ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx
FACC Acquisition / CBFI Holders Assembly
August 16, 2017 @FibraHotel ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Disclaimer
This presentation has been prepared by FibraHotel for information and discussion purposes only and on a confidential basis for certain presentations related to the offering. 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 Inmobilarios (the “CBFIs”) 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 Any such offering may be made only by an offering memorandum and the information contained herein will be superseded in its entirety by such offering memorandum in final form.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 that should be considered before investing in shares 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 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.
The underwriters which have assisted the Trust in this presentation, are acting only for the Trust and will not be responsible to anyone attending this presentation for providing the protections afforded to their respective clients or for providing advice in relation to any potential offering of securities of the Trust.
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.
2 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Agenda
1. Summary of the Fiesta Americana Condesa Cancún acquisition and strategic rationale regarding beach and resort hotels
2. Summary of the shelf equity program and the first issuance of such a program
3. Summary of CBFI holders meeting call
4. Questions and Answers
3 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx FibraHotel’s evolution
November 2012 . 34 hotels: 17 hotels + 13 acquired + 4 development 1 . 2 operators, 3 brands . Portfolio of select-service and limited service hotels . Ps. 5bn in assets
May 2013 . ~55 hotels: 39 hotels + 16 developments – target 100 . 2 operators, 4 brands (expanding with international brands) 2 . Added development as core strategy, added internationally branded and full service hotels . ~Ps. 10bn in assets . 100 hotels based on average~120 keys. Reached 12,000 rooms
September 2017 . As of today ~87 hotels (>12k rooms): 79 hotels + 7 developments + 1 resort acquisition 3 . 3 operators, 15 brands . Diversified portfolio (+full-service, +landmark hotels, +major cities, +leisure, + resort, + beach) . Acquisition of a stabilized all-inclusive hotel in Cancun . ~Ps. 18bn in assets
4 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Acquisition in the largest hotel market in Mexico
FibraHotel´s portfolio Operating Total FibraHotel´s portfolio
Hotel # cuartos 79 hotels 87 hotels Hotel # cuartos 1 Fiesta Inn Culiacán 146 43 Grand Fiesta Americana Monterrey 180 2 Fiesta Inn Durango 138 11,487 rooms 12,726 rooms 44 Live Aqua Monterrey 74 3 One Monterrey 126 45 Courtyard by Marriott Vallejo 125 4 One Acapulco 126 In 26 states 46 Fairfield Inn by Marriott Vallejo 121 5 One Toluca 126 47 Fiesta Americana Aguascalientes 192 6 One Coatzacoalcos 126 48 Fiesta Inn Xalapa 119 27 40 7 Fiesta Inn Tepic 139 49 One Xalapa 126 8 One Aguascalientes 126 59 50 Fairfield Inn Villahermosa 134 9 Fiesta Inn Hermosillo 155 51 Fiesta Inn Cd. Obregon 141 10 One Culiacán 119 72 26 52 Fiesta Inn Lofts Querétaro 50 11 Fiesta Inn Ecatepec 143 53 Gamma León 159 12 Fiesta Inn Perinorte 127 18 3 22 43 44 54 Courtyard Cd. Del Carmen 133 13 Fiesta Inn Nuevo Laredo 120 9 79 55 Fiesta Inn Lofts Cd. Del Carmen 120 14 Fiesta Inn Naucalpan 119 82 76 73 64 56 Gamma Valle Grande 135 15 Fiesta Inn Cuautitlán 128 57 Fairfield Inn Los Cabos 128 16 Fiesta Inn Perisur 212 51 56 58 Fiesta Inn San Luis Potosi Oriente 140 13 17 Camino Real Puebla 153 41 42 29 59 Gamma Tijuana 140 18 Fiesta Inn Chihuahua 152 66 60 Fairfield Inn Saltillo 139 19 Fiesta Inn Guadalajara 158 24 2 70 30 60 61 AC Torre