 2015.
12
FibraHotel´s price is correct?
Real estate valuation
Considerations of per key values:
- FIHO portfolio cost of Ps. 0.9mm (US$54k)
- Avg. market transactions: Ps. 1.4mm (US$85k)
- Cost to develop Ps. mm: (i) select service ~1.0, (ii)
limited service ~0.75, (iii) full service ~1.5
Price per key Price per square meter
Considerations of construction costs:
- FIHO 2015 portfolio cost per m2 Ps. 27,539
(excluding Trebol and Pabellon M: Ps. 21,480)
Notes: Illustrative example only. Company estimates.
FIHO - Q3 2015 Total Operating
# of hotels 80 60
# of rooms 11,006 8,210
# of shares with econ. rights (mm) 494.3
Ps. US$
Cash on hand 849.0 51.5
Dividend payable for results in Q3 (106.0) (6.4)
Net cash 743.0 45.0
Cash invested in development 1,750.0 106.1
Pro-forma cash (op.) properties 2,493.0 151.1
Calculations
Ps. US$
Hotels 60 60
Rooms 8,210 8,210
Market Cap 7,458.6 452.0
Pro-forma cash for operating hotels (2,493.0) (151.1)
Enterprise Value 4,965.6 300.9
Ps. / key US$ / key
EV per operating hotel key 604,818.7 36,655.7
Discount to FIHO historical cost (32.5%)
Operating hotels
FIHO including 2015 portfolio
# of hotels 69
# of rooms 9,557
Real Estate constructed (m2/ft2) 570,000 6,135,423
# of shares with econ. rights (mm) 494.3
Ps. US$
Cash on hand 849.0 51.5
Dividend payable Q3 (106.0) (6.4)
Remaining Investment to develop (1,183.2) (71.7)
PF debt w / 69 open hotels (440.2) (26.7)
Calculations
Ps. / m2 US$ / ft2
Hotels 69 69
Rooms 9,557 9,557
Real Estate constructed (m2/ft2) 570,000 6,135,423
Market Cap 7,458.6 452.0
Pro-forma cash for operating hotels 440.2 26.7
Enterprise Value 7,898.8 478.7
Ps. US$
EV per m2 constructed 13,857.5 839.8
EV per ft2 constructed 1,287.4 78.0
Discount to 2015 Development Portfolio cost (49.7%)
FIHO including 2015 portfolio
13
What changed? A better company at half the price
Hotels are real “hard” assets and have appreciated in market value
2.5x larger portfolio: Added 49 hotels and >6,500 rooms (39 in operation)
Diversified portfolio: Added international brands, landmark assets in
gateway cities and exposure to full-service hotels
Announced pipeline – clear use of cash
Lodging sector outperforming: Best KPIs in years across the board
Mexico economic prospects improved (structural reforms, attractive
industrial, automotive and manufacturing investment prospects)
>Ps. 1,100mm returned to shareholders (>Ps. $2.3 per CBFI)
Increased Interest rate
uncertainty
Capital deployment has been
more focused on development
than acquisitions (and slower)
Peso depreciation
More Fibras in the market
Evolution of FibraHotel since the IPO Considerations since IPO:
Even with real assets, a better environment and more rooms in operation, the stock price decreased in 2015
Notes: Prices as of December 1, 2015
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
11/2012 02/2013 05/2013 08/2013 11/2013 02/2014 05/2014 08/2014 11/2014 02/2015 05/2015 08/2015 11/2015
FIHO stock price (US$) Rooms in operation
Evolution of FibraHotel since the IPO
Hotels are real “hard” assets and have appreciated in market value
2.5x larger portfolio: Added 49 hotels and >6,500 rooms (39 in operation)
Diversified by adding international brands and landmark full-service hotels
Announced pipeline. Clear use of cash with proven development know-how
Lodging sector outperforming: Best KPIs in years across the board
Built asset management team and optimized hotel level results
Mexico economic prospects improved (structural reforms, FDI, etc.)
>Ps. 1,100mm returned to shareholders (>Ps. $2.3 per CBFI)
14
FibraHotel business plan – What is next?
