Annual Report 2013 Highlights 66Portfolio Occupancy Rate% 5.6Revenue Per Available Room Increase% 20

@FibraHotel

2013

Annual Report 2013 Highlights 66Portfolio occupancy rate% 5.6Revenue Per Available Room increase% 20

hotels acquired 2,924

million of Pesos invested in hotels 4,878 20 million of Pesos raised in May 2013 (follow-on)

hotels: agreement with Marriott 338

million of Pesos: total distribution to holders 22.8%

CBFI return from the IPO (November 2012) to December 2013 (including distributions) 2013

IBRA OTEL Annual Report F H 1 1. Fiesta Inn Aguascalientes

This select-service, 125-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. Located just 20 minutes from the Aguascalientes international airport and 10 minutes from downtown Aguascalientes, it has easy access to the city’s most important industrial corridor. This hotel is near the Villasunción Shopping Center, as well as various tourist attractions. As of Dec. 31, 2013, the number of employees was 61.

2 Content

Page Hotel’s list 4 At the time of this Annual Report, the portfolio of Letter from the Director to Holders hotels in operation was as follows: Num. Hotel Introduction to FibraHotel 6 Page Introduction 6 8 1. Fiesta Inn Aguascalientes 2 The History of FibraHotel 3 8 2. Fiesta Inn Ciudad Juárez Portfolio Evolution 3. Fiesta Inn Ciudad Obregón 6 Structure 10 4. Fiesta Inn Chihuahua 7 Management Team 12 5. Fiesta Inn Culiacán 8 6. Fiesta Inn Cuautitlán 9 13 7. Fiesta Inn Durango 10 Industry overview 11 14 8. Fiesta Inn Ecatepec Hotel industry trends in Mexico 9. Fiesta Inn Guadalajara Expo 12 Market Opportunity 15 10. Fiesta Inn Hermosillo 13 11. Fiesta Inn León 14 15 FibraHotel’s Strategy 16 12. Fiesta Inn Mexicali 16 13. Fiesta Inn Monclova 16 FibraHotel’s Competitive Strengths 17 18 14. Fiesta Inn Monterrey La Fe / Airport FibraHotel’s Strategy 15. Fiesta Inn Naucalpan 18 Acquisitions 21 16. Fiesta Inn Nuevo Laredo 19 Developments 22 17. Fiesta Inn Oaxaca 20 18. Fiesta Inn Perinorte 21 24 19. Fiesta Inn Perisur 22 FibraHotel Portfolio 23 25 20. Fiesta Inn Puebla FINSA Presentation of the FibraHotel Portfolio 21. Fiesta Inn Querétaro 24 FibraHotel Portfolio - Map 28 22. Fiesta Inn Saltillo 25 FibraHotel Portfolio – Brands and Operator 30 23. Fiesta Inn Tepic 30 31 FibraHotel Portfolio Segments 33 24. Fiesta Inn Tlalnepantla 25. Fiesta Inn Torreón Galerías 32 Key Performance Indicators of 33 34 26. Fiesta Inn Toluca FibraHotel’s Portfolio 27. Fiesta Inn Xalapa 34 28. Real Inn Guadalajara Centro 35 Finance section 36 29. Real Inn Morelia 36 37 Financial Results for the year 2013 37 30. Real Inn Mexicali 40 31. One Acapulco 38 Cash flow and liquidity position 39 41 32. One Aguascalientes Capital Expenditures 33. One Coatzacoalcos 40 Cash flow distribution 42 34. One Culiacán 41 35. One Guadalajara Tapatío 42 43 FibraHotel Corporate Governance 43 36. One Xalapa 44 37. One Monterrey Airport 44 Technical Committee and FibraHotel Committees 38. One Puebla FINSA 45 39. One Querétaro Plaza Galerías 46 FibraHotel on the Mexican Stock Exchange 48 40. One Toluca 47 41. One Patriotismo 48 49 Renovations 50 42. Camino Real Puebla 43. Camino Real Hotel & Suites Puebla 50 51 52 44. Fiesta Americana Aguascalientes Post-2013 events 45. Fussion 5 León 52 46. Fairfield Inn Los Cabos 53 Consolidated Financial Statementss 54 47. Valle Grande Ciudad Obregón 54 NOTE: The publication date of this Annual Report is June 30th, 2014.

2. Fiesta Inn Ciudad Juárez

This select-service, 166-room hotel is located in Ciudad Juárez in the State of Chihua- hua. It is strategically located nearby the city’s most active commercial and financial district. This hotel is just kilometers from the border with El Paso, Texas, and the In- ternational Airport of Ciudad Juárez. The location makes for easy access to important industrial parks, malls, museums, and entertainment venues. As of Dec. 31, 2013, the number of employees was 46. 2013

IBRA OTEL Annual Report F H 3 Fiesta Inn Querétaro 4 • • • • • during 2013, achievements FibraHotel: important most our Recapping up thecompany forlongterm success. settingand plan business executing our on sed 2013years,during of couple next the during focu- we come to growth strong with company greata and FibraHotel.for one As verya young FIBRA, public a as year full 2013first our was Dear FibraHotel Certificate Holders, 100 business hotels inthemediumterm. plan and reach our goal of FibraHotel 100, or business our execute to firepower the vides procapital- this stage, this transactionallyat leverage use to expect only we line. though Even credit revolving million $1,000 MXN a signed and US$381millionoffering equity Capitalized the company through a successful inflation of3.9% well and were 1.1%, of growth metrics GDP Mexican above these of Both 5.6%. RevPAR grew while 5.7%, of portfolio tial terms. We achieved ADR growth for our ini- real in rategrowth roomtargeting pecially es- potential, growth organic our Proved Mexico. in REITs Lodging for requirements rating line with the systems, accounting and ope - operatorshotelsand our of in all bringing invoicingsystem,double Implementedthe strategy. growthour support toready structure ve administrati - an implementing and team management our out rounding by public toprivateTransitionedfrom company the reaching atotal of47 hotels. hotelsdevelopmentshotelseight under and Fibra, we finished the year with 39 operating transformationtoa the with company),and private a as 17hotels develop to 17 years us taken had it which (of hotels operating 18 with year the started We operation. hotels in of number our doubled than More the Director Letter from to Holders June 2014 • Expanded the alternatives in our open ar- where it is difficult to acquire an operating hotel at the right price. De- chitecture, under which we as hotel owners velopments provide us with a higher risk/return component, but we are choose the best operator and brand based very comfortable in managing this risk and that through our real esta- on each specific situation, going from two te relationships we can find unique locations inside multi-use projects operators with three brands, to three opera- that provide a barrier to entry that is difficult to replicate. Furthermore, tors with 11 brands. During 2013 we, signed new developments will help us get higher returns in the medium term a 20-hotel agreement with Marriott Interna- as well as balance our portfolio with new assets and new brands/ope- tional giving us access to their international rators. The main drawback to developing new hotels is that in the near brands, signed a 10-hotel agreement with term, they will be a drag on returns because we will invest the cash that Grupo Real Turismo, and continued streng- we currently have on our balance sheet, and before obtaining a proper thening our relationship with Grupo Posadas return we will have to wait 12-18 months for the hotel construction to adding new brands. be complete and an additional six to 18 months for the hotel to ramp- • Returned through distributions almost MXN up. We understand this risk component in developments, but as the $338 million representing MXN $0.77 per largest shareholder in the FIBRA, I am very comfortable that this will certificate. This, notwithstanding the fact maximize the dividend in the long term and our certificate holders will that for most of the year a very important be properly rewarded in time. part of our balance sheet was held in cash providing a drag on portfolio returns. We will In terms of the market, we continue to believe that the industry dyna- continue focused on returning cash flow to mics as very attractive and that there is an important opportunity to investors through distributions. capitalize on the expected growth of the Mexican economy in the future through business hotels, and in the organic growth of our existing Even with all of these successes, during 2014 portfolio through the sustainable increase in room rates. The first half we will continue to be focused on executing our of 2013 was stronger than the second half and to date in 2014, but we business plan to maximize the value of FibraHo- continue to expect important room demand growth in Mexico which tel in the following years as we put to work the will be directly benefited by the increased investing in the country both MXN $5,000 million in cash at the end of 2013 by foreigners and locals, as business spending continues to accelerate, and as these investments mature providing us as the general economy grows, and in the medium term as the structu- with attractive returns. ral reforms in Mexico are passed and implemented.

Our core investments continue to be business In 2013 the hotel industry in Mexico saw an important increase in hotels in Mexico and are very strict in enforcing focus by both local and international investors with new money and an investment discipline that is value accretive players coming into the market. This availability of capital created cap in the acquisition of stabilized hotels, repositio- rate compression in the market and at times aggressive acquisition pri- ning of existing hotels and development of new ces. In this light, we continue to hold firm in our acquisition discipline hotels. We will continue to only acquire ope- and believe that there continue to be attractive opportunities through rating hotels at a 10% or higher cap rate and our proprietary sourcing. We expect the market to continue growing in do developments of new hotels at a 11-12% or the future years and thus continue to be very focused in hotels that higher cap rate. In addition to cap rate, in acqui- provide barriers to entry such as mixed-use projects. Our competitive sitions we are very focused on reposition cost position in the market is very strong and we continue to position our of an asset, as measured by price per key. As diversified portfolio in line with GDP growth such as shown in the Bajio true real estate asset managers, we understand region with important auto and aerospace investments and the Gulf of that in the long run the cost of a property is a Mexico with important oil/energy investments. key component of future returns and the cost of an asset will remain with the portfolio for its Overall, we are confident with the progress we have made to date and entire life. As an example of this, the average continue the commitment we have with our certificate holders since price per key for all of our acquisitions in 2013 our IPO in November 2012. In the near term we are focused in reaching was MXN $861,960 per key, or a slight pre- our goal of FibraHotel 100 and in this sense expect to have most of the mium to replacement cost. In this sense even cash on hand committed by the end of 2014. This important growth though in same circumstances we prefer to stage will set the stage for FibraHotel the future. acquire operating hotels, we analyze market by market to determine the best alternative bet- I would like to thank all our certificate holders, employees, and ope- ween the acquisition of an operating hotel or rating partners for the strong effort put together in 2013 that has the development of a new hotel. positioned FibraHotel on a very clear path towards future success.

Development is a core component of our inor- ganic growth strategy as we can enter markets Simón Galante 2013

IBRA OTEL Annual Report F H 5 Introduction

to FibraHotel Introduction Fiesta Inn Naucalpan Fiesta FibraHotel is a Mexican trust established principally to develop, acquire and own urban hotels targeting the business traveler in Mexico within the following business categories: limited-service, select-service, full-service and extended-stay. FibraHotel is the first lodging real-estate investment trust (REIT), known as Fideicomiso de Inversión en Bienes Raíces or FIBRA in Spanish, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores). The trust is the best positioned and the owner of the largest hotels portfolio in Mexico, and is the first lodging REIT in Latin America.

The goal of FibraHotel is to generate attractive risk- adjusted returns for the holders of Real Estate Trust Certificates (Certificados Bursatiles Fiduciarios In- mobiliarios or CBFIs in Spanish) principally through distribution of the net taxable income as determined by the Technical Committee and through the CBFI’s capital appreciation. FibraHotel seeks to achieve this objective through the ownership, expansion and effective asset management of a portfolio of high-quality hotels of distinct brands, geographically diversified throughout Mexico and operated by recognized and diverse independent hotel operating companies. It must be mentioned that FibraHotel is only a hotels owner and not an operator, which permits it to operate under an open architecture and to work with the hotel operator or hotel brand appropriate to each hotel property.

FibraHotel successfully completed its Initial Public Offering (IPO) through a public offering in Mexi- co and an international private offering on Nov. 30, 2012, raising MXN $4,137 million (US $321 million). Thanks to the IPO, FibraHotel was able to i) pre-pay loans related to the Contribution Portfolio, ii) complete the acquisition of the Acquisition Portfolio, iii) finance the development of the hotels of the Contri- bution Portfolio under Development, and iv) finance the costs associated with the IPO and related to the Initial Portfolio. Once these transactions were complete, FibraHotel had approximately MXN $1,100 million available to proceed with select acquisitions and new developments.

3. Fiesta Inn Ciudad Obregón

This select-service, 123-room hotel is located in Ciudad Obregón, in the State of Sono- ra. It is located in the city’s hotel district, giving guests quick and easy access to both the city’s financial district and downtown. This hotel is located at the principal entrance to Ciudad Obregón, 20 minutes from the airport, and just five minutes from downtown and the corporate district. The hotel was added to the FibraHotel portfolio in April of 2014.

6 The Initial Portfolio at the time of FibraHo- operating hotels, to the opening of a hotel from the portfolio under tel’s IPO was composed of the following: development, and the acquisition of four hotels being developed.

• Contribution Portfolio: 21 hotels provided The hotels are located in 24 states of the Republic and Mexico City by Grupo GDI in exchange for CBFIs, of and are associated with well-known hotel brands, which deliver signifi- which four were in distinct phases of de- cant advantages and increases in demand as a result of i) the quality velopment (Contribution Portfolio under of service, ii) loyalty programs, iii) modern reservation systems and iv) Development) national distribution channels. • Acquisition Portfolio: 13 hotels purchased from Grupo Posadas FibraHotel is associated at this time with the following brands: Fiesta Americana, Fiesta Inn, Fiesta Inn Lofts, Gamma by Fiesta Inn, One Ho- FibraHotel successfully completed a follow- tels, Camino Real, Camino Real Hotel & Suites, Real Inn and Fairfield on offer on May 30, 2013 through a public Inn. FibraHotel hopes to continue expanding its portfolio of brands offering in Mexico as well as an international and operating companies as, for example, with Marriott International, private offering, raising MXN $4,878 million thanks to an agreement signed at the end of 2013. The hotels in Fibra- (US $381 million) to continue to execute Hotel’s portfolio fundamentally provide services to national business its growth plans and as at that time total re- travelers and to a lesser degree to international travelers. For this rea- sources left over from the IPO (approximately son, the majority of FibraHotel’s hotels are in strategic locations where MXN $1,100 million) were totally committed there is significant business and industrial activity as well as close to to acquisitions and/or development projects. malls and industrial parks, airports and bus terminals which provides guests with access to a great variety of amenities and services. As of Dec. 31, 2013, FibraHotel was composed of the following: In 18 months: • Operating hotels: > 32 hotels in the Initial Portfolio: two From 22 to 58 hotels hotels of the Contribution Portfolio under Development opened during the year, Real Inn Morelia in March of From 2,956 to 7,886 rooms 2013 and One Guadalajara Tapatío in June of 2013. > Seven hotels acquired during 2013 From 12 to 24 states • Hotels under development: > Two hotels of the Initial Portfolio (ex- From two to three operators cluding the two hotels that opened during 2013). > Six new projects under development From three to 11 brands that were acquired during 2013.

As of the date of this Annual Report, Fibra- Hotel’s portfolio is made up of 58 hotels (47 operating hotels and 11 hotels under development) thanks to the acquisition of seven

4. Fiesta Inn Chihuahua

This select-service, 152-room hotel is located in the city of Chihuahua, in the State of Chihuahua. It is located on the main avenue of a residential zone, just eight minutes from the city’s downtown. This location allows for easy access to the city’s main tourist attractions, industrial parks, and a commercial district that has recently grown dynamically. As of Dec. 31, 2013, the number of employees was 55. 2013

IBRA OTEL Annual Report F H 7 2012 The History of FibraHotel

4Q 2012 1Q 2013 2Q 2013 December 2012 What follows are the principal to February 2013: May 1, 2013: events that have happened since completion of acquisition of the the founding of FibraHotel up until the acquisition of Fiesta Inn Toluca December 31st, 2013: the Acquisition Tollocan. Portfolio.

July 31, 2012: May 30, 2013: Jan. 21, 2013: Trust formed. Follow-on on the acquisition of Mexican Stock 11 hotels. Exchange for a total amount of Nov. 30, 2012: MXN $4.878 Feb. 28, 2013: billion. FibraHotel’s IPO on the acquisition of the Mexican Stock Exchange. Fiesta Inn Monclova. June 24, 2013: acquisition of Mar. 1, 2013: Dec. 19, 2012: the Fiesta Inn acquisition of the opening of Real Inn Tlalnepantla. Fiesta Inn Torreón. Morelia. Opening of the One Guadalajara Tapatío.

Portfolio 4Q2,467 2012 1Q4,397 2013 2Q4,798 2013 > 489 334 > 334 Evolution 2,956 4,731 5,132 Number of rooms in operation Number of rooms in development 18 31 34 Number of total rooms 4 3 3 22 34 37 Number of hotels in operation Number of hotels in development Number of total hotels 5. Fiesta Inn Culiacán

This 142-room, select-service hotel is located in Culiacán, in the State of Sinaloa. Lo- cated in the newest part of the city within Plaza Fórum, one of Sinaloa’s most important shopping centers, this hotel offers access to plenty of entertainment options. It is also close to the area’s main tourist attractions, and the city’s agro-business center. This hotel is just 20 kilometers from the city’s international airport. As of Dec. 31, 2013, the number of employees was 60.

8 2013 Chronology: • July 31, 2012: Trust formed.

• Nov. 30, 2012: FibraHotel’s IPO on the Mexican Stock Exchange

• December 2012 to February 2013: completion of the acquisition of the Acquisition Portfolio > Nov. 19, 2012: acquisition of the Fiesta Inn Torreón (146 3Q 2013 4Q 2013 rooms – investment of MXN $111 million). > Jan. 21, 2013: acquisition of 11 hotels (1,625 rooms – investment of MXN $1,487 million). > July 1, 2013: Oct. 18, 2013: Feb. 28, 2013: acquisition of the Fiesta Inn Monclova (150 acquisition of acquisition of the rooms – investment of MXN $168 million). the Plaza Genova Fundición Ballroom • March 1, 2013: opening of the Real Inn Morelia with 155 rooms Guadalajara. in Monclova. (part of the Contribution Portfolio under Development)

Nov. 14, 2013: • May 1, 2013: acquisition of the Fiesta Inn Toluca Tollocan (144 July 2, 2013: rooms – investment of MXN $152 million) including adjacent land announcement of a for the development of an additional hotel. acquisition of strategic alliance with • May 30, 2013: Follow-on on the Mexican Stock Exchange for a the One Puebla Marriott International total amount of MXN $4.878 billion. FINSA. for the development of • June 24, 2013: 20 hotels. > acquisition of the Fiesta Inn Tlalnepantla (131 rooms – July 3, 2013: investment of MXN $87 million). > Dec. 2, 2013: acquisition opening of the One Guadalajara Tapatío of 126 rooms (part acquisition of the of the Contribution Portfolio under Development) Fiesta Inn Puebla of a lot in Vía Vallejo FINSA. (Mexico City) for the • July 1, 2013: acquisition of the Plaza Genova Guadalajara (197 construction of two rooms – investment of MXN $132 million including MXN $10 July 5, 2013: million for the renovation and repositioning of the hotel under the Marriott hotels. Real Inn brand). acquisition of the Dec. 17, 2013: Fiesta Inn Oaxaca. • July 2, 2013: acquisition of the hotel One Puebla FINSA (126 announcement of the rooms – investment of MXN $90 million). development of two Aug. 1, 2013: • July 3, 2013: acquisition of the Fiesta Inn Puebla FINSA (123 hotels in Monterrey rooms – investment of MXN $130 million). acquisition of the Real (Fiesta Americana Inn Mexicali. Grand and Live Aqua). • July 5, 2013: acquisition of the Fiesta Inn Oaxaca (145 rooms – investment of MXN $170 million).

• Aug. 1, 2013: acquisition of the Real Inn Mexicali (158 rooms – investment of MXN $130 million including MXN $10 million for the renovation and positioning of the hotel). 3Q5,547 2013 4Q5,547 2013 > 323 > 899 • Oct. 18, 2013: acquisition of the Fundición Ballroom in Monclova (investment of MXN $16.5 million) for the construction of a hotel 5,870 6,446 adjacent to the Fiesta Inn Monclova.

• Nov. 14, 2013: announcement of a strategic alliance with Marriott 39 39 International for the development of 20 hotels.

3 8 • Dec. 2, 2013: acquisition of a lot in Vía Vallejo (Mexico City) for 42 47 the construction of two Marriott hotels (Courtyard by Marriott and Fairfield Inn – 245 rooms – investment of MXN $230 million).

• Dec. 17, 2013: announcement of the development of two hotels in Monterrey (Fiesta Americana Grand and Live Aqua - 226 rooms – investment of MXN $600 million). 6. Fiesta Inn Cuautitlán

This select-service, 128-room hotel is located in Cuautitlán, in the State of Mexico. It is located along the México-Querétaro Highway, nearby one of the most important industrial corridors in the state. This property is located within the Plaza San Marcos shopping center, which has a food court, cinemas, and a gym. As of Dec. 31, 2013, the number of employees was 59. Hotel is leased as of the date of this Annual Report. 2013

IBRA OTEL Annual Report F H 9 Structure

The following diagram outlines the FibraHotel structure: • Elects Technical Committee and appoints Common Representative. CBFIs Holders • Able to amend Trust Agreement Assembly or liquidate trust assets. • Able to terminate Advisory Agreement without “cause”. • Approves CBFIs issuance, CBFIs Holders Control Trust delisting or cancel registration of CBFIs with CNBV. • Approve large Real Estate transactions.

83.7% 16.3% Advisory Agreement

Administradora Annual fee of 1.00 % of The Bank of Fibra Hotelera undepreciated book value of assets, Deutsche Bank New York Mellon Mexicana, S.A. de net of debt, payable quarterly. México, S.A. S.A. (Common C.V. (Advisor) (Trustee) Representative)

Hotel Hotel Management Management Agreements Companies

• Receives rental revenue from Rental Revenue (lodging) rooms and pays related costs and expenses as well as real Guests estate expenses. • Receives after – tax dividend from the Management Management Subsidiary and pays any Subsidiary Revenue from expense shortfall. Agreement non-room hotel services Fibra Hotelera, • Provides hotel services and property management S.C. (Management services (with assistance form third parties). • Receives revenue from non-room related hotel Subsidiary) services and pays related costs and expenses. Service Agreements • Pays expenses related to its own operation • Taxable entity. Compensation of 5% of • Pays after-tax dividends to FibraHotel or receives Gross Payroll distributios to cover shortfall.

Services Companies

• Provides personnel services • Empoyees: operating staff Hotel Portfolio of hotel portfolio

7. Fiesta Inn Durango

This select-service, 138-room hotel is located in the city of Durango, in the State of Du- rango. It is located in the city center, within the most important fashion mall of its kind in the city, Paseo Durango. There are various types of entertainment nearby, like restaurants, prestigious boutiques, and cinemas. This property is just 10 minutes from the city’s industrial center, and 15 minutes from the international airport. As of Dec. 31, 2013, the number of employees was 57.

