Annual Report 2019

Live Aqua Urban Resort San Miguel de Allende 2O19 Highlights 2.8 Million hotel room nights

62.8% Portfolio’s occupancy rate excluding FACC 86 Operating hotels 636 Million distributed to CBFI Holders Fiesta Americana Hacienda Galindo Hacienda Americana Fiesta 4,579 Million in debt as of December 31st, 2019 2,5OO Million issued in the inaugural bond FIHO19 +76bps Increase in lodging contribution margin +26O Rooms for the Fiesta Americana Viaducto Aeropuerto Mexico City opening Annual Report 2 2019 Page 35 33 32 29 28 26 24 20 20 19 14 14 12 10 8 6 6 4

Sheraton Ambassador Monterrey Brand Affiliations FibraHotel´s Portfolio Strategy FibraHotel´s Strategy overviewIndustry Introduction to FibraHotel Letter from the CEO Hotel Segments of the FibraHotel´s portfolio Portfolio Map Presentation of the Portfolio Acquisitions and Developments Our Competitive Strengths Relevant market opportunities for FibraHotel The and Mexican Market LodgingIndustry Opportunity Senior Management Team FibraHotel´s Structure FibraHotel´s History Company Overview 54 53 52 52 52 49 49 48 48 47 47 47 44 38 38 36 NOTE: The publication date of isJuly14 thisAnnualReport Consolidated Financial Statements Post-2019 events FibraHotel onthe Mexican Stock Exchange Corporate Governance Vision Sustaintability Buybacks Cash flow and liquidity Financial section Stock ownership CBFI price Technical Committee and FibraHotel Committees Cash distribution Capital Expenditures 2019 Financial Results KPIs of the FibraHotel´s portfolio th , 2020.

Sheraton Ambassador Monterrey 3 FibraHotel Annual Report 4 2019 I of million, AFFO of MXN $638 million and a distribution enues of MXN $4,372million, EBITDA of MXN $1,156 and less tourism. For the fullyear of 2019, we hadrev complicated environment of slow economic growth From anoperating perspective, in2019 we faced a ward onthese topics. design of ourstrategy and committed to move for tiatives and results. We are makingprogress onthe with anemphasis ontransparency regarding ourini- the company asacreator of value for allstakeholders governance characterized by an understanding of criteria. Our activities are built on solid corporate tainability, including socialand environmental tomation inrooms, publicareas, backof the house designed withthe latest technology including fullau- service the Via515 mixed-use project. The hotel has260full- cana Viaducto Aeropuerto Hotel inMexico Cityinside the development cycle by opening the Fiesta Ameri- FibraHotel I ity report. bond and publishingourfirst sustainabil- issuing aMXN $2,500millionlong-term icana Viaducto Mexico hotel, CityAirport certificate holders: Dear FibraHotel As according to STR. 5.1% RevPAR decrease for hotels inMexico in2019, with a 2.1% RevPAR growth of our portfolio versus a ket conditions, we continued to gain market share year included opening the Fiesta Amer its long-term strategy. Highlights of the n 2019, FibraHotel continued to execute will MXN for first our $0.81 rooms portfolio, is, talk per and in about an certificate. will EDGE in be, our November certified firmly ESG Even report, committed under 2019 building we as these -

and finished to mar sus- was - - -

Letter from the CEO 2020 July Fiesta Americana Monterrey fixed long-term FIHO-19 bond for MXN $2,500millionat a Another highlightof 2019 was the placement of the Travel Guideafter onlyone year inoperation. design and received Four-Star recognition by Forbes Americaarchitecture withextraordinary North and the UNESCO PrixVersailles 2019 award for hotels in tel continued itsramp-up process and received the Live Aqua San MigueldeAllende Ho- and maintenance equipment. During 2019, our public debtmarket and improved the average life of The issuance marked ourinaugural placement inthe including to the crisis, we took fast and decisive measures, the people affected by the coronavirus. Inresponse the COVID-19 pandemic. Ourthoughts are withall In 2020to date, FibraHotel hasbeen impacted by solid balance sheet position. with a26%LTV, [95%]of ourdebtinpesos, and ina and tentionally structured to weather challengingtimes these are uniquecircumstances, FibraHotel was in deferring fee. payment of the advisory Even though essential expenditures, eliminating distribution and measures to liquidityby conserve reducing allnon- jority of ourhotels duringApril and May. We alsotook I business successfully across market cycles. portfolio and experience of our team to manage the CEO FibraHotel Simón Galante um and long-term. crisis and achieve the best possible results at medi- that ourteam hasthe abilityto managethrough the Hotel. holders, and for partners their commitment to Fibra- would debt we rate In remain like from these the of to 8.83% difficult 5 unprecedented confident thank years to to decision all refinance 8 our in years. the associates, times, to strength We close existing finished I firmly the of certificate liabilities. our vast the believe hotel year ma- -

5 FibraHotel Annual Report 6 2019

Grand Fiesta Americana Monterrey Valle

Introduction to FibraHotel W tive through the ownership, continue achieving thisobjec tal appreciation. We intend to committee, and through capi- as determined by ourtechnical marily through distributions, for Holders of ourCBFIspri - tractive risk-adjusted returns Our objective is to generate at of amenities and services. guests access to a large variety among others; thus,offering our and busterminals,airports ness centers, industrial parks, regional shopping centers, busi- near mixed-use projects suchas ties and are located insideor industrial and touristic activi- sites hotels are located instrategic and leisure travelers. Most of its across to business the country portfolio offers lodgingservices in Latin America. FibraHotel´s focused onthe lodging industry tate investment trust, orREIT) (real espublicly-traded- FIBRA 86 co, withaportfolio that includes the largest hotel owner inMexi- Company Overview traveler brand, size, hotel operator and by geography, hotel segment, hotel with type. properties significant in Mexico. We are and develops hotels that owns, acquires e are aMexican trust We are diversified business, the first - -

As of December 31 of MXN $17,746 millionasof December 31 under 13brands, 3hotel operators and total assets a portfolio including 86hotel properties diversified total assets of approximately MXN $5,000 millionto operated by 2hotel operators under 4brands, and grown our initial portfolio of 22 hotel properties, Since our initial offering in November 2012, we have that best suitsthe needs of each of ourproperties. ture inorder to work withthe operator orhotel brand operators, which allows us to have an open architec We stand outfor being the soleowner of hotels, not diversified portfolio of hotels. expansion and asset management of ahigh-quality, 86 operation st , 2019, the FibraHotel portfolio had: hotels in st , 2019. - This lio by 5.1x. from 2,467to 12,560,multiplyingthe InitialPortfo- The number of rooms inour hotels hasincreased v) increasing demand of travelers inand to Mexico. iv) national and international distribution channels and iii) modern reservation systems, ii) loyalty programs, i increases demand dueto: brands, whichprovides competitive advantages and of the Republic and are related to prestigious hotel growth. The hotels are located in26Mexican states architecture strategy, has facilitated thisimportant established asset management platform and open tionally, ouraccess to the publiccapitalmarket, our acquisition and development of new hotels. Addi- as to structure investments and expand through the range of accommodation assets inMexico, aswell to identifyvalue creation opportunities inthe entire ) qualityof service, significant growth is the product of our ability

Grand Fiesta Americana Monterrey Valle 7 FibraHotel 8 FibraHotel´s History

The FibraHotel trust was constituted on July 31st of 2012 and conducted its Initial Public Offering (IPO) on November 30th, 2012. FibraHotel has increased its hotel portfolio and number of rooms from the time of its IPO as follows:

Number of rooms at the end of the period 2012 2013 2014 2015 2016 2017 2018 T1 2019 T2 2019 T3 2019 T4 2019 Rooms in Operation 2,467 5,547 7,656 8,507 10,422 11,273 12,300 12,300 12,300 12,300 12,560 Rooms under development 489 899 1,883 2,197 1,346 688 255 255 255 255 0 Total Rooms 2,956 6,446 9,539 10,704 11,768 11,961 12,555 12,555 12,555 12,555 12,560

Number of hotels at the end of the period 2012 2013 2014 2015 2016 2017 2018 T1 2019 T2 2019 T3 2019 T4 2019 Hotels in Operation 18 39 56 62 75 81 85 85 85 85 86 Hotels under development 4 8 14 18 10 5 1 1 1 1 0 Total Hotels 22 47 70 80 85 86 86 86 86 86 86

During 2014, FibraHotel in- On November 30th, 2012, 2014 2012 creased the number of rooms in its portfolio due to the: FibraHotel successfully carried out its initial Public > Acquisition of 13 hotels (1,831 rooms) in operation Offering consisting of a public offer in Mexico, as well as an > Opening of 4 hotels (274 rooms) from the development international private offer from CBFIs obtaining resources portfolio for MXN $4,137 million. > Acquisition of 10 hotel projects under development (1,201 rooms)

Annual Report 2019 At the end of 2012, the FibraHotel portfolio was composed as > Room inventory decrease at certain hotels, a hotel closed follows: and in a repositioning process (142 rooms), and the > 18 hotels (2,467 rooms in operation) cancelation of the long-stay hotel in Cancun (74 rooms) > 4 hotels (489 rooms) in different stages of development At the end of 2014, the FibraHotel´s portfolio was composed as follows: > 56 hotels (7,656 rooms) in operation > 13 hotels (1,741 rooms) in different stages of development > 1 hotel (142 rooms) in repositioning process

2013 On May 30th, 2013, FibraHotel completed its first follow-on consisting of a public offer in Mexico, as well as an international private offering through a CBFI issuance that raised MXN $4,878 million.

During 2013, FibraHotel increased the number of rooms in its portfolio due to the: 2015 During 2015, FibraHotel > Acquisition of 14 hotels (2,050 rooms) in operation by Grupo increased the number of rooms in its portfolio due to the: Posadas > Acquisition of 1 hotel (159 rooms) in operation > Acquisition of 5 hotels (749 rooms) from other hotel owners > Opening of 5 hotels (670 rooms) from the development > Opening of 2 hotels (281 rooms) from the development portfolio portfolio > Acquisition of 10 hotels projects under development (1,349 > Acquisition of 6 projects under development (676 rooms) and rooms) increased room inventory in the Camino Real Hotel & Suites > Room inventory increase (26 rooms) at some hotels and the Puebla hotel (15 rooms) cancelation of one hotel project (100 rooms)

At the end of 2013, FibraHotel’s portfolio was composed as At the end of 2015, FibraHotel’s portfolio was composed as follows: follows: > 39 hotels (5,547 rooms) in operation > 62 hotels (8,507 rooms) in operation > 8 hotels (899 rooms) in different stages of development > 18 hotels (2,197 rooms) in different stages of development Live Aqua San Miguel de Allende > > At the end of 2017, FibraHotel’s portfolio was composed asfollows: > > During 2017, FibraHotel increased the number of hotels inoperation dueto the: raised MXN $4,505million. as well asaninternational private offering through aCBFIissuance that fully carriedoutitssecond follow-on consisting of aPublicOffer inMexico,

2019 As of December 31 > number of rooms initsportfolio dueto the: > > At the end of 2016, FibraHotel’s portfolio was composed asfollows: > > > > number of rooms initsportfolio dueto the: > > At the end of 2018, FibraHotel’s portfolio was composed asfollows: > > number of rooms initsportfolio dueto the: operation (the Current Portfolio). 2018 5 hotels (688rooms) indifferent stages of development 81 hotels rooms) (11,273 inoperation 10 hotels (1,346rooms) indifferent stages of development 75 hotels (10,422rooms) inoperation Acquisition of 1hotel (168rooms) Opening of 5hotels (683rooms) (260 rooms) Opening of Fiesta Americana Viaducto Aeropuerto Mexico City hotel Room inventory increase development incertain projects Acquisition of 4hotel development projects (660rooms) Opening of hotels 11 (1,518 rooms) from the development portfolio Acquisition of 2hotels (397rooms) inoperation 1 hotel (255rooms) under development 85 hotels (12,300rooms) inoperation Opening of 3hotels (522rooms) from the development portfolio Acquisition of 1hotel (507rooms) 2017 2016 st , 2019, FibraHotel had86hotels and 12,560rooms in On September, 2017, FibraHotel success- During 2016, FibraHotel increased the During 2019, FibraHotel increased the During 2018, FibraHotel increased the 9 FibraHotel Annual 10 Report 2019 > > > > > Pays after-tax dividends to > Taxable entity. > Pays expenses related to itsown > Receives revenue from non-room > > > and distribution policies Approves the financial statements portfolio disinvestments acquisitions, disposals, sales and Approves the investments, applicable Defines accounting policies Advisor Designates the Accounting and Fiscal to cover shortfall. FibraHotel orreceives distributios operation. related costs and expenses. related hotel and pays services (with assistance form third parties). managementproperty services Provides hotel and services pays and the Management Subsidiary Receives after –taxdividend from expenses. expenses aswell asreal estate rooms and pays related costs and Receives rental revenue from Deutsche Bank México, S.A. (Trustee) The following diagram outlines the FibraHotel structure: FibraHotel´s Structure Technical Committee 84.O% Holders CBFI Representative) CIBanco, S.A. (Common The structure isasof December 31 3

For more detail of ourcorporate structure, please refer to our AnnualReport. CBFI Holders (Management Subsidiary) Assembly Fibra Hotelera, S.C. Hotel Portafolio Management Agreement Subsidiary Compensation of 5% of 5% of Compensation Hotel Management Agreements Service AgreementsService 16.O% st , 2019. Administradora Fibra Gross Payroll. Gross S.A. deC.V. (Advisor) Rental Revenue (lodging) Hotelera Mexicana, Control Trust > Empoyees: operating staff of > Provides personnel services. > > > > > > > hotel portfolio. quarterly. assets, net of debt, payable payable debt, of net assets, undepreciated book value of of value book undepreciated Annual fee of 1.00 % of of % 1.00 of fee Annual Advisory Agreement.Advisory transactions. Approve large Real Estate of CBFIswithCNBV. delisting orcancel registration Approves CBFIsissuance, Agreement without “cause”. Able to terminate Advisory assets. Agreement orliquidate trust Able to amend Trust Common Representative. Committee and appoints Elects Technical plan Prepares the annualbusiness management Responsible for the business Companies Services non-room hotel Revenue from Management Companies services. Guests Hotel business. Asof December 31 ity for the day-to-day management of FibraHotel´s 5, 2012 for the solepurpose of assuming responsibil- the Administrator, whichwas established onOctober FibraHotel is managedinternally by Fibra Hotelera S.C., Administrator opment commission orany other type of commission). any other commission (acquisitioncommission, devel- of assets, net of debt.The Advisor does not receive 1.0% (one percent) of the non-depreciated book value an annualcommission, payable quarterly, equivalent to rect performance. The Advisor isentitledto perceive investors, among other essential factors for itscor tation decisions,and of important relationships with quisition and development opportunities, overseeing hotel maintenance, due-diligence for potential ac management of FibraHotel´s business, and property responsible, among other tasks, for the day-to-day and Maintenance personnel). The Administrator is istration, Finances, Legal,Development, Operations had a27-person team (SeniorManagement, Admin long-term hotel project development and acquisitionstrategies, of the Advisor are to provide advice to FibraHotel on Some of the services. responsibilities ing advisory on September 20,2012 for the solepurpose of provid- bra Hotelera, S.A. deC.V. the Advisor. Itwas established FibraHotel isadvisedexternally by Administradora Fi- Advisor following entities: The FibraHotel´s structure iscomposed History of the strategic and financial st , 2019, the Administrator planning, implemen - - - - Administrator, must pay taxes just asany other company does. The ministrator of isnot the REIT´s taxstructure, part it being subject toservices taxpayment. Since the Ad - bills hotel guests separately; the income from such forother similar services which the Administrator food and beverage, telephone internet services, and unrelated services tocertain room rental, suchas The Administrator isalsoresponsible for providing franchise agreements associated withthe hotels. Hotel and organizing the signingof management and insurance,property negotiating on behalf of Fibra- renovation / redevelopment projects, supervising es. share of FibraHotel general expenditures and itstax related room rental activities, pays itsproportional companies hadapproximately 6,000 employees. to hotel staff. service At the end of 2019, service FibraHotel companies’ reimburses wages service paid operational costs and expenses. Onamonthly basis, over the total payroll they managefor the coverage of companies are entitledto receive a5%commission In accordance agreement, service withthe service controllers, sales managers, and head housekeepers. keycertain staff directly, suchasgeneral managers, hotel operations. Occasionally, hotel operators hire nies provide FibraHotel withpersonnel necessary for Since trusts cannot have employees, Compa- Service CompaniesService revenues and costs of the Administrator. FibraHotel is using responsible profits for generated any deficit from between non- -

Live Aqua Boutique Playa del Carmen 11 FibraHotel Annual 12 Report 2019 > Administration > > Treasury > Controller Chief Financial Fixed assets legal, investments, operations, treasury, administration, 31 ber The Administrator’s team has27people asof Decem Senior Management Team team, > the following executives: The FibraHotel SeniorManagement Team isformed by hospitality industry. center withmore than17years of experience inthe performed externally by Conectum, ashared service ments. Some systems are and accounting services Boudrant Edouard

Officer Executive Simón Galante Zaga. redevelopment and saleof real estate projects in have invested in various acquisitions, development, investors and local family businesses. These vehicles including highlysophisticated foreign institutional investment vehicles from abroad range of investors, sponsible for structuring, raising capitaland funding and storage segments. Mr. Galante has been re- real estate managerinthe hotel, residential, retail Mexican Real Estateasadeveloper industry and has over 25years of real estate experience inthe founding and Partner CEO of Grupo GDI. Mr. Galante Mexico. Mr. Simón Galante Galante isPresident of st and controller, CAPEX, strategy, investor relations, , 2019, whichincludes the seniormanagement FibraHotel´s Technical Committee, aswell asa Roberto Galante maintenance board member inFondo Hotelero Mexicano Officer Relations > Investor > Strategy > Investments Chief Investment Guillermo Bravo I and II, Fondo Comerical Mexicano, La Officer of FibraHotel´s Mr. Simón Galante isthe Chief and fixed-assets > CAPEX > Maintenance > Operation Asset Management Service PortfolioService Limited &Select FibraHotel Administrator Isaac Aguilar Advisor Director FibraHotel Advisor Chief Executive Officer as Alberto Galante Eduardo López depart well as Full Service &MarriottFull Service > CAPEX > Maintenance > Operation - -

Portfolio Asset César Chávez Management > > Director Edouard Boudrant. Eduardo López García . from IPADE Business School. holds a specialization in Business Administration Museo Memoria yTolerancia. Mr. Simón Galante Galante isalsoonthe board of trustees of the Club, BosqueRealVista Country and Mercap. Mr. as FibraHotel´s CEO. Management Subsidiary development and administration, including six López hasover 25years of experience inhotel riott International and Grupo Real Turismo. Mr. companies, including Grupo Posadas, Mar and strategic with leading partnerships hotel hotels and negotiated various agreements López hasextensive experience developing in 2006, when the group had 9 hotels. Mr. Grupo GDIasDirector of the LodgingDivision for Grupo Posadas from 1993untilhe joined Chief of Hotel Investments and Development and CEOof the Administrator. as Heserved is FibraHotel´s ManagingDirector Director Sciences et Économiques et Commerciales in in corporate law from École Supérieure des Management inFrance and aMaster degree Centre d’Études Supérieures Européennes de de LasAméricas PueblainMexico and from in Business Administration from Universidad the Administrator. Heholds adoubledegree > CAPEX > Maintenance > Operation Asset Management Luis delaBarrera Service PortfolioService Limited &Select Director Simón Galante Chief

Financial Mr. López García Lorena García > Legal Counsel issues Legal Officer of - > structuring, years of Real Estate experience inFibraHotel in Officer Guillermo Bravo Escobosa. Chief Investment and Sociéte Générale inFrance. in BBVA Bancomer inMexico and Lazard-NATIXIS eight years of experience ininvestment banking vate capitalfund inFrance. Mr. Boudrant hasover France as well as in Mexico and Analyst at a pri- working asVice President at investment banks in France. Hisprofessional experience includes time of the financing, Administrator. diligence He and has negotiating over seven

Fiesta Americana Condesa Cancún > > > > Cushman more thanten years inReal Estate, working in versity. Hisprofessional experience includes Estate and Asset Management from Cornell Uni- sity. Inaddition, he hasadiploma in Hotel Real a Value Investing course from Columbia Univer Administration from the IPADE and completed del Sur. He holds a Master Degree in Business Administration from the Universidad Anahuac ministrator. Hehasadegree inTourist Business Portfolio Asset Management Director of the Ad- César Chávez. tate and hotel development business. has over 15years of experience inthe real es- ministrator. She joined Grupo GDIin2002and Lorena García Núñez. Booth School of Business. and holds anMBA from the University of Chicago Engineering from Universidad Iberoamericana in New York. Mr. Bravo hasadegree inIndustrial sified international marketing, aswell asdifferent national and the Universidad delValle deMéxico in sales and ministrator of FibraHotel. He has adegree from Portfolio Asset Management Director of the Ad- Luis delaBarrera. sales executive to commercial director. Posadas, indifferent positions ranging from ing indifferent hotel chainssuchasIHG and experience includes more than14years work cations from Posadas and IHG. Hisprofessional and operating hotel seminars- including certifi and completed various financing, marketing ment from Escuela Panamericana de Hotelería, management, specialization inhotel manage- Administrator. Hehasadegree inbusiness Portfolio Asset Management Director of the Aguilar. Isaac tions Manager. FibraHotel in 2013 as Development and Acquisi - in the Hospitality and Tourism area. Hejoined finance, has experience ininvestor relations and hotel operating agreements. Healso executive and commercial director. mercial level in positions such as sales then developed different strategies at acom started hiscareer inthe hotel reception and tional operators: Grupo Posadas and Hilton. He positions and different national and interna- he hasover 10years of experience indifferent experience includes the hotel where industry Industries having & Wakefield certifications. worked Limited &SelectService Full Service &Marriott Full Service and Limited & Select Service Limited &SelectService Latin

Legal Counsel of the Ad- in as J.P. a America consultant Morgan´s His professional M&A Diver Broker teams - - - -

13 FibraHotel Annual 14 Report 2019

Industry overview Source: World Development Indicators Database, World Bank. a GDPof 1,240milliondollars in2019. Mexico isthe second largest economy inLatin America and the 15 Mexican Macroeconomic Outlook i a ia

Opportunity and MarketIndustry The Mexican Lodging

aa

ra World’s Top Nations by GDP ia (millions of U.S dollars)

Fra i i

a

rai

aaa

ra

ia

ai

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i th largest inthe world, with outbound tourism. ed withincoming and expenditure associat difference between tourism balance isthe compared to 2018. The ing anincrease of 30% dollars and represent 2019 was million 14,715 to DecemberJanuary ance surplusfrom Mexico´s tourism bal- Tourism Balance - - Fiesta Americana Condesa Cancún Source: DataTur pared to 2018. representing anincrease of 9.0% com in the world, with 44.7 million tourists,try Mexico was the seventh most visited coun beaches of the Mexican Caribbean. In2019 the arrival of sargassum seaweed onthe by the United States government as well as sues including the Travel warning Advisory that to thistrend isdueinpart securityis- ma of Tourism Activity inMexico mentions unusual for acyclical industry. The Panora- growth thaninprevious years, whichis not In 2019, Mexican tourism activityhadslower tribution asapercentage of Mexico’s GDP: of total employment. The following graphs show the con tourism industry´s 8.7% of Mexico’s GDP. It´sresponsible for 2.3milliondirect jobs,whichis6% Tourism economy, of the country’s part important isavery representing al Organization and itsgastronomy hasbeen declared aWorld HeritageSite. recent Mexico isone of the most tourist important destinations inthe world and in Tourism inMexico World Source: DataTur Tourism’s share intotal GDP Heritage years, its

List Annual NationalGDP%Δ tourism r i of Tourism asaPercentage of GDP the industry United r Tourism

Others

Nations has

grown Educational, - - Annual TourismGDP%Δ

significantly. Scientific It ranks

and 7

th on the onthe Cultur - - Source: CNET Mexico Turkey Italy China States United France Spain Country

Tourist Arrivals 2019 4 2 6 3 5 7 1

Million of Turists 90.2 52.2 44.7 64.7 79.3 83.7 67.6

Δ 2019 / 2018 14% 9% 5% 7% 1% 1% 1%

Fiesta Americana Condesa Cancún 15 FibraHotel Annual 16 Report 2019 Source: DataTur

Airports withtheAirports highest number of foreign visitors Mexico senger to Mexico representing 58% of total international pas- co. In2019 10.5millionUnited States visitors arrived United States isthe maindriver of travelers to Mexi- Regarding the arrival of international tourists by air, the highest number of foreign visitors to Mexico in2019: The following tableshows that received airports the ger arrivals. compared to 2018 withatotal of 74,094 million passen The arrival of passengers by airincreased 6.1%in2019 bia with2.9%. in market share, representing 3.0% followed by Colom 12.4% market share. The United Kingdom ranked third feeder market to Mexico with2.3millionvisitors and a try representing 24.5 billion try visitors who traveled to the coun from the spending of international the income of foreign currency national tourist arrivals. In2019, as a result of the increase in inter crease inforeign currency income Source: DataTur a has arrivals. i

benefited i Tourist Arrivals (%)

Canada ab a

from

is r aara the the ar second in aaaara - - -

rr most Fiesta Inn Querétaro aaa significant

- -

Source: Balance of payments, Bank of Mexico of international tourists to Mexico: lowing graph shows the growth in arrivals and expenses dollars and a9.0% increase compared to 2018. The fol- Source: DataTur sented 22.9millionarrivals. million arrivals and international tourists whichrepre- an increase innational tourists whichrepresented 62.1 tel room arrivals in 2019 compared to 2018. This was both touristic destinations inMexico increased by 1.9%inho - According to Datatur hotel room demand inthe main

Foreign currency income, asaresult of i International Visitors inMexico (Billionof U.S dollars) Tourists arrivals to

hotel rooms

Fri

a and internationally. Largely, the hotels opened inre- marked presence of branded hotels, both nationally Expansion of the business hotel sector exhibits a companied by growing demand inthe region. there isastrong increase insupplythat hasbeen ac Though by occupations market may vary and by season, considerably, withMexican and international brands. of hotels withselectand hasincreased limited services country. For thisreason, inrecent years, the inventory ro, gives additional strength to the central zone of the aerospace industry, impactinQueréta- withparticular San LuisPotosí. Additionally, the development of the ing through Mexico City, Toluca, León, Guadalajara and central area, from Pueblato Aguascalientes, pass - regions ofcertain the country, inthe and particularly has been growing over time, driver isanimportant in Constant expansion of the automotive industry, which Business hotels withhighregional demand wholesalers and online information search engines. mented by dynamicdistribution systems madeupof Its internal sales and reservation systems are comple- visitorattract animportant and baseeffectively. serve hotel industry. International and local brands manage to brands indifferent sectors of the economy, including the Mexico haslongbeen areceptive to international country these by figures place. vary hotels cover 50% of the inventory of rooms, though wide sampleof other urbanand industrial centers, brand the representation of brand hotels isrelatively high. Ina jara and Monterrey, the three maincities inthe country, national, and regional brands. InMexico City, Guadala- percentage of branded hotels, including international, The Mexican market ischaracterized by arelatively low same total hoteltur), the country’s offer in2019 consisted of 22,560hotels. Thisdata includes alltypes of properties. Usingthe the National System of Statistical Information of the Tourism Sector of Mexico (Datatur)of Tourism of the Ministry (Sec and agrowing business sector whichwillcontinue to grow alongwiththe rest of the national economy. According to but alsodueto the highlevels of tourism inthe last four years, awideoffering of tourist and business destinations, Mexico hasthe most developed hospitality sector inLatin America, not onlydueto the inventory of hotel rooms, The Mexican Lodging Industry Source: HVS with ananalysis (HVS). by GlobalHospitalityServices México /Guadalajara /Monterrey Other Industrial Cities City Resort AreasResort Total source in four and five star 503 1,620 741 2,864 hotels, Hotels No. Rooms according 66,761 138,420 153,011 358,192 Rooms to the 30% 19% 34% 25% Hotels % International - designation Brands sents anincrease of 2.3%compared to 2018. rose to 410,018 available rooms, whichrepre- tions, the average number of available rooms in2019 According to figures from Datatur intourist destina- offer loyalty programs to millionsof participants. well-known hotel chains.The maininternational chains positioned and associated experiences withglobally pean Planhotels maintaintheir relevance by offering Despite the growth of the All-Inclusive concept, Euro - tain places, whileothers focus onreceiving onlyadults. Companies offer products focused onfamilies incer the All-Inclusive model. All-Inclusive hotel Operating also been complemented by properties operated under as the traditional inventory of European Planhotels has has been achangeinthe composition of the hotel offer, Vallarta–Riviera Nayarit. Over the last few years, there inventory of rooms, followed by Los Cabos and Puerto resides inCancun-Riviera Maya, whichhasthe largest One of the tourism main engines sector of the country’s products. ferent and offers of the country parts awiderange of well positioned to attract international travelers to dif spanning several decades. The Mexican market isvery Mexico hasarobust vacation hotel sector withahistory Tourism and Vacation destination hotels sectors. hasbeen targetedry to the selectand limited service hotels are introduced, butmost of the new invento- and reservation systems. Insome markets, full-service standards,opment and and implementing service sales in development, are branded, thereby following devel- cent years, aswell asthe vast majorityof the inventory 40% 28% 57% 43% Rooms used by 20% 18% 14% 17% % National Brands Hotels Sectur, there 26% 25% 19% 22% Rooms are 2,864 50% 64% 52% 59% Hotels % Independent hotels, Brands 34% 46% 24% 36% consistent Rooms - - -