Growth story intact with a clear pipeline that continues to build
• Continue leveraging development expertise to grow in mixed use projects at right cost
• Announced 10 hotels for 2016/2017 with additional projects coming
• Looking for acquisition opportunities. Continues to be a sellers market
Strong performance of stabilized portfolio. Bullish for 2016
• Strong fundamentals for organic growth in 2016. FDI and manufacturing continue to
supporting record KPI levels in the portfolio
• Focus on ramp-up of 2015 portfolio
Strong balance sheet provides capital allocation alternatives
• Fully funded for announced portfolio, maintaining a conservative LTV of ~20%
• Alternatives to create shareholder value such as a CBFI buy-back
• Exploring alternatives to fund developments without impacting dividend
Leading management team and sponsor aligned with investors
• Transparency and corporate governance are key components of our strategy
• Best-in-class team to manage existing hotel portfolio and execute growth
• Sponsor aligned with investors and with a strong position in the company
1
3
2
4
FIHO is the leading company in the attractive business hotel segment with landmark assets
15
2015 portfolio
16
2015 portfolio overview
Developed nine brands (six not fully developed in Mexico) Right cost
Segment
Room breakdown by:
Region
Geographic location
Category Ps. mm US$ k
Full Service 2.0 121.6
Select Service 1.0 60.1
Limited Service 0.8 47.7
Total 1.4 83.5
Price per Key
By investment, almost 70%
represents full-service hotels
Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD
17
Location - Queretaro
Type - 175 full-service rooms
Inv. 212mm │ Per key – US$73k (Ps. 1.2mm)
Brand/Operator - AC / Marriott
AC by Marriott Antea Queretaro Courtyard Ciudad del Carmen
Location – Ciudad del Carmen
Type - 133 select-service rooms
Inv. 135mm │ Per key – US$60k (Ps. 1mm)
Brand/Operator - Courtyard / Marriott
Location - Monterrey
Type - 177 full-service rooms
Inv. 425mm │ Per key – US$145k (Ps. 2.4mm)
Brand/Operator – Fiesta Americana / Posadas
Fiesta Americana Monterrey Pabellon M AC by Marriott Torre Americas 1500 Guadalajara
Location - Guadalajara
Type - 188 full-service rooms
Inv. 246mm │ Per key – US$80k (Ps. 1.3mm)
Brand/Operator - AC / Marriott
Live Aqua Monterrey
Location - Monterrey
Type - 74 luxury rooms
Inv. 250mm │ Per key – US$205k (Ps. 3.4mm)
Brand/Operator - Aqua / Posadas
Location - Monterrey
Type - 180 full-service rooms
Inv. 460mm │ Per key – US$155k (Ps. 2.5mm)
Brand/Operator - FAG / Posadas
Fiesta Americana Grand Monterrey
Fairfield Inn & Suites Juriquilla
Location – Juriquilla (Queretaro)
Type - 134 limited-service rooms
Inv. 110mm │ Per key – US$50k (Ps. 0.8mm)
Brand/Operator - Fairfield / Marriott
Location - Saltillo
Type - 139 limited-service rooms
Inv. 112mm │ Per key – US$50k (Ps. 0.8mm)
Brand/Operator - Fairfield / Marriott
Fairfield Inn & Suites Saltillo
Location - Ciudad del Carmen
Type - 120 extended-stay rooms
Inv. 120mm │ Per key – US$60k (Ps. 1mm)
Brand/Operator – Fiesta Inn Lofts / Posadas
Fiesta Inn Lofts Ciudad del Carmen
Location - Villahermosa
Type - 134 limited-service rooms
Inv. 110mm │ Per key – US$50k (Ps. 0.8mm)
Brand/Operator - Fairfield / Marriott
Fairfield Inn & Suites Villahermosa
Location – Mexico City
Type - 144 limited-service rooms
Inv. 120mm │ Per key – US$50k (Ps. 0.8mm)
Brand/Operator - One / Posadas
One Perisur
Location - Durango
Type - 126 limited-service rooms
Inv. 72.5mm │ Per key – US$35k (Ps. 0.6mm)
Brand/Operator - One / Posadas
One Durango
2015 portfolio overview (cont´d)
Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD
18
Market announced acquisition transactions since 20133
FibraHotel acquisitions
Continue with bolt-on acquisitions at right cost
Notes: (i) Assumes FX of 16.5 Ps. per USD; (ii) Fiesta Inn Villahermosa Cencali includes land for an additional hotel; (iii) Estimated investment based on public disclosure; (iv) Includes 2015 portfolio of developments
Market
FibraHotel4
Overview by segment
Price / key
(Ps. 000´s)
Price / key
(US$ 000)
Limited service 713 43.2
Select service 952 57.7
Full service 1,729 104.8
Overall 1,003 60.8
Price / key
(Ps. 000´s)
Price / key
(US$ 000)
Limited service 785 47.6
Select service 1,359 82.4
Full service 1,905 115.4
Overall 1,395 84.6
Initial portfolio Acquisition date CategoryInvestment
(Ps. mm)# rooms
Price / key
(Ps. 000´s)
Price / key
(US$000´s)1
IPO Portfolio FibraHotel Dec 2012 / Feb 2013 3,671.8 4,242 866 52.5
FIHO acquisitions in 2013 2013 882.6 1,024 862 52.2
Fiesta Americana Aguascalientes 15/01/2014 full-service 227.3 192 1,184 71.8
Fiesta Inn Xalapa 27/03/2014 select-service 140.9 119 1,184 71.8
One Xalapa 27/03/2014 limited-service 80.0 126 635 38.5
Fiesta Inn Cd Obregon 07/04/2014 select-service 148.0 141 1,050 63.6
Fussion 5 Leon (Gamma) 16/05/2014 select-service 120.0 165 727 44.1
Gamma Valle Grande Cd Obregon 30/05/2014 select-service 110.0 135 815 49.4
Fairfield Inn Los Cabos 20/06/2014 limited-service 110.0 128 859 52.1
Fiesta Inn San Luis Oriente 21/07/2014 select-service 126.0 140 900 54.5
Gamma Lausana Tijuana 24/07/2014 select-service 120.0 140 857 51.9
Microtel Saltillo (to be repositioned) 25/09/2014 limited-service 125.0 139 899 54.5
Sheraton Ambassador Monterrey 17/11/2014 full-service 182.3 229 796 48.2
Lat 20 by Live Aqua Playa del Carmen 19/11/2014 Luxury 202.5 60 3,375 204.5
Fiesta Inn y One Cuernavaca 15/12/2014 select & limited service 268.0 280 957 58.0
Fiesta Inn Villahermosa Cencali 01/12/2015 select-service2
285.0 159 1,792 108.6
Fiesta Americana Monterrey Pabellon M 02/12/2015 full-service 425.0 177 2,401 145.5
FibraHotel total portfolio $7,224.5 7,596 $951.1 $57.6
Acquisitions since 2013 Acquisition date CategoryInvestment
(Ps. mm)# rooms
Price / key
(Ps. 000´s)
Price / key
(US$000´s)1
Hilton Centro Historico Jun 2013 full-service 1,170.0 458 2,555 154.8
Marriott Puebla Jul 2013 full-service 370.0 192 1,927 116.8
Mexico Plaza Portfolio (4 hotels) 2014 limited-service 492.9 521 946 57.3
Camino Real Guanajuato Aug 2013 full-service 230.0 105 2,190 132.8
Holiday Inn Coyoacan Dec 2013 full-service 381.0 214 1,780 107.9
Melia Reforma Ciudad de Mexico Dec 2013 full-service 910.0 489 1,861 112.8
Aloft Guadalajara Jan 2014 select-service 220.0 142 1,549 93.9
Holida Inn Tampico Altamira Mar 2014 select-service 112.5 100 1,125 68.2
Microtel portfolio (6 hotels) Sep 2014 limited-service 432.0 667 648 39.3
Crown Plaza Monterrey Airport Sep 2014 full-service 351.0 219 1,603 97.1
Mexico Plaza Guadalajara Sep 2014 limited-service 192.0 186 1,032 62.6
Krystal Urbano Cancun Nov 2014 full-service 263.4 212 1,242 75.3
Maria Barbara Satelite Apr 2015 select-service 305.0 215 1,419 86.0
Holiday Inn Reynosa June 2015 full-service 103.6 95 1,091 66.1
Hampton Inn Hermosillo June 2015 select-service 175.0 151 1,159 70.2
Staybridge Suites Guadalajara July 2015 extended stay 142.5 117 1,218 73.8
Aryba Guadalajara July 2015 select-service 179.4 181 991 60.1
Courtyard Chihuahua November 2015 select-service 234.4 152 1,542 93.5
Hampton Inn Chihuahua November 2015 select-service 327.2 190 1,722 104.4