10 FibraHotel’s structure is composed of the following entities:

Advisor. FibraHotel is externally advised by Admi- nistradora Fibra Hotelera, S.A. de C.V., the Advi- sor. The Advisor was founded on Sept. 20, 2012 La / Aeropuerto Fe Inn Monterrey Fiesta for the purpose of providing advisory services to FibraHotel and said advisory services are the sole The Administrator is also responsible for providing purpose of the Advisor’s operations. The Advisor certain services unrelated to the renting of rooms, is responsible for, among other things, provid- such as food and beverage, phone, Internet and simi- ing orientation and consulting to FibraHotel in lar services, which are billed to hotel guests separately its development and hotel acquisition strategies, in that such services are subject to taxation. The Ad- long-term strategic planning and financial plan- ministrator is not subject to the FIBRA fiscal struc- ning, implementation of important decisions, and ture and pays taxes, as any business organization is the management of investor relations. the Advi- required to do. The Administrator pays its portion of sor has the right to an annual commission, paid the general costs of FibraHotel and its taxes as a result every quarter, equivalent to 1.00% of the unde- of the profits generated by activities not related to preciated book value of assets, net of debt. No the rental of rooms. Any profits left over after the Ad- other commission is paid to the Advisor (acquisi- ministrator’s taxes are distributed to FibraHotel, which tion commission, development commission or any is responsible for any deficits resulting from the costs other type of commission). and income of the Administrator. Administrator. FibraHotel is internally managed Services Companies. Services companies are re- by Fibra Hotelera S.C., the Administrator. The Ad- sponsible for providing FibraHotel with the personnel ministrator was founded on Oct. 5, 2012 for the necessary to operate the hotels, excluding the Execu- sole purpose of taking responsibility for the day- tive Committee of each hotel (general manager, the to-day management of FibraHotel’s business. As of controller, sales personnel, and housekeeping). The Dec. 31, 2013, the Administrator has a manage- services of the Executive Committee are provided di- ment team of 13 (Senior management, Adminis- rectly by the hotel operators and are subject to the tration, Finance, Legal, Development, and Opera- supervision and monitoring of the Administrator. In tions). The Administrator is responsible, among conformance with the services contracts’ terms, the other things, for the day-to-day management of Services Companies have the right to receive a con- FibraHotel’s business, maintenance of the proper- sideration of 5% calculated based upon the total pay- ties and hotels, acquisition of the necessary per- roll that they administer, for the purposes of covering mits and licenses, implementation of the auditing their operational costs and expenditures. FibraHotel tasks necessary for the pre-assessment of acquisi- reimburses the Services Companies on a monthly tion opportunities and development, supervision basis for the salaries that they pay to the employees of renovations / development / re-development that deliver the Services Companies at the hotels. projects, supervision of matters related to stock insurance, negotiations in the name of FibraHotel, and the organization and signing of hotel management contracts associated with the hotels. 8. Fiesta Inn Ecatepec

This select-service, 143-room hotel is located in Ecatepec, in the State of Mexico, in one of the state’s most dynamic commercial and industrial zones. It is located within the Centro Comercial Las Américas, which is a popular shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. As of Dec. 31, 2031, the number of employees was 47. Hotel is leased as of the date of this Annual Report. 2013

IBRA OTEL Annual Report F H 11 Management Team Fiesta Inn Naucalpan Fiesta FibraHotel’s management team is made up of the following persons:

• Simón Galante Zaga: is Chief Executive Officer of the Advisor and a member of the FibraHotel Technical Com- mittee. Founding Member and CEO of Grupo GDI, Mr. Galante Zaga has more than 20 years of experience in the hotel, commercial and residential sectors as both a developer and in real estate management as well as in acquisitions and the development and financing of these types of projects. Mr. Galante Zaga is a member of the Board of Directors of the Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, and Bosque Real and Mercap, which are Grupo GDI companies. He has the Universidad Iberoamericana de México and an MBA a specialty in business administration from IPADE. from the Universidad de Chicago Booth School of Busi- ness and his professional experience includes working as • Eduardo López García: is CEO of the Administrator. a Credit Analyst and Executive Relations Manager at Sco- Mr. López García served as the investment and devel- tiabank Inverlat in Mexico as well as Associate in M&A opment manager at Grupo Posadas beginning in 1993 and US Diversified Industries at J.P. Morgan in New York. and up until he joined Grupo GDI as Director of Hotels • Lorena García Núñez in 2006 when the group had just six hotels. Eduardo : is Legal Counsel of the Admin- López Garcia negotiated a contract with the leading real istrator. She joined Grupo GDI in 2002 and has more estate developer in Mexico and with Grupo Posadas for than 15 years of experience in both the hotel and real the development of additional hotels to be operated by estate industries. Grupo Posadas. He has 20 years of experience in hotel • José Luis Jacome Herrera development and management. : is Chief Operations Officer of the Administrator. He has a Bachelor’s Degree in Business • Edouard Boudrant: is CFO of the Administrator. He has Administration in Tourism from the Universidad Anáhuac a Bachelor’s Degree in Business Management from the del Sur and the École Supérieure de Gestion (ESG) in Paris Universidad de las Américas (UDLA) in Puebla and from specializing in Hotel, International and Luxury Market- the Centre d’Études Supérieures Européennes de Manage- ing. He is currently enrolled in a Financial Management ment (CESEM) in Reims, France, and a Master’s Degree specialty at the Instituto Tecnológico de Estudios Superi- in Corporate Law from the École Supérieure des Sciences ores de Monterrey (ITESM). His professional experience Économiques et Commerciales (ESSEC) in Paris. His pro- includes more than eight years in operations at different fessional experience includes eight years working in in- hotel chains including Fairmont, Posadas, and Las Brisas, vestment banking in both France (Société Générale and among others holding different positions from Hotel Di- Lazard-NATIXIS) and in Mexico (BBVA Bancomer). rector to General Manager, Reception Manager and Food and Beverage Manager. • Guillermo Bravo Escobosa: is Head of Corporate Devel- • César Chávez González opment & Investors Relations of the Administrator. He : is Corporate Development has a Bachelor’s Degree in Industrial Engineering from & Acquisitions Manager of the Administrator. He has

9. Fiesta Inn Guadalajara Expo

This select-service, 158-room hotel is located in the city of Guadalajara, in the State of Jalisco. It is within the most important commercial district of the city, just 25 minutes from the Guadalajara International Airport. Across from the hotel is the famous Expo Guadalajara, and the Plaza del Sol shopping center is just steps away. Its excellent location makes getting to downtown Guadalajara easy. As of Dec. 31, 2013, the number of employees was 63. This hotel was remodeled in 2013.

12 Industry overview

a Bachelor’s Degree in Tourism Business Management from the Universidad Anáhuac del Sur, and a specialization in finance from the Universidad Iberoamericana, as well as a diploma in Hotel Real Estate Invest- % of % of Number of the total Number of the total ments and Asset Management from Cornell Type of hotels hotels number of rooms number of University. His professional experience in- hotels rooms cludes work as a consulting broker in the Affiliated to 271 23% 44,511 35% area of Tourism and Hospitality for Cush- international brands man & Wakefield. Affiliated to Mexican 193 17 % 28,285 22% brands The complete team for the FibraHotel Ad- Independent 690 60% 54,131 43% ministrator is made up of 13 individuals with hotels the following functions, including the senior Total 1,154 100% 126,927 100% management team: Controlling, Treasury, Ad- ministration, Maintenance and Fixed Assets. Accounting is done by an external company (Shared Service Center) that has more than The urban hotel or hospitality industry in Mexico has had a presence 10 years of experience in the hotel industry. in the international market for decades, principally because of the fact that international brands operate in the Mexican market because of the importance of the Mexican tourism industry in the Mexican economy. Commercial and industrial activities in Mexico have also created an important increase in the demand for hotels, which we believe, is not being adequately met. The unmet demand can be seen in the low levels of the hospitality industry’s per-capita penetration in Mexico when compared with more developed markets.

The urban hospitality industry continues to be an expanding market but is quite fragmented, especially when looked at in relation to offer options among less-expensive hotels. A market study by HVS looking at vacation hotels and business hotels shows that the inventory of establishments in the principal markets in Mexico totals 1,495 hotels with 210,141 rooms of which 1,154 hotels and 126,927 rooms are designated to serve the business traveler in 40 select markets across Mexico. Of these 1,154 hotels, 690 are independently owned and 464 belong to hotel brands.

According to the HVS study, today, the Mexican hotel sector has 30 One Aguascalientes hotel groups and more than 60 recognized brands at the national (Camino Real, Fiesta Americana, Quinta Real, Fiesta Inn, One Hotels, Real Inn, City Express) and international (Marriott, Hilton, Holiday Inn, Ibis, Fairfield, Hampton Inn, Courtyard) levels. The most important hotel group in Mexico is the InterContinental Hotels Group with

10. Fiesta Inn Hermosillo

This select-service, 155-room hotel is located in Hermosillo, in the State of Sonora. This property is located within the hotel district, 10 minutes from downtown Hermosillo, and 15 minutes from the city’s international airport. It is nearby the principal business district, as well as the city’s principal industrial corridor, where the Ford assembly plant is located. As of Dec. 31, 2013, the number of employees was 64. 2013

IBRA OTEL Annual Report F H 13 Fiesta Inn Querétaro Fiesta 25% of the total urban branded hotels followed by two Mexican hotel groups, Grupo Posadas with 22% and City Express with 14%.

According to HVS, the urban hospitality industry in Mexico continues to be characterized by a high penetration of independent hotels except in the most important cities such as Mexico City or Mon- terrey. Today, 60% of the sample HVS analyzed is made up of independent hotels (representing 43% of the total number of rooms), while in the Unit- ed States it is estimated that the total inventory of branded hotels economy and caused a dip in hotel occupancy makes up approximately 65% of total inventory, and up to 70% / nationwide, the outbreak of the H1N1 virus 80% in the principal urban and industrial centers. Moreover, the in the second quarter of 2009 (which sig- Mexican hotel market has a limited number of owners with signifi- nificantly impacted the aviation and tourism cant portfolios. Many of them are franchise operators and in general sector), and the bankruptcy of Grupo Mexi- terms, the hotel market is relatively fragmented. cana de Aviación in 2010, (one of the most important airlines in Mexico) which had an impact on hotel occupancy and rates. As a result of these successive events that negatively impacted the hotel industry in Mexico, the av- Hotel industry trends in Mexico erage daily rate (ADR) is lower in Mexico than Consideration must be paid to the relation that exists between overall it is in U.S. or Brazil: economic activity in Mexico and the evolution of the urban hospitality industry. The established trend in recent years in terms of direct • Limited service hotels ADR: US $49.4 in foreign investment is of particular importance as it directly impacts Mexico vs. US $79.3 in the U.S. (60% the development of regional markets in distinct parts of the country. higher than Mexico) and US $82.0 in Bra- This phenomenon, among others, drives growth in the sector as well zil (67% higher than in Mexico). as the transition to greater participation of hotel industry offerings by international brands. In the case of both national and international ho- • Select service hotels ADR: US $92.0 in tel groups that principally target the business traveler, there is a clear Mexico vs. US $108.9 in the U.S. (18% interest in increasing their presence not only in the principal urban cen- higher than in Mexico) and US $128.0 in ters in Mexico but as well in cities where economic activity centers on Brazil (39% higher than in Mexico). industry, and FibraHotel continues to be a catalyst of this trend. For example, the recent reforms in the energy sector could increase demand According to a Jones Lang LaSalle study, in the petroleum regions of the Gulf of Mexico, which would increase the Mexican economy for various years now demand for business occupancy, and FibraHotel is looking to acquire has been maturing and transitioning to a and develop hotels in order to capitalize on this opportunity. services economy. For example, 30 years ago the services sector represented a third In recent years, the hotel industry in Mexico has been affected by a of GDP while in 2010 the sector had grown diversity of internal and external factors, including: the financial cri- to approximately 62% of GDP. Various fac- sis in the U.S. in 2008-2009 which negatively impacted the Mexican tors are driving these changes including

11. Fiesta Inn León

This select-service, 160-room hotel is located in the city of León, in the State of Guanajuato. This hotel is adjacent to the CentroMax shopping center, offering access to various entertainment options. It is five minutes from La Plaza del Zapato, which is recognized as the most important exposition center for the national footwear industry, and five minutes from the city’s Historic Center. As of Dec. 31, 2013, the number of employees was 70.

14 Market Opportunity the NAFTA trade agreement, important FibraHotel is in an excellent position as an investment vehicle that is ca- improvements in Mexican infrastructure, pable of offering investors a growth platform for value creation. Since macroeconomic policies, the stable growth FibraHotel is a hotel owner only, it offers attractive opportunities for of the middle class (it is estimated that synergy with partners in the market such as international hotel compa- 17% of the population moved into the mid- nies, hotel operators and other participants in the real estate market dle class between 2000 and 2010), and an in Mexico. The hotel market offers interesting and sustainable growth important growth in the national and inter- opportunities for both FibraHotel and its CBFI holders as a result of national tourism sectors. trends in the hospitality industry in Mexico and our ability to execute on strategy. In accordance with the Jones Lang LaSalle study which included the analysis of more Moreover, FibraHotel is capable of continuing to take advantage of than 200 investment projects in Mexico these opportunities thanks to the experience of its Advisor, its man- totaling more than $135 billion U.S. dol- agement team, its relations with the hotel industry in Mexico and lars, the Mexican economy is maturing and the advantage of being a Lodging REIT that is listed on the Mexican transitioning to a services economy which Stock Exchange with access to capital and fiscal benefits for future historically has produced more hotel occu- assets contributors. pancy demand. Therefore, robust growth in the hotel industry in Mexico is expected in The competitive advantages FibraHotel offers and the strategies it is the coming years. In 2012, there were ap- implementing and intends to continue implementing will permit it to proximately 315,000 quality hotel rooms in differentiate itself with other competitors in Mexico and will strength- Mexico (2.7 rooms for every 1,000 inhab- en its goal of building a hotel portfolio of the finest quality in Mexico. itants) and this number is expected to reach 506,000 in 2022 (four rooms per 1,000 inhabitants) which represents a growth of 191,600 rooms. For the markets that are of

the most importance to FibraHotel, the ex- Inn Oaxaca Fiesta pected increase is as follows: (i) large cities will add 13,588 rooms (from 21,577 rooms in 2012 to 37,288 in 2022), (ii) secondary cities will add 17,237 rooms (from 30,329 rooms in 2012 to 48,106 in 2022) and (iii) tertiary cities will add 28,814 rooms (from 45,956 rooms in 2012 to 74,770 in 2022).

As a result of good economic conditions and favorable hotel offerings in Mexico, demand levels should increase and a gradual increase in average rates could be produced thanks to consolidation of demand trends, such as in 2013 when room rates in our portfolio (at comparable perimeter) tended to increase above the inflation rate.

12. Fiesta Inn Mexicali

This select-service, 150-room hotel is located in the city of Mexicali, in the State of Baja California. It is located just steps from the Civic Center, and nearby both the bullfighting ring and the “Plaza de los Tres Poderes.” This hotel is just 20 minutes from the Mexicali International Airport, and only five minutes from the United States border. As of Dec. 31, 2013, the number of employees was 62. 2013

IBRA OTEL Annual Report F H 15 FibraHotel’s

Strategy FibraHotel’s Competitive Strengths FibraHotel has the following competitive strengths: Leader in the market with a portfolio of high-

Fiesta Americana Aguascalientes Americana Fiesta quality hotels that includes multiple brands and operators, geographically diversified and difficult to replicate. FibraHotel has the largest high- quality portfolio of hotels in the limited-service, select-service, and full-service market segments for business customers in Mexico. The hotels are focused on serving business travelers and the hotels operate in attractive segments in the hotel industry in Mexico characterized not only by their potential to generate attractive returns on invested capital but also by the opportunity to enjoy important growth as a result of the unsatisfied demand for these types of facilities in Mexico. FibraHotel hopes to diversify its portfolio with the acquisition and development of new hotels. FibraHotel hotels are associated with recognized brands, such as Fiesta Americana, Fiesta Inn, Fiesta Inn Lofts, Gamma by Fiesta Inn, One Hotels, Camino Real, Camino Real Hotel & Suites, Real Inn and Fairfield Inn and in the future with other Marriott International brands (Courtyard by Marriott, AC by Marriott…) as well as other operators which will provide important advantages. Demand will further be generated by the quality of service, loyalty programs, reservation systems and national distribution channels.

FibraHotel hotels are located principally in markets characterized by significant industrial and business activates which generate considerable demand for hotel services oriented to the business traveler. FibraHotel hotels are also located in strategic locations with distinct barriers to entry, including within or near malls, airports, and/or industrial parks generally characterized by their location in areas with a shortage of buildable land for development. These strategic locations are not easy to replicate and they provide guests with access to a wide range of complementary services, which improve the guest experience.

13. Fiesta Inn Monclova

This select-service, 121-room hotel is located in the city of Monclova, in the State of Coahuila. This hotel is located along the main avenue, Harold R. Rape Avenue. It is five minutes from the international airport, 10 minutes from the city’s business district, and nearby the entrances to highways travelling to Saltillo, Monterrery, Torreón, and Piedras Negras. As of Dec. 31, 2013, the number of employees was 66.

16 Solid relations of the management team provides great flexibility and makes it possible to take advantage of a and the Control Group provide wide ac- break-even point which is relatively low. An open architecture policy cess to investment opportunities. The Fi- allows FibraHotel to associate itself with hotel operating companies braHotel management directors have wide and hotel brands as are convenient for each hotel and circumstance. experience in the acquisition, development, Hotels being developed have been and will continue to be developed financing, renovation, repositioning, redevel- based on architectural plans that seek to maximize the use of space opment and management of hotels. The team that generates income and minimizes the both construction and op- has deep knowledge of the real estate mar- erating costs. FibraHotel is committed to rigorously managing its as- ket in Mexico and has created and maintains a sets for improved operational returns. For example, rigorous manage- wide network of contacts in the hotel industry, ment of assets means the proactive monitoring and evaluation of the including long-term relationships with hotel hotel operating companies, and all aspects of the hotels’ operations owners, hotel operating companies, hotel bro- including positioning and repositioning of real estate assets, analysis kers and other key market participants such as of operations, physical design, renovations and fundamental improve- the most important real estate developers in ments. As a result of the aforementioned, FibraHotel has developed Mexico (malls, offices, industrial parks…). As an operating model that is efficient and that provides a substantial a result of these significant relationships, the operating leverage in a variety of market conditions and cycles. Fi- management team has identified and evalu- braHotel considers that there exists a potential to increase RevPAR, ated and will continue to identify and evaluate principally ADR, which with operating leverage will help to increase numerous potential acquisition and develop- the profitability of the FibraHotel portfolio as economic conditions ment opportunities for continuing to grow the improve in Mexico. FibraHotel can also and will also continue to in- FibraHotel portfolio. crease RevPAR and profit margins in the future as more hotels are added to the operating platform. The solid relationships the management team has with hotel operating companies gives The advantage of being first with a strong balance sheet FibraHotel valuable knowledge related to overall and access to capital. FibraHotel was the first Lodging branding and opens access to numerous de- REIT listed on the Mexican Stock Exchange and is considered velopment and attractive acquisition oppor- the best-positioned investment vehicle for growing a portfolio of tunities of which many may not be available business hotels. As a company that is listed on the Mexican Stock to competitors. It should also be mentioned Exchange, FibraHotel has and will have better access to capital and that through its relationship with Grupo GDI, the opportunity to issue CBFIs to possible sellers in exchange for FibraHotel has access to potential acquisition their properties, providing them with an additional liquid option and development project opportunities. that is tax efficient. As of Dec. 31, 2013, FibraHotel has a solid cash position and no debt. As a result, together with a solid asset Asset ownership based upon an efficient base, FibraHotel has and will have the capacity to incur debt and aligned operating model. A key element in a conservative manner and without surpassing its debt limits, in FibraHotel’s strategy is signing contracts which will permit it to take advantage of favorable development, with hotel operators who are paid predomi- acquisition and investment opportunities. As a result of the stable nantly variable commissions based upon the presence of FibraHotel in the Mexican hotel market, its advantage gross operating profits which results in align- as a forerunner in the market, its scale of operations, the high ing FibraHotel’s interests with the interests of quality of its portfolio and its solid financial situation, FibraHotel the hotel operating companies and minimizes believes it is well positioned to take advantage of the acquisitions costs and expenses in down cycles which and development opportunities that exist in the highly fragmented

14. Fiesta Inn Monterrey La Fe / Airport

This select-service, 161-room hotel is located in the municipality of San Nicolás de los Garza, Monterrey, In the State of Nuevo León. It is located along Highway Miguel Alemán nearby the area’s principal industrial parks, just seven minutes from the Monterrey In- ternational Airport, and two minutes from the La Fe shopping center. As of Dec. 31, 2013, the number of employees was 73. 2013

IBRA OTEL Annual Report F H 17 FibraHotel’s Strategy hotel industry in Mexico and to associate itself with the largest The goal of FibraHotel is to generate attrac- hotel operators that are looking for an institutional equity partner. tive risk-adjusted returns for its holders (owners of the CBFIs) principally through distribu- Solid growth trajectory. The FibraHotel management team has a solid tion of the net taxable income as determined growth trajectory. From 1994 to the date of the FibraHotel’s IPO (Nov. by the Technical Committee and through the 30, 2012) Grupo GDI increased its operations portfolio from 1 to 17 CBFI’s capital appreciation (for the year 2013, hotels and from 123 to 2,321 rooms mainly through the development FibraHotel distributed MXN $338 million to of properties. Grupo GDI’s growth was possible through the disciplined holders). FibraHotel’s plan is to achieve this use of resources and limited access to capital during various market goal by the ownership, expansion and efficient cycles in the hotel industry. Additionally, since the initial IPO the Fibra- operation of a portfolio of high-quality hotels Hotel portfolio has grown from 17 hotels and 2,321 rooms in opera- of distinct brands that is geographically di- tion to 47 hotels and 6,666 rooms in operation up to the date of this versified and operated by independent and Annual Report. prestigious hotel operators in all of Mexico and that can generate attractive investment Alignment of long-term interests with the Control Group and returns and generate increased value over the management team. Relations between FibraHotel, its Advisor and long term through the efficient management Grupo GDI are structured in a manner such that all of their interests of assets. FibraHotel intends to achieve this are closely aligned. In conformance with the Trust Contract and the objective by way of the following investment Adherence Contracts, the Relevant Adherent Trustors have agreed to and development strategies: authorize preferential rights for acquiring any hospitality investment opportunity in the future generated by any of them, in the manner that such opportunity substantially comply with all of the established

investment eligibility requirements contained in the trust contract, One Acapulco as long as the Control Trust is the beneficiary of at least 15% of the CBFIs in circulation. CBFIs that are owned by the relevant directors of Grupo GDI, outside Advisor executives and the CBFIs of certain members of our Technical Committee that were received as part of the initial operations, were transferred to a Control Trust and are subject to certain restrictions on their sale or transfer. FibraHotel believes that the important capital participation by the Advisor executives and the Relevant Adherent Trustors, restrictions on the sale of said CBFIs which are applied to the Advisor executives and the Rel- evant Adherent Trustors, and the pre-emptive rights over investment opportunities generated by the Relevant Adherent Trustors and the Work Contract, together, create a long-term alignment of FibraHotel’s interests, those of its Advisor, and Grupo GDI’s.