17 FibraHotel Annual 18 Report 2019

Gamma de Fiesta Inn Tijuana shown below: The average available rooms by tourist destination are Source: DataTur Note: DataTur takes 70tourist destinations asareference. Position market occupancy rate of 60.3%. decrease in2019 compared to 2018, withatotal Evolution of Hotel Supplyand Occupancy 10 aiab 4 2 9 8 3 5 6 7 Regarding demand, DataTur reported a-0.7% 1 Place Mexico City Guadalajara Cancun Riviera Maya Los Cabos Mazatlan Riviera Nayarit Puerto Vallarta Monterrey Acapulco

i

2019 22.2 46.3 35.0 13.0 21.8 18.8 51.4 15.3 12.7

9.9 a

tinations: international tourists to Mexico´s top ten tourism des- The following tableshows the arrival of national and Source: DataTur Foreigners: Mexicans: Position Total 10 9 8 7 6 5 4 3 2 1 Position 1 2 3 4 5 6 7 8 9 10 Total Place Cancun Riviera Maya Mexico City Los Cabos Mazatlan Puerto Vallarta Riviera Nayarit Cozumel Puebla Guadalajara

Ciudad Juarez Leon Veracruz Monerrey Mazatlan Puebla Cancun Guadalajara Acapulco Mexico City Place 34.27 1.5 1.6 2.0 2.2 2.5 2.6 2.6 3.7 6.5 9.1 2019 2019 6.0 7.8 2.3 1.8 0.8 0.7 0.6 0.5 0.5 0.4 21.56 > Investment alternative inthe hotel sector our Trust and ourHolders for the following reasons: ket inMexico offers interesting opportunities for both generation platform. We consider that the hotel mar ment vehicle to offer investors agrowth and value We believe we are strongly positioned asaninvest opportunities for FibraHotel Relevant market > Sustainable growth tel We are the owners of one of the largest Ho- change. the best positioning onthe Mexican Stock Ex (REIT) focusedFIBRA on the hotel with industry andtel we industry consider ourselves to be the market hasfew investment alternatives inthe ho- companies that are listed inpublicmarkets. The players inMexico, inthisindustry few of whichare can hotel industry. There are limited independent real estate investment trusts inthe Latin Ameri- and difficultto replicate. ages with aportfolio of high-quality hotels, that man through asolidtrack record and growth potential Large hotel platform established and tested portfolios multiple in brands Mexico is geographically as well as one of diversified the first - - - - Interest > > > > > Proven > of December 31 ating model. From ourtraining transactions and as tion them. poorly managed hotels, as well as renovate and reposi- andOpportunity experience to acquire unbranded or tourism destinations inMexico. factors that may boost hotel room demand inurbanand well asthe long-term potential of the tourism sector are trial activitywithadditionalforeign direct investment, as Potential growth inthe Mexican economy and itsindus- vehicles to participate actively initsconsolidation. High fragmentation of the hotel market in Mexico with few other mature markets. Hotel penetration inMexico per capitaislow compared to lio and increase from 2,467to 12,560 rooms. to 86Hotels that make upourCurrent Portfo- real estate assets. Light strategy), and willingness to of their own sellpart hotel operators inassociation withlocalinvestors (Asset tel sectors by many of the large Mexican and international growth in expansion of st , 2019, our portfolio grew from 22 the in portfolio Mexico and under diversification an efficient of oper ho- -

Gamma de Fiesta Inn Tijuana 19 FibraHotel Annual 20 Report 2019 1. strengths: We believe we have the following competitive Our Competitive Strengths

We

provide anced portfolio between stabilized hotels that and targeted customer base. We have a well-bal- geography, hotel segment, brand, hotel operator is difficult to replicate to difficult is that portfolio hotel diversified and branded Market leader withanattractive, multi- high with growth potential. are inthe stabilization process, whichprovide us is lio, differentiates usfrom ourcompetitors and in combination withthe diversity of ourportfo- We alsobelieve that the qualityof ourhotels, invested capitaland thefor opportunity growth. the potential to generate attractive returns on industry, whichwe believe are characterized by tractive segments withinthe Mexican lodging Americana Pabellón M.Ourhotels operate inat Cancún, AC by Marriott Guadalajara and Fiesta Trebol Monterrey, Fiesta Americana Condesa Allende, Live Aqua and Grand Fiesta Americana iconic hotels suchasLive Aqua San Miguelde active asset management. in ourportfolio, aswell asourrigorous and pro- high qualityand strategic location of the hotels positioned to capture thisdemand dueto the that ourproperties offer, and we are uniquely mand for the types of facilities and services have Our hotels are located primarilyinmarkets that strategic development. The location of our hotels in these there isgenerally ascarcity of land available for industrial centers, and busterminals, where use projects, shopping centers, airports, entry, including their location in, ornear, mixed- strategic locations withavariety of barriers to travelers. Inaddition, ourhotels are situated in mand for hotels catering to business and leisure tourism activity, whichwe believe generates de- vides our guests withaccess to a wide range of difficult complementary amenities that andcomplementary services believe quality significant enhance the customer experience. us sites with to hotels there replicate. is solid difficult in industrial, is Mexico cash currently . Our We own aportfolio of to flows that properties replicate corporate significant is and diversified hotels and include and/or pro- that de- by -

FibraHotel´s Strategy

tional and international marketing platforms. programs, modern reservation systems and na- hotels because of their qualityof loyalty service, strong brands strengthens the demand for our We are convinced that ourassociation withthese ton, Camino Real and Camino Real Hotel &Suites. Marriott, Lofts, One Hoteles, AC by Marriott, Courtyard by icana, Fiesta Americana, Fiesta Inn, Fiesta Inn brands, including Live Aqua, Grand Fiesta Amer ate under nationally and internationally recognized International and Grupo Real Turismo. They oper ating Companies suchasGrupo Posadas, Marriott Likewise, the hotels are managedby large Oper Fairfield Inn & Suites by Marriott, Shera- - - - 2. er key industry participants. er key participants. industry attorneys, hotel brokers, leading developers and oth tutional investors, globalhospitality brands, lenders, owners, aging hotels, long-standing relationships withhotel renovating, repositioning, redeveloping and man icant knowledge of the Mexican real estate market, signif ket inMexico. Ourseniormanagement hasin-depth an industry-leading position onthe lodgingmar knowledgerelationships, deepindustry aswell as of anexperienced seniormanagement team, strong en years asapubliccompany, and the combination over 25years of history, including more thansev market-leading and highly scalable platform with id growth track record. Established, highlyscalableplatform withasol- experience hotel operators, in acquiring, We have awell-established, financial developing, institutions, financing, insti- - Grand Fiesta Americana Monterrey Valle - - - - 3.

cional de Valores under the ticker symbol FIHO19 onthe BolsaInstitu- Bond inthe publicdebt market for MXN $2.5billion fixed 31 es of capitalto fund ourgrowth. Asof December Strong balance sheet and access to diverse sourc the hospitality market inMexico. many attractive opportunities we believe exist in seek to expand our business and capitalize on the will continue to ourgrowth support strategy aswe from setsmany us apart of our competitors and hotels inourportfolio. We believe ourplatform integration indifferent segments asFull Service well asdevelopment of new hotels, acquisitionand through the acquisitionof hotels inoperation, as Our platform has allowed usto achieve thisgrowth tel operator and customer base. quidity of ourCBFIs. toopportunity substantially increase the li- al investment opportunities, alsogiving usthe balance sheet and allow usto finance addition Program could help usto strengthen further our with issuances made under the Recurring Issuer ficient liquidityoption. The resources obtained our CBFIs,offering sellers anadditionalfiscallyef possibility of acquiringproperties inexchange for listed onthe Mexican Stock Exchange, we have the Additionally, based on the fact that our CBFIs are stable outlook. by Fitch Ratings and from AA + by HR Ratings with a In 2019, we received a corporate credit rating from AA three inyears equal capitalamortizations 8,9and 10. initial offering to aportfolio that asof December 31 lio of 22hotels with2,467rooms at the time of our 2012, we have grown our initial contribution portfo- hotel owners inMexico. Since ourIPOinNovember sult, we have grown to become one of the largest acquire and develop highqualityhotels and, asare - allows usto source and identifyopportunities to management team’s broad network of contacts, Our platform, whichleverages oursenior diversified 2019, includes 86hotel properties with12,558rooms, which competitive, mercial institutions at costs that we consider highly We have withprivate astrong credit history com of credit of MXN $373million. $906 millionand available balance of undrawn lines Hotel closedthe year withacashposition of MXN which represents 25.8%of ourtotal assets. Fibra- st , 2019, ourtotal debtwas MXN $4,579million, rate we of have by 8.83%. which hotel access. to The are segment, refinance also Bond In 2019 a has geography, source existing we a 10-year issued of liabilities financing brand, term our with first at - ho- to st a - - - , 21 FibraHotel Annual 22 Report 2019

Fiesta Inn Puerto Vallarta Isla 4.

the market. on operators, we pay predominantly variable fees based Pursuant to the terms of our agreements with hotel so both their and ourinterests are closelyaligned. tured our arrangements with our hotel operators Robust business model. egy sources of capital to continue executing our strat selves solidlypositioned to have access to various and the Recurring Issuer Program, we consider our solid asset base, low leverage, scaleof operations In accordance withthe foregoing, together withour unfavorable business cycles. costs and operate at lower break-even points during hotels, experience for the construction and equipment of using independent subcontractors with extensive outthe developmentry of ourhotels, inadditionto has the processes, aswell asadequate teams to car form that does not charge development fees and that Likewise, we have an internalized development plat structure lieve that thiscombination helps determine the most of hotelstructuring and supervision projects. We be- hotels inMexico, while strategically maintainingthe est and maximizingits ability to develop different profitable our efficiently, nient location for the project, the best brand and Operating Company, to the sizeof the hotel, in thus gross cluding room and amenity areas. provides projects, mitigating operating taking us from advantage with potential profit. We believe we have struc selecting flexibility We of conflicts opportunities the believe to most manage of this conve- inter our fee in ------

of the sizeof ourCurrent Portfolio and the experience systematic development procedures, together with brand concept. The existence of pre-established and and operating expenses inaccordance witheach nue-generating spaces to minimizeoperating costs our hotels to develop by maximizingthe useof reve- get and time expectations. Inthissense, we seekfor brands and that the development process meets bud- specifications contractors and want them to adhere to designs and technical capacityof suppliers. We sub supervise the projected cost, aswell asthe experience and competitive and transparent process, considering Subcontractor selectionisconducted through a developed sult of the foregoing, we are convinced that we have experience and strategic direction ingeneral. Asare- and fundamental improvements, room rates, guest ties, operational analysis, physical design, renovation including the positioning and repositioning of proper nies onmost aspects of the operation of ourhotels, monitor and adviseourexternal Operating Compa- erating performance. For example, we proactively asset management that seeks to improve ourop Our business model isalsobasedonrigorous Public Offering. to develop 32hotels and 4,329rooms from ourInitial contracting and inputprices, which has allowed us economies of scaleand preferential terms regarding conditions and cycles. substantial operating leverage in a variety of market our management an efficient in accordance team operating allow with model us standards to that benefit provides of hotel from - - - 5. convenient for each hotel and circumstance, po- Operating Company and the hotel brand that ismost Our open architecture allows usto interact withthe mand for accommodation. guests, whichcanbe usedto capture increased de- tion, aswell asdeepunderstanding of the needs of ADR and RevPAR, national and international distribu- aforementioned willresult inhigher occupancy rates, platforms and effective product segmentation. The ern reservation systems, brand recognition, marketing their prestige, loyalty quality, programs, service mod - provide advantages us with important derived from das, Marriott International and Grupo Real Turismo), and international Operating Companies (Grupo Posa- nized brands and ourrelationship withleading national Companies. Association withleading hotel brands and Operating We believe that the useof highlyrecog- 6.

growing sitioning ourselves better to continue ests and those of ourAdvisor are closelyaligned. relationships withourAdvisor sothat ourinter owned by the Control Trust. We have structured ber 31 ber sponsor and seniormanagement. Long-term alignment of interests withthe competitors. nities, several of which may not be available to our access to development and- acquisitionopportu sights related to the brand concept and give us Operating Companies provide us with valuable in tionships of our management team with leading Furthermore, we believe that the strong rela- generating value for the Holders of ourCBFIs. st , 2019, 16%of ouroutstanding CBFIsare in a diversified and profitable As of Decem way,

- - -

Fiesta Inn Puerto Vallarta Isla 23 FibraHotel Annual 24 Report 2019 1. the strategies set outbelow. tors. We intend to pursue thisobjective through further operated by well-regarded independent hotel opera- sified management of a high quality, multi-branded, diver jective through the ownership, expansion and asset and capitalappreciation. We intend to achieve this ob tributions, asdetermined by ourtechnical committee, returns for holders of ourCBFIsprimarilythrough dis- Our objective isto generate attractive risk-adjusted Our Investment and Growth Strategies Strategy and sustained growth inthe spending of international the Country. The hotel inMexico hasben industry ment, mainlywithinthe mainmetropolitan areas of increase our presence hotel in the Full Service seg- es of tourism activity in Mexico, and continuing to on theand short long-term fundamental process- ed ourreach to the segment, Resort capitalizing rates indollars. and group travelers who are better ableto collect thosements, that particularly alsocater to leisure of hotels inthe Resort and Full hotels Service seg- We willcontinue ourexpansion and stabilization efited and connectivity with key markets in the United States significant ture, portfolio Canada increases from investment record of through hotel in In recent years, we have expand- international levels properties modern in tourism-related of tourists and throughout flight efficient in arrivals, recent infrastruc airports, Mexico, years, high - - - -

travelers tourists in Mexico. Likewise, the number of domestic ing reasons: main metropolitan for areas of the country the follow We seekto focus hotels and onResort Full Service in nominated income. portfolio that generate of a portion their dollar-de- ventions and increase the number of hotels inour capacity to host events such as weddings and con al business and leisure tourists and hotels with the to bothof serve the national and country internation key tourist destinations and mainmetropolitan areas To that end, we intend to focus onhotels located in marketing campaignstargeting leisure travelers. of households witheconomic solvency, aswell asthe cent years, whichisattributed to the growing number > Significant > Resorts andResorts hotels segment hasbeen more In recent years, the evolution of the Full Service Significant potential growth inADRand RevPAR. competitive cost. toportunity access funding at apotentially more operating costs inpesos, whichgives usthe op generated indollars, maintainingthe majorityof ages of income not onlydenominated, butalso greater to opportunity obtainattractive percent the United States and Canada, whichrepresents a and Resorts hotels,Full from Service particularly has registered demand by a foreign significant travelers increase regarding in re------

Fiesta Americana Grand Monterrey Fiesta Americana Grand Monterrey come and assets. customer base and improve the quality of our in plement ourcurrent hotel platform, increase our of key locations, we willbe able to strategically com increase ourpresence segment inthe Full Service with ourgoalto expand to the segment Resorts and Puerto Vallarta and Riviera Nayarit. We believe that try, including Cancun and Riviera Maya, LosCabos, located in the main tourist destinations of the coun We willseekto expand ourpresence inresorts > rates and RevPAR. ers, offering the potential to increase occupancy the demand of both business and leisure travel - diversification low business cycles and strengthening ourrisk cyclical dynamic with respect to the latter in accommodation,Service by offering acounter- different to those and of Select Limited Service ferring to tourist destinations, isdueto factors accommodation,Service that re- particularly We consider that the demand for and Resort Full segments. Select Service attractive thanthat of and the Limited Service vice hotels in strategic strategy. In locations this sense, benefit Full from Ser - - - -

3. 2. rior to those of ourcompetitors, and the travelers, which we believe is generally supe- to the qualityof ourhotels focused onbusiness creasing demand for business lodginginMexico due (i) ourportfolio iswell-positioned to capture the in capitalize onorganic growth opportunities because portunities for organic growth. We believe we could and the stabilization of newly opened hotels. Capitalize onopportunities for organic growth tels purchased inthe future. asset management approach willbe appliedto ho- attractive investment returns. The same rigorous peal, increase their long-term value and generate reviewed inorder to improve their qualityand ap Opportunities to invest inhotels are alsoregularly and at the correct prices. sale or conversion of hotels to different segments create value withinselected properties, through the to lookfor investment opportunities inwhichwe can tioning orrebranding. Additionally, we willcontinue investment strategies suchas:renovation, reposi- in whichwe canimprove value through proactive ly, inassets of ourportfolio, aswell asnew hotels Likewise, we seek to continue investing, selective- Op - - - 25 FibraHotel Annual 26 Report 2019

Live Aqua Boutique Playa del Carmen value to itsHolders. The strategy isalsobasedonadis- can be incorporated into the Current Portfolio, adding gy to acquire hotels inoperation at the correct price and of FibraHotelA central part growth isbasedonitsstrate - Acquisitions and Developments more which we continuously seek to make ouroperations improve operating margins at ourhotels. increased size, whichprovides uswiththe abilityto grams; and (v)economies of scalederived from our recognition, commercial strategies and loyalty pro- as aresult of the strength of their reputation, brand hotel brands, whichgenerates demand for ourhotels (iv) ourrelationships withleading hotel operators and industry; (iii)ourrigorous assetindustry; management, with and industrial centers; (ii)growth inthe tourism efficient strategic location of ourhotels incorporate and improve the customer experience; erate value inthe longterm. FibraHotel isconvinced team, selectingonlythe best opportunities that gen different negotiations carried out by the management nal development committee and updated basedonthe All investment alternatives are analyzed by aninter plement the portfolio and generate value for Holders. strategic that locations com throughout the country inMexico. Likewise,try itseeks highqualityhotels in from the hotelwith participants and real estate indus- ships between the management team and Advisor they are uniqueto FibraHotel and basedonrelation ofrequirements. these part Animportant isthat ally generating opportunities that meet investment FibraHotel hasadevelopment team that iscontinu- internally, ensuringthat they addvalue to Holders. ment cost (price per key). Allacquisitionsare evaluated adequate locations at the correct price that comply withboth the cipline to purchase onlyhigh-quality hotels instrategic generation of cash flow and correct replace- - - - - itive advantages, suchasbeing inamixed-use project. key) but it is possible to acquire a location withcompet tive acquisition (in terms of performance and cost per if itisnot possible to enter aplazathrough an attrac tels willcontinue to be developed insimilarsituations of hotels inoperation over new hotel developments. Ho- similar scenarios, itgives preference to the acquisitions works asacomplement to the acquisitionstrategy. In term return oninvestment. The development strategy there isahighlevel of dynamismthat maximizethe long- tegic locations, mainlywithin mixed-use projects where Additionally, FibraHotel seeks to develop hotels in stra - correct price. and the availability of alternatives to acquire at the Hotel canmake isdirectly linked to market situations hotel acquisitions.The number of acquisitionsFibra- in asustainable way and continue growing through lows itto capitalizeonopportunities through the cycle that ithasasustainable acquisitionsstrategy that al- - - pervision and structuring of hotelpervision projects. su general the being achieved, and alsomaintain cording to hotel volume, attractive per key costs are extensive experience inhotel development and, ac The Advisor and management team of FibraHotel have quirements of these brands. and operators with hotels built to suit based on re - the portfolio through growth withinternational brands ators. The development of new hotels helps diversify as the different optionsfor available brands and oper segment, sizeand expectedservice amenities, aswell mined through a market study to define the hotel the location isselected, the hotel project isdeter mixed-use projects that are being carriedout.Once identification of the strategic locations and large The process of developing ahotel begins withthe a higher return compared to anacquisition. By developing new hotels, FibraHotel expects to receive - - - -

Sheraton Ambassador Monterrey 27 FibraHotel Annual 28 Report 2019 FibraHotel´s Portfolio Live Aqua San Miguel de Allende hotels inoperation isasfollows: folio inMexico withpresence in26states and the distribution of As of December 31 operation. FibraHotel closed2019 with86hotels and 12,560rooms, allin > > which: FibraHotel started 2019 with86hotels and 12,560rooms, of Presentation of the Portfolio TOTAL CDMX South West Northwest Northeast Bajio REGION TOTAL Extended Stay Resort Full-Service Selected-Service Limited-Service SEGMENT 1 hotel (260rooms) under development 85 hotels (12,300rooms) were inoperation st , 2019,

20 86 86 22 43 15 16 15 13 15 FibraHotel # # 5 7 1 Hotels Hotels

100.0% 100.0% 50.0% 23.3% 25.6% 18.6% 17.4% 17.4% 17.4% 15.1% 5.8% 1.2% 8.1% % % had a well-diversified

12,560 12,560 2,296 2,333 6,270 2,792 1,949 1,883 2,615 2992 1107 507 376 # # Rooms Rooms

100.0% 100.0% 20.8% 22.2% 49.9% 23.8% 15.0% 18.3% 18.6% 15.5% port 4.0% 8.8% 3.0% % % - 29 FibraHotel Annual 30 Report

2019 59 4O 27 portfolio asof December 31 The following illustration shows the distribution of the FibraHotel Portfolio Map 25 14 84 75 15 63 16 79 9 72 8O 45 46 57 38 83 12 56 51 66 74 City Mexico 1O 1 st , 2019: 11 26 18 7 78 7O 2 37 33 19 61 3O 29 42 41 47 21 8 31 28 53 6O 24 58 82 Nuevo León Monterrey, 64 44 76 22 43 73 81 3 85 4 39 5 13 69 52 2O 62 23 68 67 36 34 32 17 35 48 49 71 Fiesta Americana Condesa Cancún 6 5O 77 55 54 65 86

Fiesta Americana Viaducto 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 No. Fiesta InnSaltillo Fiesta InnQuerétaro Fiesta InnMonterrey Aeropuerto Fiesta InnAguascalientes Querétaro One Fiesta InnGuadalajara Fiesta InnChihuahua Camino Real Puebla Fiesta InnPerisur Fiesta InnCuautitlán Fiesta InnNaucalpan Fiesta InnNuevo Laredo Fiesta InnPerinorte Fiesta InnEcatepec One Culiacán Fiesta InnHermosillo One Aguascalientes Fiesta InnTepic One Coatzacoalcos One Toluca One Acapulco One Monterrey Fiesta InnDurango Fiesta InnCuliacán Hotel 12,56O rooms hotels states 86 26 86 85 84 83 82 81 80 79 78 77 76 75 74 Fairfield Inn&Suites Nogales 73 72 71 Fairfield Inn&Suites Juriquilla 70 69 68 67 66 65 64 63 62 Fairfield InnSaltillo 61 Gamma Tijuana 60 59 Farifield InnLosCabos 58 57 56 55 54 53 52 Fairfield InnVillahermosa 51 50 49 48 Fairfield InnVallejo 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25

AC Hotel by Marriott Torre Américas GuadalajaraHotel AC Fiesta Americana Condesa Cancún Fiesta Americana Hacienda Galindo Courtyard by Marriott Toreo Fiesta Americana Satélite Live Aqua San MigueldeAllende Fiesta InnMonterrey Valle Fiesta InnBuenavista Fiesta Americana Hermosillo Fiesta InnPuerto Vallarta Fiesta InnVillahermosa Fiesta Americana Pabellón M One Cuautilán Fiesta Americana Viaducto Aeropuerto Fiesta InnLofts Monterrey AC Hotel by Marriott Veracruz One Durango One Cuernavaca Fiesta InnCuernavaca Fiesta InnLos Mochis Live Aqua BoutiquePlaya delCarmen Sheraton Ambassador Monterrey One Perisur AC Hotel by Marriott Antea Querétaro Fiesta InnSan LuisPotosí Oriente Gamma Valle Grande Fiesta InnLofts CiudaddelCarmen Courtyard CiudaddelCarmen Gamma León Fiesta InnLofts Querétaro Fiesta InnCiudad Obregón Xalapa One Fiesta InnXalapa Fiesta Americana Aguascalientes VallejoCourtyard Live Aqua Monterrey Valle Grand Fiesta Americana Monterrey Valle MonclovaOne Fiesta InnLofts Monclova Real InnMexicali Fiesta InnToluca Tollocan Fiesta InnTlalnepantla Gamma Guadalajara One PueblaFINSA Fiesta InnOaxaca Fiesta InnPueblaFINSA One Tapatío Camino Real Hotel &Suites Puebla Fiesta InnMorelia Fiesta InnTorreón Fiesta InnMonclova Fiesta InnLeón Fiesta InnMexicali Fiesta InnCiudadJuárez One Patriotismo 31 FibraHotel Annual 32 Report 2019

Fiesta Americana Viaducto Aeropuerto rooms inoperation Evolution of the number of hotels inoperation Evolution of the number of Evolution of the portfolio withnumber of hotels and rooms inoperation Total Development Operation Total Development Operation No. of rooms inoperation No. of rooms indevelopment No. of hotels inoperation No. of hotels indevelopment 12,555 12,300 255 2018 2018 86 85 1 12,555 12,300 255 Q1 2019 Q1 2019 86 85 1 12,555 12,300 255 Q2 2019 Q2 2019 86 85 1 12,555 12,300 255 Q3 2019 Q3 2019 86 85 1 12,560 12,300 260 Q4 2019 Q4 2019 86 85 1

Annual Report Annual Report 12,560 12,300 260

86 85

1 The tion asof the date of thisAnnualReport: Brand Affiliations and recognized brands. Asof December 31 The hotels inourportfolio operate under well-regarded > > > > > > operate under the following brands: Total FibraHotel Marriott International Grupo Posadas Grupo Real Turismo

Live Aqua Fiesta Americana Fiesta InnLofts Fiesta Inn+Gamma One Hoteles & Suites Camino Real Hotel Camino Real Real Inn Posadas Grand Fiesta from Americana Grupo (Full Service) Fiesta from Americana Grupo (Full Posadas Service) Posadas from GrupoGamma deFiesta Inn(SelectService) Fiesta InnLofts (Extended Stay) from Grupo Posadas from Grupo PosadasFiesta Inn(SelectService) One Hoteles from Grupo (Limited Posadas Service) following table shows hotels ber of Num the 40 86 12 16 71 4 8 3 3

1 1 1 - brand of hotels 100.00% number 82.56% 18.60% 13.95% 46.51% 9.30% 3.49% 3.49% 4.65% 1.16% 1.16% 1.16% % of affiliations

st , 2019, they Number 12,560 rooms 2,002 10,311 1,928 5,841 1,817 432 285 255 of 158 153 121 of

hotels of rooms 100.00% number 46.50% 82.09% 15.94% 14.47% 15.35% in 3.44% 0.96% 2.03% 2.27% 1.22% 1.26% % of opera-

> > > Fairfield Inn&Suites by Marriott (Limited Service) > > > > > > Sheraton from Marriott (Full International Service) International AC Hotels by from Marriott Marriott (Full Service) International from MarriottCourtyard by Marriott (SelectService) from Marriott International Grupo Real Turismo Camino Real Hotel &Suites (Extended Stay) from Camino from Real Grupo (Full Real Turismo Service) from Grupo RealReal Turismo Inn(SelectService) Live Aqua from Grupo (Full Posadas Service) Posadas Live Aqua from Grupo Boutique(Full Service) We Hotel Operating Companies nificant hotel management companies provides sig- Real Turismo. We believe that utilizingleading Posadas, Marriott International and Grupo hotel management companies suchasGrupo brands owned by third parties. companies that may usefranchised with them, we hope to useother leading ture, inaddition to continuing to collaborate brands for the hotels they operate. Inthe fu- and thatagement use their services own companies that provide us with hotel man We currently have agreements withthree higher occupancy rates, ADRand RevPAR. which drives demand and may translate into systems and effective product segmentation, marketing platforms, modern reservation programs, national distribution channels, brand recognition, qualityof loyalty service, believe advantages in affiliating because our ASÍ ESMIMUNDODELOS NEGOCIOS. hotels ASÍ ESMIMUNDODELOS NEGOCIOS. of their with leading strong -

33 FibraHotel Annual 34 Report 2019 the hotels isdone asfollows: Under the operating scheme of FibraHotel, management of agreement. > on pay each hotel management company avariable fee based our behalf. Pursuant to hotel management agreements, we keting plansand hiringemployees for each of ourhotels on advising on necessary capital expenditures, preparing mar hotel management expenses with charges to ouraccounts, room rates, discounts and operating expenditures, covering ness planand anincome and expense budget, determining companies are responsible for establishing anannualbusi- our supervision,among other duties, ourhotel management responsible for managinghotel operation. Additionally, with ment agreement, the relevant hotel management company is At each of ouroperated hotels, pursuant to ahotel manage- Operational framework in Mexico. the most loyalty important program and KIVAC and hasFiesta Rewards, tion Club, Live Aqua Residence Club such asthe Fiesta Americana Vaca- Posadas isowner of vacation clubs, Inn Loft, Gamma and One Hotels. Vacation Villas,Fiesta Inn, Fiesta Fiesta Americana Club (LARC), ta Americana, Live Aqua Residence ta Americana, The Explorean, Fies- Aqua Grand BoutiqueResort, Fies- nized, and include Live Aqua, Live brands are internationally recog- across Mexico. Grupo Posadas ed inbeach and urbandestinations 150 hotels and 24,000 rooms locat company inMexico, withmore than is the largest hotel management (BMV: Posadas.A). Grupo Posadas Grupo Posadas. gross and marketing strategies, set food and beverage sales lish annualbudgets, determine room rate policies, sales hotel operation. With their operating teams, they estab Hotel Operating Companies are responsible for managing strategies, execute general maintenance of properties, propose major capital expenditures and hire person operating nel to operate the business units. Grupo Posadas profit and a fixed - destinations inMexico. located in23 cities and beach 40 hotels with6,885rooms Turismo hasapproximately and “Real Inn”.Grupo Real “Quinta Real”, “Camino Real” owns three brands including po Real Turismo. Itcurrently Angeles, under the name Gru- quired by Grupo Empresarial 1993, the company was ac with international brands. In hotelluxury group inMexico Westin) national Hotels (whichisnow filiated ment group. In1962,itaf together withand aninvest founded in1958by Banamex tel management company Turismo isaMexican ho- Real Turismo. Grupo Real Grupo Real Turismo. Grupo rate set to with forth establish Western in each the - - -