City Express and City Junior Chihuahua November 2015 limited-service 126.1 209 603 36.6
Market transaction average $6,718.0 4,815 $1,395.2 $84.6
19
Development of One Perisur hotel - case study
One Perisur
One Periferico Sur Ciudad de Mexico
144 limited service rooms operated by
Grupo Posadas
Opened in July 2015
Located in Mexico City (Center region)
General information
Location
Mexico City, on Periferico Sur
In a hotel complex with the Fiesta Inn
Perisur hotel
20
Overview of the One Perisur construction
January 2015
May 2015 March 2015
November 2014
21
2015 portfolio main focus is now ramp-up
Occupancy rate
14%
29% 35% 32% 34%
40% 40% 46%
54%
44% 42% 48%
m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12
ADR
$803 $756 $777 $795 $806 $785 $754 $776 $830 $810 $790 $784
m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12
RevPAR
$110
$218 $268 $253 $277
$313 $300 $360
$445
$360 $328
$379
m1 m2 m3 m4 m5 m6 m7 m8 m9 m10 m11 m12
Exercise based on a sample of 5 greenfield hotels:
• One Tapatío, One Cuernavaca, One Monclova, Real Inn
Morelia, Camino Real Suites Puebla
Occupancy during ramp-up:
• Phase 1: During the First 6-month period. Consists of
positioning the new hotel in the market
• Result: 32% occupancy rate (accumulated)
• Phase 2: During the second 6-month period, the hotel is
consolidated in the market
• Result: 46% occupancy rate (accumulated)
• Phase 3: From the 12th month and until the 24/36th month,
the hotel is stabilized with penetration above 100%
(occupancy rate similar to the stabilized portfolio)
• Result: 60% to 65% occupancy rate on a yearly basis
ADR:
• ADR is fairly stable during the first year of the hotel
• Additional increase in rates comes from revenue
management once the hotel is stabilized
RevPAR growth:
• Increase in RevPAR during ramp-up and first 12 months is
mainly driven by the occupancy increase
• Further growth to come from above average market
penetration
22
Announced pipeline of 2016/2017 projects
Courtyard Toreo (2016)
Location – Mexico City (Toreo)
Type - 130 select-service rooms
Inv. 165mm │ Per key – US$77k (Ps. 1.3mm)
Brand/Operator – Courtyard / Marriott
Location – Los Mochis (Sinaloa)
Type - 125 select-service rooms
Inv. 112.5mm │ Cost per key – Ps. 900k
Brand/Operator – Fiesta Inn / Posadas
Fiesta Inn Los Mochis (2016)
Courtyard Via Vallejo Mexico City (2016)
Location – Mexico City
Type - 121 select-service rooms
Inv. 160mm │ Per key – US$80k (Ps. 1.3mm)
Brand/Operator – Courtyard / Marriott
Location – Mexico City
Type - 125 limited-service rooms
Inv. 130mm │ Per key – US$63k (Ps. 1.0mm)
Brand/Operator – Fairfield Inn & Suites / Marriott
Fairfield Inn & Suites Via Vallejo Mexico (2016)
Fairfield Inn & Suites Nogales (2016)
Location – Nogales
Type - 134 limited-service rooms
Inv. 120mm │ Per key – US$54k (Ps. 0.9mm)
Brand/Operator - Fairfield / Marriott
Location – Mexico City
Type - 115 limited-service rooms
Inv. 125mm │ Per key – US$66k (Ps. 1.1mm)
Brand/Operator - TBD
Limited service Cuautitlan, Mexico City (2016)
Fiesta Inn Viaducto - Via 515 (2017)
Location – Mexico City
Type - 178 select-service rooms
Inv. 210mm │ Per key – US$71k (Ps. 1.2mm)
Brand/Operator – Fiesta Inn / Posadas
Location – Mexico City
Type - 108 extended stay rooms
Inv. 125mm │ Per key – US$71k (Ps. 1.2mm)
Brand/Operator – Fiesta Inn Lofts / Posadas
Fiesta Inn Lofts Viaducto – Via 515 (2017)
Fiesta Inn Lofts Monterrey La Fe (2016)
Location – Monterrey
Type - 48 extended stay rooms
Inv. 48mm │ Per key – US$61k (Ps. 1.0mm)
Brand/Operator – Fiesta Inn Lofts / Posadas
Location - Veracruz
Type - 165 select-service rooms