15. Fiesta Inn Naucalpan

This select-service, 119-room hotel is located in the municipality of Naucalpan, in the State of Mexico. It is located at the intersection of Gustavo Baz Avenue and Periférico Norte, just steps from the Naucalpan District Council, and nearby one of the most important industrial corridors of Mexico City. Nearby attractions include shopping centers like City Shops, Mundo E, and Plaza Satélite, and an important convention center. As of Dec. 31, 2013, the number of employees was 58. This hotel was fully remodeled in 2013.

18 Grow and consolidate the market for limited-, select-, full- and extended-stay hotels

. FibraHotel plans to continue growing in Inn Morelia Real large and mature markets as well as in markets characterized by strong industrial and commercial activities through the acquisition and development of hotel assets. FibraHotel’s focus will be on limited-, select-, and extended- stay hotels as well as full-service hotels that serve the business traveler in markets where there is significant business and industrial activity. In this sense, FibraHotel plans to invest in strategic locations that offer a convenient alternative to the business traveler. FibraHotel also intends to continue to have a presence in strategic locations such as malls, airports and industrial centers, looking to improve Fi- braHotel’s operations platform and maximize actual RevPAR. As well, FibraHotel plans to focus on opportunities where it can improve Look for opportunities using FibraHotel’s unique access to hotel value through proactive investment strategies investment opportunities. Through its relationship with Grupo GDI, such as renovations, repositioning or brand FibraHotel has access to a wide range of possible acquisitions includ- switching as in the case of un-branded or ing preemptive rights with respect to hotel investment opportunities. poorly managed hotels. FibraHotel believes These opportunities, as well as the wide relationships that FibraHotel that, with our wide knowledge of and relation- has established in the hotel industry in Mexico, generate a continual ships within the local industry of its Advisor’s source of attractive investment opportunities outside of the competi- and its management team, it has the ability tive market with which FibraHotel can grow its portfolio in a disciplined to secure opportunities with independent and manner and increase value its CBFIs’ holders. The use of independent smaller hotel owners as well as with hotel own- hotel operating companies provides FibraHotel with access to invest- ers who are looking to transfer ownership of ment opportunities since, as these companies guide FibraHotel to pos- the their hotels. FibraHotel believes that with sible investments, the companies have the expectation that they may disciplined growth focused on building value receive the operating contract if FibraHotel acquires a hotel. for its CBFI holders, its portfolio can grow to 100 hotels in the medium term. Take advantage of organic growth opportunities. FibraHotel believes that it can and will be able to take advantage of organic growth opportunities since:

i) its focus is on the business traveler and the strategic location of its hotels in business and industrial centers which will permit it to participate in the growth of the Mexican economy;

16. Fiesta Inn Nuevo Laredo

This select-service, 120-room hotel is located in Nuevo Laredo, in the State of Tamau- lipas. Nuevo Laredo is a border city, and is characterized by a significant flow of business travelers crossing the international border. This property is located along the most important avenue of the city, Avenue Reforma, just 15 minutes from the Nuevo Laredo- Laredo border crossing. As of Dec. 31, 2013, the number of employees was 45. 2013

IBRA OTEL Annual Report F H 19 ii) it will continue to apply its efficient operating platform and the ture policy. Opportunities for investing in the disciplined management of the assets in its portfolio and any ac- hotels will also be reviewed on a regular basis quisition or development that it carries out; and with the goal of improving their quality and iii) its larger size as a result of its hotel acquisitions gives it the advan- attractiveness, increasing their value over the tage of looking for ways to improve operating margins at the hotels long run and generating attractive returns on in its portfolio. investment. A rigorous focus on the management of the hotel assets will also be applied to FibraHotel believes that there is an opportunity to increase RevPAR at hotels acquired in the future. its hotels. In 2013, based on a parameter of properties comparable of 30 hotels, the RevPAR was MXN $574, representing a 5.6% increase Association with leading hotel brands and over 2012 (MXN $543), compared with an inflation rate of 3.9%. Posi- hotel operating companies. The use of top- tive trends in the Mexican manufacturing sector together with structur- of-the-line hotel brands and leading hotel al reforms being carried in Mexico are making the country an attractive operating companies such as Grupo Posadas, target for investment in manufacturing and capital-intensive industry. Grupo Real Turismo and in the near future With the lowering of risk in the country, a dynamic creation of jobs, with Marriott International, among others, a solidly capitalized banking sector, low leverage in the private sector provides important advantages because and decreases in demographic dependency index, FibraHotel believes these brands and hotel operators enjoy pres- that the Mexican economy is on a path to growth which will result in tige. They have loyalty programs, modern increased demand for hotel services for business travelers. Moreover, reservation systems, effective segmentation proposed structural reforms can provide stimulus to the Mexican econ- of products, national distribution and a clear omy, which can be capitalized on. understanding of guests’ needs that stimu- lates demand and can result in higher occu- It could and will increase the operating efficiency of the acquired hotels pancy rates, and higher ADR and RevPAR. As as they are integrated into the platform. Operating efficiencies include a result of our open architecture strategy, we operating under hotel management contracts structured with variable can create relationships with the hotel oper- commissions, disciplined management of assets and an open architec- ating companies that are best suited to each hotel and circumstance.

The strong relationships that the Advisor’s management team has with the principal hotel operating companies, together with the management team’s more than 20 years of experience will fa- cilitate the ability to work ef- ficiently with the operating companies, and will provide valuable knowledge related to brand initiatives as well as provide access to acquisition and development opportunities, many of which will not be available to competitors.

17. Fiesta Inn Oaxaca

This select-service, 145-room hotel is located in the city of Oaxaca, in the State of Oax- aca. It is located in the most developed commercial district of the city, across from the Plaza del Valle and Plaza Oaxaca shopping centers, nearby main tourist attractions like the temple of Santo Domingo de la Soledad, and the cathedral. The hotel is 15 minutes from the city’s Historic Center, and ten minutes from Benito Juárez Airport. As of Dec. 31, 2013, the number of employees was 79.

20 Real Inn Guadalajara Real

Wide experience for growth in hotel development in Mexico. The important growth in Acquisitions hotel demand in Mexico during the coming A central part of FibraHotel’s growth is based on a proven strategy of years will create attractive opportunities for acquiring operating hotels and incorporating them into the portfolio, developing hotels targeting the business trav- and that they add value for the holders, increasing distributions over eler in strategic locations that are difficult to the long term. The acquisitions strategy is based on a disciplined replicate such as mixed-use projects and malls approach to acquiring high-quality hotels in strategic locations at that will diversify FibraHotel’s portfolio, always the right price, and hotels that generate adequate cash flow (cap looking to maximize the holder’s long-term re- rate) and can be repositioned at the right cost (cost per key). All turn on investment. FibraHotel will be able to acquisitions are internally evaluated to ensure that they add value to capitalize on this opportunity because its Ad- holders. FibraHotel looks for hotels that are not only established but visor and management team have wide experi- that can be integrated into the platform under the arrangement of ence in the development of hotels serving the predominantly variable commissions, as well as independent hotels of business traveler in Mexico. Additionally, the high real estate value in which the opportunity to reposition them un- cost per key for FibraHotel to develop hotels der new branding can be identified and transferred to a professional are highly competitive. FibraHotel uses inde- operator in order maximize cash flow and be added to the portfolio. pendent companies for the construction and development of its hotels, eliminating con- FibraHotel has a development group that is continually generating flicts of interest and maximizing its ability to a pipeline of opportunities that comply with its investment require- develop different hotels throughout Mexico ments. FibraHotel enjoys a unique position in its ability to take advan- while at the same time strategically maintain- tage of these opportunities given the relationships its management ing the structure and supervision of its hotel team and Advisor have with participants in the hotel industry and projects. This combination of factors helps the real estate industry in Mexico. FibraHotel looks for high-quality to ensure that projects are more profitable, business hotels in strategic locations throughout the country that starting from the selection of the most ad- complement FibraHotel’s portfolio and generate value for holders. An vantageous sites for each project to the best internal acquisitions committee analyzes all investment alternatives brands and operators, and hotel size including and alternatives are updated based upon executive management’s space allocated to rooms and amenities. All of different negotiations. Only opportunities that increase value over the developments are focused on succeeding the long term are selected. FibraHotel believes it has a sustainable at maximizing the return on investment for the acquisitions strategy that will allow it to capitalize on opportunities CBFI holders and diversifying the FibraHotel as business cycles change and that is sustainable and will succeed at portfolio over the long term. growing with the acquisition of hotels.

18. Fiesta Inn Perinorte

This select-service, 123-room hotel is located in Mexico City. This property is located along the México-Queré- taro Highway, one of the city’s principal highways, nearby the industrial corridors of Tultitlan, Cuautitlán, and Tepotzotlán, and the Ford automotive plant. This property is located within a shopping center with a cinema and café. This hotel is nearby shopping centers like Perinorte, Premium Outlets, City Shops, Mundo E, and Plaza Satélite, and 25 minutes from the Mexico City International Airport via the new Circuito Exterior Mexiquense highway. Leased component included. As of Dec. 31, 2013, the number of employees was 60. 2013

IBRA OTEL Annual Report F H 21 Developments FibraHotel looks to develop hotels serving business The process of developing a new hotel begins with identi- guests in strategic locations, principally at iconic devel- fying strategic locations and large mixed-use projects that opment sites and mixed-use highly dynamic commercial are being developed. Once the location has been selected, centers that will maximize the return on investment in the a market study is undertaken to evaluate the hotel project long term. The development strategy complements the in order define the hotel service segment, its size, the ap- acquisitions strategy. In situations where all things are propriate amenities and the different branding and oper- equal, FibraHotel gives preference to the acquisition of ating company options. The development of new hotels operating hotels over new hotel developments. However, helps to diversify the portfolio with the growth of brands it continues to develop hotels in situations in which it of international operators with hotels that are built to fit provides entry to a commercial center where acquisition needs based on the requirements of the brands. The Ad- would be expensive in terms of repositioning the hotel. visor and FibraHotel’s management team have wide expe- FibraHotel develops hotels when it provides the best re- rience in hotel development and based upon the current turn on investment and when a new development is lo- number of hotels in the portfolio, they are achieving at- cated in a mixed-use project with competitive advantages tractive turnkey costs and maintaining general supervision over the alternatives. and hotel project structuring.

As of the date of this Annual Report, the portfolio of hotels in development by FibraHotel consists of the following:

Hotel Descripción

1. Cancun Extended-Stay 74-room extended-stay hotel. Located in the Malecón Américas Cancún shopping mall. Construction of the building is complete. Selection of the best operator and branding is underway. 2. Monclova: Fiesta Inn Project with a mixture of 66 limited-service rooms (One Hotels) and 39 extended-stay rooms (Fiesta Lofts / One Inn Lofts). The project is located next to the Hotel Fiesta Inn and is on schedule for opening in the third quarter of 2014. 3. Fiesta Inn Lofts 45-room extended-stay hotel. This hotel will share common areas with the recently renovated Fiesta Inn Queretaro Queretaro hotel, and will be developed in the existing parking lot. The hotel construction began in May 2014 and is estimated to start operating during the fourth quarter of 2014. 4. Fairfield Inn & Suites Limited-service hotel with 135 rooms, which will be operated by Marriott International. The project is in Villahermosa the permitting and licensing stage. The start of construction is planned for the second quarter of 2014 and the opening of the hotel for the first quarter of 2015. 5. and 6. Ciudad del Carmen: A limited-service hotel, Courtyard by Marriott with 130 rooms, and an extended-stay hotel, Fiesta Inn Lofts Courtyard by Marriott with 124 rooms, built on the same building. Both hotels are part of a mixed use project with offices and mall / Fiesta Inn Lofts and the estimated opening is during the first semester of 2015. 7. and 8. Trebol Monterrey: Two, full-service hotels: Fiesta Americana Grand with 180 rooms and Live Aqua with 46 rooms. The Live Aqua / Fiesta hotels are part of the Trebol Monterrey mixed-use development. Both hotels will be operated by Americana Grand Grupo Posadas and will open together with the project in the fourth quarter of 2015. Construction is underway on both towers. 9. and 10. Vía Vallejo: Courtyard Two, select-service hotels: Courtyard by Marriott with 93 rooms and Fairfield Inn & Suites with by Marriott / Fairfield 152 rooms, both built in the same building. Both hotels will be operated by Marriott International Inn & Suites and are part of the Vía Vallejo project (Mexico City). The opening date for both the hotels and the project is planned for the third quarter of 2015. The project is currently at the stage of foundation construction for the shopping mall. 11. Hotel in Toluca The lot is located adjacent to the Hotel Fiesta Inn Toluca Tollocan. Plans currently call for the hotels to Tollocan be either one extended-stay and/or one limited-service hotel. The market is being evaluated to determine the optimal date for opening. 19. Fiesta Inn Perisur

This select-service, 212-room hotel is located in Mexico City. It is next to Gran Sur, one of the most frequented shopping centers in Mexico City, and nearby universities, hospi- tals, and Perisur, one of the city’s most prestigious shopping centers. It is the only hotel on the final stretch of Periférico Sur. As of Dec. 31, 2013, the number of employees was 105. Hotel is leased as of the date of this Annual Report.

22 All FibraHotel developments are put out to bid and built by mits projects to be carried out simultaneously. Generally independent contractors who aren’t associated with Fibra- speaking, hotels under development have a construction Hotel or its Advisor. Each project looks for the best-cost period of between nine and 12 months after permits and alternatives, experience and ability to carry out the proj- licenses are secured. Once open, the hotels go through a ect. The strategy is to use different developers, which per- stabilization period of between six and 18 months.

As of the date of this Annual Report, FibraHotel has invested MXN $346 million with respect to these 11 properties:

Cost for FibraHotel (MXN $ mill.) Rooms in Hotel State Opening Date construction Total Spent Remaining 1 – Cancun Extended-Stay Quintana Roo 2014 74 130.0 94.9 35.1 2 – Fiesta Inn Lofts / One Monclova Coahuila Q4 2014 105 100.0 21.0 79.0 3 – Fiesta Inn Lofts Queretaro Querétaro Q4 2014 45 45 - 45 4 – Fairfield Inn & Suites Villahermosa Tabasco Q1 2015 135 110.0 12.6 97. 4 5 – Courtyard Ciudad del Carmen Campeche H1 2015 130 255.6 30 225.6 6 – Fiesta Inn Lofts Ciudad del Carmen Campeche H1 2015 124 230.0 34.9 195.1 7 – Fiesta Americana Grand Monterrey Nuevo León Q4 2015 18 0 600.0 144.3 455.7 600.0 144.3 455.7 8 – Liva Aqua Monterrey Nuevo León Q4 2015 46 9 – Courtyard Vallejo México DF Q4 2015 93 230.0 34.9 195.1 230.0 34.9 195.1 10 – Fairfield Inn & Suites Vallejo México DF Q4 2015 152 11 – Hotel in Toluca Tollocan Estado de México TBD 10 0 TBD 8.2 TBD TOTA L 1,184 1,470.6 345.9 1,124.7 Fairfield Inn & Suites Vallejo Inn & Suites Fairfield Fairfield Inn & Suites Villahermosa Inn & Suites Fairfield One Monclova Trebol Monterrey: Live Aqua / Fiesta Americana Grand Americana / Fiesta Aqua Live Monterrey: Trebol Fiesta Inn Loft / Fiesta

20. Fiesta Inn Puebla FINSA

This select-service, 123-room hotel is located in the City of Puebla, in the State of Puebla. Its location is five minutes from FINSA industrial park, which houses major automotive companies. It is nearby the México-Puebla highway at the main entrance to Hermanos Serdán Boulevard. This hotel is 20 minutes from the city center, and 15 minutes from important shopping centers. As of Dec. 31, 2013, the number of employees was 64. 2013

IBRA OTEL Annual Report F H 23 FibraHotel Real Inn Guadalajara Real Portfolio

21. Fiesta Inn Querétaro

This select-service, 175-room hotel is located in the city of Querétaro, in the State of Querétaro. It is located in the city’s principal commercial district, ten minutes from the most important industrial parks, ten minutes from downtown, and 40 minutes from the international airport. As of Dec. 31, 2013, the number of employees was 103. This hotel was fully remodeled in 2013.

24 Presentation of the FibraHotel Portfolio FibraHotel began 2013 with 22 hotels and • Opened the Camino Real Hotel & Suites Puebla (149 rooms) which 2,956 rooms, of which: was part of the Development Portfolio. • Acquired four hotel projects under development (434 rooms). • 18 hotels (2,467 rooms) are being operated. As of the date of this Annual Report, FibraHotel had 58 hotels and • Four hotels (489 rooms) are in various 7,886 rooms, of which: stages of development. • 47 hotels (6,666 rooms are in operation and 36 rooms are to be Throughout 2013, FibraHotel increased the added) in operation. number of hotels in operation and projects in • 11 hotels (1,184 rooms) are in various stages of development. development thanks to: As of the date of this Annual Report, FibraHotel has a well-diversified • The acquisition of 14 hotels (2,050 rooms) portfolio within the Mexican Republic with a presence in 24 states and to Grupo Posadas. the three most important hotels in terms of number of rooms (Fiesta • The acquisition of five hotels (749 rooms) Inn Perisur, Real Inn Guadalajara and Fiesta Americana Aguascalientes) to other hotel owners. represent 9.0% of the total number of rooms in operation. • The opening of two hotels (281 rooms) in the Development Portfolio. The distribution of the operating hotels in the portfolio was the following: • The acquisition of six hotel development projects (676 rooms) under construction SEGMENT Hotels Rooms and an increased inventory of rooms at the Camino Real Hotel & Suites Puebla (15 rooms). # % # % Limited-Service 12 25.5% 1,495 22.4% FibraHotel began 2013 with 47 hotels and 6,446 rooms, of which: Select-Service 32 68.1% 4,677 70.2% Full-Service 2 4.3% 345 5.2% • 39 hotels (5,547 rooms) are being operated. Extended-Stay 1 2.1% 149 2.2% • eight hotels (899 rooms) are in various TOTA L 47 100.0% 6,666 100.0% stages of development.

Between January 2014 and the date of this REGION Annual Report, FibraHotel: Hotels Rooms

• Acquired seven operating hotels, Fiesta # % # % Americana Aguascalientes, Fiesta Inn Xa- lapa, One Xalapa, Fiesta Inn Ciudad Ob- Center and South 26 55.3% 3,657 54.9% regón, Fussion 5 León, Valle Grande Ciu- Northeast 5 10.6% 677 10.2% dad Obregón and Fairfield Inn Los Cabos Northwest 12 25.5% 1,712 25.7% (970 rooms in operation and 36 rooms to be added). West 4 8.5% 620 9.3% TOTA L 47 100.0% 6,666 100.0%

22. Fiesta Inn Saltillo

This select-service, 149-room hotel is located in the city of Saltillo, in the State of Coahuila. Its location is just 10 minutes from the Saltillo International Airport, nearby the city center. It offers easy access to the Ramos Arizpe industrial zone. As of Dec. 31, 2013, the number of employees was 63.