Americas Guadalajara 188 20 One Querétaro 126 1 23 52 62 AC Antea Querétaro 175 21 Fiesta Inn Aguascalientes 125 62 10 63 One Perisur 144 22 Fiesta Inn Monterrey Aeropuert 161 57 20 38 69 64 Sheraton Ambassador Monterrey 229 23 Fiesta Inn Querétaro 175 47 65 Live Aqua Boutique Playa del Carmen 60 58 24 Fiesta Inn Saltillo 149 7 8 21 66 Fiesta Inn Los Mochis 125 25 One Patriotismo 132 87 28 53 83 17 34 32 36 67 Fiesta Inn Cuernavaca 155 26 Fiesta Inn Cd. Juárez 166 78 19 33 75 15 86 68 One Cuernavaca 125 27 Fiesta Inn Mexicali 150 12 37 61 65 69 Fairfield Inn & Suites Juriquilla 134 28 Fiesta Inn León 160 5 39 31 48 49 54 55 70 One Durango 126 29 Fiesta Inn Monclova 121 71 84 11 67 68 81 77 50 71 AC by Marriott Veracruz 166 30 Fiesta Inn Torreón 146 14 38 6 46 72 Fairfield Inn & Suites Nogales 134 31 Real Inn Morelia 155 45 4 73 Fiesta Inn Lofts Monterrey 48 32 Camino Real Suites Puebla 121 85 35 25 74 Fiesta Americana Viaducto 255 33 One Tapatío 126 80 75 One Cuautitlan 156 34 Fiesta Inn Puebla Finsa 123 75 74 74 76 Fiesta Americana Pabellon M 178 35 Fiesta Inn Oaxaca 145 77 Fiesta Inn Villahermosa 159 36 One Puebla Finsa 126 65 stabilized hotels with 9,072 rooms 78 Fiesta Inn Puerto Vallarta 144 37 Real Inn Guadalajara 197 16 63 79 Fiesta Americana Hermosillo 220 38 Fiesta Inn Tlalnepantla 131 14 hoteles in ramp-up period with 1,908 rooms 80 Fiesta Inn Buenavista 129 39 Fiesta Inn Toluca Tollocan 144 81 Fiesta Americana Villa del Mar Veracruz 173 40 Real Inn Mexicali 158 7 hotels under development with 1,239 rooms 41 Fiesta Inn Lofts Monclova 37 Mexico City 82 Fiesta Inn Monterrey Valle 177 42 One Monclova 66 83 Live Aqua San Miguel de Allende 146 84 Fiesta Americana Tlalnepantla 224 85 Courtyard Toreo 146 Limited 86 Fiesta Americana Hacienda Galindo 168 Select 3 13 5 Extended stay Full Operators Brands Segments Resort FACC hotel 507 rooms
5 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Resorts – The natural step for a lodging leader in Mexico
Resort/tourisn is a large and established sector in Mexico… … with Cancun as the most important location
During 2016 Mexico received ~35 million international visitors Cancun is the largest hotel market and the most established leisure market in Mexico with over 68,000 hotel Tourism represented ~8.5% of Mexico´s GDP during 2014 and rooms in 2016 (~70% all-inclusive1) grew at a CAGD of 6.35% between 2008 and 2015 according to the OCDE A total of over 10 million passengers arrived in Cancun´s airport in 2016 of which over seven million were In 2016, Mexico reached 8th place by visitors in WTO´s international, surpassing Mexico City´s international arrivals world ranking, passing from number 15 in 2015 all the way to 8 in just three years Cancun has a broad and established tourism infrastructure and an average occupancy rate of over 77%1 in 2016 These characteristics are due to Mexico´s well established position in the international markets win tourism, with attractive service, good weather year-round, geographical position, visibility and infrastructure
Perceived Impact to FibraHotel from entering this segment
The natural next step for FibraHotel to be the leading hotel owner in Mexico
With over 12 billion pesos in mainly business hotel assets, adding tourism, leisure and beach resorts provided FibraHotel: (i) new geographies, (ii) an increase in dólar denominated revenue, (iii) different demand generators,, (iv) different economic and seasonality cycles, (iv) exposure to a fast-growing segment with positive secular trends
FIHO will continue being only the owner of the hotel and will leverage its established relationships and asset manager capabilities as core capabilities
1 Sectur, HVS and ASUR estimates 6 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Summary of acquisition terms and conditions
Transaction summary