Inv. 188mm │ Per key – US$69k (Ps. 1.1mm)
Brand/Operator – TBD
Select Service Veracruz (2016)
Fiesta Inn Villahermosa (2017)
Location – Villahermosa, Tabasco
Type - 200 select-service rooms
Inv. 220mm │ Per key – US$67k (Ps. 1.1mm)
Brand/Operator – Fiesta Inn / Posadas
Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD
23
Current 2016/2017 portfolio overview
Right cost Potential brands
Category Ps. mm US$ k
Extended stay 1.1 67.2
Select Service 1.1 67.0
Limited Service 0.9 57.5
Total 1.1 64.6
Price per Key
Segment
Room breakdown by:
Region
Geographic location
Notes: Estimated investment and cost per key for developments. Assumes FX of 16.5 Ps per USD
24
Additional pipeline alternatives
25
FibraHotel portfolio
Under 2017
Total By Q3 2015 Pending Constr. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
56 Current portfolio 7,674 634.7 849.0 (214.3) 7,674 7,674 7,674 7,674 7,674 7,674 7,674 7,674 7,674
2015 Portfolio
1 Fairfield Inn & Suites Saltillo 139 March 2015 112.0 112.0 0.0 139 139 139 139 139 139 139 139 139
2 One Perisur 144 June 2015 120.0 54.4 (65.6) 0 144 144 144 144 144 144 144 144
3 Fiesta Inn Lofts Cd del Carmen 120 Sep 2015 0 0 120 120 120 120 120 120 120
4 Courtyard by Marriott Cd. del Carmen 133 Nov 2015 0 0 0 133 133 133 133 133 133
5 Fairfield Villahermosa 134 Dec 2015 110.0 99.0 (11.0) 0 0 0 134 134 134 134 134 134
6 Fiesta Inn Villahermosa Cencali 159 Nov 2015 295.0 0.0 (295.0) 0 0 0 159 159 159 159 159 159
8 Fairfield Juriquilla 134 Dec 2015 110.0 108.8 (1.2) 0 0 0 134 134 134 134 134 134
7 One Durango 126 Dec 2015 72.5 30.6 (41.9) 0 0 0 126 126 126 126 126 126
9 Fiesta Americana Pabellon M 177 Q1 2015 425.0 39.0 (386.0) 0 0 0 0 177 177 177 177 177
10 AC by Marriott Guadalajara 188 Q1 2015 246.0 212.3 (33.7) 0 0 0 0 188 188 188 188 188
11 AC by Marriott Queretaro 175 Q1 2015 212.0 146.4 (65.6) 0 0 0 0 175 175 175 175 175
12 FAG Monterrey Trebol 180 Q1 2015 0 0 0 0 180 180 180 180 180
13 Live Aqua Monterrey Trebol 74 Q1 2015 0 0 0 0 74 74 74 74 74
13 Sub-total 1,883 2,668 1,593 (1,074.9) 139 283 403 1,089 1,883 1,883 1,883 1,883 1,883
69 FibraHotel Portfolio 9,557 (440.2) 7,813 7,957 8,077 8,763 9,557 9,557 9,557 9,557 9,557
2016/2017 Portfolio
1 Fiesta Inn Lofts Monterrey 48 Q2 2016 48.0 0.5 (47.5) 0 0 0 0 0 48 48 48 48
2 Fiesta Inn Los Mochis 125 Q3 2016 112.5 24.1 (93.8) 0 0 0 0 0 0 125 125 125
3 Fairfield Inn & Suites Vallejo 125 Q3 2016 0 0 0 0 0 0 125 125 125
4 Courtyard Vallejo 121 Q3 2016 0 0 0 0 0 0 121 121 121
5 Fairfield Nogales 134 Q3 2016 120.0 10.2 (109.8) 0 0 0 0 0 0 134 134 134
6 Fairfield Cuautitlan 115 Q3 2016 160.0 50.0 (110.0) 0 0 0 0 0 0 115 115 115
7 Select Service Veracruz 165 Q4 2016 188.3 32.6 (155.6) 0 0 0 0 0 0 0 165 165
8 Courtyard Toreo 130 Q4 2016 45.5 0.9 (44.6) 0 0 0 0 0 0 0 130 130
9 Fiesta Inn Via 515 178 2017 0 0 0 0 0 0 0 0 178
10 Fiesta Inn Lofts Via 515 108 2017 0 0 0 0 0 0 0 0 108
11 Fiesta Inn Cencali 200 2017 220.0 0.0 (220.0) 0 0 0 0 0 0 0 0 200
11 Sub-total 1,449 1,519 264 (1,260.6) 0 0 0 0 0 48 668 963 1,449
80 FibraHotel Portfolio 11,006 (1,700.8) 7,813 7,957 8,077 8,763 9,557 9,605 10,225 10,520 11,006
6 GICSA 880 (900.0) 0 0 0 0 0 0 0 280 880
86 FibraHotel Portfolio 11,886 (2,600.8) 7,813 7,957 8,077 8,763 9,557 9,605 10,225 10,800 11,886
290.0 95.8 (194.2)
335.0 50.0 (285.0)
710.0 535.1 (174.9)
255.0 255.0 0.0
20162015Hotel Name Rooms Opening
Investment (Ps. mm)
Overview of FibraHotel´s portfolio
Notes: Estimated investment and cost per key for developments
26
Pabellon M – case study
27
Pabellon M – case study OperatorNo. of
roomsCategory Location
Total (Ps.