Inter first > hotels inthe FibraHotel portfolio: > As of December 31 > - - - -

agreement with hotel Operating Compa 82 hotels are under ahotel management fixed rent to FibraHotel. have alease agreement and pay variable and and Live Aqua Boutique Playa delCarmen) cun, Fiesta InnCuautitlán, Fiesta InnPerisur nies, expenses, among others. permits) and funding of the hotels’ operating activities taxes, (property insurance, responsibility for real estate and owner approval of majorcapitalexpenditures, annual budget, review of the hotels’ results, the following tasks: approval of the hotels’ As anasset manager, FibraHotel performs Four hotels (Fiesta Americana Condesa Can of the operating result of each. variable and corresponding to apercentage results monthly, their remuneration being FibraHotel and deliver the hotels’ operating Sheraton®, DeltaHotels by Marriott ®, LeMéridien®,Renaissance® Hotels, Collection®, Marriott Hotels®, Westin W®, EDITION®,JWMarriott®, The Luxury The Ritz-Carlton Reserve® St.Regis®, include: Bulgari®, The Ritz-Carlton®, and licenses. The company’s top 30brands operates and franchises hotels and resort in 131 countries and territories. Marriott USA.USA,with7,000Maryland, properties largest hotel company basedinBethesda, Inc. (NASDAQ: MAR). It is the world’s (NASDAQ:MAR). Marriott International, Inc. by Gaylord Hotels®, Courtyard®, FourPoints® Hotels, Tribute Portfolio®, Design Hotels ™, Vacation Club®,Autograph Collection® Marriott Executive Marriott Apartments®, the Marriott Bonvoy® loyalty program . by Marriott®. The company alsooperates Element®, Moxy® Hotels, and Protea Hotels Suites®, AC Hotels by Marriott®, Aloft®, Inn &Suites®, Residence Inn®,TownePlace which Sheraton, operate st SpringHill , 2019, of the 86operating them Marriott International,

for Suites®, the benefit Fairfield TM of - - ,

FibraHotel´s portfolio Hotel Segments of the the condition. property the that report each Hotel Operator presents on time, these inspections are complemented with execution of maintenance programs. At the same tion, the optimalequipment performance, and the to hotels inorder to the condi property certify - Periodically, FibraHotel conducts inspection visits which isapproved by FibraHotel. proposing anannual capitalexpenditure budget For Hotel their part, Operators are incharge of maintaining the properties and their equipment. to make capitalexpenditures withthe intention of is to reserve upto 5%of the hotels’ total revenue carried outonthem. FibraHotel’s internal policy dition, whichiswhy preventive maintenance is maintain the properties inoptimalphysical con As the owner of the hotels, FibraHotel seeks to Property maintenance policy > fered by hotels segment, inthe including Limited-Service These hotels offer inadditionto those services of certain Select Service As of December 31 space. tion of food (breakfast included) and limited meeting room ness centers, areas with a limited gyms, pools, selec pantry for such hotels to offer a mix of these including busi- services, offer However, additionalservices. the recent trend hasbeen have bars, restaurants orconference and meeting rooms or hotelsLimited Service offer convenient lodging and don´t Limited Service described indetail below: sought after withacquisitionsand development, are The types of hotels in the FibraHotel portfolio, and those the “Fairfield Inn&Suites by Marriott” brand. “One Hoteles” brand and sixby Marriott International under tion), 16of whichare operated by Grupo Posadas under the proximately 22.2%of the total number of rooms inopera- vice hotels inoperation, whichrepresent 2,792rooms (ap considered to be amanagedhotel. and operator. in2020the hotel Starting willbe to anoperating agreement under the same brand 01,ary 2020,the lease agreement was changed agreement untilDecember 31 The Fiesta InnCuautitlánhotel hadalease st , 2019, FibraHotel has22Limited Ser st , 2019. After Janu ------hotels located inmajormetropolitan bellhops and large public areas. Full-Service hour roomvalet service, parking,concierges, also offer suchasspas,24- additionalservices for both corporate and socialevents that can and bars) and meeting and conference rooms offerings withvarious diningareas (restaurants These hotels feature robust food and beverage Full Service As of December 31 spaces, aswell asadditionalroom services. and 24-hour room event service, and meeting food and beverage offerings, restaurants, bars the “Courtyard by Marriott” brand. Inn” brand and two by Marriott International under operated by Grupo Real Turismo under the “Real and “Gamma by Fiesta Inn”brands, aswell asone operated by Grupo Posadas under the “Fiesta Inn” number of rooms inoperation), 40of whichare 6,270 rooms (approximately 49.9%of the total hotelslect Service inoperation, whichrepresent st , 2019, FibraHotel has43Se-

Fiesta Inn Querétaro 35 FibraHotel Annual 36 Report 2019 As of December 31 out restaurants. and publicrecreation areas, butare typicallywith hotels unit and include dryer anin-room laundry dining room and workspace. Often, Extended Stay rooms, equipped inmost cases withakitchen, a These hotels feature suites withone ortwo bed- Extended Stay As of December 31 revenues. can generate substantial USdollar-denominated and international leisure travelers, and therefore only to business travelers, butalsoto domestic areas, generally with180rooms ormore, cater not The following graph shows the 2018 and 2019 quarterly and yearly operating indicators of the 81 stabilized hotels: > > > the following: der the “AC by Marriott” and “Sheraton” brands. brands, four operated by Marriott International un and the “Grand Fiesta Americana” and “Live Aqua” ed by Group Posadas under the “Fiesta Americana” Turismo under the “Camino Real” brand, ten operat of rooms inoperation), one operated by Grupo Real rooms (approximately 20.8% of the total number hotelsservice inoperation, whichrepresent 2,615 KPIs of the FibraHotel portfolio RevPAR of MXN $774 ADR of MXN $1,231 Occupancy rate of 62.8% RevPAR Occupancy ADR

1 st Quarter

(2.0 bp) +3.3% +0.1%

st st , 2019, the hotels in operation in the FibraHotel portfolio (85 hotels, excluding FACC) reported , 2019, FibraHotel has15full ADR RevPAR Occupancy Occupancy 2 nd Quarter

(0.8 bp) +0.2% +1.4% RevPAR Occupancy ADR - - - ADR 3 rd Quarter As of December 31 substantial USdollar-denominated revenues. ter to international aswell asdomestic guests, they generate events, such as conventions and weddings. Since resorts ca- activities. These hotels alsohave facilities to host large-scale amenities, including restaurants and bars, and recreational guests withapleasant vacation experience and offer robust operate under all-inclusive orEuropean plans,seekto provide As of December 31 tional key tourist destinations withgreat connectivity and interna- These hotels refer to hotels Full-Service that are located in Resort Hotel &Suites” brand. operated by Grupo Real Turismo under the “Camino Real Grupo Posadas under the “Fiesta InnLofts” brand, and one the total number of rooms inoperation), four operated by hotels inoperation with376rooms (approximately 3.0% of under the “Fiesta Americana” brand. number of rooms inoperation), operated by Grupo Posadas operation with507rooms (approximately 4.0% of the total (2.0 bp) +2.3% -0.7%

and domestic ADR RevPAR Occupancy RevPAR

4 st

th st, , 2019, FibraHotel hasone resorthotel in Quarter 2019, FibraHotel has5Extended-Stay

visitor

(1.8 bp) +0.8% -2.0%

traffic. ADR RevPAR Occupancy

Resorts,

Year

which (1.7 bp) -0.6% +1.9% typically

December 31 The following table shows some operating information by segment for the 81 stabilized hotels for the periods ending Region Bajio

(1) *Excluding Fiesta Americana Condesa Cancún The following tableshows some operating information by region *Excluding Fiesta Americana Condesa Cancún Segment December 31 Noreste Noroeste Limited-Service Oeste Select-Service South Full-Service Mexico City Total Extended-Stay Total Vs Previous year Vs Previous year Veracruz. West corresponds to: Jalisco &Nayarit. Mexico City&State of Mexico. Southcorresponds to: Campeche, Guerrero, Michoacán, Morelos, Oaxaca, Puebla,QuintanaRoo, Tabasco & lifornia Sur, Chihuahua,Durango, Sinaloa & Sonora. correspondsNortheast to: Coahuila, Nuevo León & Tamaulipas. CDMXcorresponds to: Bajio corresponds to: Querétaro, Aguascalientes, Guanajuato &San LuisPotosí. Northwest corresponds to: Baja California Norte, Baja Ca- st st , 2017, 2018 and 2019: , 2017, 2018 and 2019:

Occup. Occup. 64.8% 64.8% (83 bp) (83 bp) 64.0% 64.0% 64.3% 69.6% 59.2% 69.5% 66.5% 57.8% 66.1% 61.1%

Year 2018 Year 2018 $1,070 $925 $1,781 6.7% $1,210 $1,434 $1,001 ADR $1,179 $1,123 $1,179 ADR $1,262 $1,168 $966 6.7%

Stabilized hotels (81)* Stabilized hotels (81)* RevPAR RevPAR $764 $764 $684 $1,088 $996 $595 $559 $593 $878 5.4% $799 5.4% $747 $747

Occup. Occup. (52 bp) 64.2% 64.2% (52 bp) 64.0% 59.4% 55.2% 63.0% 65.5% 66.9% 64.7% 65.3% 64.7% 67.1%

1 for the 81 stabilized hotels for periods ending on

Year 2019 Year 2019 $1,188 $1,188 $1,121 $940 $1,314 $1,483 $1,834 $921 $ 1,171 $1,171 $1,099 $1,174 $825 0.7% 0.7% ADR ADR

RevPAR RevPAR $763 $456 -0.1% -0.1% $1,156 $763 $861 $995 $703 $596 $558 $726 $783 $766

Occup. Occup. 60.0% 64.0% 64.0% 62.8% 62.8% 59.4% 62.3% 55.2% 65.9% 64.7% 57.2% 67.7%

Total Portfolio (85)* Total Portfolio (85)*

Year 2019 Year 2019 $1,230 $1,230 $940 $1,121 $1,482 $1,510 $950 $1,169 $1,099 $1,235 $825 $1,978 ADR ADR

RevPAR RevPAR $1,003 $703 $558 $773 $773 $941 $ 771 $771 $741 $1,132 $608 $456 $726

AC by Marriott Veracruz

37 FibraHotel Annual 38 Report 2019

Financial Section1 hotels inoperation asof December 31 > > 2019 Financial Results The Total revenue 4 hotels under alease agreement 82 managedhotels financial results described in this st section , 2019: refer to financial statements comprising 86 Fiesta Americana Viaducto > > > 2018, a6.5%increase asfollows: During 2019, total revenues were MXN $4,372million, compared to MXN $4,107millionin 1 Except (1) FibraHotel revenue by quarter in2019 was: In November 2019 the Fiesta Americana Viaducto Aeropuerto hotel opened. > > lion, dueto: Revenues of managedhotels rose by 6.4%,from MXN $3,756millionto MXN $3,997mil- > (2)

# of leased hotels # of managedhotels # of Hotels inoperation % of total revenues Revenues -ManagedHotels Other Leased Food and Beverage Room Revenues Total Revenues

* Figures inmillionsof Pesos, except for information onthe number of hotels. portfolio The increase inincome from food and beverage dueto faster growth inthe fullservice The ramp upof the Live Aqua San MigueldeAllende hotel whichopened in2018 MXN $372millionof leases of (i)four hotels MXN $756millionof food and beverages (17.3% of total revenues), anincrease of 9.6% MXN $3,204millionof room rentals (73.3%of total revenues), anincrease of 5.4% MXN $40millionof other income (0.9%of the total revenue), anincrease of 43.7% total revenue), anincrease of 6.3% and Fiesta Americana Condesa Cancún. Hotels leased during2019 are Fiesta InnCuautitlán, Fiesta InnPerisur, Live Aqua BoutiquePlaya delCarmen and financial position of FibraHotel. Standards topic to when audited, (IFRS)

mentioned, consolidated when mentioned, all figures Financial

Q1 2019 all in 89.2% (278) Mexican 85 the 81 1,041.9 4

Statements 929.2 760.6 168.9 112.7 report pesos.

are Q2 2019 91.1% 2 audited 13.5 and (ii)retail space /antennas (8.5%of the 85 in 1,125.5 81 1025.7 4

Some 192.7 819.5 accordance 99.8 in financial

2019 Q3 2019 92.5% 12.0 without 85 1,073.7 with 81 4

992.8 794.5 186.6 results 80.5 International any

in Q4 2019 modification 92.8% this 14.9 85 82 1,130.8 1049.4 4

828.9 207.6 section 79.5 Financial

YEAR 2019 to may 91.4% the Reporting 40.1 4,371.9 86 82 3203.5 3,997.1 differ 4

372.5 755.8 results by

39 FibraHotel Annual 40 Report 2019

Grand Fiesta Americana Monterrey Valle 1 4 2 3

Total st rd nd th Quarter Quarter Quarter Quarter Year 2019 The following tableshows the KPIsof managed hotels by quarter in2019:

Available Rooms 4,315,054 1,084,743 1,096,140 1,072,981 1,061,190

Occupied Rooms 2,711,881 646,064 689,098 685,194 691,525

Occupancy 62.8% 64.2% 60.9% 63.2% 63.1% > > > compared to MXN $2,664millionin2018: managed by FibraHotel were MXN $2,918 million In 2019, total costs and general expenses of hotels Cost and general expenses > > 35.1% of total revenues. parison to MXN $1,443millionin 2018 representing 2019, representing 33.3%of total revenues, incom The lodgingcontribution was MXN $1,454millionin Lodging contribution

MXN $Million penses (17.1% of costs and general expenses) MXN $499millionof food and beverages ex room rental revenues costs and general expenses) directly related to MXN $709millionof room expenses (24.3%of panies energy and fees paidto hotel Operating Com promotion, maintenance, humanresources, ing the administrative costs, advertising and of total costs and general expenses), includ- MXN millionof $1,710 indirect expenses (58.6% MXN $351 millionin2018 and retail spaces (100%margin), compared to MXN $375 million corresponded to leased hotels in 2018 (29.1%margin) hotels (27.0% margin), compared to MXN $1,092 MXN $1,079 millioncorresponded to managed Revenues $ 3,338 Room $854 $826 $866 $793

$1,206 $1,252 $1,239 $1,227 $ 1,231 ADR

RevPAR $790 $796 $747 $ 774 $761

- - - Operating meeting inApril2017. ees with CBFIs, a measure approved by the holders’ corporation of the Compensation Planfor employ tion thanthe total hotel contribution, aswell asin of real estate assets) increase by alower propor braHotel) and real estate expenses (greater number istrative expenses (to accompany the growth of Fi- (greater number of real estate assets) since admin (+ 2.0%) isexplained mainlyby the depreciation expenses were MXN $749million. The increase lion (16.9%of total revenues) in2018. 15.8% of total revenues, compared to MXN $694mil- Operating profit out for employees withCBFIs(MXN $8.3million, with tion (MXN $466million)and the Compensation Plan feelion), advisory (MXN $152million) and deprecia- $66.3 million),corporate expenses (MXN mil- $71.2 comprised mainlyof real estate expenses (MXN Other operating expenses of MXN $763millionare Total LodgingContribution Lodging Contribution Margin: Lodging Contribution: (Figures in thousands of pesos) of thousands in (Figures pesos) of thousands in (Figures Total LodgingContribution Margin Total Revenue Revenue: impact Managed hotels -NonStabilized Managed hotels -Stabilized Managed hotels -NonStabilized Managed hotels -Stabilized Managed hotels -Stabilized Managed hotels -NonStabilized Arrendamiento Leasing Total ManagedHotels Total ManagedHotels Leasing -Hotels /Antennas /Retail Spaces Total ManagedHotels profit on cash was flow). MXN $691 In 2018, million, these representing operating - - - - -

pared to MXN $769millionin2018. value asof December 31 impact of MXN $47.1 million. As of December 31 lion vs. MXN $1.9millionin2018. As of December 31 Other income and adjustment to fair value The penses were for MXN million. $71.6 pre-operative expenses, among others). In2018, these ex velopment projects (taxes, appraisals, technical auditsand $37.1 million, which were related to hotel acquisitions and de- During 2019, FibraHotel hadnon-operating expenses for MXN Adjusted operating profit justment to fair value at December 31 under the IAS 40Investment standard Property and the ad- sur and Live Aqua BoutiquePlaya delCarmen), are registered cana Condesa Cancún, Fiesta InnCuautitlán, Fiesta InnPeri- Year 2019 Year 2019 100.0% 33.3% 28.2% 27.0% 21.5% adjusted 1,454,082 1,079,254 4,371,969 3,997,142 3,297,336 374,827 374,827 929,080 699,806 150,174 operating st st 74.2% 25.8% 63.9% 75.4% 91.4% 10.3% 16.0% 100% 100% 8.6% , 2019, other income was MXN mil- $11.3 , 2019, the leased hotels (Fiesta Ameri - % st profit , 2018 represents anegative was Year 2018 Year 2018 100.0% 29.6% 24.7% 29.1% 35.1% MXN 4,107,252 3,756,281 3,332,368 1,092,139 1,443,110 st 350,970 350,970 , 2019 against fair 104,872 987,267 423,913 $618 million, (207 pp) (188 pp) (328 pp) (145 pp) 24.3% 0.0 pp 68.4% 75.7% 91.5% 10.3% 100% 100% 81.1% 8.5% 7.3% Var. % com - - 41 FibraHotel Annual 42 Report 2019 lion total amount of MXN $827mil- credit lines were madefor a eral disposals of the available In addition, during2019, sev IFRS standards. statement inaccordance with ferred to the FibraHotel income nancial cost at that time is trans- lion. Asof December 31 year bond for MXN $2,500mil- thanks to the issuance of a10- MXN $2,080 millionof bank debt no public, the respective interest is each development isopen to the available for development. Once the interest was paid withcash year. Itisworth mentioning that $37 millionininterest for the FibraHotel hascapitalizedMXN specific of the investmentpart for each struction stage iscapitalizedas ated to development inthe con debt-related interest associ- cordance withIFRSstandards, MXN $397millioninterest. Inac million, of which, asof December 31 USD 13.0 million)and by Banorte (aline of MXN. $1,000 $1,000 million, one of MXN $253millionand one of term and were provided by Bancomer (aline of MXN $2,700 million. Ofthese credit lines, four are long- MXN $2,102 millionoutof atotal credit lines of MXN the total amount withdrawn was of MXN $200 million which, as of December 31 Hotel hasarevolving credit line provided by Sabadell million was available to dispose). Additionally, Fibra- cember 31 to MXN $3,035 million as of De- MXN $4,579million)compared $3,673 million(total debtwas a net debtposition of MXN FibraHotel closed2019 with financing results Comprehensive generated During the year, FibraHotel debt was MXN $3,516 million). had not been drawn. The remainder of these credit longer lines (MXN $373million)represents acommit and ted source of liquidity, FibraHotel supporting project. FibraHotel capitalized, st capital structure. , 2018 (the total debt a financial During refinanced and cost st , 2019, the 2019, fi- of - - -

st , 2019, MXN $173 st , 2019, - increase indepreciation and higher financial interests. of adjustments to the fair value of the properties, an (48.4%) compared to 2018 ismainlydueto the impact the ic rightsat the end of each quarter of 2019). For 2018, ment Contribution Portfolio and did not have econom cents (excluding CBFIcorresponding to the Develop million. iary room revenues suchasfood and beverages at asubsid- cents and CBFIs consolidated net income amounted to 76.48 After Consolidated net profit consolidated level, taxes per The the CBFI. of consolidated consolidated MXN The net $8.5 decrease profit million net net reached profit in profit consolidated on per profit reached MXN CBFI not $615 was net MXN linked million profit 40.37 $317 to - -

Fiesta Americana Viaducto Aeropuerto

OPERATIONS ADJUSTED INCOME/(LOSS) FROM

Operating Income Margin INCOME /(LOSS) FROMOPERATIONS

2019, yearly and quarterly results (inmillionsof pesos)

ADJUSTED EBITDA Margin EBITDA

NOI Margin NET OPERATING INCOME

Total LodgingContribution Margin TOTAL LODGING CONTRIBUTION

Total Costs and General expenses Costs and general expenses

TOTAL REVENUES

Net Income Margin

CONSOLIDATED NET (LOSS) INCOME

Revenues INCOME BEFORE TAXES

Result Comprehensive Financial Investment Properties Adjustment to Fair Value Non Operating Income /(Loss)

Extraordinary Expenses, NetExtraordinary

Impairment over asset value Depreciation

Advisory FeeAdvisory Plan Employee CBFI's compensation Related to FibraHotel Administrative Expenses

Real Estate Expenses

Margin ManagedHotels Lodging Contribution -

Administrative Expenses Food and Beverage Rooms % of Total Revenues Revenues -ManagedHotels Others Lease Food and Beverage

Tax Rooms

343,418 Q1 2019 33.0% 34.5% 26.6% 89.2% 1,041,943 27.3% 16.0% 284,456 9.3% 359,948 409,542 163,054 760,602 681,995 929,214 168,905 247,219 112,736 117,266 159,717 112,714

(3,099)

167,191

37,953 96,441 18,932 16,529 93,341 2,076 4,137 (278) 0 0 0

368,873 Q2 2019 1,025,722 34.2% 32.8% 1,125,532 27.5% 27.8% 17.3% 91.1% 9.8% 740,273 385,259 285,450 435,625 109,842 310,074 194,352 125,702 187,367 194,418 178,946 819,538 192,733 115,657 38,060 111,667

99,766

18,663 13,495 16,386 2,076 1,825 7,018 (33) 0 0

323,670 Q3 2019 1,073,663 24.7% 92.5% 30.1% 13.7% 26.1% 31.6% 5.3% 265,634 734,034 339,629 258,804 429,226 794,502 992,838 139,623 125,880 148,747 118,420 147,214 178,927 186,612 58,536 80,523 37,900

15,960 18,059 56,371 12,026 8,358 2,076 2,165 766 0 0

351,834 Q4 2019 1,049,368 26.2% 1,130,832 92.8% 27.4% 32.7% 16.1% 31.1% 4.8% 369,246 296,275 828,900 435,299 207,592 287,782 761,586 135,058 127,773 (47,081) 54,432 114,475 191,229 181,801 155,911

37,949 79,463

62,001

10,596 15,534 17,543 14,877 2,076 7,569 17,411 0

YEAR 2018 1,383,412 2,664,142 4,107,252 1,605,670 33.7% 3,039,513 1,443,110 3,756,281 28.1% 16.9% 29.1% 35.1% 1,092,139 15.0% 91.5% 1,155,351 694,425 429,008 350,443 629,464 (151,510) 689,369 768,501 616,992 150,927 143,795 614,710 419,037 60,522 59,698

27,926 41,890 16,612 71,619 2,282 1,901

YEAR 2019 1,387,796 1,454,082 1,156,440 4,371,969 1,079,254 (292,270) 2,917,888 1,709,692 26.5% 3,203,541 33.3% 3,997,142 27.0% 15.8% 91.4% 31.7% 7.3% 690,623 325,545 755,842 372,466 499,377 465,817 317,085 708,819 (47,081) 151,862 617,816 66,286

40,120 37,056

11,330 71,188 8,306 8,460 0

43 FibraHotel Annual 44 Report 2019

Fiesta Americana Hacienda Galindo ing activities was MXN $1,152 million against MXN $940 in 2018. velopments erating expenses, payment and recovery of VAT related to de- Excluding activities related to investment activities (non-op of MXN million compared $1,110 to MXN $1,195 million in 2018. > > > > cash flow of (MXN $4,062 million): During 2018, FibraHotel generated anegative investment net > > > > cash flow of (MXN $725million): During 2019, FibraHotel generated anegative investment net Investment cashflow During Operating cashflow Cash flow and liquidity during the period MXN millionwithrespect $110 to the interest generated nance and remodeling (MXN $391 million)withrespect to CAPEX for hotel mainte- out accounting for capitalized interests) (MXN $752million)regarding the developing portfolio (with (MXN $3,033 million)regarding investment properties (MXN $62.9million)regarding investment properties during the period MXN millionwithrespect $71.6 to the interest generated and hotel remodeling (MXN $288million)withrespect to CAPEX for maintenance out accounting for capitalizedinterests) (MXN $445million)regarding the developing portfolio (with 2019, and FibraHotel acquisitions) generated the net an operating cash flow net from cash operat flow - - - - (MXN $32million)for other financing expenses > > > > During Financing cashflow (MXN > > flow of MXN $39.0 million: financial liabilities ments (MXN $37 million) for capitalized interest pay er financial expenses paid (MXN $304million)for interest payment and oth (MXN $684million)for distributions: es of the credit lines MXN $3,427millionwithrespect to the resourc • • • • • • • • third quarter of 2019 (MXN $134million)for distribution of the second quarter of 2019 (MXN $178million)for distribution of the first quarter of 2019 (MXN $166million)for distribution of the fourth quarter of 2018 (MXN $206million)for distribution of the amortizations (MXN $251 million)withrespect to capital sources obtained from FIHO19 bond prepayments of credit lines made with re- (MXN $2,080 million)withrespect to bursement of credit lines MXN $927millionwithrespect to the dis- ance of the FIHO19 bond MXN $2,500millionwithrespect to issu- 2019, $2,331 FibraHotel million) generated with respect a financing to financing cash - - - > > > > > cash flow of (MXN $1,375million): > During Cash position without restricted cash Cash, cashequivalents and restricted cash Figures inmillionsof pesos est rate coverage (MXN $0.7million)for the acquisition of aninter ments (MXN $103million)for capitalizedinterest pay er financial expenses paid (MXN $297 million) for interest payment and oth quired by the repurchase fund (MXN $439million)withrespect to the CBFIsac MXN $341 millionrelated to credit lines: (MXN $876million)for distributions: • • Available cashand cashequiv. -Investment Restricted cashand cashequiv. -Operation Available cashand cashequiv. -Operation • • • • third quarter of 2018 (MXN $167million)for distribution of the second quarter of 2018 (MXN $235 million)for distribution of the first quarter of 2018 (MXN $241 million)for distribution of the fourth quarter of 2017 (MXN $234 million)for distribution of the tal amortization oftal amortization credit lines (MXN million)for $116 payments of the capi- bursement of credit lines MXN $457millionwithrespect to the dis- 2018, FibraHotel generated a financing - - - -

Years 2018 359.2 122.2 481.4 168.0 186.3 > and debtposition: The following tables present the detail of FibraHotel cash > > > During 2019, FibraHotel generated: Adjusted Funds from Operations > FibraHotel closed2019 with: Liquidity position decrease over last year lion compared to MXN $849in2017, representing a(24.9%) Adjusted Funds From Operations (AFFO) of MXN $638mil- decrease over last year pared to MXN $948 million in 2018, representing a (11.6%) Funds From Operations (FFO) of MXN $838millioncom million asof December 31 position of MXN $4,579millioncompared to MXN $3,516 A net debtposition of (MXN $3,673million).Atotal debt Approximately MXN $373millionavailable incredit lines pared to MXN $481 milliononDecember 31 A cashposition, including VAT, of MXN $906million, com Years 2019 860.6 905.9 292.6 521.2 92.1 st , 2018 Cash available for investment maintenance Available for CAPEX Hotels’ working capital

Comments st , 2018 - -

Live Aqua Boutique Playa del Carmen 45 FibraHotel Annual 46 Report 2019 The following tableshows details of the FibraHotel schedule: debtamortization > coverage ratio. sure the leverage level debtservice and the FIBRAs Commission (“CNBV”) issued aregulation to mea- During 2014, the National Banking and Securities Regulation applicableto FIBRA *** Amount of bond adjusted for the issuance expenses. ** The spread willincrease to 200bpsinJune 2020&to 250bpsinJune 2024 * Equivalent inpesos to USD$13.0 millionwithanexchange rate of MXN $18.8727 BBVA 2 Banorte 2 BBVA 2 Banorte 1 BBVA 1 $ millions BBVA 1 BBVA 1 $ millions BBVA 1 Banorte 3 BBVA 2* BBVA 2 Total debtposition FIHO 19*** costs were paidup-front, and have a5-year maturity with the following characteristics: ments destined only to covering variations of the TIIE rate (Interbank Equilibrium Interest Rate). These instruments’ As of December 31 The following tablepresents the detail of the repayment schedule of FibraHotel’s debt: (3) For FibraHotel, commitments correspond (principal and to interest); i)debtservice ii)capitalexpenditures (CAPEX for maintenance of the Trust agreement stipulates that the leverage ratio level. Itshould be mentioned that the FibraHotel $17,746 million corresponding to 25.8% leverage $4,579 millionindebtedness and total assets of MXN Leverage level: FibraHotel closed2019 with MXN hotels); and developments iii)non-discretionary (projects under development). Available resources correspond to i)cashand equivalents (excluding restricted cash);ii)VAT carriedforward, iii)operating profit after distribution payment and iv)available credit lines.