2013

IBRA OTEL Annual Report F H 25 The following table and graphics show the evolution of the FibraHotel portfolio between the fourth quarter of 2012 and the date of this Annual Report: FIBRAHOTEL PORTFOLIO IN Number of rooms at end of quarter OPERATION Date FIESTA INN / GAMMA Acquisition 4Q 1Q 2Q 3Q 4Q % of Num. of of the BY FIESTA INN rooms Date 2012 2013 2013 2013 2013 rooms Report 1 Fiesta Inn Aguascalientes 125 Acquisition IPO 1/21/13 125 125 125 125 125 1.9% 2 Fiesta Inn Ciudad Juárez 166 Acquisition IPO 1/21/13 166 166 166 166 166 2.5% 3 Fiesta Inn Ciudad Obregón 123 Acquisition Post IPO 4/7/14 123 1.8% 4 Fiesta Inn Chihuahua 152 Acquisition IPO 1/21/13 152 152 152 152 152 2.3% 5 Fiesta Inn Culiacán 142 Contribution IPO 12/1/12 142 142 142 142 142 142 2.1% 6 Fiesta Inn Durango 138 Contribution IPO 12/1/12 138 138 138 138 138 138 2.1% 7 Fiesta Inn Guadalajara 158 Acquisition IPO 1/21/13 158 158 158 158 158 2.4% 8 Fiesta Inn Hermosillo 155 Contribution IPO 12/1/12 155 155 155 155 155 155 2.3% 9 Fiesta Inn León 160 Acquisition IPO 1/21/13 160 160 160 160 160 2.4% 10 Fiesta Inn Mexicali 150 Acquisition IPO 1/21/13 150 150 150 150 150 2.3% 11 Fiesta Inn Monclova 121 Acquisition IPO 2/28/13 121 121 121 121 121 1.8% 12 Fiesta Inn Monterrey 161 Acquisition IPO 1/21/13 161 161 161 161 161 2.4% 13 Fiesta Inn Naucalpan 119 Contribution IPO 12/1/12 119 119 119 119 119 119 1.8% 14 Fiesta Inn Nuevo Laredo 120 Contribution IPO 12/1/12 120 120 120 120 120 120 1.8% 15 Fiesta Inn Oaxaca 145 Acquisition Post IPO 7/5/13 145 145 145 2.2% 16 Fiesta Inn Perinorte 123 Contribution IPO 12/1/12 123 123 123 123 123 123 1.8% 17 Fiesta Inn Puebla FINSA 123 Acquisition Post IPO 7/3/13 123 123 123 1.8% 18 Fiesta Inn Querétaro 175 Acquisition IPO 1/21/13 175 175 175 175 175 2.6% 19 Fiesta Inn Saltillo 149 Acquisition IPO 1/21/13 149 149 149 149 149 2.2% 20 Fiesta Inn Tepic 139 Contribution IPO 12/1/12 139 139 139 139 139 139 2.1% 21 Fiesta Inn Tlalnepantla 131 Acquisition Post IPO 6/24/13 131 131 131 131 2.0% 22 Fiesta Inn Torreón 146 Acquisition IPO 12/19/12 146 146 146 146 146 146 2.2% 23 Fiesta Inn Toluca 144 Acquisition Post IPO 4/30/13 144 144 144 144 2.2% 24 Fiesta Inn Xalapa 119 Acquisition Post IPO 3/27/14 119 1.8% 25 Fussion 5 León (Gamma by Fiesta Inn) 165 Acquisition Post IPO 5/22/14 165 2.5% Valle Grande Ciudad Obregón 26 (Gamma by Fiesta Inn) 135 Acquisition Post IPO 5/30/14 135 2.0% Subtotal 3,684 1,082 2,599 2,874 3,142 3,142 3,684 55.3%

REAL INN 27 Real Inn Guadalajara 197 Acquisition Post IPO 8/1/13 197 197 197 3.0% 28 Real Inn Mexicali 158 Acquisition Post IPO 7/1/13 158 158 158 2.4% 29 Real Inn Morelia 155 Development IPO 3/1/13 155 155 155 155 155 2.3% Subtotal 510 - 155 155 510 510 510 7.7%

ONE 30 One Acapulco 126 Contribution IPO 12/1/12 126 126 126 126 126 126 1.9% 31 One Aguascalientes 126 Contribution IPO 12/1/12 126 126 126 126 126 126 1.9% 32 One Coatzacoalcos 126 Contribution IPO 12/1/12 126 126 126 126 126 126 1.9% 33 One Culiacán 119 Contribution IPO 12/1/12 119 119 119 119 119 119 1.8% 34 One Guadalajara Tapatío 126 Development IPO 6/24/13 126 126 126 126 1.9% 35 One Xalapa 108 Acquisition Post IPO 3/27/14 108 1.6% 36 One Monterrey 126 Contribution IPO 12/1/12 126 126 126 126 126 126 1.9% 37 One Puebla FINSA 126 Acquisition Post IPO 7/2/13 126 126 126 1.9% 38 One Querétaro 126 Acquisition IPO 1/21/13 126 126 126 126 126 1.9% 39 One Toluca 126 Contribution IPO 12/1/12 126 126 126 126 126 126 1.9% 40 One Patriotismo 132 Acquisition IPO 1/21/13 132 132 132 132 132 2.0% Subtotal 1,367 749 1,007 1,133 1,259 1,259 1,367 20.5%

MARRIOTT INTERNATIONAL 41 Fairfield Inn Los Cabos 128 Acquisition Post IPO 6/20/14 128 1.9% Subtotal 128 - - - - - 128 1.9%

OTHER 42 Camino Real Puebla 153 Contribution IPO 12/1/12 153 153 153 153 153 153 2.3% 43 Camino Real Hotel & Suites Puebla 149 Development IPO 3/1/14 149 2.2% 44 Fiesta Americana Aguascalientes 192 Acquisition Post IPO 1/14/14 192 2.9% Subtotal 494 153 153 153 153 153 494 7.4%

LEASED HOTELS 45 Fiesta Inn Cuautitlán 128 Contribution IPO 12/1/12 128 128 128 128 128 128 1.9% 46 Fiesta Inn Ecatepec 143 Contribution IPO 12/1/12 143 143 143 143 143 143 2.1% 47 Fiesta Inn Perisur 212 Contribution IPO 12/1/12 212 212 212 212 212 212 3.2% Subtotal 483 483 483 483 483 483 483 7.2%

TOTAL OPERATING 6,666 2,467 4,397 4,798 5,547 5,547 6,666 100.0% ROOMS

TOTAL OPERATING 47 18 31 34 39 39 47 HOTELS

26 FIBRAHOTEL PORTFOLIO IN Number of rooms at end of quarter DEVELOPMENT 4Q 1Q 2Q 3Q 4Q Date Num. of Opening of the % of rooms Date 2012 2013 2013 2013 2013 Report rooms Real Inn Morelia - Opened Development IPO 1/1/13 155 One Tapatío - Opened Development IPO 6/24/13 126 126 Camino Real Hotel & Suites Puebla - Opened Development IPO 3/1/14 134 134 134 149 149 48 Cancún Extended Stay 74 Development IPO 2014 74 74 74 74 74 74 6.1% 49 Fiesta Inn Lofts / One Monclova 105 Acquisition Post IPO 4Q 2014 105 105 8.6% 50 Fiesta Inn Lofts Querétaro 45 Acquisition Post IPO 4Q 2014 45 3.7% 51 Fairfield Inn & Suites Villahermosa 135 Acquisition Post IPO 1Q 2015 135 11.1% 52 Courtyard Ciudad del Carmen 130 Acquisition Post IPO 1H 2015 130 10.7% 53 Fiesta Inn Lofts Ciudad del Carmen 124 Acquisition Post IPO 1H 2015 124 10.2% 54 Courtyard Vallejo 93 Acquisition Post IPO 4Q 2015 93 93 7.6% 55 Fairfield Inn & Suites Vallejo 152 Acquisition Post IPO 4Q 2015 152 152 12.5% Fiesta Americana Grand Monterrey 56 Trebol 180 Acquisition Post IPO 4Q 2015 180 180 14.8%

57 Live Aqua Monterrey Trebol 46 Acquisition Post IPO 4Q 2015 46 46 3.8% 58 Toluca Tollocan Hotel 100 Acquisition Post IPO TBD 126 100 100 100 8.2% One Xalapa / Fiesta Inn Ciudad Obregón expansion 36 Acquisition Post IPO 2H 2014 36 3.0% TOTAL DEVELOPMENT 1,220 489 334 334 323 899 1,220 100.0%

TOTAL PORTFOLIO 7,886 2,956 4,731 5,132 5,870 6,446 7,886 FIBRAHOTEL - ROOMS

PORTAFOLIO TOTAL FIBRAHOTEL - HOTELES 58 22 34 37 +164%42 47 58 22 34 37 42 47 58 Evolution of the number of hotels 11 8 Number of total hotels 3 3 3 Number of hotels in development 4 Number of hotels in operation

18 31 34 39 39 47

4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Date of +167%the report 2,956 4,731 5,132 5,870 6,446 7,886 Evolution of the number of rooms 1,220 Number of total rooms 899 323 334 334

Number of rooms in development 489 Number of rooms in operation

2,467 4,397 4,798 5,547 5,547 6,666

20134Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Date of the report

IBRA OTEL Annual Report F H 27 FibraHotel today has: FibraHotel Portfolio - Map The following graphic shows the distribution of the FibraHotel portfo- 58 hotels lio as of the date of this Annual Report: (47 in operation) 7,886 rooms (6,666 in operation)

12 30 Presence in 24 states1

4 37 14 56 57

3 46 49 13 16

7 22 5 25

47 21 39 50 23 32 1 44 6 11 45 48 35 9 28 18 42 20 43 38 29 27 36 52 53 40 26 58 51 Mexico 24 33 15 8 City 54 31 55 17

(1) Including Mexico City Represents hotels in development.

28 FibraHotel Portfolio in operation 7,886

Hotel # rooms rooms 1 Fiesta Inn Aguascalientes 125 2 Fiesta Inn City of Juárez 166 3 Fiesta Inn City of Obregón 123 (+18) 4 Fiesta Inn Chihuahua 152 5 Fiesta Inn Culiacán 142 6 Fiesta Inn Cuautitlán 128 Rooms by type 7 Fiesta Inn Durango 138 8 Fiesta Inn Ecatepec 143 9 Fiesta Inn Guadalajara 158 10 Fiesta Inn Hermosillo 155 11 Fiesta Inn León 160 15% 12 Fiesta Inn Mexicali 150 13 Fiesta Inn Monclova 121 Development 14 Fiesta Inn Monterrey la Fe / Airport 161 15 Fiesta Inn Naucalpan 119 85% 16 Fiesta Inn Nuevo Laredo 120 17 Fiesta Inn Oaxaca 145 Operation 18 Fiesta Inn Perinorte 123 19 Fiesta Inn Perisur 212 20 Fiesta inn Puebla FINSA 123 21 Fiesta Inn Querétaro 175 22 Fiesta Inn Saltillo 149 23 Fiesta Inn Tepic 139 24 Fiesta Inn Tlalnepantla 131 25 Fiesta Inn Torreón 146 FibraHotel Portfolio in development 26 Fiesta Inn Toluca 144 27 Fiesta Inn Xalapa 119 28 Real Inn Guadalajara Centro 197 29 Real Inn Morelia 155 30 Real Inn Mexicali 158 Hotel # rooms 31 One Acapulco 126 48 Cancún Extended Stay 74 32 One Aguascalientes 126 49 Fiesta Inn Lofts/One Monclova 105 33 One Coatzalcoalcos 126 50 Fiesta Inn Lofts Querétaro 45 34 One Culiacán 119 51 Fairfield Inn & Suites Villahermosa 135 35 One Guadalajara Tapatío 126 52 Courtyard Ciudad del Carmen 130 36 One Xalapa 108 (+18) 53 Fiesta Inn Lofts Ciudad del Carmen 124 37 One Monterrey Airport 126 54 Courtyard Vallejo 93 38 One Puebla FINSA 126 55 Fairfield Inn Vallejo 152 39 One Querétaro Plaza Galerías 126 56 Fiesta Americana Grand Monterrey 180 40 One Toluca Airport 126 57 Live Aqua Monterrey 46 41 One Patriotismo 132 58 Hotel in Toluca 100 42 Camino Real Puebla 153 Sub-total 1,184 43 Camino Real Hotel & Suites Puebla 149 44 Fiesta Americana Aguascalientes 192 45 Fussion 5 León 165 46 Valle Grande Ciudad Obregón 135 47 Fairfield Inn Los Cabos 128 Sub-total 6,666 (+36)

(1) Including Mexico City 2013

IBRA OTEL Annual Report F H 29 FibraHotel Portfolio – Brands and Operators Brand affiliations

The hotels in the FibraHotel portfolio operate under solid, top-notch brands. As of the date of this Annual Report, the hotels were operating under the following brands:

• One Hotels (limited-service), Grupo Posadas • Fiesta Inn (select-service), Grupo Posadas • Fiesta Americana (full-service), Grupo Posadas • Real Inn (select-service), Grupo Real Turismo • Camino Real (full-service), Grupo Real Turismo • Camino Real Hotel & Suites (extended-stay), Grupo Real Turismo • Fairfield Inn (limited-service), Marriott International

The following table shows the brand affiliations of FibraHotel hotels in operation as of the date of this Annual Report: Number of Number of % of hotels % of rooms hotels rooms

One Hotels 11 23.4% 1,367 20.5% Fiesta Inn + Gamma 29 61.7% 4,167 62.5% Fiesta Americana 1 2.1% 192 2.9% Grupo Posadas 41 87.2% 5,726 85.9%

Real Inn 3 6.4% 510 7.7% Camino Real 1 2.1% 153 2.3%

Camino Real Hotel & Suites 1 2.1% 149 2.2% ASÍ ES MI MUNDO DE LOS NEGOCIOS. Grupo Real Turismo 5 10.6% 812 12.2%

Fairfield Inn 1 2.1% 128 1.9% Marriott International 1 2.1% 128 1.9%

ASÍ ES MI MUNDO DE LOS NEGOCIOS. Total FibraHotel 47 100.0% 6,666 100.0%

Hotel operating companies

Grupo Posadas. Grupo Posadas, S.A.B. de C.V. is the largest operator of the hotels in Mexico with respect to the number of hotels, number of rooms, geo- graphic coverage, sales and market penetration. As of Dec. 31, 2013, the com-

23. Fiesta Inn Tepic

This select-service, 139-room hotel is located in the city of Tepic, in the State of Nayarit. It is located in the most dynamic part of the city, just ten minutes from downtown Tepic, and 20 minutes from the Tepic International Airport. This hotel is located within Plaza Fórum, a shopping center offering access to various entertainment options like restaurants, prestigious boutiques, and cinemas. As of Dec. 31, 2013, the number of employees was 54.

30 pany operated 110 hotels and resorts, representing a total of 18,943 rooms at 45 destinations in the U.S. and Mexico and serving a wide base of tourism and business travelers. The company’s business is primarily located in Mexico where it operates 109 hotels with a total of 18,740 rooms at 44 destinations, including the most important cities and beach destinations. The company also has a hotel with 203 rooms in Texas. As of Dec. 31, 2013, of the 110 hotels in operation, the company had a majority ownership in 16, operated 79 and leased 15.

Grupo Real Turismo. Hoteles Camino Real is a Mexican hotel company founded in 1958 by the Banco Nacional de México (Banamex) and a group of private investors. In 1962 it affiliated with Western International Hotels (known afterwards as “Westin”) in order to form the first group of luxury hotels in Mexico with international representa- tion. In 1993, after 30 years of successful operations, the relation with “Westin” ended in June of Operating framework 2000 and the company was acquired by Grupo Empresarial Ángeles and incorporated as Grupo Under FibraHotel’s operating framework, hotels management is Real Turismo. Camino Real is the owner of three as follows: brands: “Quinta Real”, “Camino Real” and “Real Inn.” It operates 37 hotels with approximately • The hotel operating companies are responsible for the fol- 6,475 rooms, including various world-renowned lowing tasks: managing the hotels with their own operations restaurants. It has a presence in 20 states in the teams; establishing annual business plans for the hotels (rev- Republic of Mexico including Mexico City and one enues and costs/expenditures); determining rate policies and hotel in El Paso, Texas. marketing, food and beverage sales strategies as well as for other income; providing the correct preventive maintenance FibraHotel currently has agreements with compa- of major machinery; providing property maintenance; propos- nies that provide with hotel management services ing capital expenditures for maintaining the hotels’ physical and that use their own brands for the hotels that structures in optimal conditions; hiring of personnel for oper- they operate. In the future, besides continuing ating the business units. our association with these services companies, • FibraHotel performs the following tasks: approves the hotels’ FibraHotel hopes to use other leading companies annual business plans; revises the hotels’ financial results; ap- that are authorized to use third parties’ franchise proves capital expenditures for maintaining the physical struc- brands as in the case of Marriott International with ture of the hotels; is responsible for real-estate activities such whom we signed an agreement at the end of 2013 as local property taxes, insurance, etc.; and the funding of the to develop 20 hotels in future years. hotels’ operating costs, among others.

24. Fiesta Inn Tlalnepantla

This select-service, 131-room hotel is located in Mexico City. It is nearby the Tlal- nepantla Executive Center and the Convention Center, and is surrounded by important industrial zones like Atizapán and Vallejo. It also has shopping centers like Mundo E, Plaza Satélite, and Punta Norte nearby. This hotel is 60 minutes from the Mexico City airport, and 30 minutes from the bus station. As of Dec. 31, 2013, the number of employees was 64. 2013

IBRA OTEL Annual Report F H 31 As of the date of this Annual Report, of the 47 hotels in operations in the FibraHotel portfolio:

• 44 hotels were under management contracts with hotel operating companies who operate Inn Querétaro Fiesta the hotels to the benefit of FibraHotel and who provide FibraHotel with the hotels’ monthly operating results. The hotel operating companies receive a variable rate of pay corresponding to a

percentage of1 the operating results for each of the hotels. • Three hotels are under lease to hotel operating companies whom pay FibraHotel a fixed rent (which includes a variable component which depends upon the total income of the hotel) and FibraHotel alone is responsible for the real-estate costs. Property maintenance policy

As the owner of the hotels, FibraHotel looks to maintain the properties in optimal physical conditions and for that reason performs preventive maintenance on them. The internal policy of Fi- braHotel is to reserve 5% of the total revenues of the hotels being managed in reserve in order to pay the capital expenditures (Furniture, Fixtures & Equipment) necessary to maintain the properties and any associated equipment. Operators of hotels are responsible for preparing annual capital expenditures budgets that are validated by Fibra- Hotel and that are then executed during the year.

FibraHotel, on the other hand, periodically visits and inspects the hotels with the goal of certifying their physical condition and to ensure that correct maintenance is being performed on the facilities. The results of these visits are then compared with third-party reports contracted by the hotel operators implementing regularly scheduled reviews of the physical conditions of each business unit.

(1) As of Dec. 31, 2013 the leased hotels are the Fiesta Inn Cuautitlán, Fiesta Inn Culiacán, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla. On Feb. 1, 2014, leasing contracts for Fiesta Inn Culiacán and Camino Real Puebla expired and were automatically switched to hotel operating contracts.

25. Fiesta Inn Torreón Galerías

This select-service, 146-room hotel is located in the city of Torreón, in the State of Coa- huila. This hotel is located within the Galerías Laguna shopping center, offering access to various entertainment options like restaurants, prestigious boutiques, and cinemas. This hotel is five minutes from the Torreón International Airport along the Periférico, with access to entrances for the Matamoros, Saltillo, Durango, and Chihuahua highways. As of Dec. 31, 2013, the number of employees was 70.

32 FibraHotel Portfolio Segments The types of hotels in the FibraHotel portfolio and hotels added to the portfolio through acquisitions or development are described in detail below: Fiesta Americana Aguascalientes Americana Fiesta

Limited-service: Limited-service hotels offer service that is convenient but don’t tradi- tionally have bars, restaurants or conference or meeting rooms. They don’t offer additional services but in recent years the trend has been for this class of hotels to offer a mixture of services including business centers, gyms, pools and a limited selection of food (breakfast included) and limited space for meetings.

As of the date of this Annual Report, Fibra- Full-service: These hotels have a robust offering of food and bever- Hotel has 12 limited-service hotels in op- age with various locations for consumption (restaurants, bars), meet- eration representing 1,495 rooms (approxi- ing rooms and conference rooms for social and business events that mately 22.4% of all rooms in operation), can accommodate more than 500 people, and additional services being operated by Grupo Posadas under the related with full-service hotel offerings, such as: spas, room service “One Hotels” brand and one operated under for much of the day and night, valet parking, concierge, bell hops, and the Fairfield Inn brand. roomier public areas.

Select-service: These hotels provide certain As of the date of this Annual Report, FibraHotel had two full-service additional services beyond that provided by hotels in operation representing 345 rooms (approximately 5.2% of limited-service hotels, including food and bev- all rooms in operation) operated by Grupo Real Turismo under the erages, restaurants, bars, 24-hour room service, “Camino Real” brand and by Grupo Posadas under the “Fiesta Ameri- rooms for special events and business meetings cana” brand. as well as additional in-room services. Extended-Stay: The hotels in this segment have one- or two-bedroom As of the date of this Annual Report, Fibra- suites, each with a complete kitchen and a dining and work area. Among Hotel had 32 select-service hotels in op- the services provided are laundry services, public leisure areas, but no eration representing 4,677 rooms (approxi- restaurant services. However, the strategy calls for the possibility to be mately 70.2% of all rooms in operation), 27 able to use a restaurant in an adjacent hotel. of which are being operated by Grupo Posa- das under the “Fiesta Inn” brand as well as As of the date of this Annual Report, FibraHotel has an operating ex- three being operated by Grupo Real Turismo tended-stay hotel at Camino Real Hotel & Suites Puebla, operated by under the “Real Inn” brand and two in the Grupo Real Turismo, with 149 rooms (approximately 2.2% of total rooms repositioning process. in operation), and which began operations in the first quarter of 2014.

26. Fiesta Inn Toluca

This select-service, 144-room hotel is located in the city of Toluca, in the State of Mexico. Its location is in Toluca’s industrial zone, across from the Nestlé plant and just meters from the Daimler Chrysler plant. It is conveniently just five minutes from the residential, commercial, and financial districts of Metepec. There is nearby access to several major routes travelling to Mexico City, Morelia, and Querétaro. This hotel is 20 minutes from both the Toluca 2000 industrial park and the Toluca International Airport, and is 40 minutes from Santa Fe. As of Dec. 31, 2013, the number of employees was 82. 2013

IBRA OTEL Annual Report F H 33 2 Key Performance Indicators of FibraHotel’s Portfolio

The following graph shows the quarterly evolution, from 2007 to 2013, of the ADR, the occupancy rate and the RevPAR for the 30 hotels in FibraHotel’s Initial Portfolio. 80% $1,000 $900 70% $800 60% $700 50% $600 $500 40% $400 30% $300 20% $200 $100 10 % $0 0% 2007 2008 2009 2010 2010 2 011 2012 2013

ADR ($) RevPAR ($) Occupancy (%)

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

• Occupancy rate of 63.5% • ADR of MXN $860 • RevPAR of MXN $546

The following tables show select FibraHotel hotel operating information with different perimeters (comparable basis) by quarter and yearly between 2012 and 2013: $ 517 $ 810 $ 819 $574 $574 $558 $553 $873 $579 $547 $828 $543 $820 $820 $868 $594 $854 $869 $866 $544 67.8% 67.5% 63.1% 63.0% • Comparable properties:65.8% includes 68.0% the 30 hotels68.9% in FibraHotel’s Initial Portfolio66.0% at IPO:66.3% 66.2% 1Q 2012 1Q 2013 2Q 2012 2Q 2013 3Q 2012 3Q 2013 4Q 2012 4Q 2013 Year 2012 Year 2013

Occupancy -0.1 pp 2.2 pp -1.1 pp -1.5 pp -0.1 pp ADR +5.9% +5.5% +5.4% +6.0% +5.7% RevPAR +5.8% +9.1% +3.7% +3.8% +5.6%

(2) Operating indicators of FibraHotel’s portfolio as of December 31st, 2013 only includes the 39 hotels that FibraHotel had in its portfolio as of De- cember 31st, 2013.

27. Fiesta Inn Xalapa

This select-service, 119-room hotel is located in the city of Xalapa, in the State of Veracruz. It is located in the division of Las Ánimas, between the Ánimas and la Torre Ánimas shopping centers, in the city’s Esmeralda area. It is ten minutes from downtown, and nearby main tourist attractions like the Anthropology Museum, the Inter- active Museum of Xalapa, the El Lencero hacienda, the City Ágora, and the Xalapeño Recreation Center. This hotel is 15 minutes from the airport, ten minutes from downtown, and 45 minutes from Puerto de Veracruz. The hotel was added to the FibraHotel portfolio in March of 2014.