mm)
Per key
(Ps.'000)
Posadas 96 Extended-stay Monclova $95 $990
Strategic location
Downtown Monterrey, inside Pabellon M complex
Adequate price and return
Leading penetration driven from strong project demand
including 30k of offices, conference center for ~3,800
people, auditorium for 4,500 people, and 22k of retail
Price per key US$145k
High quality and unique assets
Landmark hotel in the largest project and 50 level
tower in Monterrey, by Agustin Landa
New Fiesta Americana hotel design
Portfolio diversification
Adds exposure to Monterrey and full-service category
Investment criteria
177-room full-service hotel located in business
downtown district in Monterrey, Nuevo Leon
Fiesta Americana hotel operated by Grupo
Posadas
Leading market penetration from a combination
of project specific and market wide demand
Budget of Ps. $425mm (US$145k per key)
Acquired the structure finished from Pabellon
M. Interiors and FF&E executed by FibraHotel
through subcontractors
Opening Q1 2016, just months after acquiring
Hotel overview and strategic rationale
Pictures of Pabellon M Hotel location
Note: Company estimates
Office
Hotel
28
Fiesta Inn & Lofts Via 515 – case study
Strategic location
Mexico City on Viaducto, one of the main highways
Inside mixed-use project Via 515
Adequate price and return
Two hotels with 278 rooms and conference center
Price per key <US$75,000
High quality and unique assets
Inside mixed use project with 35k of office GLA, 15k of
retail GLA and the two hotels
Portfolio diversification
Expand presence in Mexico City. New location in the
east part of the city
Continue expanding extended stay segment
Investment criteria
178-room select-service Fiesta Inn hotel and
108-room extended stay Fiesta Inn Lofts hotel
Fiesta Inn and Fiesta Inn Lofts hotels operated
by Grupo Posadas, looking to leverage local
distribution
Over 500m2 of meeting space
Budget of Ps. $335mm (US$73k per key)
Acquired the core and shell of the structure
finished from project developer. Interiors and
FF&E executed by FibraHotel through
subcontractors
Estimated for year end 2017
Hotel overview and strategic rationale
Renders of Via 515 Hotel location in Mexico City
Note: Company estimates
1
3 2 4
1) Mexico City International airport 2) Autódromo Hermanos Rodríguez 3) Palacio de los Deportes 4) México-Puebla highway and Ignacio Zaragoza industrial zone Via 515 project with Fiesta Inn and Fiesta Inn Lofts hotels
29
Villahermosa Cencali – case study
Strategic location
Tabasco 2000 area in Villahermosa
On 19,200m2 of land. FIHO to develop a new hotel
Adequate price and return
Strong performance of Posadas hotels in the city
Price per key combined of ~US$90k
High quality and unique assets
In the main business district, and on the Laguna de
las Ilusiones
Premium land plot to develop
Portfolio diversification
Operating hotel converted to Fiesta Inn
Exposure to the Gulf region and the oil industry
Investment criteria
339 room hotel complex. Initially a 159-room
select-service Fiesta Inn hotel. Additional 200
rooms to be developed
Convert an independent hotel to Fiesta Inn
First Posadas hotel in Villahermosa (Fiesta Inn
had leading penetration in the market in the past)
Investment in first phase of Ps. $295mm (US$112k
per key including land plot). Full project investment
estimated at Ps. 515mm (US$87k per key)
Develop a conference center of 1,300m2
New hotel tower expected for 2017
Hotel overview and strategic rationale
Pictures of the Cencali Villahermosa hotel Hotel location
Note: Company estimates
30
Financing in place to continue growth
FibraHotel
Operating
portfolio by
YE 2015
56 hotels
7,674 rooms
2015
Portfolio
Current
Operating
portfolio
2016/2017
development
portfolio =
56 hotels
7,674 rooms
+
13 hotels
1,883 rooms
69 hotels
9,557 rooms
+
69 hotels
9,557 rooms
Portafolio
pro-forma =
PF cash of
+ Ps. 650mm
69 hotels
9,557 rooms
17 hotels
2,329 rooms
86 hotels
11,886 rooms
11 hotels
1,449 rooms
Remaining
Investment of
(-) Ps. 1,100mm
PF debt of
Ps. (440mm)
PF debt of
~Ps. (2,600mm)
Op
era
. D
eve
l.
5 hotels
695 rooms
8 hotels
1,188 rooms
GICSA
11 hotels
1,449
Remaining
Investment of
(-) Ps. 900mm
Remaining
Investment of
(-) Ps. 1,260mm
6 hotels
880 rooms
+
6 hotels
880