Interest Rate LIBOR 91d TIIE 28d TIIE 28d TIIE 28d st TIIE 91d TIIE 91d , 2019, and Total according

Currency 2019 2023 and later 4,579.2 MXN MXN MXN MXN MXN USD 2447.1 245.3 252.9 507.0 827.5 269.1 2020 2022 Year 2021 to

credit Currency Provision MXN MXN MXN MXN MXN USD agreements, 507.00 252.9 969.6 827.5 13.00 269.1 > Payment 1.6x, 1.5x,1.9xand 1.7xrespectively. ters of 2019, coverage FibraHotel debtservice ratio was more resources deal with payments of their obligations withitsavailable ratio iscalculated by takingthe capacityof FibraHotel to coverageDebt service coverage ratio: The debtservice indicates that thisindicator cannot be over 50%. cannot exceed 40%,whilethe regulation applicableto REITs

4,579.20 3,717.00 Cap Spread Cap Spread than 545.5 146.8 170.6 Collar Collar FibraHotel Type Cap Cap 3 LIBOR 91d +180bps TIIE 91d +130bps** 1.0x. for the next six quarters. This ratio must be TIIE 28d+150bps TIIE 28d+160bps TIIE 28d+150bps Interest Rate For 100.00% 81.20% 8.83% 11.90% 3.20% 3.70%

has % the 4.50% 7.30% Floor entered first, second,

into 10.00% 4.00% 8.00% 6.00% 5.00% 5.00% Strike various third and financial

Maturity sep-29 nov-27 oct-27 jun-20 jun-22 jun-28 fourth 9.00% 7.00% Límit instru- quar - > > tures duringthe year were: The most relevant FibraHotel capital expendi- As of December 31 tions FibraHotel seeks to create value for its CBFI holders. As a result, the FibraHotel Technical Committee approved distribu- Distribution for 2019 Cash distribution Capital Expenditures MXN $203millionto December 31 amounted to MXN $45.2millioncompared to enue of hotels under anoperating agreement and basedonapercentage of the gross rev maintain the conditions of hotels inoperation forserve maintenance expenses destined to and MXN $494million correspond to the capitalreturn of capital, asdetailed inthe following table: bution decrease per CBFI between 2018 and 2019 was (23.3%). For the 2018 taxyear, FibraHotel distributed atotal of MXN $849million, representing MXN $1.0547 per CBFI.The distri- report, FibraHotelreport, has783’456,458CBFIswitheconomic rights. between December 29 2019,In January FibraHotel announced the cancellation of 32,620,342CBFIs,acquired by the repurchase program Buybacks As of December 31 between December 14 In March 2020,FibraHotel announced the cancellation of 8,733,372CBFICBFIs, acquired by the repurchase program Income/CBFI Consolidated Net Number of CBFIs(million) Consolidated Net Income

Capital Return Taxable Income Distribution /CBFI

With Economic Rights Outstanding Number of CBFIs(million) Capital Return Taxable Income Total Distribution $ millions With Economic Rights Capital investment expenditures incurrent Maintenance CAPEX: MXN $270.4million of a total amount st st , 2019, available capital re- , 2019 FibraHotel had785’516,574 CBFIswitheconomic rights.Asof the date of this

th of th , 2018 and December 31 , 2017 and December 13 MXN $636 785.7

785.7 794.5

st , 2018. million Q1 2019 Q1 2019 96.4 783.8 87.3 165.7

$0.0998 $0.1227 $0.2108 $0.1111 for 2019, - th st

, 2018. , 2019. 785.7

785.7 794.5

of Q2 2019 Q2 2019 which 109.8 160.4 • • • • • • • tion, inthe following hotels: invested MXN $42millionincapitalexpenditures for renova- ed returns justify the investment. During the year, FibraHotel invest capital in the current hotel portfolio when their expect hotels: FibraHotel isconstantly analyzingtheto opportunity 177.9 17.5

$0.0222 $0.2264 $0.1398 $0.2041 Fiesta Americana Hacienda Galindo: MXN $3.7million Fiesta InnSan Luis Potosí: MXN $4.7million Fiesta InnAguascalientes: MXN $4.6million Sheraton Ambassador: MXN $5.6million Fiesta Americana Aguascalientes: MXN $7.1 million Fiesta InnVillahermosa: MXN $7.9 million Fiesta InnTorreon: MXN $8.7million MXN

$ 785.7

785.7 794.5

142 Q3 2019 Q3 2019 million 56.8 134.4 134.4 -

$0.0717 $0.1711 $0.1711 correspond

- 785.5

785.5 794.5

Q4 2019 Q4 2019 54.4 158.0 46.1 to 112.0

$0.0693 $0.0587 $0.2012 $0.1425 the taxable

785.5

785.5 794.5

YEAR 2019 YEAR 2019 fiscal 317.1

$0.4037 $0.8095 $0.6289 $0.1807 income 494.1 141.9 636

-

47 FibraHotel Annual 48 Report 2019 At Vision the sustainability, which complement mental dimensions of FibraHotel´s points in the socialand environ The following are some of the key business model. with our corporate objectives and ties of the company inaccordance of ourstakeholders and the priori- sessment including the perspective sented inthisannualreport. together with anemphasis ontransparency creator of value for allstakeholders understanding of the company asa te governance, characterized by an activities are builton solidcorpora- day management of the hotels. Our our Hotel Operators inthe day to our portfolio and with inpartnership social and environmental criteria of mitted to sustainability, including were to address key issues. These items new programs and activities looking developed and extends the scope to builds oninitiatives we have already our Sustainability Strategy, which We are progressing onthe design of and success of ourbusiness. FibraHotel financial defined with and the by we business a financial Sustainability are materiality firmly data stability com pre- as- - -

Environmental Performance 71 hotels 71 withGreen Key. Certifications: Social Performance >The Fiesta Americana Viaducto Aeropuerto hotel asLEED, iscertified >Other Hidro Sustentable certifications: , BlueFlag >Most of ourhotels by are Calidad certified Ambiental Turística, of >EDGE: Fiesta Americana Satélite, Fiesta Americana Viaducto Aeropuerto 7,680 employees in the portfolio Administrator, 33%are women. 203 kWh/m recognizing the parameters of sustainable building PROFEPA y elAC by Marriott Veracruz 132,122,923 kWh of energy 2.1 millionsof m hotels, 53%are women. 27 collaborators inthe Community initiatives inportfolio hotels, together with the operators. Case of of the hotel participation workers in consumption. consumption. consumed. 2 intensity inenergy volunteer work for the Posadas Foundation. 48% of energy consumption iselectricity. 3 of water GHG emissions (Scopes 1and 2). 48,781 tCO 75 Kg CO ae cnupin intensity: consumption Water 1.01 millionpesos invested in 0.79 m Working withlocal (Scopes 1and 2). 2 eq /m 2 suppliers. education. eq of GHG emissions 3 /fourth night. 2 of intensity of

Gamma de Fiesta Inn Tijuana Gamma de Fiesta Inn Tijuana

Corporate Governance 1. Members’ biographical information: members, of which fourtary (40%) are independent members and one member (10%) is female. To the date of the thisAnnualReport, FibraHotel Technical Committee ismadeup of 10proprie- Technical Committee and FibraHotel Committees 3. 2.

tion, and residential segments asadeveloper and real estate manager, aswell asinthe acquisi- Director of Grupo GDI. He has more than 25 years of experience in the hotel, commercial and amember of the FibraHotel Technical Committee. Founding member and Executive Simón Galante Zaga. ber of the board of asPresident Grupo GDI.Hehas served of the Association tegic advisorof Grupo Cinemex. Mr. Kurian isashareholder, director and mem successful management projects inMexico. Currently, Mr. asastra Kurianserves - in 1994until2005),one of mainmovie theater chainsinMexico and one of the most rian Officer Adolfo Benjamín Fastlicht Kurián. Mr. Kurianisafounding member and Chief Executive Club, BosqueReal and Mercap. board of the Mexican Hotel Fund Iand II,the Mexican Commercial Fund, LaVista Country is aboard member of FibraHotel (BMVFIHO:12), aswell as anexecutive member of the the board of Súper Jeans, a company dedicated to the sale of casual clothing. Mr. Galante Grupo GDI establishment until2005,Mr. Galante was afounding member and President of various large projects inthe tourism, residential and retail segments inMexico. Prior to has over 30years of real estate experience asadeveloper and real estate managerof Alberto Galante Zaga.Mr. Alberto Galante isfounding of Grupo partner GDI.Mr. Galante ministration from IPADE. Real and Mercap, whichare Grupo GDIcompanies. Hehasaspecialization inBusiness Ad- Fondo Hotelero Mexicano IyII,Fondo Comercial Mexicano, Club, Bosque LaVista Country was development of a Icon co-founder Group, and Mr. and a financing Mexican Galante Co-Chief of company is these Executive the Chief types dedicated Executive Officer of projects. of to Grupo real Officer He estate is Cinemex of a member the development. FibraHotel (from of the its - creation board Advisor Mr. Ku- of

Live Aqua San Miguel de Allende 49 FibraHotel Annual 50 Report 2019 4. 5. 7. 6.

profit and onthe serves board of directors of various non- of the real estate development inMexico, industry of Real Estate Developers (ADI),the mainassociation (1993). in Business Administration University from Harvard from Boston University (1989)and aMaster’s Degree Bachelor of Science Degree inHotel Administration Chief vestor and investment advisor. Mr. Valner as served Sandor Valner Watstein. Mr. Sandor Valner is an in nancial Mayer ZagaBucay. Mr. ZagaBucay isthe Chief- Fi University. gineering and Business Administration from Stanford tive member of YPO and holds Master Degrees inEn real estate companies inLatin America. Heisanac and amember of the administrative board of various Association of Real Estate Funds and Infrastructure ner isaco-founder and Vice President of the Mexican the proximately 2,000 persons. In1983,he cofounded and Victoria’s Secret, among others, employing ap import-export agentfor brands suchasNike, Adidas and textile manufacturing company, whichisalsoan ge role inmain publicinstitutions dedicated to- mortga Manuel Zepeda Payeras. diaries of the group. corporate vestment banks, and hasworked withJ.P. Morgan on has been amember of EMVA and Valor Cosultores, in ber of itsexecutive committee for Latin America. He of Credit Suisse First Boston inMexico and asamem global real estate funds manager, aswell asDirector years is a founding member of Grupo GDI. She has over 25 María Dolores Domínguez Vázquez. Ms.Domínguez Grupo GDI. various real estate projects, aswell asamember of Mexico. Currently, Mr. ZagaBucay isaninvestor in supplier to highly-renowned stores department in which opened nearly 50stores nationally and was a tial, turing of investment funds incommercial, residen administration po GDIand isresponsible for the management and sectors in Mexico. She has participated in the struc (FOVI), the Bank Operation and Financing Fund for Housing Ms. of several real estate assets inMexico. Currently, has for the acquisitionand construction of economic housing and social interest. He was founder and financing award-winning Dominguez experience hotel general director of Sociedad Hipotecaria Fe- and Executive of a Officer deral, experience trust and educational finance, in office created a in of is of Mexico. Officer financial the the more mergers Grupo clothing properties. in financing, Chief institutions. to the He of than Mr. Zepeda hasplayed akey Industrial provide institution and Walton Financial was company finance 50 acquisitions. acquisition Ms. CEO affiliates Mr. financial Street Miro, Domínguez and for Officer created Ocean Kurian real 12 a Capital, or and years clothing support Pacific, Mr. of holds estate subsi- to Gru- also sale Val- de- of a a ------

9. 8. Mexicano. He has been at Yturbe, apartner Laborde y Deustche Bank Mexico and General Managerfor Banco until 2000,Mr. De Yturbe was General Manager for at Grupo Financiero Scotiabank Inverlat. From 1996 Investment Banking, Treasury Divisions and Fiduciary Associate General Managerfor the Corporate Banking, for the Brokerage Division(Casa deBolsa) as well as beginning of 2012, Mr. DeYturbe was General Manager member of ourtechnical committee. From 2001 to the Felipe de Yturbe Bernal. Mr. Bernal is an independent He holds a PhDinEconomics from Yale University. Instituto Tecnológico Autónomo deMexico (ITAM). cognition bestowed by the alumniassociation of the Carrera alUniverso award – the most prestigious re - institutions. In 2014, Dr. Zabludovsky received the of various companies, civilassociations and public titiveness. as a member Healso serves of the board and private sector oninternational trade and compe- to advisinggovernments, multilateral organizations gencia Comercial, aconsulting company dedicated Dr. Zabludovsky isafounding of IQOMInteli partner - sitions, Leasing, Works Committee. and Services Production Council actingasPresident of the Acqui- the board of directors of the PEMEXExploration and bludovsky asan Independent also served Advisor to Council of theAdvisory President of Mexico. Dr. Za- Central Bank of Mexico and member of the Economic of the Economic Investigation at the Department Union -Mexico Free Trade Agreement, Economist European Union, Chief Negotiator of the European Trade Negotiations, Mexican Ambassador to the tiator of NAFTA, of International DeputySecretary Mexican government including Deputy Chief Nego- Dr. Zabludovsky hasheld multiplepositions inthe of the most consumer important goodscompanies. (CONMEXICO),association that representsdustry 44 the Mexican Council of the Consumer Products In Since February 2007, asPresident he hasserved of Founding of Partner IQOMInteligencia Comercial. Jaime Zabludowsky Kuper. Vice-President and sity of Chicago. another inBusiness Administration from the Univer zas S.C. HehasaMaster Degree inEconomics and been of aManagingPartner Afín, Asesores enFinan 1982). Since 2003,when he retired from SHF, he has of Advisors of the President of Mexico from 1976to Mexico (1983-1988)and Chief Economist inthe Office Deputy Director of Economic Studies of the Bank of BBVA INMESPReal Estate Fund, inpast years. Hewas Real Estate Development, Real Estate Credit and the as well asSAREHolding,MARHNOSHousing,ARKO such asCKDSPrumex IVand DELTAK (currently); housing and real estate development companies, Union. Hehasalsoappeared onthe Board of several VIT. Hewas President of the Inter-American Housing sor of the Planningand RiskCommittees of INFONA VISSSTE, currently continues asIndependent Advi- He was advisorfor 10years of INFONAVIT and FO markets.mortgage andvelop secondary the primary - - - - - During fibrahotel.com). change (www.bmv.com.mx) orto the 2019 available AnnualSustainable Report onthe website of FibraHotel (www. available powers of the Committees, remuneration of independent members, etc.), please refer to the 2019 Annual Report For more information onthe operation of ourCommittees (election/removal of members, sessions and voting, 10. with priorapproval of the AuditCommittee. First Yturbe held the positions of Treasurer and CFO for Cementos Anahuac(1976-1979)and was Vice President for The Associate General Managerfor the Corporate Banking, Investment divisions.Mr. Banking and Fiduciary De nal deMexico where he held various positions. Hestarted asAccount Executives Coordinator and became program. foundation. Mr. De La Peza is an Industrial Engineer from Universidad Iberoamericana and a mentor for the Endeavor independent member of the boards and investment committees of several listed companies and alarge Mexican Banamex. In2013 he retired from Banamex and continues asanadvisor. participating Currently, Mr. delaPeza isan funds administered by Banamex and Chairmanof the Insurance, Pension Fund and Investment Fund companies at tegic Planningand Corporate Development for CitiinLatin America. Hehasbeen adirector of several investment Commerce Bank, Director of Strategic Planning,CEOof Insurance and Pension Funds (Afore), and Director for Stra- positions inMexico and internationally, including Director of International Treasury, President and CEOof California Pablo delaPeza Berrios.Mr. DelaPeza worked inBanco NacionaldeMexico “Banamex” from 1976to 2013 onvarious University.from Harvard Asociados, 2019, National in Spanish the a firm Technical Bank on specializing of the Chicago’s Committee website in office investment of met FibraHotel in Mexico five management. times (www.fibrahotel.com) City. for Mr. the De approval Mr. Yturbe De Yturbe holds of or the a spent on Master Financial the 12 website in years Business Statements at of Banco the Administration Mexican Nacio- and distributions, Stock degree Ex -

Fiesta Americana Viaducto 51 FibraHotel Annual 52 Report 2019

FibraHotel on the Mexican Stock Exchange nuary 1and December 31 nuary The following graph shows the evolution of FibraHotel REITprice and itsvolumes between Ja- CBFI price

shareholder structure isasfollows: To the date of FibraHotel this Annual Report, Stock ownership * The volume isexpressed inmillions

Fiesta Americana Condesa Cancún

a

b Volume FIHO ar

st F , 2019. ar

a Price FIHO r

i

F

a IPC FIBRAs Index FIBRAs

Free Float Control Trust

i

F

> During FibraHotel > COVID-19 > > > a In addition, FibraHotel’s Technical Committee approved as the authorities and hotel demand allow industry it. the most stringent health and safety protocols assoon tels will be ready to open inamatter of days and meet closures of most of the hotels. Temporarily closedho- authorities, itwas outtemporary necessary to carry contingency declaration issued by the federal and local hotel demands. Subsequently, inresponse to the health gative impactbusiness could have dueto the drop in in additionto measures inanattempt to reduce the ne - preventive measures to avoid transmission of COVID-19 with its operating have partners, determined to take Distancia” (Safe Distancing) policy, FibraHotel, together as limitinghotel occupancy duringthe period of “Sana reservations and rescheduling existing ones, aswell visions that limitthe possibility of receiving new hotel In accordance withfederal recommendations and pro- and hotels. effects of the pandemic and itsimpactonourbusiness period, we have been carefully monitoring the possible ber of countries with severe consequences. During this zation inMarch of thisyear, hasaffected alarge num VID-19 pandemic declared by the World Health Organi- change ber 31 ber acquired between December 14,2018 and Decem FibraHotel announces the cancellation of CBFI tion results for the fourth quarter of 2019 the 1s FibraHotel announces results and distribution for on national and international economy the COVID-19 pandemic and other consequences have dueto the drop inhotel demand asaresult of to reduce thetry impactthe Trust’s business will FibraHotel onthe reports measures ithastaken to ders of real estate stock certificates fiduciary FibraHotel announces resolutions adopted by hol- the in t st Quarter 2020 , 2019 first the announces distribution quarter of its 2020, policy financial the to provide Coronavirus and distribu- financial Post-2O19 CO - - - events annual report onthismatter.annual report tions, we have updated, to the extent possible, our stances and the pandemic could have onouropera- time to determine the fullimpactthat current circum www.fibrahotel.com. Though itisnot possible at this te at www.cnbv.gob.mx, aswell asthe following link: BIVA website at www.biva.mx oronthe CNBV websi- hed onthe BMVwebsite at www.bmv.com.mx, onthe We invite you to review our2019 publis - AnnualReport ties informed asthe current situation evolves. keep the investors, and ourpartners, allinterested par the situation closely and reiterate ourcommitment to with applicableregulations. We willcontinue to monitor as well asthe health of ouremployees, incompliance the situation and to care for the returns of ourinvestors operations, however, we willcontinue to work to address pact that the current circumstances may have on our It isnot possible to determine, at thistime, the fullim will be deferred for 6months. payment of interest of approximately MXN $41,000,000 at theamortized end of the life of the loan, whilethe $78,000,000 principal payment for the period willbe ring the period of April to September 2020. The MXN period for the payment of principal and interest, du- dit lines withBBVA, including anagreement onagrace In addition, tribution quarter of 2020, and the amount to be paid as dis- that flexibility Advisory quest the Advisor to postpone payment of the Practice Committee authorized FibraHotel to re- Additionally, inorder to preserve liquidity, the Act) . the “Ley delImpuesto sobre laRenta” (Income Tax always withtheamountminimum established by The Advisor accepted the deferral proposal so the on vor of the Advisor. Thistransaction hasno impact ments and anaccount receivable iscreated infa- advisory structure and access to liquidity with a cash po- We liquidity intheterm. short mic impactintheterm. short which willhelp usto address the potential econo - sition of MXN $970millionasof March 31 FibraHotel believe there FibraHotel each fee Committee and would that will liquidity quarter cash be be FibraHotel modified provided no flow for will distribution to the and FibraHotel, be some first in has helps defined, the terms quarter a financial during us solid determining to and of maintain financial of st the the comply , 2020, state- 2020. first cre- - - -

53 FibraHotel Financial 54 Statements

Consolidated Financial Statements 64 63 62 61 60 57 Página Contenido Statements 2019, 2018 and 2017 Independenct Auditors’ and Report Consolidated Financial Institución deBanca Múltiple, DivisiónFiduciaria)and Subsidiary Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Notes to the Consolidated Financial Statements Consolidated Statements of Cash Flows Consolidated Statements of Changes inTrustees’ Equity Consolidated Statements of Comprehensive Income Consolidated Statements of Financial Position Independent Auditors’ Report performance consolidated In statements, of significantaccounting policies. including asummary and the consolidated statements of comprehensive income, the consolidated statements of changes in trustees’ equity We Opinion División Fiduciaria) Irrevocable No. F/1596 (Deutsche Bank México, S. A.Institución deBanca Múltiple, Independent Auditors’ to Report the Technical Committee and Trustees of Fideicomiso “Trust”), (Deutsche Bank México, S. A.Institución deBanca (“FibraHotel” Múltiple, DivisiónFiduciaria)and orthe subsidiary our have the opinion, which consolidated audited financial and comprise the their the accompanying statements position consolidated accompanying Fiesta Americana Viaducto the consolidated of FibraHotel of We in accordance withthe IESBA Code and withthe IMCPCode. Accountants together withthe Code of Ethicsissued by the Mexican Institute of Public Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) Wereport. are independent of FibraHotel withthe International EthicsStandards Auditor’s Responsibilities for the Auditof Financial Statements sectionof our (ISAs). Ourresponsibilities under those standards described are further inthe We conducted ourauditsinaccordance withInternational Standards onAuditing Basis for Opinion Board (“IASB”). StandardsReporting (“IFRSs”), issued by the International Accounting Standards The Other matter to provide abasisfor ouropinion. The Emphasis onamatter English for the convenience of readers. the current period, butdonot pretend to represent all the matters discussed. of Key audit matters are those matters that, inourprofessional judgment, were Key auditmatters situation. Ouropinionisnot modified inrespect of thismatter. the numerous uncertainties health arisingfrom thisextraordinary emergency properties and fair value of investment properties, dueto thetime and short intheof COVID19,determination inparticular of the recoverable value of hotel consolidated We draw attention to Note 19“Events after the period” reporting to the English for the convenience of readers. liquidity impact causedby the pandemic COVID-19 initsoperations and onFibraHotel’s known assess way, itdescribes FibraHotel’s immediate plansand itsimpossibility to reliably consolidated cash cash most consolidated believe accompanying accompanying statements flows to flows all situation significance as the potential that of for for (IMCP date financial financial December the the the financial of during of audit future Code), consolidated consolidated years financial years these in statements statements, our evidence the 31, then effects and then statements consolidated 2019, first audit position we ended ended, financial financial months it 2018 have we of could present have in the as where and fulfilled of and accordance of financial have of consolidated statements statements obtained December Fideicomiso 2017, notes the fairly, FibraHotel in our 2020 and its statements, to in other is financial with their the 31, financial all sufficient have have financial Irrevocable 2019, material describes ethical International consolidated consolidated been been position 2018 year, in and responsibilities translated translated statements relation respects, and appropriate the in No. as the Financial 2017, financial financial a effects F/1596 to result same into into and the the of

55 FibraHotel Financial 56 Statements was the most appropriate technique for circumstances the particular of each investment property, whichinthiscase For the fair value estimation of the investment properties (leased properties), FibraHotel´s Management used Investment properties’ valuation that the matters described below are the key auditissues whichshould be communicated inourreport. in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined direct investment properties included among others, contractual lease payments, expected market lease payments, ) We b) ) We c) ) Confirm 1) Our auditprocedures included, among others: transacctions. These ) We 4) 3) ) We a) impairment indicators: Based onthe above, ourauditprocedures included, among others, the following procedures onthe hotels with Fiesta InnLoft CiudaddelCarmen and Fiesta Inn Ciudad delCarmen. on FibraHotel’s Villahermosa, analysis, Suites there were & three hotels Inn withindications of impairment: Fairfield asset and suchrecoverable amount involves estimations, assumptions and judgement from management. Based by IAS 36,Impairment of assets. Ifthere issuchindication, FibraHotel estimates the recoverable amount of the Accordingly, itevaluates at the end of each period, reporting ifthere isany indication of impairment asestablished FibraHotel Impairment of hotel properties reasonable. Based on ourprocedures performed, we concluded that the fair value of the investment properties recorded is ) We 2) determined matters operating information. considering internal and external factors. We alsoconsider the knowledge of FibraHotel and industry from FibraHotel´s analysis. Ourprocedures included the review of the evidence provided by the administration, with IAS 36,usingthe discounted future cash flows method. performed by FibraHotel. using independent and market inputs,carriedoutfair value analysis, and compared them withthe valuation From arelevant sampleof the investment properties, we involved ourinternal valuation specialists, who rates were alsoexamined. measurement they were dulysigned and approved. Evidence usedby FibraHotel to the support diferent inputsusedinthe expenses related to the operation. Thisinformation was alsocorroborated withlease agreements, ensuring related to the information contained inthe valuation of the investment properties, incluiding the income and correspond to the differences between the different values at the end of each year. income and operating expenses. Also, thisinformation was tested and corroborated against the historical to the information contained inthe valuation of the three hotels withimpairment indicators, including their Measurement, for the discounted future cashflows method. confirmed tested reviewed observed tested has were that identified using costs, the the the the addressed that internal that of internal the valuation fair discount controls the the and discounted value, controls methodology effects concluded control in method related rates the highlighting recorded associated context future which associated to of that for each the cash determining of reflect growth its in identification our investment with cash the flows with audit the the factors, consolidated generating methodology. the preparation market of the property the preparation of inflation, recoverable consolidated impairment uncertainty, units financial follows and Other exchange are review and value the represented indicators statement assumptions financial capitalization review has requirements of rates, the been of financial statements on discount of the carried by used the comprehensive rates each financial of hotels projections in IFRS out and and individual the as in capitalization that 13: a valuation comparable accordance projections whole, Fair resulted income related hotel. Value and of

necessary statements in accordance with IFRS, and for such internal control as FibraHotel´s Management determines is could Misstatements canarisefrom fraud orerror and are considered material if, individually orinthe aggregate, they accordance withISAswillalways detect amaterial misstatement when itexists. our opinion. Reasonable assurance isahighlevel of assurance, butisnot aguarantee that anauditconducted in are free from material misstatement, whether dueto fraud orerror, and to issue anauditor’s that report includes FibraHotel’s Responsibilities of Management and Trust’s Administration for the Consolidated Financial Statements 33,SectionI,subsectionb)numeral asrequiredannual report, 1.2of inArticle the Provisions. contain amaterial misstatement. When we read the we AnnualReport, willissue the legend onthe reading of the Our Independent Auditor’s Responsibility for the Auditof the Consolidated Financial Statements Those charged withgovernance are responsible for overseeing the Trust’s financial process. reporting or hasno realistic alternative to doso. going concern basisof accounting unless management either intends to liquidate FibraHotel orto cease operations, continue asagoingconcern, disclosing,asapplicable, matters related to any goingconcern issues and usingthe In whether dueto fraud orerror. inconsistent when itisavailable, and when we doso, to consider whether the other information contained therein ismaterially Identify - throughout the audit.We also: of anauditinaccordanceAs part withISA’s, we exercise professional judgment and maintainprofessional skepticism financial statements. In not express any form of assurance thereon. this provisions (“the Provisions”). The other information isexpected to be available for ourreading after the issuance of inMexico,Participants and the Instructions whichaccompany those I, subsectionb)of Title Fourth, Chapter First of the General Provisions Applicableto Issuers and Other Stock Market be incorporated inthe whichFibraHotel AnnualReport isrequired to prepare 33,section incompliance witharticle FibraHotel´s Management isresponsible for other information. Other information includes the information that will Other information included inthe document containing the consolidated financial statements reasonable. Based onthe procedures carriedout,we concluded that book value of the hotels withimpairment indicators is e) d) relation preparing objectives audit reasonably or error, design and perform auditprocedures responsive to those risks, and obtainauditevidence that is income. end of each year and, ifany, reviewed the effects recorded inthe consolidated statements of comprehensive We reviewed that the differences between the recoverable values and the book values were correct at the with the valuation performed by FibraHotel. especialists, who usingindependent and market inputs,carriedoutfair value analysis, and compared them From arelevant sample of the hotels with impairment indicators, we involved our internal valuation growth, inflation, exchange rates, discount and capitalization rates. amounts shown inthe balance of each hotel. Similarly, we examined assumptions usedby FibraHotel suchas report. with to the Management with enable are our and consolidated Our be the audit to assess expected the opinion obtain consolidated preparation of is the the reasonable of responsible to financial consolidated the risks influence consolidated financial of of consolidated statements, assurance material for the financial statements the economic financial misstatement preparation about Management financial statements, decisions or whether statements our statements and knowledge of our is the of the fair responsible responsibility users will consolidated financial presentation not that obtained taken cover are for statements, on free will the assessing financial the during of from be other basis the to the material read information statements consolidated whether of FibraHotel´s audit, these the Annual misstatement, or consolidated due appears and as ability financial to a Report, we whole fraud will to to 57 FibraHotel Financial 58 Statements Obtain - Evaluate - - - - opinion. for the direction, and performance supervision of the audit group. We remain solely responsible for out audit business achieves fair presentation. cause the Entityto cease to continue asagoingconcern. on the audit evidence obtained upto the date of our auditor’s However, report. future events or conditions may and financial exists,uncertainty we are required to draw attention inourauditor’s to report the related disclosures inthe cast on the auditevidence obtained, whether amaterial exists uncertainty related to events orconditions that may Conclude onthe appropriateness of management’s useof the goingconcern basisof accounting and, based and related disclosures madeby management. Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates internalEntity’s control. appropriate inthe circumstances, butnot for the purpose of expressing anopiniononthe effectiveness of the Obtain anunderstanding of internal control relevant to the auditinorder to design auditprocedures that are intentional omissions, misrepresentations, orthe override of internal control. resulting from fraud ishigher thanfor one resulting from error, asfraud may involve collusion, forgery, sufficient whether significant sufficient the statements activities and overall the appropriate doubt and financial to presentation, or, appropiate express on if the such to statements provide Entity’s an disclosures structure opinion audit a ability Fiesta Americana Satélite basis evidence represent on and are for the to inadequate, our content continue consolidated about the opinion. underlying of FibraHotel´s as the The to a financial modify going financial risk transactions of concern. consolited our not statements, statements. opinion. detecting If and financial we Our including conclude events a We material conclusions are information in also the that a misstatement manner disclosures, responsible a are material and based that its significance From the matters communicated with FibraHotel’s Management, we determine those matters that were of most thought to bear onourindependence and, where applicable, related safeguards. regarding independence and to communicate with them all relationships and other matters that may reasonably be We alsoprovide to FibraHotel´s Management astatement that we have complied withrelevant ethical requirements during ouraudit. the We communicate to FibraHotel’s Management regarding, among other matters, the planned scope and timingof March 31, 2020 C. P. C. Alexis Hernández Almanza Member Deloitte Touche Tohmatsu Limited Galaz, Yamazaki, RuizUrquiza, S. C. benefits of suchcommunication. becausereport the adverse consequences of doingsowould reasonably be expected to outweigh the publicinterest matter orwhen, inextremely rare circumstances, we determine that amatter should not be communicated inour We describe these matters inourauditor’s unless report law orregulation precludes publicdisclosure about the audit and in the the significant audit of the audit financial findings, statements including of any the significant current period deficiencies and are in therefore internal control the key that audit we matters. identify 59 FibraHotel Financial 60 Statements See accompanying notes to consolidated financial statements. As of December 31, 2019, 2018 and 2017 (Inthousands of Mexican Pesos) Consolidated Statements of Financial Position Current assets: Total assets Long-term liabilities: Current liabilities: operating equipment–Net Non-current assets: Trustees’ equity Liabilities and Trustees’ Equity Assets Trade accounts receivable and Total liabilities and trustees’ equity addedtax Recoverable taxes, mainlyvalue- Cash, cashequivalents and restricted Retained earnings Reserve for share-based payments Contributions from trustees Interest payable Suppliers and accrued expenses Taxes payable Current portion ofCurrent long-term portion debt Income tax Other comprehensive income - Financial debt Prepaid expenses Debt Hotel properties, furniture and Security deposits Investment properties Properties under development Deferred income taxes Derivative financial instruments financial instruments Valuation effect ofderivative other accounts receivables –Net cash Total liabilities Total current liabilities Total trustees’ equity Total currents assets Total non-current assets Notes 13f 10 11 11 11 12 9 8 6 5 7 13f 15f 15 $ $