34 • Total portfolio of stabilized hotels: includes 37 hotels in operation as of December 31st, 2013, and excludes the Real Inn Morelia and One Guadalajara Tapatío hotels which opened during 2013 and $ 813 $ 541 $ 541 $571 $559 $556 $822 $822 $867 $867 $828 $567 $564 $549 $863 are in a ramp-up period: $850 $ 518 $534 $825 $867 65.4% 65.9% 66.8% 65.1% 65.8% 64.8% 68.4% 66.6% 61.5% 1Q 201262.8% 1Q 2013 2Q 2012 2Q 2013 3Q 2012 3Q 2013 4Q 2012 4Q 2013 Year 2012 Year 2013

Occupancy -1.2 pp 0.6 pp -1.7 pp -1.6 pp -1.0 pp ADR +5.1% +4.6% +4.6% +5.5% +4.9% RevPAR +3.0% +5.5% +1.9% +2.9% +3.3%

The following table shows certain operating information by segment for the 39 hotels in operation for the years ending December 31st, 2010, 2011, 2012 and 2013: 2010 2 011 2012 2013

Occu- Occu- Occu- Occu- ADR RevPAR ADR RevPAR ADR RevPAR ADR RevPAR BY SEGMENT pancy pancy pancy pancy

Limited-Service 60.1% $581 $349 67.3% $607 $409 64.4% $635 $409 62.6% $663 $415 Select-Service 61.9% $827 $512 63.3% $852 $539 66.4% $863 $572 63.7% $906 $577 Full-Service 54.6% $969 $529 64.6% $1,086 $701 62.8% $1,110 $697 66.2% $1,131 $749 TOTAL 61.3% $784 $481 64.1% $808 $518 65.8% $822 $541 63.5% $860 $546 PORTFOLIO

The following table shows certain operating information by region for the 39 hotels in operation for the years ending December 31st, 2010, 2011, 2012 and 2013: 2010 2 011 2012 2013 Occu- Occu- Occu- Occu- BY REGION ADR RevPAR ADR RevPAR ADR RevPAR ADR RevPAR pancy pancy pancy pancy

Northwest 57.4% $814 $467 59.2% $820 $485 62.0% $849 $527 59.9% $887 $532 Northeast 52.2% $630 $329 64.7% $624 $404 73.0% $642 $469 68.9% $683 $470 Center and South 65.3% $787 $514 67.3% $824 $555 67.1% $850 $570 65.6% $890 $584 West 59.9% $841 $504 58.7% $903 $530 62.0% $813 $504 57.0% $820 $467 TOTAL 61.3% $784 $481 64.1% $808 $518 65.8% $822 $541 63.5% $860 $546 PORTFOLIO

(3) Northwest corresponds to the following states: Baja California Norte, Chihuahua, Durango, Sinaloa and Sonora. Northeast corresponds to the following states: Coahuila, Nuevo León and Tamaulipas. Center and South corresponds to the following states: Aguascalientes, State of Mexico, Guanajuato, Guerrero, Oaxaca, Puebla, Querétaro, Veracruz, and Mexico City. West corresponds to the following states: Jalisco and Nayarit.

28. Real Inn Guadalajara Centro

This select-service, 197-room hotel is located in the city of Guadalajara, in the State of Jalisco. It is located in the heart of Guadalajara, just steps from the San Juan de Dios Traditional Market and Centro Joyero. This hotel is located just 15 minutes from Expo Guadalajara, and is surrounded by various cultural attractions like Degollado Theater, the Wax Museum, Cabañas Cultural Institute, and the Metropolitan Cathedral of Gua- dalajara. As of Dec. 31, 2013, the number of employees was 73. 2013

IBRA OTEL Annual Report F H 35 Finance 4

Real Inn Mexicali Real section

29. Real Inn Morelia

This select-service, 155-room hotel is located in Morelia, in the State of Michoacán. It is located on Montaña Monarca Norte Avenue, within one of the newest shopping centers in the city, Altozano, offering access to cinemas, restaurants, and prestigious boutiques. The hotel opened its doors to the public in March of 2013. As of Dec. 31, 2013, the number of employees was 61.

36 Financial Results for the year 2013 Total revenues • May 2013: Acquisition of the Fiesta Inn Toluca. • June 2013: Opening of One Guadalajara Tapatío and acquisition of Financial results herein described are related Fiesta Inn Tlalnepantla. to FibraHotel’s financial statements that in- • July 2013: Acquisition of Plaza Genova in Guadalajara, One Puebla clude 39 hotels: FINSA, Fiesta Inn Oaxaca and Fiesta Inn Puebla FINSA. • August 2013: Acquisition of Real Inn Mexicali. • 34 hotels under management contracts. • October 2013: Acquisition of the Fundición Ballroom in Monclova • Five hotels under leasing contracts. (Adjacent to the Fiesta Inn). • Eight hotels in different stages of development. As a result, FibraHotel’s revenues increased on a quarterly basis: 1Q 2Q 3Q 4Q Year During the year 2013, FibraHotel’s total rev- 2013 2013 2013 2013 2013 enues were MXN $1,032 million: Room Revenues 128.5 186.4 217. 8 225.8 758.5 Food and beverage 23.1 39.6 48.0 54.1 164.9 • MXN $758 million in room rentals (73.5% of Lease 20.3 20.6 21.9 25.7 88.5 total revenues). Other 5.5 3.1 7. 7 4.3 20.6 • MXN $165 million in food and beverage Total Revenue 17 7. 5 249.7 295.4 310.0 1,032.5

sales5 (16.0% of total revenues). • MXN $89 million for the lease of (i) 5 ho- Revenues – Managed Hotels 153.5 228.9 269,832 284,256 936.5 tels and (ii) retail and other leases (com- % of total revenues 86.5% 91.7% 91.4% 91.7% 90.7% bined, 8.6% of total revenues). • MXN $21 million (2.8% of total revenues) corresponding to other revenues. # of hotels in operation 31 34 39 39 39 # of managed hotels 26 29 34 34 34 Between the first and the fourth quarter of # of leased hotels 5 5 5 5 5

2013, revenues increased as, throughout 6 the year, FibraHotel integrated hotels to its portfolio: The following table shows the financial and operating information of the managed hotels for the four quarters of 2013, considering only • FibraHotel started the year with 18 hotels: hotels that generated room rental revenues to FibraHotel (since acqui- > 12 managed hotels in the Contribution sition or opening date, does not consider leased hotels): Portfolio. Room > Revenues Five leased hotels in the Contribution Available Occ. MXN $ Portfolio. Period Rooms Rooms Occ. Million ADR RevPAR > One managed hotel in the Acquisition Quarter 1 253,626 159,431 62.9% 128.6 $806 $507 Portfolio. Quarter 2 338,995 224,725 66.3% 186.1 $828 $549 • January 2013: Acquisition of 11 hotels added to the Acquisition Portfolio. Quarter 3 421,636 268,778 63.7% 217.9 $811 $517 Quarter 4 438,748 273,872 62.4% 225.7 $824 $514 • February 2013: Acquisition of one hotel added to the Acquisition Portfolio. Total 1,453,005 926,806 63.8% 758.3 $818 $522 • March 2013: Opening of Real Inn Morelia.

(4) Except where noted, all figures included herein were prepared in accordance with IFRS standards and are stated in nominal Mexican pesos. Due to presentation purposes, some accounting items in the financial results herein as presented may differ from the 2013 audited consolidated financial statements without any modification of the results and cash position of FibraHotel. (5) Leased hotels are Fiesta Inn Cuautitlán, Fiesta Inn Culiacán, Fiesta Inn Ecatepec, Fiesta Inn Perisur and Camino Real Puebla. (6) There is a slight difference with the amount reported in the item “Rooms” in the table of revenues by quarter, the latter taking into account elements such as discounts, FX… that are not included in the financial and operating information quarterly table. 30. Real Inn Mexicali

This select-service, 158-room hotel is located in the city of Mexicali, in the State of Baja California Norte. It is located in the City Financial District, within the Civic Cen- ter, and is just five minutes from both Plaza Cachanilla and the international border. This hotel is 15 minutes from a golf course, and right next to a nationally recognized bullfighting ring, Plaza Calafia. As of Dec. 31, 2013, the number of employees was 89. 2013

IBRA OTEL Annual Report F H 37 Costs and general expenses Adjusted operating profit

During the year 2013, FibraHotel’s costs and During the year 2013, FibraHotel incurred MXN $102 million of non- general expenses were MXN $655 million: operating expenses, which correspond mainly to one-time expenses related to hotel acquisitions and development (transaction taxes, ap- • MXN $414 million in costs and indirect ex- praisals, technical audits and pre-operating expenses, among others). penses (63.2% of total costs and general expenses), corresponding to administrative Adjusted operating profit amounted to MXN $38 million. costs, sales and marketing, maintenance, utili- ties and fees paid to hotel management com- Comprehensive financial result panies. • MXN $130 million in room expenses (19.9% FibraHotel closed the year with a cash position of MXN $4,788 mil- of costs and general expenses), correspond- lion and interest earned of MXN $120 million. According to the Tax ing to expenses directly related with room Income Law, cash is fully invested in Mexican Federal Government rentals issued debt securities. • MXN $110 million in expenses related to food and beverage sales (16.9% of costs and gen- Consolidated net income eral expenses), corresponding to expenses directly non-related to room rentals (food & Income taxes at the subsidiary level on the taxable profits generated beverage and other). by the ancillary hotel income such as food and beverage were MXN $2 million. After these taxes, and non-operating income of MXN Lodging contribution $8.6 million, the consolidated net income was MXN $163 million. Consolidated net income per CBFI was 36.96 centavos (the CBFIs Lodging contributions amounted to MXN $377 related to the Development Portfolio which currently do not have million, representing 36.6% of total revenues: economic rights at closing of each quarter of the year 2013).

• MXN $281 million corresponded to the man- The following table shows the net income per CBFI for the four aged hotels (30.1% margin). quarters and the year 2013 (in million of pesos except data per • MXN $89 million corresponded to leases CBFI, in pesos): (100% margin).

• MXN $7.5 million corresponded to other rev- 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Year2013 enues (100% margin). Net Result 28.4 1.9 58.3 74.1 162.8 Operating profit Number of CBFIs (million) Other operating expenses of MXN $238 million Outstanding 303.9 499.4 499.4 499.4 n.a. mainly consisted of real estate expenses (MXN With economic rights 294.2 492.0 492.0 492.0 n.a. $17 million), FibraHotel administrative expenses (MXN $19 million), advisory fee (MXN $82 mil- Net Result / CBFI lion), and depreciation (MXN $120 million). Net Result / Outst. CBFI $0.0934 $0.0038 $0.1167 $0.1485 $0.3625 The operating profit was MXN $140 million, or Net Res. / CBFI with eco. rig. $0.0965 $0.0038 $0.1185 $0.1507 $0.3696 13.5% of total revenues.

31. One Acapulco

This limited-service, 126-room, hotel is located in the city of Acapulco, in the State of Guerrero. Acapulco is one of the primer touristic beach destinations in Mexico. This property is on Avenue Costera Miguel Alemán in the heart of Acapulco city, just 20 minutes from Acapulco International Airport. It is nearby the Acapulco Convention Center, and has easy access to restaurants, nightclubs, and shopping centers. This hotel is an excellent alternative for business travelers during the week, and for tourists on weekends. Leased component included. As of Dec. 31, 2013, the number of employees was 31.

38 2013, yearly and quarterly results (in million of pesos)

1Q 2013 2Q 2013 3Q 2013 4Q 2013 Year 2013 Room Revenues 128.5 186.4 217. 8 225.8 758.5 Food and Beverages 23.1 39.6 48.0 54.1 164.9 Leases 20.3 20.6 21.9 25.7 88.5 Other 5.5 3.1 7. 7 4.3 20.6 Total Revenues 17 7. 5 249.7 295.4 310.0 1,032.5

Revenues - Managed Hotels 153.5 228.9 269.8 284.3 936.5 % of Total Revenues 86.5% 91.7% 91.4% 91.7% 90.7%

Rooms 23.3 31.1 36.3 39.7 130.4 Food and Beverages 16.4 25.9 32.8 35.7 110.8 Administrative Expenses 67. 6 99.5 120.2 126.4 413.7 Total Costs and General Expenses 10 7. 3 156.5 189.4 201.8 655.0

TOTAL LODGING CONTRIBUTION 70.1 93.2 105.9 108.2 37 7. 5 Margin 39.5% 37.3% 35.9% 34.9% 36.6%

Lodging Contribution – Managed Hotels 46.2 72.5 80.4 82.5 281.5 Margin 30.1% 31.7% 29.8% 29.0% 30.1%

Real Estate Expenses 3.8 3.5 4.1 5.3 16.7

Net Operating Income 66.3 89.7 101.8 102.9 360.8 Margin 37.4% 35.9% 34.5% 33.2% 34.9%

Administrative Expenses Related to FibraHotel 3.0 4.3 4.9 6.6 18.8 Advisory Fee 13.8 17. 1 25.7 25.6 82.2

EBITDA 49.5 68.3 71.3 70.7 259.8 Margin 27.9% 27.4% 24.1% 22.8% 25.2%

Depreciation 19.7 32.1 34.5 33.8 120.0

INCOME / (LOSS) FROM OPERATIONS 29.8 36.3 36.7 36.9 139.8 Margin 16.7% 14.5% 12.5% 11.9% 13.5%

Extraordinary Expenses, Net 16.1 52.8 21.7 11.2 101.7

ADJUSTED INCOME / (LOSS) FROM OPERATIONS 13.8 (16.5) 15.1 25.7 38.1

Non Operating Income / (Loss) - - - 8.6 8.6 Comprehensive Financing Result 14.6 18.6 44.4 40.6 118.2

INCOME BEFORE TAXES 28.4 2.1 59.5 74.9 164.8

Ta x - 0.2 1.2 0.7 2.1

CONSOLIDATED NET (LOSS) INCOME 28.4 1.9 58.3 74.1 162.8 Margin 16.0% 0.8% 19.7% 23.9% 15.6%

32. One Aguascalientes

This limited-service, 126-room hotel is located in the city of Aguascalientes, in the State of Aguas- calientes. The property is on José Ma. Chávez Boulevard, just 20 minutes from the Aguascalientes International Airport, and ten minutes from downtown Aguascalientes. It is also located nearby a busy shopping center, with various entertainment options. It is just 100 meters from the Nissan assembly plant, as well as the Aguascalientes Convention Center. As of Dec. 31, 2013, the number of employees was 27. 2013

IBRA OTEL Annual Report F H 39 Cash flow and liquidity position

Operating cash flow • (MXN $251 million) corresponding to the distributions: > (MXN $19 million) corresponding to distributions of the fourth During the year 2013, FibraHotel generated quarter of 2012. an operating cash flow of MXN $332 mil- > (MXN $59 million) corresponding to distributions of the first lion. Excluding activities related to investment quarter of 2013. (non-operating expenses, payment and re- > (MXN $74 million) corresponding to distributions of the second covery of VAT…), the operating cash flow was quarter of 2013. MXN $334 million. > (MXN $100 million) corresponding to distributions of the third quarter of 2013. Investment cash flow Adjusted Funds From Operation During the year 2013, FibraHotel generated a negative investment cash flow of (MXN During the year 2013, FibraHotel generated: $2,806 million): • Funds From Operations (“FFO”) of MXN $283 million. • MXN $2,677 million corresponding to ac- • Adjusted Funds From Operations (“AFFO”) of MXN $337 million. quisitions. Year > 1Q 2013 2Q 2013 3Q 2013 4Q 2013 2013 MXN $1,655 million for the 12 hotels Consolidated Net Income 28.4 1.9 58.3 74.1 162.8 in the Acquisition Portfolio. > MXN $879 million for the other hotel (+) Depreciation 19.7 32.1 34.5 33.8 120.0 acquisitions and the Fundición Ballroom Funds From Operations 48.1 34.0 92.8 108.0 282.8 in Monclova. > MXN $144 million for the payment of (-) CAPEX Reserve (7.7) (11.5) (13.7) (14.3) (47.2) two hotels in the Development Portfolio. (+) Non Operating Adjustments 16.1 52.8 21.3 11.4 101.5 • MXN $127 million corresponding to the Adjusted Funds From Operations 56.4 75.2 100.4 105.0 337. 1 Development Portfolio. • MXN $78 million corresponding to hotel Number of CBFIs (million) repositioning. Outstanding 303.9 499.4 499.4 499.4 n.a. • MXN $42 million corresponding to main- With economic rights 294.2 492.0 492.0 492.0 n.a. tenance CAPEX. FFO / CBFI with econ. rights $0.1633 $0.0691 $0.1886 $0.2191 $0.6404 • MXN $120 million corresponding to inter- AFFO / CBFI with econ. rig. $0.1918 $0.1529 $0.2040 $0.2134 $0.7622 est generated from the cash position. Financing cash flow Liquidity position During the year 2013, FibraHotel generated a financing cash flow of MXN $4,384 million: As of December 31st, 2013 FibraHotel has no debt and a net cash position of MXN $4,788 million, versus MXN $2,878 million of December • MXN $4,636 million corresponding to the 31st, 2012. Of this cash position MXN $4,658 million was available for net proceeds to the follow-on (May 2013). hotel acquisitions and development.

33. One Coatzacoalcos

This limited-service, 126-room hotel is located in the city of Coatzacoalcos, in the State of Veracruz. This property is located within Fórum Coatzacoalcos, a busy shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is located just 15 minutes from Minatitlán International Airport, as well as several industrial installations, and Pemex offices. As of Dec. 31, 2013, the number of employees was 25.

40 Capital Expenditures

As of December 31st, 2013, the available maintenance capital expenditure reserve, generated to maintain the standards of our hotels in operation and constituted based on a percentage of total revenues of One Puebla FINSA the managed hotels, was MXN $20 million versus MXN 14 million as of December 31st, 2012.

During the year, FibraHotel had the following capital expenditures:

• Maintenance CapEx: MXN $42 million. • CapEx investment in hotel repositioning: FibraHotel constantly analyzes opportunities to make capital investments in our portfolio hotels which have an opportunity to increase cash flows and provide an adequate return to our expected investment. During the year, FibraHotel invested MXN $78 million in repositioning CapEx, mainly in the Fiesta Inn Querétaro and Fiesta Inn Naucalpan hotels: > Fiesta Inn Querétaro: (i) improvements to 175 rooms to “Fiesta Inn 360” standards, (ii) changed air conditioning from in-window to central air conditioning, (iii) improvements to common areas to “Fiesta Inn 360” standards, and (iv) improvements to the motor lobby. The reposition has a budget of MXN $41 million, out As of December 31st, 2013, FibraHotel has of which MXN $36.8 million was spent as of December 31st, MXN $204 million of recoverable taxes, 2013. The reposition was finished in January 2014. > Fiesta Inn Naucalpan mainly corresponding to VAT related with ac- : (i) improvement to 119 rooms to “Fiesta quisitions during the year, versus MXN $303 Inn 360” standard, (ii) changed air conditioning from in-window million as of December 31st, 2012. Once re- to central air conditioning, (iii) improvements in common areas covered, this amount will be available for hotel to “Fiesta Inn 360” standards, (iv) improvements to the motor acquisitions and development. lobby, and (v) complete change of the hotel´s facade. The repositioning has a budget of MXN $35 million, out of which MXN On February 17th, 2014, FibraHotel signed a $29.4 million was spent as of December 31st, 2013. The reposi- MXN $1,000 million credit line with one of tioning was finished in January 2014. > the principal financial institutions in Mexico. Investments were also made at other hotels such as the public FibraHotel has 12 months to make disburse- areas in One Patriotismo and One Querétaro for a total of MXN ments, and the credit line has a 12-year dura- $4.0 million. tion since the first disbursement, a 12-month • CapEx to reposition and rebrand acquired hotels:: > Real Inn Guadalajara grace period after disbursement, and no pre- : public areas were renovated to comply payment costs for the life of the loan. The with the brand standards of Real Inn. As of December 31st, credit line will be used for the acquisition and 2013, MXN $6.3 million was spent. > Real Inn Mexicali development of new hotels, giving FibraHotel : The hotel is being repositioned to comply flexibility to achieve its growth objectives while with the brand standards of Real Inn with MXN 3.0 million maintaining very conservative leverage levels. spent as of December 31st, 2013.

34. One Culiacán

This limited-service, 119-room hotel is located in Culiacán, in the State of Sinaloa. This property is located within Plaza Fórum, a shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is just 20 kilometers from the city’s airport, with easy access to downtown Culiacán, and the principal agro-business district. As of Dec. 31, 2013, the number of employees was 31. 2013

IBRA OTEL Annual Report F H 41 Cash flow distribution Distribution for the year

FibraHotel seeks to generate value for its CBFIs holders. As a result, Portfolio, out of which four were in different for the year 2013, the Technical Committee of FibraHotel approved stages of development (Contribution Portfo- distributions for a total amount of MXN $338 million, detailed in the lio in Development), representing a total of following table: 9,697,897 CBFIs: Year 1Q 2013 2Q 2013 3Q 2013 4Q 2013 2013 • Real Inn Morelia: issuance of 2,342,667 Total Distribution 59.0 74.4 99.5 105.0 337. 9 CBFIs. • One Guadalajara Tapatío: issuance of Taxable Income 22.0 33.2 16.1 - 71.3 688,564 CBFIs. Capital Return 37. 0 41.2 83.4 105.0 266.6 • Camino Real Hotel & Suites Puebla: issuance of 1,538,461 CBFIs.

Number of CBFIs (million) • Cancún Extended Stay: issuance of 5,128,205 CBFIs. Outstanding 303.9 499.4 499.4 499.4 n.a. With Economic Rights 294.2 492.0 492.0 492.0 n.a. These 9,697,897 CBFIs would not have eco- Distribution / CBFI $0.2005 $0.1512 $0.2023 $0.2134 $0.7674 nomic rights (distribution…) until the development of each of the four hotels is finished Taxable Income $0.0749 $0.0674 $0.0327 - $0.1750 and the hotel is operating. As of December Capital Return $0.1256 $0.0838 $0.1696 $0.2134 $0.5924 31st, 2013, two hotels were operating (Real Inn Morelia and One Guadalajara Tapatío) and the economic rights of the CBFIs issued CBFIs with economic restrictions in exchange of the Real Inn Morelia hotel only were liberated. During the IPO, additionally to the issuance of 223,611,110 CBFIs that were offered to investors, 80,290,656 CBFIs were issued for The following table details the information the Control Trust in Exchange for the 21 hotels in the Contribution related to CBFIs with and without economic rights: One Toluca

1Q 2013 2Q 2013 3Q 2013 4Q 2013 Total number of CBFIs (million) 303.9 499.4 499.4 499.4

CBFIs without economic rights 9.7 7. 4 7. 4 7. 4 Real Inn Morelia 2.3 - - - One Guadalajara Tapatío 0.7 0.7 0.7 0.7 Camino Real Hotel & Suites 1.5 1.5 1.5 1.5 Puebla Cancún Extended Stay 5.1 5.1 5.1 5.1

CBFIs with economic rights 294.2 492.0 492.0 492.0

35. One Guadalajara Tapatío

This limited-service, 126-room hotel is located in Tlaquepaque, in metropolitan Gua- dalajara, in the State of Jalisco. It is just ten minutes from the airport, and located within a shopping center that has convenience stores, restaurants, and cinemas. The hotel opened its doors to the public in June of 2013. As of Dec. 31, 2013, the number of employees was 27.