Note: Company estimates
31
Strong management team and growth structure
Finance Operations Development Legal
Edouard Boudrant
Chief Financial Officer
José Luis Jacome
Chief Operation Officer
Guillermo Bravo
Head of Dev. / IR
Lorena Garcia
Head Legal Counsel
Team of 7 persons
• Controllers
• Treasurer
• Fixed Assets
• Administrative
Team of 5 persons
• Operations
• Maintenance
• Capex
Team of 2 persons
• Development
managers
Team of 3 persons
• Legal counsels
Eduardo Lopez
Chief executive Officer
Fib
raH
ote
l
Ad
min
istr
ato
r
Fib
raH
ote
l
Ad
vis
or
Roberto Galante Alberto Galante Simón Galante
Serv
ice
pro
vid
ers
32
Cacao Playa del Carmen – Rebranding case study
33
KPIs continue to be solid…
2007 / 2015 Quarterly KPIs of 47 stabilized hotels
• 3Q 2015: a 66.2%, occupancy rate, a Ps. 917 ADR, a Ps. 607 RevPAR
Occupancy rate: +209bps vs. 3Q 2014 (64.1%)
ADR: +3.6% vs. 3Q 2014 (Ps. 885)
RevPAR: +7.0% vs. 3Q 2014 (Ps. 567)
• 3Q 2015 LTM: a 64.2% occupancy rate, a Ps. 925 ADR, a Ps. 594 RevPAR
Occupancy Rate: +259bps vs. 3Q 2014 LTM (61.6%)
ADR: +3.0% vs. 3Q 2014 LTM (Ps. 898)
RevPAR: +7.4% vs. 3Q 2014 LTM (Ps. 553)
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
100
200
300
400
500
600
700
800
900
1,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
ADR RevPAR Occupancy
34
…with positive growth across all regions and segments
51% 40%
9%
>65% 50%>65% <50%
Occupancy – 3Q 2015 Results driven by (i) market dynamics (ii) penetration by the brands and
operators; and (iii) asset management by FibraHotel
• Occupancy, ADR and RevPAR y-o-y growth is positive across all regions
and categories
• All regions are above 60% occupancy (most near 65%)
• The northeast, led by Monterrey, continues to outperform in growth with
almost 20% increase in RevPAR
• On a per segment basis, full service hotels are coming off a lower base and
continue to have more room to grow in the near term
KPI breakdown per region – 47 stabilized hotel portfolio
# of stabilized hotels with
occupancy of:
Occupancy ADR RevPAR Occupancy ADR RevPAR Occupancy ADR RevPAR
By region
Northwest 23% 59.2% $897 $531 64.2% $911 $585 5.0% 1.5% 10.1%
Northeast 13% 57.5% $790 $455 64.2% $845 $543 6.7% 6.9% 19.3%
Central and South 54% 64.3% $934 $600 64.6% $966 $624 0.3% 3.5% 4.0%
West 9% 57.9% $822 $476 61.7% $831 $513 3.8% 1.1% 7.8%
Stabilized Portfolio (47H) 100% 61.6% $898 $553 64.2% $925 $594 2.6% 3.0% 7.4%
By segment
Limited-Service 22% 58.6% $702 $412 61.6% $730 $450 3.0% 4.0% 9.4%
Select-Service 69% 63.2% $934 $590 65.6% $953 $626 2.4% 2.0% 6.0%
Full-Service 8% 56.3% $1,097 $618 59.2% $1,203 $713 2.9% 9.6% 15.3%
Stabilized Portfolio (47H) 100% 61.6% $898 $553 64.2% $925 $594 2.6% 3.0% 7.4%
3Q 2014 LTM 3Q 2015 LTM Change y-o-y% of
rooms
35
Key financial indicators – 3Q LTM
Occupancy
ADR
RevPAR
3Q 2014 LTM 3Q 2015 LTM
61.4% 64.2%
Ps. 898 Ps. 925
Ps. 553 Ps. 594
Total Revenues Ps. 1,394mm Ps. 1,901mm
NOI Ps. 458mm Ps. 608mm
EBITDA Margin Per room
Ps. 327m 23.5%
Ps. 47,092
Ps. 468mm 24.6%
Ps. 57,913
AFFO Ps. 415mm Ps. 428mm
Var.
+259bps
+3.0%
+7.4%
+36.4%
+32.6%
+43.0% +115bps +23.0%
+2.7%
• 47 stabilized properties
• Total Portfolio
Note: Financial information as reported, as of Q3 2015
36
Stabilized properties vs. ramp-up properties
# of Rooms – 3Q 2015
6,298
1,176
Stab. Ramp-up
# of Hotels – 3Q 2015
44
11
Stab. Ramp-up
16% 20%
Financial performance
• During the 2015 January to September period,
FibraHotel’s managed hotels generated:
• Ps. 1,392 million of total revenues
• 89% for stabilized hotels
• 11% for ramp-up hotels
• Ps. 419 million of lodging contribution (margin: 30.1%)
• 91% for stabilized hotels (margin: 30.7%)
• 9% for ramp-up hotels (margin: 25.3%)
• The stabilization of the 11 ramp-up hotels should:
• Increase lodging contribution:
• Increase in RevPAR should lead to better results
on a same store basis
• Increase in margins
• Increase in revenues from RevPAR growth
supports margin growth driven from efficiencies of
scale and operating leverage at the hotel level
552 600 589
1Q 2015 2Q 2015 3Q 2015
361 422 455
1Q 2015 2Q 2015 3Q 2015
Stabilized - RevPAR Ramp-up - RevPAR
Jan-Sep 2015 Portfolio
Data in thousand of Ps. Total Stabilized Ramp-up