$

$

(62,272) 2019 16,522,084 12,305,850 17,746,400 17,746,400 12,631,383 2,477,244 3,965,509 1,555,206 1,224,316 11,113,531 453,882 1,931,361 5,115,017 239,384 905,887 706,412 262,916 170,561 38,930 58,867 24,918 14,382 16,583 5,480 4,953 8,720 908 $ $ $

- -

$

(Restated) 2018 16,297,770 17,108,473 13,089,061 3,948,227 17,108,473 3,102,409 11,701,675 11,819,715 1,333,984 4,019,412 423,299 481,404 489,170 810,703 917,003 413,525 267,717 43,988 99,969 12,503 36,790 17,594 3,579 16,612 1,805 2,981 $ $ $

- -

$

(Restated) 2017 10,499,088 12,366,482 13,805,706 3,050,362 17,467,016 5,100,534 17,467,016 12,669,151 4,727,981 1,084,375 3,661,310 485,840 320,837 975,996 770,595 610,948 115,544 114,652 23,499 28,217 52,180 9,564 3,096 3,055 - - Loss insfair valur oninterest Other comprehensive income: See accompanying notes to consolidated financial statements. For the years ended December 31, 2019, 2018 and 2017 (Inthousands of Mexican Pesos) Consolidated Statements of Comprehensive Income Revenues from: Net income per weighted average CBFIs Weighted average CBFIswitheconomic Consolidated net comprehensive income Financial costs (income): Income taxes Adjustment to the fair value of Other income Impairment of hotel properties Depreciation Corporate expenses Consolidated net income Property expensesProperty Costs of: Weighted average outstanding CBFIs Net income per weighted average CBFIswith (pesos), basicand diluted rights Interest income investment properties hedging instruments Rooms Rooms Food and beverages Other financial expenses Interest expense Other income Real estate rentals Indirect costs Food and beverages economic rights (pesos), basicand diluted Foreign exchange, Net Total costs Total revenues Operating income Gross profit (lodgingcontribution) Income before income taxes Total financial costs, net Notes 12 9 7 7 $

$ $ $ 218,025

(99,062) 317,087 8,460

617,817

47,081 2019 785,720,574 833,947,220 1,454,082 3,203,541 4,371,969 1,709,692 2,917,887 755,842 325,547 499,377 292,270 372,466 (11,330) 708,818 (71,562) 260,105 465,817 360,991 0.4036 0.3802 74,592 40,120 10,602 (7,761) -

$ 0.7371 $ 0.7601 $ 599,320

833,947,220 808,683,842 (15,390)

$ 3,039,513 151,511 16,128 (143,795) 768,503 614,710 1,443,109 2,664,142 1,605,614 4,107,251 2018 350,443 429,064 629,464 (110,159) 283,068 689,369 234,521 616,992 419,015 27,926 (1,882) 41,890 76,310 2,282 11,021

$ $ $

$ 2,687,525 66,331 538,809 (16,194)

467,162 1,105,881 2,330,115 1,408,685 3,435,996 34,207 590,330,985 597,473,995 2017 459,300 (121,827) (10,053) 379,294 354,678 472,478 542,136 195,330 621,345 (7,862) 186,311 0.7914 0.7819 92,919 (3,193) 5,040 43,311 5,316 - 61 FibraHotel Financial 62 Statements For the years ended December 31, 2019, 2018 and 2017 (Inthousands of Mexican Pesos) Consolidated Statements of Changes inTrustees’ Equity See accompanying notes to consolidated financial statements. 2017 Balances asof january, restated December 31, 2017, Balances asof December 31, 2018 Balances asof December 31, 2019 Balances asof trustees Distribution to payment cost Shared-based Re-purchase of CBFIs income comprehensive Consolidated net trustees Distribution to Issuance expenses Public offering Issuance of CBFIs- trustees Distribution to from asset exchange Cancellation of CBFIs payment cost Shared-based income comprehensive Consolidated net income comprehensive Consolidated net

- - -

334,5451,454 Number of 833,947,220 833,947,220 833,947,220 499,401,766 CBFIs ------$

$

- - - Contributions from trustee 8,737,636 4,505,497 12,669,151 11,113,531 11,701,675 (439,046) (407,223) (588,144) (166,759) - - (511,115) (17,315) $

$

Retained earings 1,555,206 1,333,984 1,084,375 (177,933) ------(365,101) (95,865) 317,087 795,146 467,162 614,710 $ -

$

- - - Legal reserve for shared payments based ------24,918 16,612 16,612 8,306 $

$

instrument derivative effect for Valuation financial (62,272) (99,062) ------(15,390) 60,042 (7,862) 36,790 52,180 $

$

Toal trustees’ equity 13,805,706 12,631,383 13,089,061 9,592,824 4,505,497 (684,009) (439,046) (585,156) (876,216) (166,759) 459,300 599,320 218,025 (17,315) 16,612 8,306 Las notas adjuntassonparte delosestados financieros consolidados. For the years ended December 31, 2019, 2018 and 2017 (Inthousands of Mexican Pesos) Consolidated Statements of Cash Flows Cash, cashequivalents and restricted cashat the end of Cash flows from investing activities: Cash flows from operating activities: Cash, cashequivalents and restricted cashat Cash flows from financing activities: Interest received Investment indevelopment projects Cash, cashequivalents and restricted cash: Taxes payable Securitydeposits Prepaid expenses Suppliers and accrued expenses Income taxpaid respectively) and $4,455,181 asof December 31, 2019, 2018 and 2017, the year (including restricted cashof $457,727, $122,289 Adjustments for: Consolidated net income Proceeds from issuance of CBFIs Re-purchase of CBFIs Distribution to trustees Interest paid Capitalized interest paid Derivative financial instrument payment Payments of borrowings Proceeds from borrowings Issuance cost equipment Proceeds from saleof furniture and hotel operating Acquisition of hotel properties, furniture and operating Other financial expenses Bond issuance costs the beginning of the year Adquisición depropiedad deinversión Changes inworking capital: Trade accounts receivable and other Net increase (decrease) incash, cash Impairment of hotel properties Depreciation Adjustment to the fair value of investment properties Other financial expenses ofAmortization bond issuance costs Unrealized foreign exchange Shared-based payment cost Interest expenses Interest income equipment Income taxes recognized innet income Recoverable taxes, mainlyvalue-added tax, Loss (gain)onsaleof furniture and hotel equipment receivables equivalents and restricted cash mainly value-added tax Net cashgenerated by operating financing activities Other financial expenses activities Net cashusedininvesting activities $

$

2019 (2,331,289) 3,427,467 (264,834) (684,009) (303,929) (728,407) (470,772) (23,340) 424,483 (36,658) (35,230) (10,602) 481,404 1,115,250 1,141,346 905,887 (64,363) (71,562) (21,336) 37,640 (10,190) 465,817 360,991 (2,240) 317,087 27,405 (1,374) 10,602 71,562 47,081 8,460 8,306 4,801 4,170 1,878 584 ------$ 481,404

4,727,981 (1,375,121) (11,021) $ 614,710

11,021 (4,067,026) 110,159 1,195,570 (5,245) 2018 (4,246,577) (3,033,837) (439,046) (102,837) 1,094,837 (876,216) (286,617) (390,978) (115,508) (752,370) (143,795) 456,831 (20,489) (110,159) 234,521 419,015 57,230 53,120 10,623 41,890 2,282 16,612 8,705 (707) 5,977 (483) 35 - - - - - $ 4,727,981

448,829 3,975,731 (5,040) $ 467,162

5,040 (799,291) 121,827 (1,682) 2017 4,505,497 4,279,152 (159,906) (230,991) (585,156) (166,759) (706,266) 1,102,712 699,867 (212,991) (80,154) 200,492 (121,827) 354,678 879,105 (78,152) (16,194) (1,627) (3,242) 111,232 186,311 (6,872) (1,381) 5,316 (695) 1,381 (716) ------63 FibraHotel Financial 64 Statements FibraHotel,

1. For the years ended December 31, 2019, 2018 and 2017 (Inthousands of Mexican Pesos) Notes to Consolidated Financial Statements

administrative required are provided services by related and parties third parties. noncompliance withthe labor and taxobligations of the entities which render itpersonnel administrative and Any operating services. FibraHotel hasno employees and therefore no labor obligations, except for jointand several obligations whichmightarisedueto may be, variable income, basedonthe income from operations. also As of December 31, 2019, 2018 and 2017 the hotels’ development portfolio includes 0,1and 5hotels, respectively. is tax purposes in accordance with the Mexican Income Tax Law (“LISR”). Therefore, all income derived from FibraHotel’s operations operate under the following brands: established mainlyto develop, acquire and hold real estate properties for useinhotel operations. The hotels inthe FibraHotel portfolio C. V., (the “Trustor”) and Deutsche Bank México, S. A., Institución de Banca Múltiple, División Fiduciaria (the “Trustee”). FibraHotel was to “FibraHotel”) was established asareal estate investment trust onJuly31, 2012 by Concentradora Fibra Hotelera Mexicana, S. A.de Fideicomiso F/1596 (Deutsche Bank México, S. A.Institución deBanca (jointlyreferred Múltiple, DivisiónFiduciaria)and Subsidiary as Activities - Activities and relevant events The detail of the operating and leasing portfolio of FibraHotel by operator isas follows: Hotels portfolio composition The address of FibraHotel isAvenida Santa Fe No. 481 Piso7Col. CruzManca, CuajimalpadeMorelos, 05349,Mexico City. contracts. Fibra Hotelera, S. C. issubjectto the payment of regular Income Tax (“ISR”). development and remodeling, providing insurance coverage, oversight and negotiating of publicservices, hotel management to the real estate properties and hotels, obtaining necessary licenses projects involving and permits, supervising renovation, Fibra Hotelera S. C. of isa99.99%owned the Trust. subsidiary Itsresponsibilities include managingthe business, providing maintenance Gazette, formally establishing FibraHotel asaFIBRA. Hotels”) Turismo”), Operadora Marriott, S. A.deC. V. (“Marriott International”), and in2017 Hotels Starwood Worldwide, &Resorts Inc. (“Starwood has entered into hotel operations contracts withGrupo Posadas, S. A.B. deC. V. (“Posadas”), Grupo Real Turismo, S. A.deC. V. (“Real amount of undepreciatedthe carrying assets, net of debt;inthe same way, asof December 31, 2019, 2018 and 2017, FibraHotel also C. V. (“Administradora Fibra Hotelera”) (arelated under whichitpays party), anannualfee payable each quarter, equivalent to 1%of To outitsoperations, FibraHotel carry hasentered agreements withAdministradora into advisory Fibra Hotelera Mexicana, S. A.de its 187 and 188,FibraHotel must, among other requirements, distribute at least 95%of itsnet taxableincome each year to the holders of income taxinMexico. status, the Income Inorder to Tax maintainFIBRA Law (“ISR”for itsname inSpanish)hasestablished inArticles Live Aqua Grand Fiesta Americana Fiesta Americana Fiesta Inn Gamma by Fiesta Inn attributed Total operating hotels CBFIs. entered Marriott International Real Turismo Posadas Operator (collectively On Total rooms as Total to into October a the real lease holders “Operator”), estate 12, agreements 2012, of investment its FibraHotel which real

agreement Operating with

estate establish 82 12 67 3 trust Posadas,

obtained trust One Fiesta InnLofts Live Aqua Boutique Camino Real &Suites Real Inn 12,560 (“FIBRA”), 2019 86 a fee certificates (whereby 4 - agreement a based ruling Lease qualifies 4 - on from FibraHotel (“CBFIs” the Number of hotels asof December 31, to the hotels’

agreement be Operating Mexican for treated acts 8 12 66 3 1 gross its

as name Treasury 12,300 2019 a as operating 85 lessor) a in pass-through 4 - agreement Spanish) Lease Department, which Sheraton Fairfield Inn&Suites by Marriott AC Hotels by Marriott Courtyard by Marriott 4 - profit, provide and among

entity FibraHotel

agreement Operating published 78 12 fixed other for 61 5 income Mexican metrics. itself in 11,273 2017 the 81

3 - and, is agreement Federal federal FibraHotel not Lease as 3 - subject the income Official case has to

On

Relevant events - respectively, presented inthe consolidated statement of financial position inthe line item “Properties under development”. portfolio. The investments by FibraHotel asof December 31, 2019, 2018 and 2017, amounted to $239,384, $423,299 and $975,996, There island, airrights,contruction and /orassets to perform the development of the hotels whichmake upthe development b) a) d) c) e) On November 19 Opening of the hotel Fiesta Americana Viaducto Aeropuerto refinance existing liabilities and for general corporate purposes. period April30,2019 to April31, 2020,for upto 5%of alloutstanding CBFIs. The fair value of the assets (cost) plusacquisitionexpenses are asfollows: In 2019 and 2017, FibraHotel outany hotel didnot carry acquisition. agreement signed between both parties: issuance On September 24 Bond issuance (financial debt) On April30 CBFI Repurchase program approval agreement expenses related to the acquisitionfor for $95,119, atotal amount of $2,987,119. Simultaneously, the long-term lease purchase of the Fiesta Americana Condesa Cancún (HFACC) hotel, for apurchase price of $2,892,000, plusindirect instead of abusiness acquisition: During 2018 FibraHotel successfully concluded the acquisitionof one hotel, whichwas considered asasset acquisition Asset acquisitions project inMexico City. The hotel rooms. has260full-service companycertain specific and market performance variables. The structure of the planisasfollows: plan was upto 4,994,018 CBFIs,or1%of alloutstanding CBFIsat the approval date and issubject to compliance with In April 2017, the employee long-term incentive plan was approved at the CBFI Holders Assembly. The size of the approved Approval of employee compensation planto be paidincertificates fixed corporate credit ratings of AAby Fitch Ratings and AA+by HRRatings. FibraHotel´s inaugural bond issuance isa10year from the saleand lease agreements would be effective 1 asof January spread Fiduciarios (ii) (i) Year 2018 CBFI Adquiridos Importe Precio deadquisición Febraury rate Price Index in the United States of America, plus a variable component related to occupation and the hotel’s income. An annualtotal rent whichwillbe equivalente to USD$9,500,increased each year inaccordance withthe Consumer 15-year term, witharenewal optionof 5years, beginning upon the execution of the sales agreement. of of 199 bond th (“CBFs”) with $2,500 , 2019, the CBFIHolders Assembly authorized the maximum amount for the CBFIsrepurchase program for the 20th, basis in th Posadas, $ 1,244,126 th , 2019, FibraHotel opened hotel Fiesta Americana Viaducto Aeropuerto inside the Via 515 mixed use pesos , 2019, FibraHotel announced itsinaugural bond inthe BolsaInstitucional deValores (“BIVA”) withthe million 2018, points through with Land the $ $ 11.73 over 10-year with 275,592 BIVA equal conditions a respect long was bond 2017 capital 23,495 term the at to and first a $ 1,615,717 amortizations rate the fixed requirements issuance

hotel, of $ 10.62 Building rate Acquisition 6.84% of $ 438,770,814 went 2018 under 8.83%. for 41,330,219 in into years a were total the Before effect; long-term 8, fulfilled fixed $ 9 $ 127,276 equipment and others

and the Furniture and hotel st both rate , 2018. The following terms of the are lease part $ 18,131,549 2020 10. issuance 2,236,405 and bond parties of The the 8.83%. 7.79 issuance issuance sales of agreed this $ 10.86 The $ 354,330,338

contract 36,620,342 first 7/01/2019 program. of proceeds that the bond, Certificados the Cancellations $ was The FibraHotel of economic executed the transaction $ 84,716,068 $ 9.70 $ Total bond 9/03/2020 8,733,372 Bursátiles received benefits 2,987,119 were for had the to 65 FibraHotel Financial 66 Statements

f) h) g) Plan 833,947,220. Asof December 31, 2018, the CBFIswitheconomic rightswere 821,946,083. United States of America, placingatotal of 334,545,454CBFIsat aprice of $13.75pesos per CBFIsto reach atotal of placement in the international markets, in compliance with Rule 144A and the Regulation of the Securities Act of the On September 14,2017, FibraHotel completed itsthird PublicOffering inthe Mexican Stock Exchange and aprivate Issuance of Real Estate Trust Certificates (“CBFIs”) of the hotel for the last three years, less the investment madein improvements and disbursements for leasing. On the duration 31, of 2020,ii)the the purchase contract price willbe basedonmultiplying10.06x untilJanuary average EBITDA purchase optionfor the hotel named “Fiesta Americana Hermosillo” pursuant to the following clauses: i)the effective On April29th, 2016, FibraHotel entered into apurchase-sale contract subjectto aterm, conditions precedent and a Commitment agreement for the purchase of Hotel Fiesta Americana Hermosillo BBVA Bancomer and Banorte credit lines. For more information regarding these hedges please refer to Note 11. In order to maintainrelatively stable interest rate payments, FibraHotel entered into different interest rate hedges for the issuance. pesos and $984millionMexican pesos, respectively, were prepaid withthe resources obtained from the long-term bond In September 2019, the outstanding balances of two of the credit lines contracted with Banorte, $896millionMexican payments at TIIE28days plus1.30basepoints. S.A. de C.V. (“Banorte”) and received $827 millon Mexican pesos from such lune of credit, the conditions state interest On June 29,2019, FibraHotel signed aline of credit upto $1,000 millonMexican pesos withBanco Mercantil delNorte, 2019 withproceeds from $2,500millionMexican pesos from the long-term bond issuance. line of credit was renewed for a2-year period for anamount of $200millionMexican pesos and itwas paidinSeptember respectively, of arevolving line of credit contracted with SabCapital, S.A deCV, SOFOMER (SabCapital). In May 2019, that On August 3and November 14,2018, FibraHotel received cashfrom lines of credit for $100and millionMexican $110 pesos, willbeamortization indollars. credit line withBBVA Bancomer. Thiscontract establishes the payment of interest at LIBOR 91 days +180bps,and its On September 26,2018, FibraHotel received $13.0 millionU.S. dollars, representing the remainder of the $500million the credit limitof $3,000 millionMexican pesos. and Banco Mercantil delNorte, S.A., Institución deBanca Múltiple, Grupo Financiero Banorte (“Banorte”), thereby reaching At December 31, 2017, FibraHotel received cashfrom the credit lines contracted during2017 and 2016 withBBVA Bancomer establishes the payment of interest at the 28-day TIIErate plus1.60percentage points. de Banca Múltiple, Grupo Financiero BBVA (“BBVA Bancomer”), and used$252.9millionMexican pesos. Thiscontract In July2017, FibraHotel contracted acredit line of $500millionMexican pesos withBBVA Bancomer, S. A.,Institución New credit lines of other hotel investments, reduction (iii)temporary of debtand (iv)other corporate uses. Proceeds of thisissuance were usedfor: (i)the acquisitionof the Fiesta Americana Condesa Cancún hotel, (ii)the funding Plan 2018 Plan 2019 Plan 2017 CBFIs witheconomicrights CBFIs issued Less- CBFIs inTreasury CBFIs related withthe development portfolio Periodo 2013-2016 2018 2017 Number of CBFIs

4,994,018 1,736,133 1,578,303 1,679,582

821,946,083 12,001,137 September 14,2017

effectively granted Number of CBFIs 833,927,220 (6,872,932) (5,128,205) 2,429,277 1,679,582 434,034 315,661 Vesting period 100% en2020 100% en2021 50% en 2020 50% 20% en 201820% 30% en 201830% 2.

i) Adoption of the new and revised International Financial Reporting Standards

a. FibraHotel. Meanwhile, FibraHotel actsasthe hotel lessee; the clauses are not yet met at December 31, 2019. met, seeNote 19Events After the Period. Reporting price Hacienda Galindo hotel iscurrently operating and was remodeled in2017 without being closed.FibraHotel willsettle the purchase optionfor the Fiesta Americana Hacienda Galindo hotel, rooms. The Fiesta Americana whichhas168full-service On July3rd, 2017, FibraHotel and Posadas executed apurchase-sale contract subjet to aterm, conditions precendent and a Commitment Agreement to purchase Hotel Fiesta Hacienda Galindo of undertakes to invest improvements. inproperty Also, FibraHotel agreed to invest $75millioninthe property. The sale same date, FibraHotel signed alease contract for abinding period to 2020for $10million, whichamount the lessor to on the commencement date of allleases, except those that are considered term short orlow value assets. Incontrast The initialapplication date of IFRS16for 1,2019: the Entitywas January impact of the adoptionof IFRS16onFibraHotel´s consolidated financial statements isdescribed below. between regarding FibraHotel implemented IFRS16(issued by the IASB 2016), inJanuary whichestablishes new oramended requirements New and modified IFRSs that are effective for the reporting periods and periods beginning on or after 1, 2019 January Standards Board (“IASB”) that are mandatorily effective for an accounting periods that begins 1, 2019. on or after January In the current year, FibraHotel hasapplied anumber of amendments to IFRSsissued by the International Accounting effective for the current year Application of new and revised International Financing Reporting Standards (“IFRSs” or“IAS”) thatare mandatorily b. The a. FibraHotel the the Impact of accounting aslessee change the scope of the contracts that meet the definitionof leasing for FibraHotel. implementation contains to be appliedto those contracts entered into ormodified before 1,2019. to January whether FibraHotel hasdetermined to usethe practical expedient available for the transition to IFRS16soasnot to reassess Impact of the new definition of leases into time inexchange for consideration. Thiscontrasts withthe “risks and benefits” approach of IAS 17and IFRIC4.

IFRS (i)

agreed property lessee change an . Recognizes a. When applyingIFRS16,for allleases (except those mentioned below), the Entity: which were off balance sheet. Previous operating leases . Separates c. b. Under IFRS16,right-of-use assets are tested for impairment inaccordance withIAS 36. as areduction of rental expenses, generally under the straight line method. use assets and lease liabilities, when under IAS 17 they generated the recognition of a lease incentive, amortized Lease incentives (for example, rent-free periods) are recognized inthe initialmeasurement of rights-of- aspart or lease operating modified for accounting, a in the consolidated statement of income. Recognizes the depreciation of the assets for userightsand the interest generated by the lease liabilities position, initiallymeasured at the present value of the series of future lease payments. (presented withinfinancing activities) inthe consolidated statement of cashflows. a 16 contract will lease applies the in accounting. changes the be hotel based project, recognized on and definition the is the or the the when the financial or on definition after total contains assets requirements It way which whether introduces the of amount once January the a lease conditions for lease revealed of Entity a all the use lease. a and of the mainly lease 1, customer significant for rights cash accounts 2019. requiring aforementioned that Therefore, the are and refers paid and lessor fulfilled For the the has the to for changes the the new to related the capital accounting the the liabilities leases recognition based first definition right definition concept clauses to time (presented guidelines previously on to the for control have ten application are of leases of of lessee of control. times a leasing fulfilled; remained leasing right-of-use outlined within classified the in accounting the use the IFRS of under under financing in 2019 consolidated of significantly in IFRS January 16 as an IFRS assets IAS EBITDA determines IFRS operating identified 16, by 17 16 activities) the 2020 removing 16 and and to less does unchanged. statement Entity all IFRIC a asset the leases whether contracts liability the not and conditions the carried 4 investment for will under significantly to of distinction a for a The interests period continue contract financial entered leasing out IAS initial were an 17, by of

67 FibraHotel Financial 68 Statements c. adoption In the current year, the Entityhasappliedanumber of amendments to IFRSand Interpretations issued by the IASB. Their or after 1,2019 January Impact of application of other amendments to IFRSStandards and Interpretations effective for periods beginning on d. statements. compensation features withnegative Amendments to IAS 9Prepaid 2015-2017 Annual ammendments to IFRS