42 FibraHotel

Real Inn Mexicali Real Corporate Governance

36. One Xalapa

This limited-service, 108-room hotel is located in the city of Xalapa, in the State of Veracruz. It is located nearby a main shopping center, is ten minutes from the bus station, and is 20 minutes from the Xalapa Airport. It is also very close to important government offices like the Palacio de Justicia, Relaciones Exteriores, and the Ministry of Economy. The hotel was added to the FibraHotel portfolio in March of 2014. 2013

IBRA OTEL Annual Report F H 43 members (36%). tee consists of 11 proprietary members, four of which are independent FibraHotel’sReport, TechnicalCommit Annual this of date the of As Technical Committee andFibraHotel Committees 10 11 9 8 7 6 5 4 3 2 1 Fiesta Inn Nuevo Laredo Pablo delaPeza Berrios Felipe deIturbeBernal Jaime Zabludowsky Kuper Manuel ZepedaPayeras Mayer ZagaBucay Albert GalanteAlbert Saadia Sandor Walner Waxtein Kurián Benjamín Adolfo Fastlicht Simón Galante Zaga Alberto Galante Zaga Roberto Galante Totah Proprietary Members 37. OneMonterrey Airport employees was 26. business important most the centersMonterrey.in of 31,Dec. of As included. component 2013,Leased one Cintermex, of number the to and airport, the to proximity its totravelers, businessdue for ideal is location Its MonterreyAirport. Internationalthe from minutes five just is property This León. Nuevo of State Monterrey,the of in city This limited-service, 126-room hotel is located on Boulevard Aeropuerto Avenue, in the 44 the Technical Independent Independent Independent Independent Co-Chairman Committee Position in Chairman Member Member Member Member Member Member Member Member Member Audit Committee, Practice Audit Committee, Practice Audit Committee, Practice Committee, Nomination Committee, Nomination Committee, Nominee Position inOther Committees Committee Committee Committee n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. - 2. 1. Member /Biographic information cap, GrupoGDIcompanies. Mer VistaRealy La Bosque Club, Country Mexicano, Comercial Fondo II, and I cano Board of Directors of Fondo Hotelero Mexi- He is currently an executive member of the selling casual clothes in Mexico nationwide. torscompanya Jeans, on Super focused of Partner and Director of the Board of Direc- to 1989 2005 From Alberto Galante Zaga GDI. was a Founding Grupo of President Vice and Partner Zaga. Galante Alberto Grupo GDIcompanies. Mercap, and Real Bosque Club, Country FondoII, and ComercialVistaMexicano, La DirectorsFondoHoteleroI of of Mexicano currently an executive member of the Board is He nationwide. Mexico in clothes casual selling on companyfocused a Jeans, Super Directorsof of Board the Presidentof and 2005TotahGalanteRobertofounder was and President of Grupo GDI. From 1989 to RobertoGalante Totah Founding. Partner - One Patriotismo

3. Simón Galante Zaga. Founding Partner and CEO of Grupo GDI. Simón Galante Zaga has more than 20 years of experience in the hotel, residential and commercial real estate industries as real estate developer and property manager, as well as in acquiring, developing and financing real estate projects. He is an executive member of the Board of Directors of Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, Bosque Real and Mercap, Grupo GDI companies. He holds a specialized degree in Business Administra- tion from the IPADE.

4. Benjamín Adolfo Fastlicht Kurián. Founding Partner and CEO of Icon Group, a Mexican company focused on real estate development. Mr. Fastlicht was cofounder and co-CEO of Grupo Cinemex, today the second-most-important movie theater franchise in the country. He is also shareholder, director and a member of the Board of Directors of various Grupo GDI companies. He was President of the Association of Real Estate Developers (ADI, Asociación de Desarrolladores Inmobiliarios A.C.), the main real estate industry association in Mexico, and par- ticipates on the Boards of various philanthropic and educational institutions. Mr. Fastlicht earned a B.S. in Hotel Management from Boston University (1989) and an MBA from Harvard University (1993).

5. Sandor Walner Waxtein. CEO of Walton Street Capital, a global real estate private equity firm. Sandor Walner Waxtein was Director of Credit Suisse First Boston in Mexico and member of the Executive Committee for Latin America. He has been a partner of EMVA and Valor Consultores, investment banks, and has worked with JP Morgan in corporate finance and M&A. He is Cofounder and Vice President of the Mexican Association of Real Estate and Infrastructure Funds and a member of the administrative committee of various real estate companies in Latin America. He is an active member of the World’s Presidents Organization. He received Engi- neering and MBA degrees from Stanford University.

6. Albert Galante Saadia. Has an Industrial Engineering degree from the Metro- politan Autonomous University of Mexico (UAM). Since 1991, Albert Galante Saadia has been a member of the Board of Directors of Mex Factor, Sofom E.N.R. He is Founding Partner of Normalización y Certificación Electrónica, S.C., and the electronics certification organization that was established in 2001. Mr. Galante has been CFO and Board Member of Ampliequipos, S.A. de C.V. a safety-testing laboratory since 1987 and since 1986 has been CFO and advisor of Ampliaudio, S.A. DE C.V., which imports and exports electronic equipment and supplies.

7. Mayer Zaga Bucay. CFO of Grupo Industrial Miro, a textile and clothing manufacturing company, and an Imports and Exports Broker for brands including Nike, Adidas and Victoria’s Secret, among others, employing around 2,000 people. Mayer Zaga Bucay was co-founder in 1983 of the award-winning clothing company Ocean Pacific, opening close to 50 stores across Mexico and supplying to highly recognized department stores in Mexico. He is a Grupo GDI partner and an investor in various real estate projects. 38. One Puebla FINSA

This limited-service, 126-room hotel features event spaces and a shopping plaza, and is located in the City of Puebla, in the State of Puebla. It is five minutes from FINSA industrial park, which houses major automotive companies. It is nearby the México-Puebla highway, and at the main entrance to Hermanos Serdán Boulevard. The hotel is 20 minutes from the city center, and 15 minutes from important shopping centers. As of Dec. 31, 2013, the number of employees was 27. 2013

IBRA OTEL Annual Report F H 45 Member / Biographic information 9. Jaime Zabludowsky Kuper. Currently Executive President of the Mexican Council for the Consumer 8. Manuel Zepeda Payeras. Mr. Zepeda has played a Products Industry (ConMexico), an association that key role in most of Mexico’s main housing and mort- groups 46 of the most important consumer goods gage institutions and their regulatory framework. For companies. Jaime Zabludowsky Kuper is also Presi- 12 years he presided over the Housing Fund (FOVI), dent of the Mexican Council of Foreign Relations which was created to offer financial support for the (COMEXI), Vice President and Founding Partner of acquisition and construction of economic hous- IQOM Inteligencia Comercial. He has been an inde- ing for social needs. He was Founder and Director pendent advisor to the Board of Directors of PE- General of the Federal Mortgage Society, a financial MEX Exploration and Production, and has served as institution created to develop primary and second- Chairman of the Procurement, Leasing, Works and ary mortgage markets. He was President of the Inter Services Committee. He has also held public posi- American Housing Union (UNIAPRAVI), an asso- tions including: Deputy Chief Negotiator for NAFTA, ciation that groups more than 100 financial inter- the free trade agreement between Mexico and the mediaries in Latin America for mortgage financing. United States, Ambassador of Mexico to the Europe- Additionally, he was an advisor to various housing an Union, Chief Negotiator for the Free Trade Agree- companies and mortgage financing companies such ment between Mexico and the European Union and as SARE Holding, MARHNOS Vivienda, ARKO Pro- an Economist at the Council of Economic Advisors moción Inmobiliaria, Crédito Inmobiliario and Fondo to the President of Mexico (1985 and 1988). He Inmobiliario INMESP of BBVA. He was also Chief has advised governments in Asia and Latin America Economist of the Presidential Advisory Council be- and major international institutions, in international tween 1976 and 1982, and has been a member of trade and competitiveness. He is an Advisory Board various non-profit organizations. He holds Master’s member for a variety of corporations, civic associa- degrees in economics and Business Administration tions and public institutions. He holds a PhD in from the University of Chicago. Economics from Yale University.

10. Felipe de Yturbe Bernal. Was Director General of the Brokerage arm for Scotiabank Inverlat Financial Group, as well as Assistant Director of Corporate Banking, Markets and Investment Banking, Business Banking, Treasury and Fiduciary at the same institution. Felipe de Yturbe Bernal was General Manager of Deustche Bank Mexico and General Manager of Banco Mexicano. He has been a partner at Yturbe, Laborde and Associates, a firm specializing in investment management. Mr. De Yturbe spent 12 years at the Banco Nacional de México, where he occupied various positions, including, among others, Associ- ate Director General of Corporate Banking, Invest- ment Banking and the Fiduciary Division. He also

One Hotels Patriotismo One Hotels held the positions of Treasurer and Financial Direc- tor at Cementos Anáhuac and was Vice President of The First National Bank of Chicago at the representative office in Mexico City. He holds an MBA from Harvard University.

39. One Querétaro Plaza Galerías

This limited-service, 126-room hotel is located in the city of Querétaro, in the State of Querétaro. It is ten minutes from downtown, 30 minutes from the international airport, and is nearby the city’s principal industrial parks. As of Dec. 31, 2013, the number of employees was 24.

46 11. Pablo de la Peza Berrios. Worked at Banamex from 1976 to 2013 and occupied a variety of positions in Mexico and abroad: International Treasury Direc- tor, Director of California Commerce Bank, Direc-

tor of Financial Planning at Banamex, Director of Inn Guadalajara Fiesta Insurance Banamex, Director of AFORE Banamex, Strategic Planning and Corporate Development for Mexico and Citi businesses in Latin America. Pablo de la Peza Berrios has been a member of the Ad- ministration Committee for several investment funds administered by Banamex. In 2013 he retired from Banamex, although he still serves as a member of the tion Committee met to approve the holders meeting pro- Board of Directors and on the Administration Com- posal to name a proprietary member. On April 30, 2014, mittees at some companies. He is an Endeavor Men- the holders meeting approved the designation of Pablo tor and has an Industrial Engineering degree from de la Peza Berrios as an independent member of the Fi- Universidad Iberoamericana. braHotel Technical Committee.

For more information about the functioning of our committees (elections/removal of members, meetings and votes, role of the committees, payments to independent Alignment of long-term interests members…) please refer to the 2013 Annual Report From its founding, FibraHotel has looked to build a long- available in Spanish at the FibraHotel web page (www.fi- term alignment of interest with its Advisor, Grupo GDI, brahotel.com) or the Mexico Stock Exchange web page and its CBFI’s holders in the following manner: (www.bmv.com.mx). • Grupo GDI passed all of its operating hotel assets to The Technical Committee met four times in 2013 to re- FibraHotel. view and approve Financial Statements and distributions • Grupo GDI, through the Control Trust, is the majority with the previous approval of the Audit Committee. The stockholder and is subject to a long-term restriction pe- Nomination Committee met once to approve the pro- riod on the sale of its stock. posal of the stockholders meeting for the designation • Grupo GDI gave FibraHotel preemptive rights over all of a member owner and their substitute to the Techni- future hotel opportunities that fit FibraHotel’s invest- cal Committee. On April 24, 2013, the holders meet- ment strategy. ing approved the designation of Eduardo Reyes Esparza • FibraHotel’s Advisor is paid an advisory fee correspond- and José Arturo Medina Magaldi as proprietary mem- ing to 1.00% of the undepreciated book value of as- bers and substitute respectively (not independents), to sets, net of debt. the FibraHotel Technical Committee. On Oct. 10, 2013, • With respect to the CBFIs passed to the Control Trust Eduardo Reyes Esparza and José Arturo Medina Magaldi in exchange for properties being developed, they have both resigned irrevocably from the Technical Committee no economic rights (distribution) until said properties due to the policies of Grupo Profuturo GNP to which (hotels) are in operation. they belong. For more information about the FibraHotel Trust Contract, As of Jan. 1, 2014, to the date of this Annual Report, the the Control Trust, restriction periods on sales, etc., please Technical Committee met two times to approve Financial refer to the 2013 Annual Report available in Spanish at Statements and distributions with the previous approval the FibraHotel website (www.fibrahotel.com) or the Mexico of the Audit Committee. On April 29, 2014, the Nomina- Stock Exchange website (www.bmv.com.mx).

40. One Toluca

This limited-service, 126-room hotel is located in the city of Toluca, in the State of México. It is located on Aeropuerto Boulevard just three minutes from Toluca Inter- national Airport, 15 minutes from downtown Toluca, and 30 minutes from Metepec— a commercial and residential zone that has grown dynamically over the last several years. As of Dec. 31, 2013, the number of employees was 24. 2013

IBRA OTEL Annual Report F H 47 FibraHotel on

Initial Public Offering the Mexican and Follow-on Offering Real Inn Guadalajara Real Stock Exchange Initial Public Offering FibraHotel made its initial public offering (“IPO”) on the Mexican Stock Exchange on Nov. 30, 2012, issuing 303,901,766 CBFIs (for Certificados Bursátiles Fiduciarios Inmo- biliarios in Spanish) including an overallotment option, which was fully exercised on Dec. 14, 2012. The total CBFIs were distributed accordingly:

• Control Trust: 80,290,656 CBFIs representing 26.4% of the total. • Public investors: 223,611,110 CBFIs representing 73.6% of the total.

The 223,611,110 CBFIs issued as part of the IPO on the Mexican Stock Exchange and other international markets, were La Bolsa Mexicana hace constar el listado de los

Certificados Bursátiles Fiduciarios Inmobiliarios denominados priced at MXN $18.50 each, raising FIBRAS emitidos por Concentradora Fibra Hotelera Mexicana, MXN $4,137 million. FIHO S.A. de C.V., en su carácter de Fideicomitente. Bookrunners of the IPO were:

Características de la Emisión:FIHO 30 de noviembre de 2012 $ 4,136,805,535.00 • In Mexico: BBVA Bancomer, Clave de Cotización: Fecha de Listado en la BMV: $ 2,685,163,334.00 J.P. Morgan, Evercore Monto Total de la Oferta Global Inicial: (con sobreasignación) $ 1,451,642,201.00 and Banorte-Ixevercore y Monto Total de la Oferta en México: Banorte-Ixe (con sobreasignación) Monto Total de la Oferta Internacional: • Internationally: (con sobreasignación) Intermediarios Colocadores: J.P. Morgan and BBVA J.P. Morgan Casa de Bolsa, S.A. de C.V. J.P. Morgan Grupo Financiero

Casa de Bolsa BBVA Bancomer, S.A. de C.V. Grupo Financiero BBVA Bancomer Casa de Bolsa Banorte IXE, S.A. de C.V. Grupo Financiero Banorte

Evercore Casa de Bolsa, S.A. de C.V

Asesor y Agente Estructurador de la Oferta:

Evercore Partners México, S. de R.L.

41. One Patriotismo

This limited-service, 132-room hotel is located in Mexico City. It is located on one of the city’s main avenues, Avenue Patriotismo, within the Plaza Metrópoli shopping center, offering access to restaurants, cinemas, prestigious boutiques, and a gym. It is located just six blocks from the World Trade Center of Mexico, which hosts numerous exhibitions and conventions, and nine kilometers from the international airport. As of Dec. 31, 2013, the number of employees was 27.

48 Follow-on Offering

On May 30, 2013, six months after the IPO, FibraHotel finalized its follow-on offer on the Mexican Stock Exchange for a total number of 195,500,000 CBFIs including an overallotment option which was fully exercised on June 11, 2013.

The 195,500,000 CBFIs CBFIs issued as part of the follow-on offer on the Mexican Stock Exchange and other international markets were priced at MXN $24.95 each, raising a total of MXN $4,877 million. Members of the FibraHotel Control Trust invested approximately MXN $50 million in this follow-on offer.

Bookrunners of the follow-on offer were:

• In Mexico: BBVA Bancomer, J.P. Morgan, Evercore and Banorte-Ixe • Internationally: J.P. Morgan and Goldman Sachs

CBFI price The following graphic shows the evolution of the FibraHotel CBFI price and its volume of shares since the Nov. 30, 2012 IPO:

$27.0 30.0

25.0 Price $24.0 20.0 Volume (million) Volume $21.0 15.0

10.0 $18.0 5.0 Jul 2013 Jan 2013 Jan 2014 Jun 2013 Jun 2014 Feb 2013 Feb Feb 2014 Feb Apr 2013 Apr 2014 Sep 2013 Oct 2013 Mar 2013 Dec 2012 Dec 2013 Mar 2014 Ago 2013 Nov 2012 Nov Nov 2013 Nov May 2013 May $15.0 2014 May -

Source: Bloomberg.Volume FIHO Price FIHO IPC The evolution of the CBFI price and the IPC since the IPO on Nov. 30, 2012. 16.3% CONTROL TRUST

Stock ownership 83.7% FibraHotel stock ownership as of the date of this PUBLIC Annual Report is the following: INVESTORS

42. Camino Real Puebla

This full-service, 153-room hotel is located in the city of Puebla, in the State of Pueb- la. It is located in the fastest-growing area of the city, nearby Angelópolis shopping center, several universities, and the La Vista Golf Club. It offers easy access to the Volk- swagen industrial complex. As of Dec. 31, 2013, the number of employees was 118.

2013

IBRA OTEL Annual Report F H 49 Renovations

Fiesta Inn Querétaro • Window-installed air conditioning units were switched out for central air conditioning. In the second semester of 2013, the hotel Fiesta Inn Querétaro was • Common areas were brought up to the Fiesta Inn renovated to bring it up to Fiesta Inn 360 standard. The budget 360 standard. totaled MXN$ $42 million and the following changes were made: • Bar and restaurant areas were increased in antici- pation of an expansion of the hotel. • 175 rooms were improved to meet the Fiesta Inn 360 standard. • Improvements were made to the motor lobby.

43. Camino Real Hotel & Suites Puebla

This extended-stay, 149-room, ‘hotel and suites’ facility is located in the city of Puebla, in the State of Puebla. It is next to the Camino Real Puebla hotel, with which it shares amenities like a pool, restaurant, gym, and bar. The hotel opened its doors to the public in March of 2014.

50 Fiesta Inn Naucalpan

In the second semester of 2013, the hotel Fi- • 119 rooms were improved to meet the Fiesta Inn 360 standard. esta Inn Naucalpan was renovated to bring it • Window-installed air conditioning units were switched out for cen- up to Fiesta Inn 360 standards. The budget tral air conditioning. totaled MXN$ $35 million and the following • Common areas were brought up to the Fiesta Inn 360 standard. changes were made: • Improvements were made to the facade and the motor lobby.

44. Fiesta Americana Aguascalientes

This full-service, 192-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. It is strategically located in downtown Aguascalientes. It is one block from the bullfighting ring at the center of Feria de San Marcos, which has been an important historical Mexican landmark for more than 185 years, and attracts more than 8 million visitors a year. The hotel was added to the FibraHotel portfolio in Jan. of 2014. 2013

IBRA OTEL Annual Report F H 51 service Fiesta AmericanaAguascalientes. full- the and Aguascalientes, Inn Fiestaselect-service the Aguascalientes, One limited-service the including lientes, ties. FibraHotel operates 443 rooms in the city of Aguasca- area is home to modern Nissan plants and industrial facili- especially in the automobile manufacturing industry as the years, recent in Mexico in investment industrial most the with cities the of one in and segments markethotel all in FibraHotel’sstrengthens transactionposition center. This has 192 rooms and is located in the Aguascalientes historic senting a total investment of MXN $227 million. The hotel repreAguascalientes- Americana Fiesta the of acquisition 14,2014,the Jan. completed On successfullyFibraHotel Acquisition oftheFiesta AmericanaAguascalientes events Post-2013 45. Hotel Fussion 5León repositioned underthe Gammaby Fiesta Innbrand. 2014be of Maywill in and FibraHotel portfolio the to added was hotelfacility. The the entrance to the city on the Silao side and today is the closest hotel to the customs nal. It is 15 minutes from the Guanajuato international airport. The hotel is located at juato. The hotel is 1.8 miles from the outlets mall and 12.4 miles from the bus termi- Select-servicehotel 165with rooms locatedstate the cityin the León in of Guana- of 52 bursement, and no prepayment costs for the life of the of life the for costs prepayment no and bursement, afterdis- period grace a12 month disbursement, first creditthe ments,hasand 12-yearline duration thesince disburse- make to12 FibraHotelmonths has Mexico. in llion credit line from one of the main financial institutions Feb.17,On 2014, mi- $1,000 MXN FibraHotela signed Signing ofacredit linefacility FibraHotel’s Development Portfolio, was complete. pment of the Camino Real Hotel & Suites ofPuebla, part On Jan. 21, 2014, FibraHotel announced that the develo- Hotel &Suites Puebla Real Camino the of development the of Completion

Real Inn Guadalajara loan. The credit line will be used for the acquisition and Development of the hotel Fiesta Inn Lofts Querétaro development of new hotels, giving FibraHotel flexibility to achieve its growth objectives while maintaining very con- On May 16, 2014, the development of the hotel Fiesta servative leverage levels. Inn Lofts Querétaro was announced. The hotel is an expansion of 45 extended-stay rooms at the hotel Fiesta Acquisition of hotels in Xalapa Inn Querétaro. FibraHotel’s total investment will be MXN $45.0 million and the hotel will open in the fourth quar- On Mar. 27, 2014, FibraHotel successfully completed the ter of 2014. acquisition of the Fiesta Inn Xalapa and One Xalapa hotels representing a total investment of MXN $221 million. Acquisition of the Fussion 5 hotel in León The hotels have 119 and 108 rooms respectively. Of the total investment, MXN $8 million will be used to add 18 On May 22, 2014, FibraHotel successfully completed the rooms to the One Xalapa hotel bringing the total number acquisition of the Fussion 5 hotel in León representing of rooms at that hotel to 126. a total investment of MXN $120 million (including a reposition investment of MXN $16 million). The hotel has Site acquisition in Villahermosa 165 rooms.

On Apr. 4, 2014, FibraHotel acquired the rights to a buil- Development of two hotels in Ciudad del Carmen ding site in the city of Villahermosa for the construction of a hotel to be part of the Plaza Sendero shopping mall, On May 28, 2014, FibraHotel announced the develo- representing an investment of MXN $110.0 million. Fi- pment of the two hotels in Ciudad del Carmen. The braHotel will develop a limited-service hotel of 135 rooms hotels will be a 130-room Courtyard by Marriott (Se- under the Fairfield Inn & Suites by Marriott brand to be lect-service), operated by Marriot International and a operated by Marriott International under an agreement 124-room Fiesta Inn Lofts (extended-stay) operated with FibraHotel announced on Nov. 14, 2013. The hotel by Grupo Posadas. The total investment for FibraHotel launch is planned for the middle of 2015. is MXN $255.5 million and the hotels are expected to open in the first half of 2015. Acquisition of a hotel in Ciudad Obregón Acquisition of the Valle Grande hotel in Ciudad On Apr. 7, 2014, FibraHotel successfully completed the Obregón acquisition of the Fiesta Inn Ciudad Obregón representing a total investment of MXN $141.5 million. The hotel On May. 1, 2014, FibraHotel successfully completed the has 123 rooms and 18 more will be added bringing the acquisition of the Valle Grande hotel in Ciudad Obregón total to 141 rooms with the investment of an additional representing a total investment of MXN $110 million (in- MXN $6.5 million. cluding a reposition investment of MXN $20 million). The hotel has 135 rooms. First Quarter 2014 results Acquisition of the Fairfield Inn Los Cabos On Apr. 29, 2014, FibraHotel announced its financial results and distribution for the first quarter of 2014. On Jun. 20, 2014, FibraHotel successfully completed the acquisition of the Fairfield Inn hotel in Los Cabos Holders Meeting results representing a total investment of MXN $110 million. The hotel has 128 rooms. This hotel represents the first On May 2, 2014, FibraHotel announced agreements adop- operating hotel with Marriott International reinforcing ted by the holders Meeting of April 30, 2014. the partnership signed in November 2013.