# of hotels 55 44 11
# of rooms 7,474 6,298 1,176
Revenues 1,392,248 1,243,391 148,858
Lodging contribution 418,699 381,236 37,698
Margin 30.1% 30.7% 25.3%
Lodging Contribution / room 56,021$ 60,533$ 32,056$
+89%
Note: Calculations only include managed hotels (e.g. excludes leased hotels). Data from January-September 2015 for illustrative purposes only
• Lodging contribution per room of stabilized
hotels is almost twice the lodging contribution
per room of ramp-up hotels
• Ps. 60,533 vs. Ps. 32,056
37
Operating leverage leading to better margins
Revenues: +8.2%
Lodging contribution: +12.2%
Margin: +112bps
1,027 1,111
314 352
30.5% 31.7%
9M 2014 9M 2015
881 896
541 579
61.4% 64.7%
9M 2014 9M 2015
Occupancy: +329bps
ADR: +1.7%
RevPAR: +7.1%
Note: 2014 financial information as reported,, 2015 data presented on a comparable basis (e.g. the same # of hotels is used for each quarter, and thus exclude acquired or recently opened hotels)
January to September – KPIs January to September – Financial performance
Same store comparable margin for 9mo 2014 vs. 9mo 2015:
• 12.2% Lodging Contribution increase
• 112bps margin expansion
• Flow Though of 46%
e.g. Ps. $100 of additional
revenues generates Ps. $46
of additional Lodging
Contribution
38
Successful hotels renovations
• During 2014 and 2015, FibraHotel made 5
renovations: Fiesta Inn Naucalpan, Camino Real
Puebla, Fiesta Inn Culiacan, Fiesta Inn Saltillo,
Fiesta Inn Tlalnepantla
• Each hotel is evaluated for a possible
renovation due to the returns on the invested
capital coupled with the positioning of the
hotel in the market. Benefits include
• Renew the property competitively in the market
and with customers
• Update to new standards
• Cost efficiencies (LED, maintenance, etc.)
• On average, the investment made for full
renovation is Ps. 25/30mm
• Results of renovated properties between 2014
and 2016E1
• Increase in occupancy rate of 302bps
• Increase in ADR of 18%
• Increase in RevPAR of 24%
• Increase in Lodging Contribution of 34%
• A 307bps margin improvement
$623
$771
2013 2016
Revenue Per Available Room
Lodging Contribution (Ps. mm)
63.7
85.5
2013 2016
+24%
+34%
Note: (i) In the beginning of 2014 none of the hotels was renovated, and by the beginning of 2016 all hotels are remodeled
39
AFFO growth notwithstanding cash deployment headwinds
310 314
(72)
(22)
40
30
27
AFFO 2014 Interest income Other M&A Stabilized Ramp-up AFFO 2015
AFFO
9M 2014 (Jan-Sep)
AFFO
9M 2015 (Jan-Sep)
Cash position in billion of pesos:
4.8 4.2 3.6 3.1 2.1 1.9 1.5 0.7
2014 2015
Hotels’ NOI: +31.2% (leases excluded)
Note: Other includes increase in CAPEX reserve (-), increase in corporate expenses (-) and increase in lease NOI (+)
Strong increase in hotels’ cash flow generation, partially offset by strong cash
deployment effort leading to decrease in interest income
40
Strong balance sheet provides alternatives
• As of Sept. 30th, 2015, zero debt and Ps. 675mm of
cash available (Ps. 849mm including VAT)
• Two available credit lines with two banks
• Ps. 1,000mm each
• Structure overview:
• Tranche A: revolving / Tranche B: term loan
up to 12 years
• Spread: les than 200bps over TIIE
• 100% peso funding and repayment
• 100% floating rate (hedge to be contracted)
• Mortgage backed with hotels
• First drawdown in November 2015
$850
$1,000
$1,000
Liquidity
~Ps. 2,850
Cash
CL 1
CL 2
Benchmarking of FIBRAs LTV as of 3Q2015
Note: Company estimates. FINN is pro-forma for Ps. 1.9bn bond in October as illustrative
71 74 78 82 86 90 94 99 104 109 114
105 110 116 121 127 134 140 147
71
179 188 197 207 217 228 239 251
109 114
-
200
400
600
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Illustrative maturity schedule with Ps. 2bn (Ps. mm)
Liquidity overview
Debt overview
41%
35% 31%
26%
20%
0% 0% 0%
10%
20%
30%
40%
50%
MQ Terra FUNO SHOP FINN Danhos FIHO
$850
$1,000
$1,000
Liquidity
~Ps. 2,850
Cash
CL 1
CL 2
• Pro Forma LTV
of 17% with
Ps. $2,000mm
of debt
• ~Ps. 2.6bn in
liquidity w/
working capital
41
Cash deployed with leverage < 20% LTV
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
2Q2015
3Q2015
4Q2015
1Q2016
2Q2016
3Q2016
4Q2016
Mill
lion
of
Pe
so
s
Cash positive Debt
Available Cash + VAT Hotels in Operation Development Portfolio Debt
Excess cash
Credit
Lines