The adoptionof IFRS16didnot have amaterial impactonFibraHotel´s consolidated financial statements. Modifications to IAS 12Income T Joint Arrangements Business Combinations and IFRS IAS 23 Borrowing Costs, IFRS 3 continues IFRS 16does not contain substantial changes inthe way alessor accounts for alease. Under IFRS16,alessor Impact of accounting aslessor The Under IFRS 16, an intermediate lessor must account for the main lease and the sublease as two separate contracts. manages the risks resulting from the residual interest inleased assets. On the other hand, IFRS16changedand expanded the disclosures, those regarding inparticular how the lessor carried outdifferently. Initial financial impactfrom the adoption of IFRS16 Based onFibraHotel´s analysis, there isno impactfor the adoptionof thisnew IFRS. rights asset resulting from the mainlease (and not inreference to the underlying asset asitwas under IAS 17). The (ii)

intermediate Previous financial leases of profit orloss. method, aspermitted by IFRS16.Thisexpense ispresented in“other expenses” inthe consolidated statement generate any material impactonFibraHotel´s consolidated financial statements. value guarantee, asopposed to the maximumamount of the guarantee required by IAS 17. Thischangedidnot the Entity to of recognize the as part lease liabilities only the amount expected to be paid under a residual measurement of the residual value of the guarantees provided by the lessor to the lessee. IFRS16requires of For short-term leases (withaterm of 12months orless) and for low-value assets (suchascomputers, smallitems has office, not main to had classify furniture differences any lessor material leases and should between as telephones), impact finance classify FibraHotel The amendments clarifythat when control of abusiness that isa IFRS 3Business Combinations Modifications IAS 23 Borrowing costs The amendments clarify that the consequences of income taxondividends IAS 12Income Taxes FibraHotel prepayment. reasonable compensation for prepayment regardless of reason for and Interest exercising (SPPI),the party the optionmay pay orreceive assess whether a prepayment meets the Solely Payments of Principal current period. The amendments to IFRS9clarifythat, inorder to with negative compensation donot necessarily fail the SPPItest. liabilities and goodwillrelated to the jointoperation. interest subject to remeasurement includes unrecognized assets, interest (PHI) in the joint operation to fair value. The previously held combination apply, including the reevaluation of your previously held joint operation isobtained, the requirements for astaged business determing the capitalization rates of the general loan. is ready to be usedorsold,the loanisparto fthe cashtaken inloanwhen different taxrates ondistributed and undistributed earnings. generated income orincapitalasoriginallyrecognized the transactions that must be recognized in the income statement, in other comprehensive ammendments Such ammendments include modifications enfour standards. IFRS on leases the the the 16 adopted and disclosures sublease has entity or the clarify In operating IAS distributable adopted other has to 17 the that, as IFRS with chosen words, or a amendments leases if finance on 2015-2017 respect the any the financial to profits. specific modifications and recognize amounts lease to the for contracts This to assets loan accounting or the IFRS reported operating applies a first is lease with kept 9 included classified for time prepaid expense specifically after in for the lease these in these the the first in characteristics as in under consolidated related current two the finance reference time if you types the “Annual in asset have year. leases straight-line the of to financial

leases the is use the is At New and revised IFRSStandards inissue but not yet effective revised IFRSStandards that have been issued butare not yet effective: IFRS 17Insurance Contracts financial statements infuture periods, except asnoted below: FibraHotel does not expect that the adoptionof the Standards listed above willhave amaterial impactonthe consolidated which period In accordance withthe transition requirements, the date of initialapplication isthe beginning of the annualreporting of IFRS17for one year, to the periods reporting 1,2022. beginning onorafter January identified The the liabilityfor the remaining coverage usingthe premium allocation method. IFRS and replaces IFRS4Insurance contracts. IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts approach prior to the date of initialapplication. is The Standard iseffective for annualperiods 1,2021, beginning onor after withearlier application permitted. January It and guarantees onthe insured. will explicitly measure the cost of that uncertainty, takinginto account market interest rates and the impactof options Framework Amendments to IAS 1and IAS 8, Amendments to IFRS3 (amendments) IFRS 10eIAS 28 IFRS 17 the applied general 17 date IFRIC 23 Uncertainty over Incom Tax Treatments is in describes described which is after retrospectively of applied. model authorization the the a as will publication entity general A the draft use Variable unless first current of of model, these the of applies it IFRS Rate changes assumptions is which consolidaded not 17. Approach. the IFRIC 23 sets outhow to determine the accounting taxposition when there The amendments clarifythat when acompany that participates inajoint JointagreementsIFRS 11 If - - - - One feasible, is FibraHotel to: overis uncertainty income taxtreatments. The Interpretation requires intheheld jointoperation participation should not be reevaluated. operation didnot have jointcontrol, and obtainsjointcontrol, the previously Standard, to IFRS Standards framework Materiality definition Business Definition Sale orContribution of Assets between an Investor and its Insurance contracts modified o value method. accounting taxposition usingeither the most likely amount orthe expected with the taxtreatment usedorplanned to be usedinitsincome taxfilings. If yes, FibraHotel should determine itsaccounting taxposition consistently filings: tax treatment used,orproposed to be used,by anentityinitsincome tax Assess whether itisprobable that ataxauthority willaccept anuncertain group; and Determine whether taxpositions uncertain are assessed separately orasa of IFRS no, Associate orJointVenture the to The financial in consolidated financial statements hadno effect. The adoptionof these AnnualImprovements inFibraHotel´s 17 estimate FibraHotel main and which addresses general for insurance the proposed statements, case the transition model should the amount, the changes contracts implementation is modified reflect simplified FibraHotel date time, is is the with to and retrospective the if postpone effect has certain beginning uncertainty direct concerns not of participation applied criteria uncertainty the approach of and date of the future the are difficulties of period met following initial in or characteristics, cash determining by the immediately application measuring that flows fair new value were and and its 69 FibraHotel Financial 70 Statements

or to (the IASC Framework adopted by the IASB in2001, the IASB Framework of 2010, or the new revised Framework of 2018) the revised framework. Some pronouncements are updated onlyto indicate whichversion of the framework isreferencing However, not all amendments update those pronouncements regarding to the framework references, so that they refer to 1, 8,34,37, 38,IFRIC12,19,20,22,and SIC-32. amendments to references to the IFRSStandards framework. The document contains amendments to IFRS2,3,6,14,IAS Along withthe revised framework, whichbecame effective upon publication onMarch 29,2018, the IASB hasalsoissued early application permitted. The amendments were actuallyupdates and are effective for annualperiods 1,2020,with beginning onorafter January framework. IFRS Standards framework permitted. The amendments appliedprospectively for annualperiods 1,2020,withearlier beginning application on orafter January to ensure consistency.‘materiality’ the include, activities and assets to qualifyasabusiness. To be considered abusiness anacquired set of activities and assets must The amendments clarify that while businesses usually have outputs, outputs are not required for an integrated set of Amendments to IFRS3,Business definition FibraHotel’s consolidated financial statements infuture periods should suchtransactions arise. amendments ispermitted. FibraHotel anticipates that the application of these amendments may have animpacton The effective date of the amendments hasnot yet been settled by the Board; however, earlier application of the investors’ interests inthe new associate orjointventure. The to influence’. using investments retained inany former (that hasbecome anassociate subsidiary orajointventure that isaccounted for investors’ interests inthat associate orjointventure. Similarly, gainsand losses resulting from the remeasurement of The information hasbeen of the included new aspart definition. the underlying concept of materiality inIFRSStandards. The concept of ‘darken’ material information withimmaterial The Additional guidance isprovided and helps to determine whether asubstantive process hasbeen acquired. outputs. date The amendments are appliedprospectively to allbusiness combinations and asset acquisitionsfor whichthe acquisition identifiable asset orgroup of similarassets. assets isnot abusiness ifsubstantially allof the fair value of the gross assets acquired isconcentrated inasingle set of activities and assets isnot abusiness. Under the optionalconcentration test, the acquired set of activities and The Amendments to IAS 1and IAS 8,materiality definition is loss that does of not control of contain asubsidiary abusiness inatransaction withanassociate orajointventure that investor The amendments to IFRS10and IAS 28deal withsituations where there isasaleorcontribution of assets between an Venture IFRS 10and IAS 28(amendments), Sale orContribution of Assets between and Investor and itsAssociate orJoint to accounted IASB definition amendments threshold indicate amendments is the on at and equity amended or a after minimum, that its for for of method) associate using materialiaty the materiality definitions introduce intended other first the an to annual Standards input equity or fair to an influencing in in joint define optional value IAS the and reporting method, venture. 8 standards a has is and materiality substantive recognized concentration users been the are period Specifically, recognized have framework replaced has in beginning process been in not IAS the test been 1 by changed the and former in that a that that the on reference amendments updated make or contain permits parent’s together parent’s from after it easier with to January ‘could a a profit the profit significantly simplified definition state the to definition influence’ or new or understand, 1, that loss 2020, loss definitions assessment of gains only only contribute of to materiality with materiality ‘could to to or early and the the losses developed reasonably is of extent extent application to not or whether the in resulting refer intended IAS of of ability in the the 1. be to an the In permitted. unrelated unrelated expected to the addition, acquired from revised to create term alter the 3. The a. Significant accounting policies The b. c. The Where Allintragroup balances, operations and cashflows are eliminated infullonconsolidation. Basis ofconsolidation control of the subsidiary. begins when theConsolidation Trust of asubsidiary obtainscontrol over and ceases the when subsidiary the Entityloses one ormore of the three elements of control listed above. The Trust reassesses whether ornot itcontrols aninvestee iffacts and circumstances indicate that there are changes to • • • it exercised control. Control isachieved when the Trust: into line with the Trust’s accounting policies. In financial Statement of compliance ii. i. period,reporting asexplained inthe accounting policies below. Basis of preparation Standards released (IFRS)by IASB. Fibra Hotelera, S. C. consolidated Has the abilityto useitspower to affect itsreturns. Is exposed, orhasrights,to variable returns from itsinvolvement withthe investee; and Has power over the investee; consolidated 2 orvalue inuseIAS 36. and measurements that have some similarities to fair value butare not fair value, suchasnet realizable value inIAS payment transactions that are withinthe scope of IFRS2,leasing transactions that are withinthe scope of IAS 17, purposes account when pricingthe asset orliabilityat the measurement date. Fair value for measurement and/or disclosure into account the characteristics of the asset orliabilityifmarket would participants take those characteristics into estimated using another valuation technique. In estimating the fair value of an asset or a liability, FibraHotel takes between market at the measurement participants date, regardless of whether or that price isdirectly observable Fair value isthe price that would be received to sellanasset orpaidto transfer aliabilityinanorderly transaction Fair value Historical cost isgenerally basedonthe fair value of the consideration given inexchange for goodsand services. Historical cost the • • • the fair value measurement initsentirety, whichare described asfollows: consolidated necessary, addition, degree instruments Level inputsfor 3inputsare unobservable the asset orliability. liability, either directly orindirectly; and Level 2inputsare inputs,other thanquoted prices included withinLevel for 1,that are observable the asset or can access at the measurement date; Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity Entity in to for financial adjustments these financial which financial financial and consolidated the investment statements statements statements inputs reporting Ownership percentage are 2019, 2018 and 2017 made to 99.99% properties incorporate the financial purposes, have to have fair the been value been financial statements that fair the prepared measurements are prepared value financial Activity Provision of advisory services and technical,Provision services legal,tax, of advisory measured statements malls and commercial premises and offices. kinds of land, houses, buildings, warehouses, hotels, kitchens, purchase and sale, management, leasing and subletting of all commercial and administrative consulting related to the measurements is on in determined statements the accordance at are historical of revalued observable subsidiaries are of on the cost amounts categorized with such Trust and basis International to a the basis, bring and or except fair significance into its their values except subsidiaries Level for Financial accounting the at 1, for 2 of the revaluation or the share-based end over 3 Reporting based inputs policies of which each on of to 71 FibraHotel Financial 72 Statements

All All

At the acquisitiondate, the identifiableassets acquired and the liabilities assumed are recognized at their fair value. d.

e. f. Financial Financial the interest inthe entityacquired, and the fair value of the acquirer’s previous held equity interest inthe acquired (if any) over Goodwill is measured as the excess over the sum of the consideration transferred, the amount of any non-controlling in profit orloss asincurred. exchange for control over the entityacquired at the acquisitiondate. Acquisition-related costs are generally recognized liabilities incurred by FibraHotel to the previous owners of the entityacquired and the equityissued by FibraHotel in combination ismeasured at fair value, whichiscalculated asthe sumof paidvalues of the assets transferred by FibraHotel, Business combinations are accounted for usingthe acquisitionmethod. The consideration transferred inabusiness Business combinations its operations. above the assets of the payroll entities are of suchanature that they cannot be usedincombination withFibraHotel for payroll the value objective of the payroll entities. Furthermore, administrative fees services are 5%, which is representative of market variable returns; the trustors of the payroll entities have not received distributions, given that paying dividends isnot the the following: (i)FibraHotel currently does not have the abilityto direct the relevant activities, (ii)exposure orrightsto on itsassessment, management concluded that inaccordance withIFRS10,itdoes not have effective control dueto control over entities that provide administrative, personnel and mentioned operational in Note services 1, and based As mentioned in Note 1 FibraHotel has no employees, however, FibraHotel reassessed whether it has maintained effective acquirer’s of the consideration transferred, the amount of any non-controlling interests inthe acquire and the fair value of the the instruments. Financial instruments bargain purchase gain. income (FVTOCI): Debt instruments that meet the following conditions are measured subsequentlyat fair value through other comprehensive to way Financial Assets assets orfinancial liabilities at fair value through profit orloss are recognized immediately inprofit. established by regulation orconvention inthe marketplace. at Debt instruments that meet the following conditions are measured cost: subsequentlyat amortized Classification of financial assets depending onthe classification of the financial assets. liabilities, The • The • The • The • the fair regular recognized net net principal and interest onthe principal amount outstanding. principal and interest onthe principal amount outstanding. flows and sellingthe financial assets; and contractual cashflows; and purchases for acquisition entities value of of financial contractual contractual financial such assets assets as the previously the way through appropriate, services. acquisition-date acquisition-date for purchases or financial and and asset or asset sales their issuance financial financial terms terms held profit operation is This are is assets held held interest or on of of purchases or fee of sales liabilities liabilities initial the the within loss) within amounts financial is amounts are and financial financial not in of recognition. are measured a is the modified financial a or are business are sufficient business added assets of sales acquiree of initially recognized asset asset identifiable the for assets of and to subsequently model identifiable Transaction give give to model financial measured the or (if financial ensure deducted rise rise any), benefit are when whose assets whose recognized on on assets the that FibraHotel at liabilities assets specified specified of costs in objective acquired fair excess from objective the FibraHotel. their that value. payroll directly acquired the (other and entirety is require becomes dates dates is and Transaction recognized fair is achieved derecognized entities The attributable than to liabilities to to and value delivery hold at fee cash cash a financial liabilities party either do covers by of financial costs immediately flows flows not assumed. both the of to on to amortized incur assets assets the the financial that that that the collecting a assumed assets trade contractual expenses losses. are acquisition are are If, and within in after directly date solely solely assets cost in profit financial exceeds contractual In order the incurred reassessment, addition basis. or provisions payments payments attributable or or of time fair to liabilities loss financial financial the Regular collect by frame to value, cash sum as the the of of of a By default, allother financial assets are measured subsequentlyat fair value through profit orloss (FVTPL). financial asset: Despite the foregoing, FibraHotel may make the following irrevocable election / designation at initial recognition of a • • measured at FVTPLifdoingsoeliminates orsignificantlyreduces anaccounting mismatch (see(iv)below). FibraHotel may irrevocably designate adebtinvestment that meets thecost orFVTOCI amortized criteria as comprehensive income criteria ifcertain are met (see(iii)below); and FibraHotel may irrevocably electto present subsequentchanges infair value of anequityinvestment inother

For For

For (i) The expected reporting date.reporting life ECL represents the expected credit losses that willresult from allpossible default events over the expected instrument at anamount equalto 12-month ECL. not the date, reporting including time value of money where appropriate. economic conditions and anassessment of both the current aswell asthe forecast direction of conditions at increase FibraHotel’s applying amount of the financial asset.carrying no longercredit-impaired, interest income isrecognized by applyingthe effective interest rate to the gross periods, The FibraHotel always recognizes lifetime ECLfor trade receivables, contract assets and lease receivables. Impairment of financial assets subsequently improves sothat the financial asset isno longercredit-impaired. recognition. by below). amount financial at Interest income isrecognized usingthe effective interest method for debtinstruments measured subsequently loss allowance. The method of any difference between that initialamount and the maturity amount, adjusted for any loss allowance. recognition minusthe principal repayments, plusthe cumulative usingthe amortization effective interest allocating interest income over the relevant period. The effective interest method isamethod of calculating thecost of amortized adebtinstrument and of cost andAmortized effective interest method credit-adjusted of the expected life of the debtinstrument, or, where appropriate, ashorter period, to amount the gross carrying interest rate, transaction costs and other premiums ordiscounts) excluding expected credit losses, through future cashreceipts (including allfees and points paidorreceived that form anintegral of the effective part credit-impaired oninitialrecognition), the effective interest rate isthe rate that exactly discounts estimated expected credit losses, to thecost of amortized the debtinstrument oninitialrecognition. the applying amortized increased of financial all gross purchased expected amortized debt a other For of the the financial in assets, to carrying a instrument the financial credit result historical financial The credit credit-adjusted assets financial cost significantly credit effective cost or effective interest calculation amount risk instrument. from and originated risk other of assets losses asset, credit instruments, since on at a default on interest interest income financial FVTOCI. initial than of since the that on except does a effective loss initial credit-impaired financial credit-impaired purchased In these events recognition. have initial rate rate is experience, contrast, not For asset recognition. for calculated FibraHotel to financial is subsequently revert interest on financial financial recognition, asset the calculated is a or financial amortized the 12-month For to is originated adjusted financial assets rate the by recognizes financial the assets amount assets However, purchased applying amortized by FibraHoel gross to become instrument discounting are cost the ECL that for other credit-impaired assets, at instrument basis if estimated amortized factors lifetime the which of have represents or the credit-impaired, cost than measures the originated effective even that credit FibraHotel subsequently financial of the the that purchased ECL a improves are using if cost estimated financial financial risk the the are the financial when possible interest credit- of asset. a credit specific on portion loss recognizes provision the interest or so there become asset the asset future impaired allowance originated financial assets If, within rate that risk financial in of to before has is subsequent income of to the cash the matrix lifetime credit-impaired interest 12 (i.e. measured the the been financial asset financial months for debtors, adjusting credit-impaired flows, instrument assets financial gross is based that a ECL from recognized income significant reporting including after assets, financial at carrying that asset general that for on initial initial asset (see has any the the are by is is a

73 FibraHotel Financial 74 Statements In (ii) (iii) Irrespective A FibraHotel FibraHotel On (iv) (i) When there isabreach of financial covenants by the debtor; or • • . The c. b. Significantfinancial difficultyof the issuer orthe borrower; a. . The disappearance of anactive market for that financial asset because of financial difficulties. e. Itisbecoming probable that the borrower willenter bankruptcy orother financial reorganization; or d. date recognition, Significant increase incredit risk purposes FibraHotel considers the following asconstituting anevent of default for internal credit riskmanagement Definition of default sources of actualand forecast economic information that relate to core the Entity’s operations. bodies, relevant think- tanks and other similar organizations, as well asconsideration of various external which cost oreffort. Forward-looking information considered includes the future prospects of the industries in supportable, including historical experience and forward-looking information that isavailable without undue assessment FibraHotel considers both quantitative and qualitative information that isreasonable and generally not recoverable: includes observable dataincludes about the observable following events: Credit-impaired financial assets a more laggingdefault criterion ismore appropriate. more than90days past due unless FibraHotel hasreasonable and information supportable to demonstrate that difficulty expire, Write off Policy future Derecognition of financial assets recoveries madeare recognized inthe statement of income. activities under recovery the Entity’s procedures, takinginto account legaladvice where appropriate. Any two years past due, whichever occurs sooner. Financial assets written off may still be subjectto enforcement or hasentered into bankruptcy proceedings, orinthe caseof trade receivables, when the amounts are over and asset and anassociated liabilityfor amounts itmay have to pay. IfFibraHotel retains substantially allthe risks ownership and continues to control the transferred asset, FibraHotel recognizes its retained interest in the asset to another entity. Ifthe Entityneither transfers nor retains substantially allthe risks and rewards of asset and alsorecognizes acollateralized borrowing for the proceeds received. amount on is not reclassified to profit orloss, butistransferred to retained earnings. measure at FVTOCI, the cumulative gainorloss previously accumulated inthe investments revaluation reserve on derecognition of aninvestment inequityinstrument whichFibraHotel haselected oninitialrecognition to previously financial assessing derecognition derecognition rewards with FibraHotel). to pay itscreditors, including FibraHotel, infull(without takinginto account any collateral held by Information developed internally or obtained from external sources indicates that the debtor is unlikely A breach of contract, such asadefault orpast dueevent (see(ii)above); difficulty, FibraHotel’s cash or and and as lender(s) when the writes asset accumulated derecognizes flows the historical FibraHotel of of there whether risk having the it ownership sum is off of of transfers of debtors of credit-impaired of is above a an a of no that a financial the granted financial experience the investment default compares the realistic in a borrower, analysis, financial operate, financial the of the credit consideration a to asset investments asset financial occurring transferred the prospect indicates the risk when FibraHotel in asset obtained for asset borrower measured when a risk on economic debt asset one have on of received only of there a that financial revaluation recovery, a instrument from or the financial a considers and default when at occurred. concession(s) more financial is financial amortized or economic substantially information and contractual the events asset, e.g. occurring instrument receivable reserve classified that contractual assets Evidence when instrument cost, FibraHotel that expert that default indicating all the is that on reasons have the the is the reclassified as has reports, the that debtor recognized rights meet difference has lender(s) at a at risks continues financial detrimental increased FVTOCI, a that the relating occurred financial either has to and financial beginning the the would been to between rewards in instrument the debtor of to profit cash to significantly profit when the asset impact placed the not recognize cumulative analysts, flows following date. is otherwise or borrower’s of the or a is in financial loss. on ownership under loss. at credit-impaired severe asset’s from In the governmental the the since making In gain In criteria liquidation estimated consider; reporting the contrast, addition, financial financial financial carrying asset or of initial asset loss this the are is

FibraHotel Allfinancial liabilities are measured cost subsequentlyat usingthe amortized effective interest method orat FVTPL.

i. h. g. Hotel properties, furniture and operating equipment Cash, cashequivalents and restricted cash Financial liabilities Freehold land isnot depreciated. determined by independent appraisers. building. replacements indifferent periods, 10years inthe common caseof areas certain and upto 55 years for structures of the FibraHotel concluded that its buildings and their different components have different useful lives and will be subject to consistent inrelation to the methods usedby the most representative entities of the sector. Based ontechnical studies, residual values and considering components of each asset, asFibraHotel considers components more appropriate and Depreciation iscalculated usingthe straight-line method basedonthe remaining useful life of the asset, considering any assets, as inother real properties, begins when the assets are ready for their intended use. categories of property, plantand equipment when they are completed for their intended use. The depreciation of these capitalized cost, less any recognized loss for impairment. The cost includes professional fees and, inthe caseof qualifyingassets, The properties whichare being constructed for purposes of exploitation, supplyoradministration are recorded at accumulated loss from impairment. Hotel properties, furniture and operating equipment are presented at cost, less accumulated depreciation and any major replacements and other capitalexpenditures and reserve fund for the repurchase of CBFIs. acquisition of real estate of the contribution portfolio and to the capitalexpenditures fund whichwillbe usedfor repairs, Restricted cash consists of cash corresponding to the fund for the investment in real estate, which will be used for the represented mainlyby government securities inwhichthe resources are paidat maturity. highly liquiddebtinstruments acquired withadated acquisitionmaturity of three months orless. Cash equivalents are is presented at fair value and cashequivalents are valued at fair value. FibraHotel considers ascashequivalents all Cash and cashequivalents mainlyconsist of bank deposits inchecking accounts and short-term investments. Cash other gainsand losses. value substantial, the fees paidnet of any fees received and discounted usingthe originaleffective rate isat least 10per cent different from of terms new Disposal of financial liabilities terms, When FibraHotel exchanges withthe existing lender one debt instrument into another one withthe substantially different paid and payable isrecognized inprofit orloss. have it

Debt discounted financial as expired. of are such an the The substance or Repurchase of FibraHotel’s own equityinstruments isrecognized and deducted directly inequity. Nogain direct issue costs. all of itsliabilities. Equityinstruments issued by FibraHotel are recognized at the proceeds received, net of An equityinstrument isany contract that evidences aresidual interest inthe assets of anentityafter deducting Equity instruments Classification asdebtorequity Financial liabilities and equity instruments. substantially extinguishment derecognizes interest, loss cash the exchange residual liability. The and present difference is flows difference recognized equity of based value Similarly, the is after different value accounted financial instruments contractual of between: on is modification between the 24% the of in the if the original profit accounting liabilities in the Entity for the (1) remaining the arrangements discounted are the or as case financial carrying should accounts loss an classified carrying when, policy of extinguishment on cash buildings; be the and liability present amount for of amount recognized and as flows purchase, FibraHotel. only substantial either the and other of value when, of of definitions the of the the the financial in fixed the sale, of financial the These profit original recognition liability modification the original assets Entity’s issue cash of liabilities or properties liability before a financial loss financial or do financial flows obligations of cancellation not as of a the or derecognized the under terms new have are liability. as liability modification; liability modification equity liability. classified significant the of are of an If and new discharged, and FibraHotel’s in the existing It and an accordance terms, into the is modification and equity gain residual the assumed recognition the (2) liability consideration or including cancelled appropriate instrument. the own loss values, with that present or within equity is part of any not the the as or a 75 FibraHotel Financial 76 Statements Depreciation An

j. k. Impairment inthe value of long-livedassets Investment property Furniture and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation rates of hotel properties, furniture and operating equipment asof December 31 2019, 2018 and 2017: each year, and the effect of any changeinthe estimation isrecorded onaprospective basis. their useful lives. The estimated useful life, the residual value and the depreciation method are reviewed at the end of identified, of the cashgenerating unitto whichsuchasset belongs. When areasonable and consistent distribution basiscanbe not possible to estimate the recoverable amount of anindividual asset, FibraHotel estimates the recoverable amount recoverable amount of the asset iscalculated to determine the amount of the loss from impairment (ifany). When itis there isany indication that suchassets have suffered aloss from impairment. Ifthere isany suchindication, the At the end of each period, reporting FibraHotel reviews values of the itslong-lived carrying assets to determine whether of the asset and isrecognized inprofit orloss. of property, plantand equipment isdetermined asthe difference between the sales amount proceeds and the carrying expected to arisefrom the continued useof the asset. Any gainorloss arisingonthe disposal orretirement of anitem the The recoverable amount isthe higher of the fair value less the cost to sellthe asset and itsvalue inuse. When evaluating the smallest group of cashgenerating unitsfor whichareasonable and consistent distribution basiscanbe identified. rate asset for whichthe future cashflow estimates have not been adjusted. no future economic benefits of itsdisposal are expected. An investment isderecognized property at its disposal or when the investment ispermanently property out of useand classified and accounted for asinvestment property. When FibraHotel under hasaproperty an operating lease to obtain rental income orto obtain capital gains, orboth, itis properties. The initialdirect costs incurred inthe negotiation of leases amount are addedto of the investment the carrying consolidated statements of comprehensive income, inthe period they are incurred. The gains and losses on fair value are recorded in the “adjustments to fair value of investment properties” account in the (ii) (i) future cashflow method and considering the following: valued at their fair value. The fair values are determined by the FibraHotel Administration considering the discounted are valued at their fair value, asdetailed below. Subsequent to the initialrecognition, the investment properties are transaction costs related to the acquisitionof assets. Investment properties acquired inexchange for equity instruments Acquired investment properties and improvements to leased premises are recorded at acquisitioncost, including construction ordevelopment and that are intended to be usedfor leasing canqualifyasinvestment properties. Investment properties are properties held to earn rentals and/or for capitalappreciation. The properties that are under unit) inprioryears. Areversal of animpairment loss isrecognized immediately inthe statement of income. amount that would have been determined hadno impairment loss been recognized for the asset (orcash-generating revised estimate of itsrecoverable amount amount, does butsothat the not adjustment carrying exceed the carrying When a loss from impairment is reverses, value of the the asset carrying (or cash generating unit) is increased to the recognized immediately inthe statement of income. value of the assetcarrying (orcashgenerating unit)isreduced to itsrecoverable amount. Losses from impairment are If itisestimated that the recoverable amount of anasset (orcashgenerating unit)islower value, thanitscarrying the Furniture and equipment Civil construction building Building components Building improvements Finished building item value before When afactor may impactonthe value of the investment isdetected. property At least once ineach 12-month period from the acquisitionof the investment properties and of in corporate taxes property, use, is recognized the which estimated assets plant reflects to and are carry future the equipment also out current assigned cash in profit market flows is derecognized to or the related loss, assessments individual the to cost the upon cash asset or of valuation disposal the generating are time discounted or of value the when units; of assets, % 10 10 10 7 1 money no at otherwise, present future less and their the economic value they risks residual using are specific benefits assigned value, a discount to over the are to m. Provisions As l. n. Leases Income taxes

The The lease liabilityispresented asaseparate concept inthe consolidated statement of financial position.

• • provision at the end of the period, reporting takinginto account the risks and uncertainties surrounding the obligation. When a The amount recognized asaprovision isthe best estimate of the expenditure required to settle the present obligation, obligation. probable that FibraHotel will be required to liquidate the obligation and it can be reliably estimate that the amount of the Provisions are recognized when FibraHotel hasapresent obligation (legalorimplied)asaresult of apast event, itis subject to the payment of regular Income Tax (“ISR”).SeeNote 12. accordingly, itdoes not recognize aprovision for income taxes, except for Fibra Hotelera, S. itssubsidiary C., which is in whichthe isderecognized, property ifapplicable. book value of the investment isincluded property) inthe consolidated statement of comprehensive income inthe period Any gainorloss arisingupon derecognizing the (calculated property asthe difference between the net income and the value of those cashflows (when the effect of the time value of money ismaterial). discussed The • The • whenever: FibraHotel revalues the lease liability(and makes the corresponding adjustment to the asset for related userights) made. lease Payments • • • • Fixed rent payments (including fixed payments insubstance), less any lease incentives received; • The rent payments included inthe measurement of the lease liabilityconsist of: incremental rates. date, discounted by the rate implicit inthe contract. Ifthisrate cannot be easily determined, FibraHotel uses The lease liabilityisinitiallymeasured at the present value of the rent payments that are not paidonthe start more representative of the pattern of time inwhichthe economic benefits from consumption of leased assets. operating expense under the straight-line method throughout the period of the lease, unless another method is and short-term leases (term of 12months orless) and low-value assets (suchaselectronic tablets, personal computers use rightsand acorresponding lease liabilitywithrespect to alllease agreements inwhichitisalessee, except for FibraHotel evaluates whether acontract contains alease at itsbackground. FibraHotel recognizes anasset for FibraHotel aslessee leased asset and recognized onastraight-line basisover the lease term. Initial direct costs incurred innegotiating and arranging anoperating lease amount are addedto of the the carrying Rental income from operating leases isrecognized onastraight-line basisover the term of the relevant lease. FibraHotel aslessor small is lease discounting the updated rental payments usinganupdated discount rate. in achangethe evaluation of the purchase optionexercise, inwhichcasethe lease liabilityismeasured by in avariable interest rate, inwhichcaseanupdated discount rate isused.) updated rent payments usingthe same discount rate (unless the changein rent payments isdueto achange payment under a guaranteed residual value, inwhichcases the lease liabilityisrevalued discounting the a lease termination option The exercise price of purchase options,ifthe lessee to isreasonably certain exercise the options;Y The expected amount to be paidby the lessee under residual value guarantees; date;start Variable income payments that depend onanindex orrate, initiallymeasured usingthe index orrate onthe liability measured in lease rent items Note liability (using payments term 1, for of using Trust is office penalties is subsequently the modified the is are effective classified furniture cash modified resulting flows or there interest and measured as estimated and as from telephones). is a intends a consequence method) the significant by termination to increasing to settle For maintain and event these of the reducing changes of the present or its leases, the change book classification lease, the in obligation, the value indexes book in if Entity the the to value circumstances lease as reflect or recognizes its a rate FIBRA to carrying period reflect the or a for interest change reflects rental amount income of the the rental payments in accrued the lease is tax the the exercise purposes; payments expected resulting present by as the an of 77 FibraHotel Financial 78 Statements FibraHotel p.