FibraHotel and Grupo Posadas signed a binding agreement for the acquisition of the 507 room Fiesta Americana Condesa Cancun hotel subject to certain conditions and based in general on the following terms:
FibraHotel acquires 100% of the assets of the hotel for Ps 2,892 million (excluding closing and transaction expenses as well as other capital investments)
FibraHotel signs a long-term lease with Grupo Posadas for the operation of the hotel under the Fiesta Americana brand — FibraHotel received a fixed rate component of nine point five million dollars adjustable by inflation and a variable rate component based on the revenues and occupancy of the hotel — FibraHotel received the additional rental revenue from retail GLA and is responsible for paying (i) property taxes, (ii) property insurance, (iii) concessions and federal zone expenses, (iv) maintenance capex
FibraHotel and Grupo Posadas have committed to invest about Ps. 60 million each to renovate public areas without closing the hotel during 2017 and 2018. Together with the recent room renovation, this will represent an investment of over Ps. 400 million in the hotel in the past few years
The transaction is subject to certain closing conditions including: — the approval of Grupo Posadas´ and FibraHotel´s shareholders — FibraHotel´s successful placement of CBFIs — COFECE (Comisión Federal de Competencia Económica) Authorization
Estimated closing date is at the beginning of 2018
7 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Fiesta Americana Condesa Cancún
Boulevard Kukulcan km Address 16.5, Zona Hotelera, 77500 Cancún, QR Opening date 1989
Last major remodeling 2016
# rooms 507
Land / beach-front ~40,000m2/ 205m
Segment All-inclusive
8 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Fiesta Americana Condesa Cancún
Hotel summary
The Fiesta Americana Condesa Cancun is an iconic all- inclusive five star resort hotel in a prime location in Cancun´s zona hotelera
Opened in 1989, major refurbishement in 2016
507 fully remodeled full-sercice rooms
Operated under the all-inclusive model; where guests pay a single flat rate for a package that includes food and beverage in addition to lodging
Mainly generates U.S. dollar-denominated revenues with ~70% of international guests
Over 200m of beach front in a land plot of over 40,000m2
Fiesta Americana Condesa Cancun recently underwent a ~Ps 300 million renovation by Grupo Posadas.
The hotel has 15 consumption centers — five specialty restaurants — Five bares — Spa, gym y pools — >1,100 m2 of event and meeting space GLA — Kid´s and teen´s club — Theater and others
9 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Post transaction portfolio overview
Segment by Segment by Beach1/City by MXN/USD2/MXD3 Coments number of rooms asset value asset value by asset value
1 Resort ES ES 0% 2% Resort1% Beach Current portfolio: 2% 7% 1 Limited USD (Assets of ~Ps. 12.5bn) Full Limited 16% Full 17% 9% 25% 23% MXD .79 hotels, 10,980 rooms 19% .Open 6 new hotels 2017 MXN (3 open to date) Select Select City 72% 57% 57% 93%
2 ES ES Portfolio with FS: Resort Resort 2% 1% 1 2% 7% Limited Beach (Assets of ~Ps. 15bn) 14% 14% USD Full Limited 12% .86 hotels, 12,219 rooms 20% 23% Full Open 4 full-service hotels 31% MXD . MXN 27% under development 61% Select City Including opening of 4 Select 47% .Acquire Fiesta Americana 86% full-service hotels in 53% Hacienda Galindo pipeline
3 ES ES Resort 2% 1% Portfolio including FA 6% Limited Resort 12% Condesa Cancún Limited USD 22% 23% Beach Full 27% (Assets ~Ps. 18bn): 19% 29% MXN .87 hotels, 12,726 rooms Select 50% Full 39% City MXD .FA Condesa Cancun 25% Select 71% 23% 51% (507 rooms)