46. Hotel Valle Grande Ciudad Obregón

Select-service hotel with 135 rooms located in Ciudad Obregón in the state of Sonora. The hotel is located in the center of the city about a mile from the train station, five minutes by car from the Tutuli mall and 20 minutes by car from the Ciudad Obregón International Airport. The hotel was added to the FibraHotel portfolio in May of 2014 and will be repositioned under the Gamma by Fiesta Inn brand. 2013

IBRA OTEL Annual Report F H 53 Consolidated Financial Fiesta Inn Guadalajara Fiesta Statements

Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary Consolidated Financial Statements for the Year Ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012, and Independent Auditors’ Report Dated April 3, 2014

Independent Auditors’ Report and Consolidated Financial Statements 2013 and 2012

Table of contents Page

Independent Auditors’ Report 51

Consolidated Statements of Financial Position 52

Consolidated Statements of Income and Other Comprehensive Income 53

Consolidated Statements of Changes in Trustees’ Equity 54

Consolidated Statements of Cash Flows 55

Notes to Consolidated Financial Statements 56

47. Hotel Fairfield Inn Los Cabos

Select-service hotel with 128 rooms located on Avenida Lázaro Cárdenas in Cabo San Lucas in the state of Baja California. The hotel is close to the beaches and the Los Cabos and center-city tourism corridors. The hotel is 20 miles from the Los Cabos International Airport (SJD). The hotel was added to the FibraHotel in June of 2014.

54 Independent Auditors’ Report to the Technical Committee and Trustees of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria)

We have audited the accompanying consolidated financial statements of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary (“FibraHotel”), which comprise the consolidated statements of financial position as of December 31, 2013 and 2012, and the related consolidated statements of income and other comprehensive income, changes in trustees’ equity and cash flows for the year then ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012 and a summary of significant accounting policies and other explanatory information.

Management´s Responsibility for the Consolidated Financial Statements

Management of FibraHotel is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, and for such internal control as management of FibraHotel determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to FibraHotel’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of FibraHotel’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidation financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary as of December 31, 2013 and 2012, and its financial performance and its cash flows for the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012, in accordance with International Financial Reporting Standards.

Galaz, Yamazaki, Ruiz Urquiza, S. C. Member of Deloitte Touche Tohmatsu Limited

C. P. C. Marco Antonio Arellano Alfaro

México City, México

April 3, 2014

IBRA OTEL F H 55 Financial Statements Consolidated Statements of Financial Position As of December 31, 2013 and 2012

(In thousands of Mexican pesos)

Assets Notes 2013 2012

Current assets: Cash, cash equivalents and restricted cash 5. $ 4,787,793 $ 2,877,775 Trade accounts receivable and other receivables 6. 106,396 21,664 Due from related parties 11. 2,816 11,429 Recoverable taxes, mainly Value-Added Tax 204,319 306,389 Prepaid expenses 1,961 - Total current assets 5,103,285 3,217,257

Non-current assets: Hotel properties, furniture and operating equipment – Net 7. 4,734,606 2,017,470 Properties under development 8. 250,874 179,411 Security deposits 905 - Advances to suppliers - 52 Deferred income taxes 13. 2,193 121 Total non-current assets 4,988,578 2,197,054

Total $ 10,091,863 $ 5,414,311

Liabilities and trustees’ equity

Current liabilities: Suppliers and accrued expenses 10. $ 157,160 $ 27,004 Taxes payable 3,414 2,779 Total current liabilities 160,574 29,783

Total liabilities 160,574 29,783

Trustees´ equity: Contribution from the trustees 12. 9,846,459 5,374,170 Unsubscribed equity (15) (15) Retained earnings 84,845 10,373 Total trustees’ equity 9,931,289 5,384,528

Total $ 10,091,863 $ 5,414,311

See accompanying notes to consolidated financial statements.

56 Consolidated Statements of Income and Other Comprehensive Income

For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012

(In thousands of Mexican pesos)

Notes 2013 2012

Revenues from: $ 758,495 $ 18,942 Rooms 88,433 7,015 Real Estate Rentals 164,869 3,815 Food and beverages 20,684 281 Other income 1,032,481 30,053

Costs and expenses: Rooms (130,404) (3,934) Food and beverages (110,816) (2,211) General and administrative (452,695) (6,397) Property (16,791) (547) Corporate (82,168) (4,518) Depreciation (120,041) (7,246) Business acquisition 7. (79,857) (3,869) (992,772) (28,722)

Other income, Net 6,960 - Interest income 119,126 9,503 Foreign exchange (loss) gain, Net (964) 4 Income before net income taxes 164,831 10,838

Income taxes 13. 2,078 465

Consolidated net comprehensive income $ 162,753 $ 10,373

Net income per weighted average CBFIs with economic rights $ 0.3953 $ 0.0352 (pesos)

Net income per weighted average CBFIs (pesos) $ 0.3884 $ 0.0341

Weighted average CBFIs with economic rights 411,704,070 294,203,869

Weighted average outstanding CBFIs 419,059,300 303,901,766

See accompanying notes to consolidated financial statements.

IBRA OTEL F H 57 Financial Statements Consolidated Statements of Changes in Trustees’ Equity

For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012

(In thousands of Mexican pesos)

Contribution Total Number of Unsubscribed Retained from the trustees’ CBFIs equity earnings trustees equity

Initial capital contribution (July 31, 2012 - Inception date) 80,290,656 $ 15 $ (15) $ - $ -

Issuance of CBFIs 223,611,110 5,374,155 - - 5,374,155

Consolidated net comprehensive income - - - 10,373 10,373

Balance, December 31, 2012 303,901,766 5,374,170 (15) 10,373 5,384,528

Issuance of CBFIs 195,500,000 4,635,490 - - 4,635,490

Distribution to trustees - (163,201) - (88,281) (251,482)

Consolidated net comprehensive income - - - 162,753 162,753

Balance, December 31, 2013 499,401,766 $ 9,846,459 $ (15) $ 84,845 $ 9,931,289

See accompanying notes to consolidated financial statements.

58 Consolidated Statements of Cash Flows

For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012

(In thousands of Mexican Pesos)

2013 2012 Operating activities: Consolidated net comprehensive income $ 162,753 $ 10,373 Adjustments for non-cash items: Income taxes recognized in comprehensive income 2,078 465 Investing activities: Loss in furniture and hotel equipment sale 868 - Depreciation 120,041 7,246 Interest income (119,126) (9,503) Total 166,614 8,581

(Increase) decrease in: Trade accounts receivable and other receivables (84,732) (20,292) Due from related parties 8,613 - Recoverable taxes, mainly Value-Added Tax 106,220 (306,389) Prepaid expenses (1,961) - Security deposits (905) - Advances to suppliers 52 (52) (Decrease) increase in: Suppliers and accrued expenses 130,153 26,535 Taxes payable 635 2,658 Taxes payable paid (4,150) - Net cash flows provided by (used in) operating activities 320,539 (288,959)

Investing activities: Businesses acquired (2,533,386) (131,546) Acquisition of hotel properties, furniture and operating equipment (253,108) - Furniture and hotel operating equipment sale 377 - Investment in projects development (127,538) - Interest received 119,126 9,503 Net cash flows used in investing activities (2,794,529) (122,043)

Financing activities: Payments of loans acquired by Contribution Portfolio - (600,000) Issuance of CBFIs 4,877,725 4,136,805 Issuance expenses (242,235) (248,028) Distribution to trustees (251,482) - Net cash flows from financing activities 4,384,008 3,288,777

Cash, cash equivalents and restricted cash Net increase in cash, cash equivalents and restricted cash 1,910,018 2,877,775 Cash, cash equivalents and restricted cash at beginning of period 2,877,775 -

Cash, cash equivalents and restricted cash at end of period (Including restricted cash of $4,658,355 and $1,931,456 as of December 31, 2013 and 2012, respectively) $ 4,787,793 $ 2,877,775

See accompanying notes to consolidated financial statements.

IBRA OTEL F H 59 Financial Statements Notes to Consolidated Financial Statements

For the year ended December 31, 2013 and for the period from July 31, 2012 (inception date) to December 31, 2012

(In thousands of Mexican Pesos)

1. General information

Fideicomiso F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary (“FibraHotel”) was established as a real estate investment trust on July 31, 2012 by Concentradora Fibra Hotelera Mexicana, S. A. de C. V., (the “Trustor”) and Deutsche Bank México, S. A., Institución de Banca Múltiple, División Fiduciaria (the “Trustee”). FibraHotel was established mainly for the acquisition and/or construction of real estate to be used as accommodation in the lodging industry and the acquisition of rights to receive revenues from the related operating and/or lease agreements. It began operations on December 1, 2012.

FibraHotel, as a real estate investment trust (“FIBRA”), qualifies to be treated as a pass-through entity for Mexican federal income tax purposes in accordance with the Mexican Income Tax Law (“LISR”). Therefore, all income derived from FibraHotel’s operations is attributed to the holders of its real estate trust certificates (“CBFIs” for their initials in Spanish) and FibraHotel itself is not subject to income tax in Mexico. In order to maintain FIBRA status, the Mexican Tax Administration Service (“SAT”) has established in Articles 187 and 188 of the LISR, FibraHotel must, among other requirements, distribute at least 95% of its net taxable income each year to the holders of its CBFIs. On October 12, 2012, FibraHotel obtained a ruling from the Mexican Treasury Department, published in the Federal Official Gazette, formally establishing FibraHotel as a FIBRA.

To carry out its operation, FibraHotel entered into the following contracts:

i. A planning advisory contract with Administradora Fibra Hotelera Mexicana, S. A. de C. V. (“Administradora Fibra Hotelera”) (related party);

ii. Service agreements with Prestación de Servicios Hoteleros GG, S. de R. L. de C. V. (“Prestación de Servicios Hoteleros GG”), Grupo Empresarial Hermosillo, S. de R. L. de C. V. (“Grupo Empresarial Hermosillo”), and Soluciones y Administración Estratégica, S. de R. L. de C. V. (“Soluciones y Administración Estratégica”) (related parties) for the provision of operating and administrative personnel;

iii. Services agreements with, Servicios de Recursos Integrales FH, S. de R. L. de C. V. (“Servicios de Recursos Integrales FH”), Alterturismo, S. de R. L. de C. V. (“Alterturismo”), Eficiencia en Capital Humano FH, S. de R. L. de C. V. (“Eficiencia en Capital Humano FH”), Compañía Desarrolladora de Nómina FH, S. de R. L. de C. V. (“Compañía Desarrolladora de Nómina FH”), Administradora de Recursos Humanos FH, S. de R. L. de C. V. (“Administradora de Recursos Humanos FH”), Administración de Personal Profesional FH, S. de R. L. de C. V. (“Administración de Personal Profesional FH”), Administradora Mexicana de Recursos Humanos, S. de R. L. de C. V. (“Administradora Mexicana de Recursos Humanos”), Solución en Recursos Humanos FH, S. de R. L. de C. V. (“Solución en Recursos Humanos FH”), Calidad en Administración de Recursos FH, S. de R. L. de C. V. (“Calidad en Administración de Recursos FH”), Empresa Mexicana Especializada en RH, S. de R. L. de C. V. (“Empresa Mexicana Especializada en RH”), Administradora Especializada en Servicios de Nómina FH, S. de R. L. de C. V. (“Administradora Especializada en Servicios de Nómina FH”), Ingeniería en la Prestación de Recursos Humanos FH; S. de R. L. de C. V. (“Ingeniería en la Prestación de Recursos Humanos FH”), RH Compañía Desarrolladora, S. de R. L. de C. V. (“RH Compañía Desarrolladora”) y Administradora de Recursos Corporativos FH, S. de R. L. de C. V. (“Administradora de Recursos Corporativos FH”) for the provision of operating and administrative personnel;

iV. Hotel operating and lease agreements with Grupo Posadas, S. A. de C. V. and Grupo Real Turismo, S. A. de C. V. (“Operadoras”) in relation to the 39 properties in operation which belong to the portfolio of FibraHotel. In each of the hotels under a hotel operating agreement, the respective operator is responsible for, among other things, the operation of the hotel, establishing an annual business plan and annual expense budget, setting the room rates, payment of operating expenses with a charge to the accounts of FibraHotel, advising on necessary disbursements, preparing marketing plans and hiring the employees for each of the hotels. Based on such agreements, the payment to the operator for its services will be based on variable rates derived from the gross operating profit of the respective hotel.

60 Fibra Hotelera S. C. is a 99.99% owned subsidiary of Fideicomiso F/1596 of the Trustees Equity. Its responsibilities include managing the business, maintaining the real estate properties and hotels, obtaining necessary licenses and permits, supervising projects involving renovation, development and redevelopment, providing insurance coverage, oversight of public services, and negotiating hotel management contracts.

The address of FibraHotel is Santa Fe No. 481 Piso 7 Col. Cruz Manca, Cuajimalpa de Morelos, C.P. 05349, Mexico City.

a. Portfolio Composition

Detail of the hotels owned by FibraHotel is as follows:

Hotel and location Activity Portfolio 1. Fiesta Inn Tepic Hotel operations (1) Contribution 2. Fiesta Inn Hermosillo Hotel operations (1) Contribution 3. Fiesta Inn Nuevo Laredo Hotel operations (1) Contribution 4. Fiesta Inn Durango Hotel operations (1) Contribution 5. Fiesta Inn Naucalpan Hotel operations (1) Contribution 6. Fiesta Inn Perinorte Hotel operations (1) Contribution 7. One Coatzacoalcos Hotel operations (1) Contribution 8. One Monterrey Hotel operations (1) Contribution 9. One Acapulco Hotel operations (1) Contribution 10. One Aguascalientes Hotel operations (1) Contribution 11. One Toluca Hotel operations (1) Contribution 12. One Culiacán Hotel operations (1) Contribution 13. One Guadalajara Tapatío Hotel operations (1) Contribution 14. Real Inn Morelia Hotel operations (1) Contribution 15. Fiesta Inn Perisur Leasing (2) Contribution 16. Fiesta Inn Ecatepec Leasing (2) Contribution 17. Fiesta Inn Cuautitlán Leasing (2) Contribution 18. Fiesta Inn Culiacán Leasing (2) Contribution 19. Camino Real Puebla Leasing (2) Contribution 20. Fiesta Inn Tlalnepantla Hotel operations (1) Acquisition 21. Fiesta Inn Toluca Tollocan Hotel operations (1) Acquisition 22. Fiesta Inn Torreón Hotel operations (1) Acquisition 23. Fiesta Inn Aguascalientes Hotel operations (1) Acquisition 24. Fiesta Inn Ciudad Juárez Hotel operations (1) Acquisition 25. Fiesta Inn Chihuahua Hotel operations (1) Acquisition 26. Fiesta Inn Guadalajara Expo Hotel operations (1) Acquisition 27. Fiesta Inn León Hotel operations (1) Acquisition 28. Fiesta Inn Monclova Hotel operations (1) Acquisition 29. Fiesta Inn Mexicali Hotel operations (1) Acquisition 30. Fiesta Inn Monterrey La Fe/Aeropuerto Hotel operations (1) Acquisition 31. Fiesta Inn Querétaro Hotel operations (1) Acquisition 32. Fiesta Inn Saltillo Hotel operations (1) Acquisition 33. Fiesta Inn Oaxaca Hotel operations (1) Acquisition 34. Fiesta Inn Puebla Finsa Hotel operations (1) Acquisition 35. One Querétaro Hotel operations (1) Acquisition 36. One Patriotismo Hotel operations (1) Acquisition 37. One Puebla Finsa Hotel operations (1) Acquisition 38. Real Inn Guadalajara Hotel operations (1) Acquisition 39. Real Inn Mexicali Hotel operations (1) Acquisition 40. Extended stay Cancún Under development stage (3) Contribution 41. Extendedstay Puebla Under development stage (3) Contribution (1) 34 hotel properties are under a hotel operating agreement, for which the respective operator is responsible for the operation of the hotel, establishment of an annual business plan and an annual expense budget, setting the room rates, payment of operating expenses with a charge to the accounts of FibraHotel, advising on any necessary disbursements, preparing marketing plans and hiring the employees for each of the hotels. Additionally, each operator establishes and maintains reservation and occupancy records via a centralized reservation system which includes software developed by the operator. Each operator administers a call center which includes each hotel and a webpage, implements loyalty programs and promotes advertising designed by the operator itself. Under the hotel operating agreement, the payment to the operator is based on variable rates derived from the gross operating profit and a fixed component for some hotels.

IBRA OTEL F H 61 Financial Statements (2) Five hotels are operating under a lease agreement, executed between FibraHotel and the hotel operating entities which manage and operate those hotels. Real estate expenses, insurance and real estate property tax are on account of FibraHotel.

(3) The Contribution Portfolio contains hotels under development under a construction contract executed with Grupo GDI, which establishes the commitment to perform the construction and development of the hotels comprising the Contribution Portfolio under Development. The maximum total cost of the four and three properties at December 31, 2013 and 2012 under development is $255,000 and from de four properties under development to $455,000, respectively. Grupo GDI received, as a consideration for its contribution of those hotels, 9,697,897 CBFIs, equivalent to $179,411. Additionally, FibraHotel will pay to Grupo GDI the remainder of the development costs until the construction of these hotels is complete and the hotels are open to the public. b. Business Acquisition

During 2013, Fibra Hotel concluded the acquisition of 19 hotels and one saloon which are part of the Acquisition Portfolio, the main activity is the hotel operation. Consideration transferred and Acquired properties Acquisition date paid in cash

1. Salón Fundición Monclova October 2, 2013 $ 16,500 2. Real Inn Mexicali August 2, 2013 120,000 3. Fiesta Inn Oaxaca July 5, 2013 170,000 4. Fiesta Inn Puebla Finsa July 3, 2013 130,000 5. One Puebla Finsa July 2, 2013 90,000 6. Real Inn Guadalajara July 1, 2013 122,251 7. Fiesta Inn Tlalnepantla June 24, 2013 86,674 8. Fiesta Inn Toluca Tollocan April 30, 2013 151,921 9. Fiesta Inn Monclova February 28, 2013 168,100 10. Fiesta Inn Querétaro January 21, 2013 273,509 11. Fiesta Inn León January 21, 2013 181,835 12. Fiesta Inn Guadalajara January 21, 2013 154,792 13. One Patriotismo January 21, 2013 134,480 14. Fiesta Inn Monterrey January 21, 2013 130,406 15. Fiesta Inn Aguascalientes January 21, 2013 121,477 16. Fiesta inn Saltillo January 21, 2013 121,175 17. One Querétaro January 21, 2013 120,580 18. Fiesta Inn Mexicali January 21, 2013 109,599 19. Fiesta Inn Chihuahua January 21, 2013 85,655 20. Fiesta Inn Ciudad Juárez January 21, 2013 53,085

$ 2,542,039

62 Assets acquired and recognized at acquisition date

The fair value of the net assets is shown as follows:

Furniture and hotel Under Acquired property Land Building equipment development Total

1. Salón Fundición Monclova $ 7,794 $ 7,730 $ 976 - $ 16,500 2. Real Inn Mexicali 25,763 84,703 9,534 - 120,000 3. Fiesta Inn Oaxaca 30,000 130,000 10,000 - 170,000 4. Fiesta Inn Puebla Finsa 20,000 100,000 10,000 - 130,000 5. One Puebla Finsa 6,200 77,999 5,801 - 90,000 6. Real Inn Guadalajara 20,000 80,000 22,251 - 122,251 7. Fiesta Inn Tlalnepantla 15,300 58,527 12,847 - 86,674 8. Fiesta Inn Toluca Tollocan 50,000 75,375 18,346 8,200 151,921 9. Fiesta Inn Monclova 12,600 127,510 27,990 - 168,100 10. Fiesta Inn Querétaro 64,201 171,633 37,675 - 273,509 11. Fiesta Inn León 18,415 134,004 29,416 - 181,835 12. Fiesta Inn Guadalajara 37,159 96,459 21,174 - 154,792 13. One Patriotismo 21,010 98,719 14,751 - 134,480 14. Fiesta Inn Monterrey 25,000 86,433 18,973 - 130,406 15. Fiesta Inn Aguascalientes 17,000 85,671 18,806 - 121,477 16. Fiesta inn Saltillo 11,625 89,831 19,719 - 121,175 17. One Querétaro 6,704 99,072 14,804 - 120,580 18. Fiesta Inn Mexicali 13,776 78,575 17,248 - 109,599 19. Fiesta Inn Chihuahua 17,000 56,297 12,358 - 85,655 20. Fiesta Inn Ciudad Juarez 11,937 33,741 7,407 - 53,085

$ 431,484 $1,772,279 $ 330,076 $ 8,200 $2,542,039

• On December 17, 2012, FibraHotel acquired the hotel Fiesta Inn Torreón, which were property of Inmobiliaria de la Comarca, S. A. de C. V., an affiliated entity of Grupo Marhnos, obtaining control over its operations via the rights to the hotel operating agreements outstanding with Grupo Posadas, S. A. de C. V. The only asset included in the purchase was the hotel property, for which the cash, accounts receivable and accounts payable generated before the hotel’s acquisition were not transferred and will be administered by the previous owner. The employees were transferred to Administradora GDI, S. A. de C. V. and the operating contract with Grupo Posadas, S. A. de C. V. was also transferred to FibraHotel.