A FibraHotel designates hedging instruments, certain whichinclude cashflows hedge derivatives. o. q. Foreign currency transactions Hedge accounting

Assets for rightsof useare presented asaseparate concept inthe consolidated statement of financial position. Financial derivative instruments rate took place. assets Monetary and liabilities denominated inforeign currency are valued inMexican pesos at the exchange Transactions performed inforeign currency are recorded at the exchange rate ineffect onthe date each transaction details of derivative financial instruments are disclosedinNote 13,f). remeasured Derivatives are initiallyrecognized at fair value at the date the derivative contracts are signed and are subsequently recognized recognition inprofit orloss depends onthe nature of the hedge relationship. immediately unless the derivative isdesignated and effective asahedging instrument, inwhichevent the timingof the instrument Furthermore, at the inception of the hedge and on an ongoing basis, FibraHotel documents whether the hedging the hedged item, alongwithitsriskmanagement objectives and itsstrategy for various undertaking hedge transactions. At the inception of the hedge relationship, FibraHotel documents the relationship between the hedging instrument and months. Other derivatives are presented ascurrent assets orcurrent liabilities. the remaining maturity of the instrument ismore than12months and itisnot expected to be realized orsettled within12 legal rightand the intention to compensate. Aderivative ispresented asanon-current asset oranon-current liabilityif hedged risk. derivative in reflects underlying asset. Ifalease transfers ownership of the underlying asset orthe cost of the asset for userights Right-of-use assets are depreciated over the shorter period between the lease period and the useful life of the inventories. rights of use, costs are included inthe asset for rightsof related use, unless suchcosts are incurred to generate lease, aprovision measured inaccordance withthe IAS 37. To the extent that costs are related to anasset for which it is located or restore the underlying asset to the condition required by the terms and conditions of the If FibraHotel incurs anobligation arisingfrom costs to dismantleand remove aleased asset, restore the bond in Subsequent valuation iscost less accumulated depreciation and impairment losses. made onorbefore the commencement date, less any lease incentives received and any direct initialcost. Assets for rightsof useconsist of the initialmeasurement of the corresponding lease liability, the rent payments FibraHotel didnot make any of the adjustments mentioned inthe periods presented. independent of the lease component and relative saleprice independent aggregate for allnon-lease component. Entity assigns the consideration of the contract to each lease component under the method of relative saleprice file. leases and their associated non-lease components asasingleagreement. The Entityhasnot usedthispractical As apractical expedient, IFRS16allows non-lease components to be separated and instead to account for any consolidated statement of income. event orcondition that triggers the payments occurs and are included in the concept of “Other expenses” in the liability and the asset for userights.Related payments are recognized asanexpense inthe period inwhichthe Variable income leases that do not depend on an index or rate are not included in the measurement of the lease identified asdescribed inthe ‘Hotel properties, furniture and operating equipment’ policy. FibraHotel applies IAS 36to determine ifanasset for userightsisimpaired and accounts for any impairment loss useful life. Depreciation begins date onthe start of the lease. A • effect For payments usingadiscount rate updated to the effective date of the modification. the enters as is to with lease at contracts that highly a lease their the financial a the is into date positive fair effective modified liability Entity derivative that value of liability. the fair contain plans is at and in financial revalued value the offsetting financial Derivatives the to end lease exercise is modification statements. of recognized based components each instruments changes are a reporting on purchase not the of Exchange as in offset the a fair and lease to financial period. lease option, values manage one in term rate the or is The asset, or not the more financial fluctuations of its cash resulting accounted the asset exposure additional while flows modified statements for gain a are use of derivative to for lease the recorded or rights volatility lease, as loss hedged a unless or separate is will discounting with non-lease recognized in in be the FibraHotel item interest a depreciated negative statment lease, attributable components, updated in rates. in has profit fair which of both over income. value Further or to rental case loss the the the the is Amounts

r. s. CBFI-based employee compensation plan Revenue Recognition However, removed liability, the gainsand losses previously recognized inother comprehensive income and accumulated inequityare or profit in the ‘other gainsand losses’ line item. the hedge. The gainorloss relating to the ineffective isrecognized portion immediately inprofit orloss, and isincluded of liability. Thistransfer does not affect other comprehensive income. Furthermore, ifthe Entity expects that some orall equity corresponding increase inequity. At the end of each period, reporting FibraHotel revises itsestimate of the number of basis over the vesting period, basedonFibraHotel’s estimate of equityinstruments that willeventually vest,with a The fair value determined at the grant date of the equity-settled share-based payments isexpensed onastraight line related to the determination of the fair value of CBFI-basedpayment transactions are presented inNote 15f. through outsourcing, are valued at the fair value of the equityinstruments at the date they are granted. The details CBFI-based payment transactions payable through equityinstruments to executives that provide to FibraHotel, services CBFI-based employee compensation plan Note 13fincludes majordetails about the fair value of the derivative instruments usedfor hedging purposes. or loss accumulated incashflow hedge reserve isreclassified immediately to profit orloss. comprehensive or issold,terminated orexercised. The suspension isaccounted prospectively. Any gainorloss recognized inother qualifying criteria (after rebalancing, ifapplicable).Thisincludes instances when the hedging instrument expires The Entitydiscontinues hedge accounting onlywhen the hedging thereof) relationship (orapart ceases to meet the reclassified to profit orloss. or designated The effective of changesportion in the fair value of derivatives and other qualifying hedging instruments that are Cash flow hedges heading i. FibraHotel recognizes income asfollows: the fair value of the liabilityisremeasured, any changes infair value are recognized inprofit orloss for the year. the fair value of the liability. At the end of each period reporting untilthe liabilityissettled, and at the date of settlement, For cash-settled CBFI-basedpayments, aliabilityisrecognized for acquired, measured the goodsorservices initiallyat counterparty renders the service. measured at the fair value of the equityinstruments granted, measured at the date the entityobtainsthe goodsorthe received,of the goodsorservices except where that fair value cannot be estimated reliably, inwhichcasethey are Equity-settled CBFI-basedpayment other transactions withparties thanemployees are measured at the fair value settled employee benefits reserve. iii. ii. the loss loss obligation Revenue from room rents, multipurpose rooms and other income are recognized from asaperformance services FibraHotel’s policy for the revenue recognition from operating leases isdescribed inNote 3n). this being when the guest receives the products. different consumption centers of the hotels and are recognized when the control of goodshasbeen transmitted, Revenues related to food and beverages, and other income that involves of the aproduct delivery are madeinthe representing the rightof FibraHotel to recognize income when the performance obligation iscompleted. arewhen complete, the services therefore, anasset isrecognized inthe are period rendered, inwhichthe services or loss instruments such in of loss from previously when the accumulated cash and that when periods equity qualify that income the flow the the expected hedged is hedging recognized cumulative and forecast when satisfied as and in cash included the accumulated forecast the reserve, to cash flow transaction vest. over in expense hedged other flow in hedges transaction time. The limited the hedging item comprehensive in reflects impact initial Payments occurs. are cash to affects recognized the measurement reserve flow of results the When cumulative the hedge for revised profit revision will in the a income forecast in the reserve not or rental other estimate, change of loss, recognition of be and the the comprehensive recovered of transaction at in accumulated cost rooms in that original the with fair time of same of value a are in the corresponding a estimates, is the remains non-financial settled, line no non-financial of income future, in the longer as equity hedged in the in if and that equity expected any, most recognized are adjustment asset accumulated amount asset item is reclassified cases, and recognized or from to is or a occur, is reclassified by hedged non-financial non-financial to immediately inception the the under to in the guests equity profit profit item. gain the to of 79 FibraHotel Financial 80 Statements 4.

The Is FibraHotel Critical accounting judgments and key sources of estimation uncertainty t. v. u. consolidated required to make judgments, estimates and assumptions amounts of assets about the carrying and liabilities recorded inthe In the application of the FibraHotel’s accounting policies, whichare described inNote 3,the FibraHotel’s Management is and future periods ifthe revision affects both current and future periods. recognized inthe period inwhichthe estimate isrevised ifthe revision affects onlythat period, orinthe period of the revision The estimates and underlying assumptions are reviewed onanongoingbasis.Revisions to accounting estimates are factors that are considered to be relevant. Actual results may differ from these estimates. a.

This Classification of costs and expenses Net income per CBFIs Statement of cashflows cash flow; interest paid,distributions and dividends are classified ascashflows from financing activities. nature and function. and 5,128,205,respectively (seeNote 15). from the CBFIsincirculation the CBFIsinTreasury, whichasof December 31, 2019, 2018 and 2017 amount to12,001,137, economic rightsduringthe period. The net income per CBFIsissued witheconomic rightsisdetermined by subtracting CBFIs issued: i The ii. i. iii. properties Management uses itsprofessional judgment to determine whether the acquisition of orportfolio aproperty of Business combinations application of FibraHotel’s accounting policies. Below are the from those criticaljudgements, estimates, apart madeby FibraHotel’s management duringthe Critical judgments inapplyingaccounting policies following criteria: in generates Investment isheld property to earn rentals orfor capitalappreciation orboth. Therefore, aninvestment property Hotel classification (investment property/asset) periods presented inthe accompanying consolidated financial statements are determined to be asset acquisitions. from anowner-occupied property. determined Less - CBFIs witheconomic rights costs financial CBFIs intreasury CBFIs related to the Number of properties (land and building)acquired. owners and tenant information). all relevant administration suchasinvoicing, cashcollection, provision of management information to the entity’s Whether the acquire has allocated its own staff to manage the and/or property to deploy any processes (including by the acquiree (e.g., maintenance, cleaning, security, bookkeeping, etc.). other services, property determination development portfolio financial extent and presents cash represents information, expenses by to statements. flows dividing which its can statement independently presented have a significant both the business The a consolidated significant as of estimates of in cash processes combination the the of

- flows other acquisition consolidated effect and profit using assets are associated on 2019 (48,226,646) (48,226,646) or acquired 785,720,574 833,947,220 by the the date an held the statement manner indirect asset and weighted by assumptions and FibraHotel. subsequently. acquisition. in method. in which of particular

785,720,574 (48,226,646) comprehensive average - acquired are Interest This 2018 Management based the (48,226,646) 833,947,220 Transactions of distinguishes extent the received assets on income outstanding historical of and is ancillary specifically that classified liabilities were an

821,946,083 (12,001,137) (5,128,205) experience investment occurred CBFIs classified services 2017 are as considers 833,947,220 an (6,872,932) issued recognized during and investing provided property on other their with the the

It

As Lease classification Some of the assets and liabilities of FibraHotel are measured at fair value inthe consolidated financial statements. b.

and FibraHotel isthe owner of the and property manages provided the services to the hotel guests by holding operating have under anoperating agreement. The owner’s position could be, inessence, apassive investor orthe owner may simply as investment property. For example, the owner of ahotel sometimes transfers some responsibilities to third parties Management but property ofbut property FibraHotel. A hotel managed by the owner is an occupied property, rather than an investment property. the is carriedoutto determine whether value exceeds the carrying itsrecovery value and isimpaired. When conducting circumstances amount indicating may not that the be carrying recoverable. Ifthere are signsof impairment, areview amount of investmentThe carrying properties isreviewed for impairment incaseof situations orchanges in Impairment inhotel properties liabilities are disclosedinNote 12. Information about the valuation techniques and inputsusedin determining the fair value of individual assets and appropriate inputdata for the model. conditions transaction, more thanthe form of contracts. FibraHotel hasdetermined, basedonanevaluation of the terms and ownership of the under property the contract liewithFibraHotel orthe tenant, depending onthe substance of the operations. as aninvestmentproperty. property,plantandequipment,giventhateachhotelisusedinitsnormalcourseofbusinessandis, therefore, not considered Management uses itsprofessional judgment to classify the contributed and acquired hotels ashotel amounts against itsdebtswiththe counterparty or other credit improvements withregard to these balances; likewise, itdoes not have the legalrightto offset these When In estimating the fair value of anasset oraliability, FibraHotel market uses observable data when they are available. Fair value measurements and valuation processes within characteristics of itsassets and their operation at date of the assessment. Any changes inestimates are recognized useful lives and residual values of assets at the end of each period reporting basedonitsoperating experience, the Taking into consideration the opinionof internal experts from itsdevelopment area, FibraHotel evaluates the Estimated useful and residual lives of fixed assets end of the period. reporting The following are the key assumptions concerning the future and other key sources of estimation at uncertainty the As described innote the 11, Entitycapitalizes the borrowing costs directly to the construction of qualifyingassets. Capitalization of borrowing costs ownership of these assets and, therefore, classifies them asoperating leases. cash-generating consolidated statement of comprehensive income. significantly FibraHotel hasnot recognized anallowance for doubtfulaccounts because credit ratings of itscustomers have not Allowance for doubtfulaccounts from cash-generating unitsand anappropriate discount rate to calculate the current value (seenote 9). Key sources of estimation uncertainty can explained impairment lease outsourced be level accumulated difficult contracts; of 1 changed in data works the tests, Note units. day to agreements, are determine depreciation if closely to 3 and the the not Value-in-use n), day outstanding Entity services leases available, functions with whether that used in are the provided the calculations it classified FibraHotel the while amounts independent maintains consolidated the methodology services to retaining the are based hires require substantially guests deemed qualified provided statement significant on a of the qualified are the future to significant, Entity are extent appraiser be all of flows exposure recoverable. significant the financial appraiser to to significant determine discounted which to it is to position establish not enough to variations FibraHotel the classified conduct future risks risks in and the that the and and cash in depreciation value does a an valuation as cash property benefits benefits independent an flows in not investment flows use hold that does techniques assigned inherent inherent expense from any should not valuation. collateral the property qualify in to in in hotel arise and the the the the 81 FibraHotel Financial 82 Statements 7. FibraHotel 6. 5.

(ii) (i) Hotel properties, furniture and operating equipment Trade accounts receivable and other accounts receivables Cash, cashequivalents and restricted cash legal proceedings are immaterial, for whichreason they donot merit the creation of anallowance for doubtfulaccounts. practices allow itto keep the majorityof accounts receivable agingat less than90days. The accounts receivable subjectto Accounts receivable aging Restricted cash More than90-120days 60-90 days Average aging(days) Total Lease receivables from: Other Credit cards Travel agencies Clients Cash equivalents and restricted cash: Hotel furniture and operating equipment Cash and bank deposits Balances as January 1,2017Balances asJanuary Balances asDecember 31 2017 Less -Accumulated depreciation Land Building Posadas Transfer of properties Acquisitions: in thisfund. Asinthe caseof cashequivalents, thisrestricted cashisinvested ingovernment securities. major replacements and other related capitalexpenditures. Atotal of upto 5%of revenues from the hotels isdeposited Represents amounts held inthe capitalexpenditure reserve fund, whichare restricted for the purpose of funding repairs, equivalents, the restricted cashisinvested ingovernment securities. Consists of a fund for the acquisition of the real properties and investment in the development portfolio. As with cash under development Real estate investment fund (i) CBFIs(iii) Reserve fund for the repurchase of Capital expenditure reserve fund (ii) currently Cost has monthly collection $ $

$

$ 6,480 $ $ $ 76 levels Land 2019 1,606,669 1,458,996 that 147,673 $ $ - 2019 2019 250,759 128,874 262,916 reflect 30,076 22,018 69,791 12,157 - (1,989,667) 12,305,850 14,295,517 9,660,440 2,907,108 1,727,969 $

2019 20,797 27,277 - its $ $ 6,361 Building 905,887 813,818 monthly 92,069 7,974,846 7,096,447 875,872 $ 11,819,715 $ 1,668,744 (1,523,850) 2,504,953 $ 6,095 $ 19,432 54 13,337 2,527 $ $ - 2018 billing; 2018 2018 $

Hotel furniture and similarly, 13,343,565 2018 142,574 261,356 267,717 equipment 28,355 9,169,868 73,366 operating - 17,061 122,228 481,404 359,176 2,022,408 1,628,370 commercial $ $ 313,315 80,723 5,504 $ 11,464 $ 42,549

31,085 86 $ 1,606,669 $ 10,499,088 $ $ (1,104,835) 2,022,408

2017 and 2017 2017 2017 Total $ 10,183,813 negotiating 11,603,923 11,603,923 7,974,846 4,346,541 4,727,981 1,104,268 272,800 320,837 146,638 315,333 98,640 54,062 315,842 10,000 27,605 87,028 8. compensationCBFIs usedaspartial for the investment in the hotel generated economic rightsinthe first quarter of 2018. On February 1,2018, FibraHotel announced the opening of the Courtyard Toreo by Marriott hotel inMexico City. The 5,128,205 the initialcontribution amount to 5,128,205 CBFIs. contribution and the total cost of each of the hotels. Asof December 31, 2017 the CBFIswithout economic rightsthat come from they are open to the public, the CBFIswillobtaineconomic rightsand FibraHotel willpay the difference between the value of the CBFIs, As aresult of the publicoffering dated November 30,2012, Grupo GDImadeacontribution of four hotels, and received 9,697,897 FibraHotel approximate value is$2,976millions. carrying As of December 31, 2019, some real estate properties of FibraHotel are pledgedagainst the credit lines described inNote which 11, Properties under development FibraHotel recoverable value corresponds to $237,044 millionasof December 31, 2019. estimated that the value inuseof two of the hotels islower value, thanitscarrying therefore, FibraHotel hasdetermined their the item “Impairment of hotel properties” withinthe consolidated statement of comprehensive income. FibraHotel, additionally impairment loss intwo of these hotels, and extended inthe selectservice stay segments, for $41,890 that was presented under recoverable amount, resulting inlow performance inthree of itscash-generating units.Thisrevision ledto the recognition of an assets subjectto impairment tests and their book value was not material and therefore didnot make anadjustment for impairment. 2017 because there was no indication of impairment. On2019, FibraHotel determined difference between the recoverable value of discount rate of 3)capitalization 11%, rate of 9%and 4)capitalization expenses of 4%.Noimpairment assessment was performed in Land located at Villahermosa Fiesta Americana Via515 Project Projects withdevelopmer 1 Others Fiesta Americana Veracruz Project CBFIs Courtyard Toreo Project Restricted Fiesta Americana Tlalnepantla Project Courtyard Toreo Project Live Aqua San MiguelAllende Project Balances 1,2017 asof January Balances asof December 31, 2017 Balances asof December 31, 2019 Balances asof December 31, 2018 Balances asDecember 31 2019 Balances asDecember 31 2018 Acquisitions: Acquisitions: Depreciation expense Depreciation expense Depreciation expense Disposals Transfer of properties Disposals Transfer of properties under Impairment adjustment equivalent under development development Accumulated depreciation used has identified the Cost to discounted $179,411. that As cash its a result cash-generating flows of $

- - method negotiations, $ $

$ - $ ------$ 239,384 20,712 Land considering 1,668,744 1,727,969 50,000 units 62,075 9,225 Building 2019 affiliates - - are the $ 9,660,440

200,230 represented - - 374,308 125,749 535,957 916,525 180,338 716,295 161,649 92,923 of following Grupo Building 1,232,206 9,169,868 $ $

(41,890) 441,575 $ 423,299 48,997 GDI $ 185,229 assumptions: 19,436 4,706 Hotel furniture and by undertook individual equipment operating 2018 $ 2,907,108

Hotel furniture and (4,170) (35) - - - - - equipment operating 1,073,142 1) the 125,749 hotels 375,849 265,587 568,878 807,555 238,677 92,885 193,029 projection 2,504,953 construction 368,957 412,550 113,623 (6,225) and, $ $ 354,678 period - $ 975,996 15,532 therefore, $ 111,290 111,290 $

$ 14,295,517 (4,170) (35) of of these Total 2017 10 Total years, 13,343,565 reviewed 1,407,904 hotels. 1,989,667 1,523,850 1,104,835 485,350 373,663 470,772 (41,890) 156,639 94,872 215,107 147,149 76,454 76,454 465,817 750,157 117,148 41,805 419,015 2) annual When their

83 FibraHotel Financial 84 Statements 10.

9. Debts 11. expenses incurred were for the project and licenses. conditions. The hotel construction didnot and FibraHotel start received areimbursement for the airrightsacquired, sothe only During 2018, FibraHotel decidedto cancel the development of the Fiesta Americana Veracruz hotel dueto changes inmarket Investment properties subsequently, To estimate the investments’ exit value, FibraHotel utilized a cap rate for the last projected year of each one of the investments, the current useof the properites astheir hightest and best use. There hasbeen no changeinthe valuation technique duringthe year. The estimate of the fair value of the properties considered Average Cost of Capital methodology (“WACC”). The hierarchy of fair value measurement isLevel 3. in order to bringthe exit value to present value for allinvestments. The discount rate appliedby FibraHotel was the Weighted using The fair value of the investment properties asof December 31, 2019, 2018 and 2017 was determined by FibraHotel´s management Suppliers and accrued expenses Balances asthe beginning of the year Balances asthe end of the year Additions Fair value of the investment properties Adjustment to the fair value of the a. (1) investment properites Suppliers Other accounts payable Accrued expenses $2,500 million, $1,880millionof two of the lines of credit withBanorte. In September 2019, they were prepaid, withthe resources obtained from the placement of the long-term bond amounting to Long-term line of credit withmortgage Long-term line of credit withmortgage Long-term line of credit withmortgage Long-term line of credit withmortgage Long-term line of credit withmortgage Long-term line of credit withmortgage Less –Current portion Long-Term debt Long-term debtisasfollows: S. A.de C.V. SOFOM ERwithmaturity in Revolving credit withSabcapital the points above the 28-day TIIErate. interest asof 2019 at 1.30percentage security executed withBanorte, accruing above the 28-day TIIErate. accruing interest at 1.60percentage points security executed withBBVA Bancomer points above the 91-day TIIErate. accruing interest at 1.30 percentage security executed withBanorte rate. percentage points above the 91-day TIIE interest asof 2018 and 2017 at 2.00 security executed withBanorte, accruing above the 28-day TIIErate. accruing interest at 1.50percentage points security executed withBBVA Bancomer points above the 91-day LIBOR rate accruing interest at 1.80 percentage security executed withBBVA Bancomer june, 2021 discounted (1) it subtracted future cash the transaction flow method. costs The $ 3,965,509 $ $ estimated (47,081) calculation $ - $ 453,882 $ 63,352 2019 at of 3,948,227 3,965,509 2.5% 2019 2019 the 64,363 projected 2,101,922 (170,561) 1,931,361 827,468 245,345 for 252,933 776,176 273,744 116,786 all investments $ $ $ 3,948,227 - -

cash $ 489,170 $ 59,171 $ 3,102,409 (413,525) 210,000 flow 2018 that and 2018 2018 3,948,227 3,033,837 FibraHotel finally, 770,595 143,795 3,515,934 996,400 946,364 854,702 252,933 255,535 339,014 90,985 it applied - considered $ 770,595 $ $

120,345 $ 485,840 $ 3,050,362 $ ) (115,544 - a discount 2017 was 2017 2017 770,595 751,159 16,194 3,242 9 factor years. 1,000,000 3,165,906 252,933 935,359 977,614 306,622 58,873 - - assets, and secured debtleverage ratio. For the year ended December 31, 2019, these restrictions were met. Financial debtincludes restrictive certain clauses that limititslevel ratio, unencumbered of debt,minimumdebtservice As Long-term financial debt b. Banorte BBVA An FibraHotel An Long-term debtat afixed rate of 8.83%.The credit Less –Bond issuance expenses rate of 8.83%: Maintain • Maintain • • • The mainobligations to doare asfollows: December 31, 2019, FibraHotel was incompliance withsuchcovenants. With respect to the credit line with BBVA Bancomer and Banorte, FibraHotel covenants. must comply with certain As of • • • characteristics: • • • the following assumptions: • • Two instruments, were contracted withBancomer: - - - accordance withthe following assumptions: Five instruments, contracted withBBVA Bancomer, covering $776.2millionof the credit lines withBBVA Bancomer in to maintainstability inthe rates, inaccordance withthe following assumptions: • • 2029. 8, 9and 10the maturity of the debtisSeptember has alinear scheme capitalamortization at years mentioned instrument, instrument, amortization) toamortization) no more than4.0x. in asemi-anualperiod, to the sumof capitaland interest payments for the same period to no less than1.3x. Maintain atotal liability-to-book capitalratio of no more than1.0x. Maintain ashort-term working-to-passive asset ratio, no less than1.2x. If the TIIEisabove 10.0%, FibraHotel exchanges the TIIErate and pays alevel of 6.0%. If the TIIEisbetween 7.3% and 10.0%, FibraHotel pays the TIIErate. If the TIIEisless than7.3%, FibraHotel exchanges the TIIErate and pays alevel of 7.3%. If the TIIEisabove 6.0%, FibraHotel exchanges the TIIErate and pays arate of 6.0%. If the TIIEisbetween 4.5%and 6.0%, FibraHotel pays the TIIErate. If the TIIEislower than4.5%,FibraHotel exchanges the TIIErate and pays arate of 5.0%. greater than4%,FibraHotel exchanges the LIBOR rate and pays alevel of 4.0%. One covering US$13.0 million, ifthe LIBOR rate isless than4%,FibraHotel pays the LIBOR rate, ifthe LIBOR rate is than 8%,FibraHotel exchanges the TIIErate and pays alevel of 8.0%. One covering $252.9millionpesos, whichifthe TIIEisless than8%,FibraHotel pays TIIErate, ifthe TIIEisgreater If the TIIEisabove 9.0%, FibraHotel exchanges the TIIErate against aTIIErate, less arebate of 4.0%. If the TIIEisbetween 5.0% and 9.0%, FibraHotel exchanges the TIIErate and pays arate of 5.0%. If the TIIEislower than5.0%, FibraHotel pays the TIIErate. Maintain aleverage ratio to less thanorequalto 40%. ratio of 1.20. Maintain aminimumdebtservice entered in an contracted a was Note operating net into contracted 1 debt “Significant certain with income ratio interest Banorte, with to relationship Events”, Banorte, operating rate covering hedges during covering (results income $2,000 2019, to cover before $965.1 (results the

$ 2,477,244 $ 2,500,000 million (22,756) the FibraHotel financial million 2019 credit of before the of expenses, lines first issued Banorte’s financial credit with $ -

$ - bond - BBVA taxes, line first expenses, for 2018 with Bancomer line depreciation $2,500 Banorte of taxes, credit million and in and with depreciation first accordance $ -

$ - - pesos amortization), the Banorte 2017 at following a fixed with and line 85 FibraHotel Financial 86 Statements 13. 12. Debt debt Financial . Reconciliation of obligations arisingfrom financing activities: a. c. b. a. FibraHotel a. Fibra Hotelera, S. C. issubjectto income tax(“ISR”for itsacronyms inSpanish),the rate of current income is30%. Law (LISR),FibraHotel must annuallydistribute at least 95%of itstaxableincome to the holders of the CBFIs. per requirementsIn order to of SAT, maintainitsstatus asaFIBRA, inconformity 187and withArticles 188of the Income Tax Financial Instruments Income taxes Maturities of long-termdebt More than5years from accrued expenses of $4,859,$3,055 y$3,298,respectively. As of December 31, 2019, 2018 and 2017 the deferred income taxasset iscomposed solelyof differences temporary resulting Income taxes expense are asfollows: new new properties. while funding the required capitalexpenditure requirements and providing the resources needed to acquire and develop ensuring the availability of operating funds to maintain the consistency and sustainability of distributions paidto trustors, The equityof FibraHotel isprimarilycomposed by the net worth of itstrustors. Equitymanagement objectives include unchanged from 2019, 2018 and 2017. trustors and distributions to the trustors by optimizingitsuseof debtand equity. FibraHotel’s overall strategy remains FibraHotel manages itsequityto ensure itsabilityto continue asagoingconcern, while maximizing the net worth of its Equity management make it canutilizethe resources generated by organizing future debtand equityofferings, sellingassets orobtainingloansto circumstances, itcould have the obligation to pay distributions inexcess of the cashavailable for thispurpose; ifnecessary, related to the CBFIs. ISR: 2020 2024 2022 2023 2021 debt Deferred tax Current tax

$ 3,517,739 $ 3,517,739 - certain 01/01/2018 or Year can refinance distributions. acquire $ 3,427,467

2,500,000 $ 927,467 Cash flow financing existing hotels The $ $

subject debt debt

$ (2,331,289) $ (2,331,289) - to Financing service acquire to paid existing Maturities $ 8,460 $ 10,959

(2,499) related hotels,

- financial $ 360,991 $ 360,991 to Interest 3,322,172 4,579,166 albeit this 2019 545,545 215,000 146,785 179,103 170,561 financing mortgages subject Interest paid

$ (303,929) $ (303,929) - or to indebtedness compliance or

$ 2,282 $ 2,208 74 other $ - encumbrances; $ (22,756) Expenses 2018

(22,756) with takes leverage priority

- $ (10,190) $ (10,190) $ 5,316 $ 5,073

243 similarly, Others policies. over any it Under 2017 distributions can

$ 2,160,789 $ 4,638,033 2,477,244 31/12/2019 acquire certain

i Debtisdefined aslongand short-term loansplusinterest (excluding derivatives), asdescribed inNote 11. (i) d. c. The

b. Financial Market risk Financial riskmanagement objectives • • Commitments: - - Categories of financial instruments risks), credit riskand liquidityrisk. magnitude of FibraHotel’s riskexposure. These risks include the market risk(including exchange rate and interest rate derived from the operations of FibraHotel through internal whichprovide riskreports ananalysis of the level and services, or cancellation of the CBFIs,analyzingand improving potential investments, sales and acquisitions, providing business The Technical Committee of FibraHotel isresponsible for advisingand instructing the trustee withregard to the sale the CBFIsand fulfillany future debtobligations. of financial derivatives to handle this exposure the riskof interest rate increases. Exposures to market riskare valued usingthe Value at Risk(VaR), supplemented by asensitivityanalysis. cash Financial assets: Financial liabilities: activities Amortized cost Amortized Derivative financial Trade accounts receivable and flows Estimated ------Available resources: are asfollows: At December 31, 2019, coverage the debtservice ratio of FibraHotel is1.74x; the metrics usedfor itscalculation establishesFIBRAS that itcannot exceed 50%. The FibraHotel trust contract stipulates that the leverage level cannot exceed 40%;however, the regulation for Debt service coverageDebt service ratio The debtindex asof December 31, 2019 isasfollows: Debt index other accounts receivable restricted cash Cash, cashequivalents and Index of debtto total assets Total assets Debt (i) risk coordinating to Recoverable VAT: $2million. Cash and cashequivalents (excluding restricted cash):$779million. Unused available credit lines: $373million. $967 million. Estimated development nondiscretionary expenses: $268million Estimated capitalexpenses (maintenance capex): $366million. $601Debt service: million. improve of management FibraHotel the operating access financial expose is intended to profit national position it mainly after to manage financial of to $ 262,916 $ 905,887 $ 5,091,917 $ 908 paying FibraHotel financial financial markets, the 2019 risks distribution and expectations, of as ensure

$ 4,579,166 17,746,400 interest well

25.80% (including its as $ 267,717 $ $ 4,006,908 $ rate ability monitoring while 2019 changes. to depreciation 2018 generating make and 481,404 FibraHotel 99,969 distributions managing results and $ 320,837 $ 4,727,981 $ 3,651,746 $ 114,652 subscribes financial the of to operations financial the 2017 revenues): holders a variety risks and of 87 FibraHotel Financial 88 Statements e.