Portfolios: 1 Beach include: FFI Cabos, One Acapulco, Fiesta Inn Puerto Vallarta, AC y FA Veracruz, y Resorts. Resorts include: Live Aqua San Miguel de Allende, Aqua Playa del Carmen 2 USD include: FFI Los Cabos, Aqua Playa del Carmen, Sheraton MTY, FI Cuautitlan, Perisur y FI Puerto Vallarta; MXD include FFI Nogales, Aqua MTY, FAG MTY, FA Pabellon M, AC GDL, AC QRO, CY Toreo, AC Veracruz, FA Viaducto, Tlalnepantla and Veracruz. 3 MXD represent hotels with ADR in dollars but demand generators in Pesos (“Mexi-dollars”) 10 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Agenda
1. Summary of the Fiesta Americana Condesa Cancún acquisition and strategic rationale regarding beach and resort hotels
2. Summary of the shelf equity program and the first issuance of such a program
3. Summary of CBFI holders meeting call
4. Questions and Answers
11 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Overview of shelf program and first issuance
Issuer FibraHotel (“Fideicomiso Deutsche Bank / 1596”)
Registration in the Bolsa Mexicana de Valores. International: 144 A - Reg S Equity shelf program structure For up to five years since the program is approved by the CNBV
Total amount of the program Up to Ps.$10,000mm
Amount for the first issuance Up to Ps.$4,000mm plus an overallotment option
Type of offer 100% Primary
Acquisition of the Fiesta Americana Condesa Cancun hotel Use of Proceeds Investments in hotels including the four full service hotels currently under development Other investments, VAT funding, debt repayment and other corporate
Participation by the relevant families The relevant families intend to participate in the offering and subscribe at least their portion of CBFIs in and controlling group order to maintain at least their current position
12 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Agenda
1. Summary of the Fiesta Americana Condesa Cancún acquisition and strategic rationale regarding beach and resort hotels
2. Summary of the shelf equity program and the first issuance of such a program
3. Summary of September 1st, 2017 CBFI holders meeting call
4. Questions and Answers
13 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Orden del día de la Asamblea General
I. Establishment of the Holders’ Meeting.
II. Proposal, discussion and, if necessary, approval for the establishment of a program for the issuance and placement of Real Estate Trust Certificates (“CBFIs”), for up to the equivalent of Ps. $ 10,000,000,000.00 (ten billion Pesos 00/100 legal currency of Mexico).
III. Proposal, discussion and, if applicable, approval to carry out the first subsequent issuance of CBFIs under the program referenced in Item II above, and all acts that are necessary to carry out the issuance of such CBFIs up to an amount of $ 4,000,000,000.00 M.N. (four billion Pesos 00/100 legal currency of Mexico) plus an over- allotment option (together, the “Authorized Amount”).
IV. Pursuant to Clause 9.1 Bis of the Trust, proposal, discussion and, if applicable, approval to acquire and perform all acts that are necessary to carry out the acquisition of the hotel Fiesta Americana Condesa Cancun. The hotel with 507 full-service rooms is operated by Grupo Posadas under the all-inclusive model, for a purchase price of $ 2,892,000,000.00 (two thousand eight hundred and ninety-two million Pesos 00/100 legal currency of Mexico), excluding transaction costs and capital investments, and considering that the acquisition value of the asset is higher than 20% of the Average Value of the Trust Estate.
V. Appointment of delegates to comply with the resolutions adopted at the Holders´ Meeting and ratification of signatures.
14 ibdroot\Projects\IBD-NY\croon2017\604081_1\23. Holders Meeting\FIHO Holder's Meeting v.07 -ESP.pptx Agenda
1. Summary of the Fiesta Americana Condesa Cancún acquisition and strategic rationale regarding beach and resort hotels
2. Summary of the shelf equity program and the first issuance of such a program
3. Summary of CBFI holders meeting call
4. Questions and Answers
15