FibraHotel f. As Foreign currency riskmanagement i Mexican ii. i. Interest rate riskmanagement –Derivative financial instrument and valued. There have been no changes inthe exposure of FibraHotel to market risks orthe way inwhichthese risks are managed involving the Mexican peso and the U.S. dollar. Derivative financial instruments designed asinterest rate hedge derivative financial instruments isasfollows: rate the FibraHotel by capspread interest rate contracts. Hedgingactivities are evaluated regularly to alignwithinterest Cap Spread contract Current Cap Spread Cap Spread Cap Spread Cap Spread Cap Spread Cap Spread Cap Spread Collar FibraHotel As of December 31, the foreign currency position monetary isasfollows: of issuance of these consolidates financial statements were asfollows: Equivalent inMexican pesos Long position Monetary liabilities Monetary Thousands of U.S. dollars: Pasivos monetarios views

Management - US dollar Foreign currency sensitivityanalysis would have decreased/increased by approximately ($9,420),($10,467)y$5,784,respectively constant, the result of the year and net worth of FibraHotel for the year ended December 31, 2019, 2018 and 2017 If the exchange rate hadincreased ordecreased by $1peso per U.S. dollarand allother variables hadremained dollars. is and peso performs exposed defined exchange Santander, S.A. Bancomer, S.A. Bancomer, S.A. Bancomer, S.A. Bancomer, S.A. Bancomer, S.A. Bancomer, S.A. Banorte, S.A. Banorte, S.A. to transactions considers risk Bank $ interest December 31, 2019 rates appetite, that rate in denominated effect 18.8727 its ensuring risk Maximu m benefit exchange because at % 4 4 4 8 6 5 5 5 5 $ (177,781) (13,376) (9,420) $ 3,956 the the date in $ rate U.S. it most December 31, 2018 26/sep/18 27/ene/16 15/sep/16 16/ene/18 11/mar/16 18/nov/15 borrows of 16/dic/15 1/ago/17 holding 1/dic/15 Date of 2019 risk dollars the cost-effective is consolidates not funds 19.6566 (“U.S. significant, 30/sep/2021 30/jun/2023 dollar”), at 31/jul/2020 30/nov/20 30/nov/20 30/oct/20 31/dec/20 20/nov/21 Due date 1/mar/21 floating $ 3,125 hedging $ (205,746) (10,467) (13,592) statement $ it given December 31, 2017 is interest exposed strategies 2018 the $ of 180,000 Notional value December 31, amount financial rates. 19.7354 to 2019 USD 13,000 exchange are 202,400 846,400 252,933 The of 153,400 971,364 341,067 123,133 position applied. its risk long 5,784 $ 114,150 (553) $ 6,337 $ rate $ (2,245) $ 908 $ - $ 908 is and position December 31, Detail March 31, 2020 managed fluctuations Fair value at 2017 2019 the of 24.2853 in (11,552) (4,900) 24,445 (2,925) (2,065) the (1,662) date by U.S. (4) The Liquidity h. g. Based onthe aforementioned financial derivatives, the debthedged asof December 31, 2019 isal100%. FibraHotel from the period, reporting the values below willdiffer: to change;ifthe changes invariable interest rates differ from those interest rate estimates determined at the end of the projected its reimbursement program the respective payments. its responsible for liquidityriskmanagement, ithasestablished asuitable liquidityriskmanagement structure to manage the Liquidity riskmanagement financial instruments. The maximumriskexposure isincluded inthe consolidated statement of financial position. Credit riskisgenerated by the balances of cashand cashequivalents, trade accounts receivable, other receivables and guarantees, when necessary, asameans of mitigating the riskof losses generated by nonpayment. with distribution as well asthe capacityof the latter to make the required payments. FibraHotel’s income and funds available for Consequently,services. itsperformance depends onitsabilityto collect revenues from hotel from guests, services financial Credit risk refers to the situation in which counterparty defaults on its contractual obligations, thereby generating a Credit riskmanagement - rental payments, closed their businesses orfiledbankruptcy proceedings. liquidity short, maturity financial financial 31, 2019 are asfollow: risk factors. The greater the correlation, the greater the volatility of the riskfactors portfolio. exposed are principally: a) 28 day TIIE rate; and c) Libor b) TIIE-IRS Curve rate and d) the correlation between the of the derivatives positions analyzed,we conclude that the market risks to swaps whichthe entity’s position is According to the results of the sensitivityanalysis basedonthe scenarios and the characteristics and structure confidence rate scenarios (28 and 91 day TIIE): +100 basis points, +25 basis points, -25 basis points, -100 basis points, using a liability ineffect for the entire year. Asensitivityanalysis was performed, takinginto account the following interest prepared by assuming that the amount of the liabilityineffect at the end of the period reporting hasbeen the derivatives and non-derivatives at the end of the period. reporting For variable rate liabilities, ananalysis is The following sensitivityanalyses have been determined basedonthe exposure to interest rates both for the Interest rate sensitivityanalysis –Derivative financial instruments following As of December 31, 2019 Less 25basispoints Less 100basispoints Scenarios Plus 100basispoints Plus 25basispoints the financial loss risk medium interest has risk would profiles liabilities for liabilities represents table by adopted periods level FibraHotel. debt cash maintaining and be of of details adversely long-term based included which flows, financial between established. the the Virtually policy on risk taking must the adequate in affected the 95% assets financing, whereby the remaining be of into date The statement all and settled negotiating and account the reserves, if table that 99% FibraHotel a 28-day TIIE while revenues liabilities. significant in contractual 8.03% 6.78% 8.78% 7.53% 7.78% FibraHotel for has cash of the satisfying a monitoring financial hotel been time debt or generated faces The through horizon number designed leases must as maturities Treasury position. liquidity of certain projected December generate/obtain the with of of by based one guests delivery FibraHotel difficulties management department The solvent of day, 91-day TIIE and on variable 31 FibraHotel 6.94% 8.94% 7.94% 7.69% 8.19% or the each of the actual counterparties its another results are undiscounted when the main year, monitors interest requirements. derived revenue resources. for as fulfilling of leaseholders financial well these its rate from liability cash as financial and financial projected effects obligations The capital asset. the flows FibraHotel obtaining maturities defaulted table provision As as and disbursements liabilities debt cash of FibraHotel includes reconciling associated December sufficient is manages Impact so flows on (1,863) of subject (466) 7,516 466 hotel as their with the - to of is 89 FibraHotel Financial 90 Statements

i. Fair value of financial instruments and liabilities Financial asstes Fair value of financial instruments onarecurring basisare asfollows: cost approximatesamortized their fair values. The fair value of long-term debtisshow asfollows. indicators. suppliers and accrued expenses are short-term innature cases, and, accrue incertain interest at rates linked to market Except for value long-term of trade accounts debt, receivablecarrying and other receivables, due from related parties, Fair value of financial instruments recorded cost at amortized Derivative Investments in Spread hedge –Cap designed as instruments financial securities government Debt As of December 31, 2017 Debt As of December 31, 2018 Debt As of December 31, 2019 expenses Suppliers and accrued of debt,net of derivative Projected variable interest Projected variable interest Projected variable interest financial instrument. financial instrument. of debt,net of derivative financial instrument. of debt,net of derivative expenses Suppliers and accrued expenses Suppliers and accrued FibraHotel Total Total Total $ 908 $ 457,727 therefore 2019 Fair value at December 31, considers $ 99,969 $ 122,289 $ $ $ 1,063151 $ 103,247 $ $

Less than1year Less than1year Less than1year 2018 that the 1,126,736 453,884 438,706 429,999 283,212 413,525 170,561 257,818 718,166 357,101 carrying $ 4,455,181 $ 114,652 $ 1,159,651 $ 932,273 $ 657,842 $ 1,979,758 $ 871,433 $ 460,218 501,809 472,055 1,108,325 2017 value 1 and 3years 1 and 3years 1 and 3years of - - - these Fair value hierarchy Level 2 Level 1 financial $ 3,009,641 $ 3,340,111 $ 4,834,792 $ 2,444,567 $ 3,537,172 $ 2,602,441 737,670 565,074 1,297,620 Techniques and key inputs for identicalinstruments prices (unadjusted) inactive markets investments ismeasured by quoted Market value. The fair value of counterparties. reflects the credit riskof various discounted at arate which and contractual interest rates, end of the period inquestion) at yieldcurves the observable interest rates withthe (starting calculated onthe basisof term Discounted future cashflows are assets 3 +years 3 +years 3 +years - - - and liabilities $ $ $ $ $ $

recognized Total Total Total 4,990,550 2,844,651 5,296,028 4,579,166 1,350,095 3,165,906 3,515,934 1,467,543 7,877,701 453,884 429,999 357,101 at 14.

a. Transactions and balances withrelated parties The above transaction isdocumented through renewable five-year agreements. Fair value over financial instruments that are valued cost at amortized The • Valuation techniques and assumptions appliedfor purposes of determining the fair value The • • • • which the fair value isobservable: Financial instruments measured at fair value after initialrecognition are grouped inthree levels, basedonthe degree to financial debt Debt and liabilities Financial FibraHotel: During the year, FibraHotel carriedoutthe following transactions withrelated whichare parties, not member of Commercial transactions: correspondingservices to personnel employee benefits and taxes, plus5%. A de C. V., and Control y Desarrollo Administrativo, S. A. de C. V. FibraHotel pays an annual fee for the administrative Estrátegica, S. A.deC. V., Fibra Hotelera, S. C., SolucióndeRecursos Humanos, S. A.deC. V., Administradora GDI, S. The Group Hoteleros Aiscomprised of Prestación GG, deServicios S. A.deC. V., Soluciones yAdministración Administradora Fibra Hotelera, Grupo A: perpetual and government bonds). are determined with reference to quoted market prices (including unlisted redeemable notes, bills of exchange, accordance liability that are market not basedonobservable indicators). data (unobservable Level 3valuations at fair value are those derived from valuation techniques that include inputs for the asset or forare observable the asset orliability, either directly (asprices) orindirectly (derived from prices); and Level 2valuations at fair value are those derived from inputsother thanquoted prices included within Level 1that assets orliabilities; Level 1valuations at fair value are those derived from quoted prices (unadjusted) inactive markets for identical estimated credit similarentities, whichisadjusted usingobservable asneeded. discounted of the debt,whichisconsidered measurement Level 3,asdescribed below, itwas determined usingamodel of value of long-term debt,whichiscalculated onlyfor the purpose of thisdisclosure and not for the accounting current transactions in thefrom market observable and quotations for similarinstruments. Inparticular, the fair S. A.deC. V.: Gasto: Management fee Administrative services fair fair value value 2019 $ 4,579,166 Carrying Carrying amount cash with of of financial flows, pricing other $ 4,796,090 Fair value using models financial assets current

generally and 2018 assets $ 3,515,934 Carrying Carrying amount financial rates $ 120,158 $ 151,532 accepted, and estimates liabilities $ 3,432,209 liabilities Fair value 2019 based based

with (excluding

$ 3,165,906 on Carrying Carrying on amount standard the 2017 observable $ 98,730 $ 140,383 analysis those terms $ 3,148,419 Fair value 2018 of described market discounted and

traded TIIE Fair value hierarchy above) Level 3 curves $ 86,532 $ 100,045 in cash active are flows and key inputs Techniques and value. flows at present discounted future made by projecting valuation was information. The unobservable is measured with fair value of debt Market value. The determined liquid 2017 credit using markets spread prices in 91 FibraHotel Financial 92 Statements 15. e. Distributions d. c. b. a. Contributions.

Trustees’ equity At December 2019 and 2018 FibraHotel hasrepurchased the following certficates; f. CBFIs owners asfollows: As of December 2019, 2018 and 2017, the Technical Committee of FibraHotel hasapproved and paiddistributions, to the CBFIs and repurchased 2,326,405CBFIs. with 8,733,372remaining to be canceled. Asof the date of FibraHotel thisreport, hascanceled anadditional8,733,372 During the years 2017 and 2018, FibraHotel repurchased CBFIsfor $41,353,714, of which32,620,342were canceled in2019, At December 31, 2019, there are 785,720,574outstanding CBFIs.At 2018 y2017 there were 833,947,220 outstanding CBFIs. of 334,545,454CBFIswithaprice of $13.75pesos for each CBFI. private international market placement through Rule144Aand Regulation Sof the United States Securities Law for atotal On September 14,2017, FibraHotel concluded itsthird PublicOffering onthe Mexican Stock Exchange, together witha Portfolio under Development and the resources generated by issuing the CBFIs. The net worth of FibraHotel isrepresented by aninitialcontribution of $15,the Contribution Portfolio, the Contribution Equity contributions of trustors at parvalue are asfollows: profit the Adjusted Funds from Operations (“AFFO”). The AFFO of FibraHotel iscalculated inthe following manner: consolidated The policy utilizedby FibraHotel to determine the total distributable amount involves distributing approximately 100%of notice ispublished. with economic rights.The number of CBFIsthat are entitledto distribution isdetermined at the time when the distribution The distribution by CBFIsisthe result of dividingthe total distributable amount between the number of CBFIsincirculation Repurchase of Certificates 2019 and 2018 there were 48,226,646CBFIswithout economic rights. February 27, 2018 July 18,2018 Total asof December 2017 Total asof December 2018 April 25,2018 Total asof December 2019 July 13,2019 April 17, 2019 October 17, 2017 July 18,2017 April 25,2017 October 17, 2018 October 18,2019 February 26,2019 February 27, 2017 Initial capitalcontribution Issuance of CBFIs plus Date of distribution Date of distribution Date of distribution depreciation Total approval approval approval and amortization, $ $ $ Distribution Distribution Distribution (Pesos) (Pesos) (Pesos) by CBFI by CBFI by CBFI less $ 15 $ 14,348,401 14,348,386 0.2622 0.2263 0.2443 0.3045 0.2074 0.2953 0.2874 0.3478 0.2108 0.2901 0.1728 0.1711 the CAPEX $ $ $ $ $ $

2019 Distributions Distributions Distributions redemption redemption redemption from equity from equity from equity reserve and 206,024 134,442 588,144 160,405 407,223 102,640 150,485 192,723 114,353 90,496 63,602 88,323 87,273 115,716 511,115 $ 15 $ 14,348,401 14,348,386 plus non-operating $ $ $ $ $ $ -

Distributions of Distributions of Distributions of taxable income taxable income taxable income - 2018 - adjustments. 120,499 124,875 177,933 365,101 40,864 95,865 78,385 39,355 78,863 81,404 17,480 57,174 $ 14,348,401 $ 14,348,386 $ $ $ $ 684,009 $ $

Total distributions Total distributions Total distributions At December 2017 206,024 134,442 240,591 234,852 233,587 177,885 165,658 150,485 585,156 120,776 876,216 171,900 15 141,995 167,186 31, 17. 16. Minimum lease payments Business segment information Based The

a. described by hotel brand, are asfollows: The aggregate annualfuture minimumlease payments expected to be received under existing operating leases, g. rents, The aforementioned minimumlease payments donot include amounts expected to be received withrespect to variable The lease contracts have remaining terms ranging from one to five years. periods, related to minimumfuture rentals any. Additionally, the lease payments term disclosedonlyconsider the and compulsory donot consider any renewal From one to fifteen year Less thanayear respectively. performance vs. benchmark (20%of the plan)and Total Shareholders Return (20%of the plan). The performance metrics for the planin2019, and 2018 are: Adjusted Funds from Operations (AFFO) (60%of the plan), The granting of the planconsiders the following factors: authorization. for alongterm. The approved planwas upto 4,994,018 CBFIsor1%of total CBFIsoutstanding at the date of Holders’ Assembly and itspurpose isto incentivize and maintainthe executives that provide to FibraHotel services consolidated statement of changes inequityof the trustees, generating acumulative effect of the amount of $24,918. line over the 5years that the planlasts. The effect registered inthe year 2019 amounted to $8,306,increasing the was determined that the total estimated fair value of alloptionswillbe $34,089, whichwillbe recorded inastraight plan FibraHotel. FibraHotel hasanexecutive compensation planpayable withCBFIsto executives that provide to services Equity basedpayment plan During 2019 the repurchase fund was not used.Asof December 31, 2019 the fund had8,733,372CBFIs. 2. 1. within the room. restaurants, 24hours. bars Rooms and for room service socialand business events, aswell asadditionalservices These hotels to provide hotels, limited additionalservices certain service including the offer of food and drink, Select service provided and brand. FibraHotel segments to according report to IFRS8are therefore the following: of customercategory for each type of portfolio. The maincategories of customers for these goodsare services Trust portfolio of FibraHotel. However, the information analyzedby management who makes operating decisionsof the beverage income, operating expenses for the different types of hotel brands that comprise the investment Segment information reported externally was analyzed on the basis of the types of room revenues, food and Segments financial information Option planto seniorexecutives that provide to FibraHotel services Total amount of repurchase Average acquisitionprice Number of acquired CBFIs Repurchase maximumamount CBFIs incirculation which weighted approved inthe Technical Committee inApril 2019. Plan 2018 and 2019, decisionand determination by the Technical Committee basedonthe performance metrics Recognition planfor seniormanagement. corresponding for on is purposes the mainly As Year average prices explained comprised of to determined allocating the price in 2013-2017 Note of of the resources rent by 1 certificates to FibraHotel, financial $ $

increases the consolidated and Fiesta Americana years, determined assessing based as well was on financial as 15.53 segment inflation by the 548,304 $ $ 10.62 FibraHotel 365,536 182,768 and number statements, for performance and the of variable $ 225,061 $ 37,510 187,551 at 2018 certificates the the Fiesta Inn and exercise income, is plan focused 2019 827,074,288 estimated was 41,353,714 41,353,714 date plans 439,046 and more authorized for hotel it was the specifically to $ 25,200 $ 4,200 21,000 performance, be options 11.65 Live Aqua Boutique by released, and the on on CBFI 9.97, the the it if

93 FibraHotel Financial 94 Statements b. Revenue for: Revenue for: Costs and expenses: Costs and expenses: Rooms Rooms Food and beverages Others Real Estate Rentals Food and beverages Others Real Estate Rentals Depreciation General and administrative Rooms Adjustment to the fair value of Depreciation Food and beverages Rooms Corporate and property General and administrative Adjustment to the fair value of Corporate and property Food and beverages the investment properties expenses and other income the investment properties expenses and other income An analysis of income and results of the Trust of continuing operations ispresented by reported segment: Income and segment results complete hotels service suchasspas,room valet service, parking,concierge, bell boys and more extensive publicareas. boardrooms and conference rooms for business and socialevents related aswell cases additionalservices asincertain to These hotels have arobust supplyof food and beverages withseveral centers of consumption (restaurants and bars), Full service hotel without meeting of selectservices rooms. a fullkitchen and adiningspace and workspace. provided Among the services by these hotels are publicareas similarto a Hotels inthissegment are characterized by asuite format instudio setups withone ortwo bedrooms, almost always with Extended stay (breakfast included) and limited spaces boardrooms. hotels offer including business amixof services, centers, gymsand swimming pools, withalimited selectionof food conference ormeeting rooms, nor does itoffer butinrecent years additionalservices, the trend hasbeen that thisclass hotelsLimited service offer asitsname aservice, implies, of convenience, whichtraditionally hasno bars, restaurants or Limited service 2018 2019

4,288 $

$ (93,109) $ - - service service Select Select 1,554,937 2,025,791 2,320,717 1545,332 1,801,444 1,471,607 - - 873,632 278,809 458,075 973,326 - - 414,274 341,256 256,719 355,021 56,580 56,910 31,285

- -

$ -

$ Limited Limited service service 428,368 - - - 276,343 606,003 623,562 149,205 - - - 273,758 607,154 619,095 418,738 141,044 15,400 10,475 2,820 3,936 1,008 2,617 $

-

360

$

- - Extended Extended stay stay ------26,397 10,605 10,092 16,980 75,351 75,351 27,158 16,971 9,773 16,611 5,812 207 86 Financial expenses net and others Financial expenses net and others

- 12,803

-

(50,686) Income before income taxes $ Income before income taxes $ 615,455 service service Full Full 1,120,785 1,617,008 340,560 549,625 - - 990,754 285,629 263,850 239,752 966,099 - - 228,677 348,757 201,377 571,770 127,587 24,720 146,112 Operating income Operating income $ -

- - -

$ - 47,081 - Corporate Corporate - 836,265 323,367 ------357,496 465,817 419,015 776,511 30,257 30,257 29,683 29,683

41,890 27,926 $ 3,203,541

$ 325,547

$ 3,039,513 (143,795) 47,081 40,120 (292,270) $ 616,992

(151,511)

Total Total 4,371,969 3,338,748 3,754,152 1,709,692 1,605,614 4,107,251 323,367 499,377 755,842 350,443 372,466 429,064 629,464 689,369 768,503 357,496 465,817 708,818 617,817 419,015 19. 18.

The mainassets and liabilities by segment asof December 31, are asfollows: (1) b) a) Events after the reporting period Commitments and contingencies Long-term liabilities (1) Hotel properties, furniture and Hotel properties, furniture and Hotel properties, furniture and Properties under development Investment properties Long-term liabilities (1) Long-term liabilities (1) Investment properties Properties under development Revenue for: Properties under development Costs and expenses: operations and activity. Neither FibraHotel nor itsassets are subjectto any type of material legalaction, other thanthose stemming from itsroutine operating equipment –Net operating equipment –Net operating equipment –Net Rooms Food and beverages Others Real Estate Rentals Adjustment to the fair value of Depreciation Corporate and property General and administrative Food and beverages Rooms the investment properties expenses and other income segmento enespecífico. La deudacontratada corresponde acontratos corporativos, mismos quepor sunaturaleza no puedenserdistribuidos aun and the operating agreement under the same brand and operator was put into effect. was $194,161 and with thispayment the lease agreement was terminated and the was property transferred to FibraHotel rooms agreed between the in 2016, parties were met. FibraHotel paid the price of $107,876. The total price for the hotel 2020 the closing conditions forIn January the purchase of the Fiesta Americana Hermosillo hotel with 220 full-service amounts to 2,326,405. haveCBFI whichare held ontreasury no economic rights.Asof the date of the thisreport, total of repurchased CBFIs In February and March 2020,FibraHotel announced the repurchased 2,326,405CBFIsat anaverage price of $7.79 per 2017 2017 2018 2019

$ - $ $ - $ - (2,209) 10,638 $ 1,457,670 $ - $ $ $ - $ - $ $ service service service service Select 1,684,163 Select Select Select 1,339,789 1,964,617 1,861,449 1,451,607 13,584 287,828 - - 812,289 417,756 241,881 78,553 14,066

$ - $ 113,635 $ 642,042 -

$ 6,145,977 $ - $ - $ 637,037 $ 445,115 $ 159,745 $ 6,414,829 $ 5,792,382 $ Limited service Limited Limited Limited service service service 382,000 - - - - 249,368 563,984 128,830 550,271 3,802 13,713

$ 85,200 $ - $ - $ - $ 402,717 - 746 $ - $ - $ - $ 1,464 $ 3,671 $ 447,463 $ 443,318 Extended Extended Extended Extended stay stay stay stay - - - - 85,946 18,382 9,270 9,112 Financial expenses net and others -

$ - $ 125,749 9,110 $ 3,323,468 $ 3,894,086 $ - $ - $ 3,311,190 $ 515,351 $ 246,299 $ 3,271,989 $ 2,810,854

Income before income taxes $ (13,985) service service service service Full Full Full Full - - 594,384 203,589 573,750 821,449 337,758 116,366 133,611 14,366 Operating income

$ - $ - $ - $ 1,621

- $ 4,579,166 $ 3,515,934 $ - $ - $ - $ 1,271 $ 927 $ 3,165,906 Corporate Corporate Corporate Corporate ------228,588 583,266 354,678

$ 2,687,525 $ 239,384 34,207 $ 12,305,850 $ 4,579,166 $ 3,965,510 $ 3,515,934 $ 3,948,227 $ 975,996 $ 423,299 $ 11,819,715 $ 10,499,088 $ 233,889

$ 3,165,906

(16,194) (66,331)

Total Total Total Total 3,435,996 1,408,685 2,897,187 538,809 228,588 379,294 354,678 542,136 621,345 92,919 95 FibraHotel Financial 96 Statements The 20. d) c) Authorization to issue the consolidated financial statements e) Director and subjectto the approval of the Technical Committee and at the General CBFIHolders Assembly whichmay modify them. consolidated its to increase further available credit lines. The extent to whichthe coronavirus COVID-19 pandemic willaffect FibraHotel, revolving credit facility, have credit lines authorized for anadditional$170millionMexican pesos and are innegotiations 20, 2010 hasacash position of over $650millionMexican pesos; obtained $200 million Mexican pesos from anexisting planning to execute cost saving by postponing allnon-essential capitalimprovement projects in2020.Finally, onMarch of the date of issuance of these consolidated financial statements. program duringthe period of December 29th, 2018 and December 31 On March 9,2020FibraHotel announced the cancelation of 8,733,372CBFIsacquired through itsCBFIrepurchase Property. will be considered inthe balance sheet asHotel properties, furniture and operating equipment instead of Investment in 2020the hotel willbe considered asmanagedhotel. For 1,2020,the hotel accounting purposes, January starting 2020 the lease agreement was changedto anoperating agreement under the same brand and operator, sostarting The Fiesta InnCuautitlánhotel hadalease agreement withGrupo Posadas untilDecember 31, 2019 1, and onJanuary of CBFIsof FibraHotel isasfollow: FibraHotel with ~3,000 rooms. Most of the hotels are inthe same city, region or cluster as other hotels in its portfolio, assuch (3,957 rooms). Inaddition, FibraHotel isalsoevaluating closure additionaltemporary of approximately 20more hotels As aresult of the analysis, FibraHotel hasexecuted cost saving initiatives including temporarily closingof 30hotels conferences, travel restrictions imposed countries by certain and aslowdown inlocaland regional economic activity. severely impacted the short-term hotel room demand dueto cancellation of business and leisure travel, events and where itshotels operate. FibraHotel believes that the measures taken to contain the spread of the COVID-19 virushas the Center for Disease Control and the recommendations from governments at the federal, state and locallevel of the COVID-19 virusinMexico aswell assafety and health best practices provided by the World Health Organization, measures in order to prevent and reduce the spread of COVID-19 virus. FibraHotel is closely monitoring the development As the result of COVID-19 pandemic declared by the WHO(World Health Organization), FibraHotel hasdecidedto take Total outstanding CBFIs CBFIs witheconomic rights CBFIs without economic rights financial and Lic. can results, Eduardo financial consolidate liquidity López, statements reservations and Managing cash were will Director and authorized depend hotel of * on operations FibraHotel, future for issue $ $ 785,720,574

events to consequently on be March that more st March 31, 2020 , 2019. Asof the date of the thisreport, structure are 31, efficient. highly 2020, they uncertain do 783,394,169 At by 2,326,405 not the Lic. reflect corporate Edouard and cannot events level, Boudrant be after FibraHotel predicted this Finance date, as is Diseño por: www.katapolt.mx Miembro deDeloitte Touche Tohmatsu Limited Deloitte –Galaz Yamazaki, RuizUrquiza, S.C. EXTERNAL AUDITOR: CIBanco S.A., Institución deBanca Múltiple COMMON REPRESENTATIVE: de Banca Múltiple, DivisiónFiduciaria Deutsche Bank México, S.A., Institución TRUSTEE: S.A. deC.V. Administradora Fibra Hotelera Mexicana, ADMINISTRATOR: FibraHotel ISSUER: Alcaldía MiguelHidalgo, CDMX Col. LomasdeChapultepec Av. Paseo de lasPalmas #215 Piso2 Hidalgo, C.P. CDMX 11000, de Chapultepec, AlcaldíaMiguel Torre Esmeralda I,Colonia Lomas Blvd. ManuelÁvila Camacho #40 Piso17 C.P. 05349,CDMX Alcaldía Cuajimalpa Colonia CruzManca, Avenida Santa Fe #481 Piso7 Torre Corporativo World Plaza Cuauthémoc, C.P. 06500,CDMX Colonia Cuauthémoc, Alcaldía Paseo delaReforma Piso6 #115, www.linkedin.com/company/fibrahotel www.twitter.com/FibraHotel www.fibrahotel.com C.P. 05349,CDMX Alcaldía Cuajimalpa Colonia CruzManca, Avenida Santa Fe #481 Piso7 Torre Corporativo World Plaza

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