The fair value of the assets acquired is shown below:

Consideration transferred and Principal activity Acquisition date paid in cash

Fiesta Inn Torreón Hotel operation December 17, 2012 $ 111,103

Fair value of assets acquired as of the acquisition date

Fiesta Inn Torreón Long-term assets Land $ 22,724 Building 81,807 Hotel furniture and equipment 6,572

$ 111,103 The fair value of the assets acquired aforementioned is determined based on the paid price at fair value using the income focus and the market focus. The income focus is commonly used to determine the value of this type of properties which are generator of cash flows through the property operation, which is obtained from the present value of future benefits based on the proper characteristics of the business, such as income, costs, expenses, among others. As of December 31, 2013, necessary market valuations and

IBRA OTEL F H 63 Financial Statements other calculations have been completed. Fair value has been determined based on the best management’s estimate as of December 31, 2013. Details of the assets acquired and the assumed liabilities as of the acquisition date corresponding to the hierarchy of the fair value as of December 31, 2013, is established as Level 2.

For tax purposes, market values could have also an effect on the recognized fair values of the other assets acquired, as part of the business combinations

Income and net income of the real estate properties aforementioned included in the accompanying consolidated financial statement with its respective acquisitions are of $566,707 and $155,799, respectively.

If the real estate property aforementioned would have been acquired on January 1, 2013, income and net income of FibraHotel for the period from January 1, 2013 to December 31, 2013, would have been for $1,782,582 and $379,489, respectively.

Acquisition costs of the acquired hotels as of December 31, 2013 and 2012 are of $63,442 and $19,876, respectively; recognized in the consolidated statement of income and other comprehensive income.

FibraHotel has established growth and expansion plans, and based on its investment policies will evaluate future acquisition projects that will be submitted for approval by the Technical Committee of FibraHotel. c. Relevant events

i. On December 17, 2013, FibraHotel executed an agreement for the development of two hotels with complete services with 226 rooms in San Pedro Garza García, in Monterrey City, which form part of the Project of Mixed Use Trebol Monterrey. Those hotels will be set in one building inside the development and will be part of Fiesta Americana Grand with 180 rooms and a Live Aqua with 46 rooms. Both will be operated by Grupo Posadas and will open with the project on the fourth quarter of 2015.

Those hotels of complete services will represent a total estimated investment of $600,000 of which as of December 31, 2013, Fibra Hotel has invested $59,500.

ii. On December 2, 2013, FibraHotel acquired the rights of a land at the north of Mexico City for the construction of two hotels with a total of 245 rooms inside of Centro Comercial Vía Vallejo. Those hotels will be set in one building, over the mall and will be a Courtyard by Marriot with 93 rooms and a Fairfield Inn & Suites with 152 rooms. Both hotels will be operated by Marriot International as part of the association announced on November 14, 2013 and it is expected to start operations with the mall on the fourth quarter of 2015.

Those two hotels will represent a total estimated investment of $230,000 of which FibraHotel, as of December 31, 2013 has spent $34,000.

iii. On June 24, 2013, FibraHotel opened to the public the hotel One Guadalajara Tapatío, which is part of the Contribution Portfolio under Development. The total price for FibraHotel is of $70,000, of which $12,738 were paid in exchange of 688,564 CBFIs and $57,262 were paid in cash on the delivery of the hotel.

iv. On May 30, 2013, FibraHotel conducted a subsequent offer of CBFIs through the Mexican Stock Exchange (BMV for its acronyms in Spanish) and in other international markets. The amount of the global offering is of $4,877,725, offering 195,500,000 CBFIs, including over allocation, at a price of $24.95. The trust of control of FibraHotel participated on the subscription 2,000,000 CBFIs.

v. On April 19, 2013, FibraHotel celebrated an agreement for the development and operation of ten hotels in the following three years with Hoteles Camino Real, S. A. de C. V., to execute the operation of the hotel. Hotels could be operated under the branches “Real Inn” and “Camino Real Suites”, and together will have a total of 1,503, rooms.

vi. On March 4, 2013, FibraHotel opened to the public, the hotel Real Inn Puebla, which formed part of the Contribution Portfolio under development. The total price for FibraHotel was of $130,000, of which $43,339 were paid in exchange of 2,342,667 CBFIs and on March 7, 2013 were paid $86,661 in cash over the delivery of the hotel.

64 vii. On November 30, 2012, FibraHotel held an initial public offering (“IPO”) of CBFIsa in the BMV)and abroad, and entered into a series of “constitution transactions”, from which 21 properties were contributed to FibraHotel in exchange of its CBFIs, from Fondo Controladora Cabi/HM, S. de R. L. de C. V. (“Controladora Cabi”), and Fondo Hotelero Mexicano, S. de R. L. de C. V. (“FHM”) (collectively FibraHotel Holding), of which seventeen are already finished and operating and four hotels are still under development.

2. Basis of presentation

a. New and revised IFRSs affecting amounts reported and/or disclosures in the financial statements

The impact of the application of these standards is set out below.

Impact of the application of IFRS 10

IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated financial statements and SIC-12 Consolidation – Special Purpose Entities. IFRS 10 changes the definition of control such that an investor has control over an investee when a) it has power over the investee, b) it is exposed, or has rights, to variable returns from its involvement with the investee and c) has the ability to use its power to affect its returns. All three of these criteria must be met for an investor to have control over an investee. Previously, control was defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Additional guidance has been included in IFRS 10 to explain when an investor has control over an investee. Some guidance included in IFRS 10 that deals with whether or not an investor that owns less than 50% of the voting rights in an investee has control over the investee.

The management of FibraHotel held an evaluation on the initial application date of the IFRS 10 (January 1, 2013) in order to determine if FibraHotel has control over the entities that renders it professional services entities. As such, inaccordance with the corresponding guidance established in the IFRS 10. FibraHotel’s management concluded that it has no control. Therefore, according to the requirements of the IFRS 10, those professional services entities must not be considered as subsidiaries.

Comparative figures for 2012 have not been updated in accordance with the applicable transitional provisions set out in IFRS since the effect was immaterial.

IFRS 13 Fair Value Measurement

FibraHotel has applied IFRS 13 for the first time in the current year. IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The scope of IFRS 13 is broad; the fair value measurement requirements of IFRS 13 apply to both financial instrument items and non-financial instrument items for which other IFRSs require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of IFRS 2 Share-based Payment, leasing transactions that are within the scope of IAS 17 Leases, and measurements that have some similarities to fair value but are not fair value (e.g. net realizable value for the purposes of measuring inventories or value in use for impairment assessment purposes).

IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under IFRS 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, IFRS 13 includes extensive disclosure requirements.

IFRS 13 requires prospective application from January 1, 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard.

IBRA OTEL F H 65 Financial Statements b. Reclassifications

The accompanying consolidated financial statements for the year ended December 31, 2012 have been reclassified in certain fields to conform its presentation with the utilized on 2013.

The fields which were reclassified in the consolidated statement of income and other comprehensive income as of 2012, are as follows:

Effect of changes Amounts of 2012 in Retrospectively 2012 Originally reported reclassified

Administrative costs and $ 63 $ (6,397) $ (6,460) expenses

Real estate expenses $ (547) $ (547) $ -

Corporate expenses $ (4,518) $ (4,518) $ -

Business acquisition expenses $ (3,869) $ (3,869) $ -

Advertising and promotion $ 1,871 $ - $ (1,871)

Electric energy $ 1,529 $ - $ (1,529)

Maintenance $ 953 $ - $ (953)

Administration fees $ 4,518 $ - $ (4,518)

3. Summary of significant accounting policies

a. Statement of Compliance

The consolidated financial statements of FibraHotel have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

b. Basis of measurement

The consolidated financial statements of FibraHotel have been prepared on the historical costs basis, except for hotel properties, furniture and equipment, and properties under development, which are valued at fair value at the date of contribution and acquisition, as explained in greater detail in the accounting policies below.

i. Historical cost

Historical cost is usually based on the fair value of the consideration given in exchange for assets.

ii. Fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

66 c. Basis of consolidation

The consolidated financial statements include those of FibraHotel and of its subsidiary over whichit exercises control. Control is obtained when FibraHotel has the power over the investment, is exposed, or has the rights, to variable returns from its involvement, and has the ability to affect those returns through its power over the entity that invests.

FibraHotel reassesses whether it controls an entity if the facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

The subsidiary is consolidated from the date on which control is transferred to FibraHotel, and is no longer consolidated from the date that control is lost.

When necessary, adjustments to the financial statements of the subsidiary are made to align its accounting policies in accordance with the accounting policies of FibraHotel.

All balances and transactions between the subsidiary and FibraHotel have been eliminated in the consolidation.

Ownership percentage Entity 2013 and 2012 Activity

Fibra Hotelera, S. C. 99.99% Provision of advisory services and technical, legal, tax, commercial and administrative consulting related to the purchase and sale, management, leasing and subletting of all kinds of land, houses, buildings, warehouses, hotels, malls and commercial premises and offices as well as provision of personnel services.

FibraHotel reassessed if it has maintained effective control over the entities mentioned in Note 1 paragraphs ii) and iii); based on its assessment, management concluded that in accordance with IFRS 10 FibraHotel does not have effective control due to the following: (i) power, FibraHotel has current ability to direct the relevant activities, (ii) it has no exposure nor has it rights over variable returns, the trustors of the payroll entities have not received distributions, given that it is not the object of payroll entities, administrative services fees are 5% of the hotel gross profit and is recognized at fair value. This fee is not modified to the interests of FibraHotel. The fee covers the expenses incurred by the payroll entities for its operation and is sufficient, therefore payroll entities prevent losses, the assets of the payroll entities are different in such a manner that these cannot be used in combination with FibraHotel for its operation. . The operators and managers act as agents of FibraHotel on the decision making relevant activities; however, FibraHotel is not considered as an investor because the payroll entities act independently and FibraHotel has not exposition to the variable returns.

Given the obligation of paying the services provided, salaries of the personnel, plus a 5%, FibraHotel has to recognize the respective benefits related to retirement and employee benefits.

As of December 31, 2013, the provision for employee benefits is not recognized in the financial information of FibraHotel given the immateriality of the account.

Significant intercompany balances and transaction have been eliminated.

The main accounting policies applied by FibraHotel are as follows:

d. Business combinations

Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the fair values of the assets transferred by FibraHotel, plus the liabilities incurred by FibraHotel to the previous owners of the entity acquired and the equity issued by FibraHotel in exchange for control over the entity acquired at the acquisition date. The costs related to the acquisition are generally recognized in the statement of income and other comprehensive income as incurred.

IBRA OTEL F H 67 Financial Statements As of the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at fair value.

Goodwill is measured as the excess over the sum of the consideration transferred, the amount of any non- controlling interest in the entity acquired, and the fair value of the acquirer’s previous shareholding in the entity acquired (if any) over the net of the amounts of identifiable assets acquired and liabilities assumed at the acquisition date. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. e. Financial instruments

Financial assets and financial liabilities are recognized when a group entity becomes a party tothe contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Cash and cash equivalents

Cash and cash equivalents mainly consist of bank deposits in checking accounts and short-term investments. Cash is presented at fair value and cash equivalents are valued at fair value. FibraHotel considers as cash equivalents all highly liquid debt instruments acquired with an original maturity of three months or less. Cash equivalents are represented mainly by government securities in which the resources are paid at maturity.

Restricted cash

Restricted cash consists on cash corresponding to the fund for the investment in real estate, which will be used for the acquisition of the real estate of the contribution portfolio and the fund of the allowance for equity expenses which will be used for the repairs payments, major replacements and other equity expenses.

Financial assets

Financial assets are classified into the following specified categories: financial assets at fair value with changes through profit or loss (FVTPL, for its acronym in English), amortized cost, preserved to maturity investments, financial assets available for sale (AFS, for its acronym in English), loans and accounts receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of its initial recognition. All purchases or sales of financial assets are carried routinely identified and removed based on the trade date. Purchases or sales routinely performed are those purchases or sales of financial assets that require the delivery of assets within the time frame established by law or custom in that market.

At the date of these consolidated financial statements, FibraHotel has only instruments classified as cash and cash equivalents and accounts receivable.

Accounts receivable

Accounts receivable and other receivables which have fixed or determinable payments that are not listed in an active market are classified as loans and accounts receivable, which are measured at amortized cost, using the effective interest method, minus any impairment.

68 Impairment in the value of financial assets

For financial assets other than financial assets at fair value through profit or loss, impairment indicators are evaluated at each reporting date. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows from the investment have been affected.

For AFS equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.

For all other financial assets, objective evidence of impairment could include:

• Significant financial difficulty of the issuer or counterparty; or • Breach of contract, such as a default or delinquency in interest or principal payments; or • It becoming probable that the borrower will enter bankruptcy or financial re-organization; or • The disappearance of an active market for that financial asset because of financial difficulties.

Derecognition of financial assets

The Entity derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Entity neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Entity recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Entity retains substantially all the risks and rewards of ownership of a transferred financial asset, the Entity continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss.

On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.

The key feature in determining whether a financial instrument is a liability is the existence of a contractual obligation of FibraHotel to deliver cash or another financial asset to the holder, or to exchange financial assets or liabilities under conditions that are potentially unfavorable. In contrast, in the case of an equity instrument the right to receive cash in the form of dividends or other distributions is at the Fibra Hotel´s discretion and, therefore, there is no obligation to deliver cash or another financial asset to the holder of the instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the net assets of FibraHotel. The equity instruments issued by FibraHotel are recognized for the proceeds received, net of direct issuance costs.

IBRA OTEL F H 69 Financial Statements Financial liabilities

Financial liabilities are classified as financial liabilities at fair value through profit or loss or other financial liabilities.

Other financial liabilities are recognized initially at fair value, net of transaction costs.

Other financial liabilities are valued subsequently at their amortized cost using the effective interest method, with interest expense recognized based on the effective interest method. f. Hotel properties, furniture and operating equipment

Properties, furniture and operating equipment of the hotel are recorded initially at their acquisition cost. As of the date the IPO, land and buildings related to the hotels contributed to FibraHotel were recorded at their fair value, as permitted by certain transition options established in IFRS. Subsequent acquisitions or construction of hotel properties, furniture and operating equipment are recorded initially at acquisition cost.

Hotel properties, furniture and operating equipment are presented at cost, less accumulated depreciation and any accumulated loss from impairment.

Depreciation is calculated using the straight-line method based on the remaining useful life of the asset, considering any residual values and of its bigger components, since FibraHotel considers more appropriated and consistent in relation to the methods used for the most representative entities of the sector. Based on technical studies, FibraHotel concluded that its buildings and their different components have different useful lives and will be subject to replacements in different periods, 15 years in the case of certain common areas and up to 55 years for metallic structures of the building. The residual value is 24% in the case of the buildings; other fixed assets do not have significant residual values, as determined by independent appraisers.

Estimated useful lives, residual values and the depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

Depreciation rates of hotel properties, furniture and operating equipment is: %

Building finishes 10 Building improvements 10 Building components 7 Building civil construction 1 Furniture and equipment 10

The gain or loss derived from the sale or disposal of an item of the hotel’s properties, furniture and operating equipment is calculated as the difference between the resources received from the sale and the carrying value of the asset, and is recognized in results. g. Impairment in the value of long-lived assets

At the end of each reporting period, FibraHotel reviews the carrying values of its long-lived assets to determine whether there is any indication that such assets have suffered a loss from impairment. If there is any such indication, the recoverable amount of the asset is calculated to determine the amount of the loss from impairment (if any). When it is not possible to estimate the recoverable amount of an individual asset, FibraHotel estimates the recoverable amount of the cash generating unit to which such asset belongs. When a reasonable and consistent distribution basis can be identified, corporate assets are also assigned to the individual cash generating units; otherwise, they are assigned to the smallest group of cash generating units for which a reasonable and consistent distribution basis can be identified.

The recoverable amount is the higher of the fair value less the cost to sell the asset and its value in use. When evaluating the value in use, the estimated future cash flows related to the asset are discounted at present value using a discount rate before taxes which reflects the current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

70 If it is estimated that the recoverable amount of an asset (or cash generating unit) is lower than its carrying value, the carrying value of the asset (or cash generating unit) is reduced to its recoverable amount. Losses from impairment are recognized immediately in results.

When a loss from impairment subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

h. Provisions

Provisions are recognized when FibraHotel has a present obligation (legal or implied) as a result of a past event, it is probable that FibraHotel will be required to liquidate the obligation and it can be reliably estimate that the amount of the obligation.

The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting period under review, taking into account the risks and uncertainties surrounding the obligation. When a provision is valued using the estimated cash flows to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the value of money over time is material).

When recovery from a third party of some or all of the economic benefits required to settle a provision are expected, an account receivable is recognized as an asset if it is virtually certain that the disbursement and the amount of the account receivable may be valued reliably.

i. Revenue recognition

Revenues are obtained from the hotel operation, and include room rentals, leasing, food and beverages and other revenues, which are recognized as such services, and rendered.

j. Leasing revenues

Leases are classified as capital leases when the terms of the lease substantially transfer to the lessee all the risks and benefits inherent to ownership. All other leases are classified as operating leases. Properties under operating leases are included in the heading of hotel properties, furniture and equipment in the statement of financial position.

The revenues from operating leases are recognized on accounting, are substantially equals to those determined reducing the given incentives such as grace periods, and are recognized on a straight-line basis over the term of the relevant lease, considering any incentives granted, such as grace periods. Contingent rentals (such as inflation) are recognized when they are earned. The lease term is the non-cancelable period of the related lease, including any periods for which the lessee has the option to extend, only when at the commencement of the lease, management has reasonable certainty that the lessee will exercise its renewal option.

k. Income taxes

As discussed in Note 1, FibraHotel is classified as and intends to maintain its classification as a FIBRA for income tax purposes; accordingly, it does not recognize a provision for income taxes.

The subsidiary Fibra Hotelera, S. C is subject to the payment of regular Income Tax (“ISR”) and the Business Flat Tax (“IETU”). See Note 13.

l. Foreign currency

Transactions performed in foreign currency are recorded at the exchange rate in effect on the date each transaction took place. Monetary assets and liabilities denominated in foreign currency are valued in Mexican pesos at the exchange rate in effect at the date of the financial statements. Exchange rate fluctuations are recorded in results.

m. Classification of costs and expenses

The costs and expenses presented in the consolidated statement of comprehensive income were classified on their combined nature and function.

IBRA OTEL F H 71 Financial Statements n. Statement of cash flows

FibraHotel presents its statement of cash flows using the indirect method. Interest received is classified as an investing cash flow.

o. Net income per weighted average CBFI

Net income per weighted average CBFI with economic rights is determined by dividing consolidated net income by the weighted average number of outstanding CBFIs with economic rights, during the period. Net income from weighted average CBFIs with economic rights as of December 31, 2013 and 2012 subtracting to the total of 499,401,766 of CFIS and 303,901,766 outstanding CBFIs, respectively to 7,355,230 and 9,697,897 corresponding outstanding CBFIs related to the Contribution Portfolio under Development, which are not entitled to receive economic rights until the construction of the hotels has concluded and the hotels are opened to the public.

4. Critical accounting judgments and key sources of estimation uncertainty

a. Critical judgments involving the application of accounting policies

Business combinations

Management uses its professional judgment to determine whether the acquisition of a hotel or hotel portfolio represents a business combination or an asset acquisition. Management specifically evaluates the extent to which FibraHotel acquires the processes needed to ensure that the assets acquired generate benefits.

This determination can have a significant effect on the manner in which acquired assets and liabilities are recognized in financial information, both as of the acquisition date and subsequent thereto. Assets acquired in the Acquisition Portfolio were determined to be and were thus accounted for as business combinations. Those operations made over hotels that do not represent common control were classified as business combinations.

Hotel classification (investment/asset ownership)

Investment property is held to earn rentals or for capital appreciation or both. Therefore, an investment property generates cash flows independently of other assets held by FibraHotel. This distinguishes investment property from owner-occupied property.

If FibraHotel is the owner of the property and manages services provided to the hotel guests by holding operating and leasing contracts and the services provided to the guests are significant. A hotel managed by the owner is an occupied property, rather than an investment property.

It can be difficult to determine whether the services provided are significant enough that aproperty does not qualify as investment property. For example, the owner of a hotel sometimes transfers some responsibilities to third parties under an operating agreement. The owner’s position could be, in essence, a passive investor or the owner may simply have outsourced day to day functions while retaining significant exposure to variations in cash flows from the hotel operations.

Management uses its professional judgment to classify the contributed and acquired hotels as hotel property, plant and equipment, given that each hotel is used in its normal course of business and is, therefore, not considered as an investment property.

Transactions that occurred during the period presented in the financial statements are posted as business acquisition and presented in property, plant and equipment of the hotel.

Lease classification

As explained in Note 3j, leases are classified based on the extent to which the risks and rewards inherent to the ownership of the asset under lease are transferred to FibraHotel or the tenant, depending on the substance, rather than the legal form, of the lease. Based on its evaluation of contractual terms and conditions, FibraHotel has concluded that it essentially assumes all the significant risks and rewards inherent to the hotels under lease and therefore classifies the respective lease agreements as operating leases.

72 b. Main sources of estimation uncertainty

Estimated useful and residual lives of fixed assets

Taking into consideration the opinion of internal experts from its development area, FibraHotel evaluates the useful and residual lives of assets at the end of each reporting period based on its operating experience, the characteristics of its assets and their operation at date of the review. Any changes in estimate are recognized prospectively, within accumulated depreciation in the consolidated statement of financial position and depreciation expense in the consolidated statement of comprehensive income.

Allowance for doubtful accounts

FibraHotel has not recognized an allowance for doubtful accounts because credit ratings of its customers have not significantly changed and outstanding amounts are deemed to be recoverable. FibraHotel does not hold any collateral or other credit improvements with regard to these balances; likewise, it does not have the legal right to offset these amounts against its debts with the counterparty.

Fair value measurements and valuation processes

Some of the assets and liabilities of FibraHotel are measured at fair value in the consolidated financial statements.

In estimating the fair value of an asset or a liability, FibraHotel uses observable market data as far as they are available. When the input data of level 1 are not available, FibraHotel hire a qualified appraiser to conduct an independent valuation. The Management works closely with the independent qualified appraiser to establish the valuation techniques and appropriate input data for the model.

Information about the valuation techniques and inputs used in determining the fair value of individual assets and liabilities are disclosed in Note 9.

5. Cash, cash equivalents and restricted cash

2013 2012

Cash and bank deposits $ 88,885 $ 16,383 Cash equivalents 40,553 929,936 Restricted cash: Real property investment fund (i) 4,638,650 1,930,283 Capital expenditure reserve fund (ii) 19,705 1,173

$ 4,787,793 $ 2,877,775

Restricted cash

(i) Represents amounts held in the real property investment fund which are restricted for purpose of funding an acquisition portfolio of real property in the amount of $4,383,650 and $1,654,694 as well as for the purpose of funding $255,000 and $275,589 at December 31, 2013 and 2012, respectively towards the real property contained in the development portfolio held by FibraHotel. As in the case of cash equivalents, this restricted cash is invested in government securities. 1. (ii) Represents amounts held in the capital expenditure reserve fund, which are restricted for the purpose of funding repairs, major replacements and other related capital expenditures. A total of 5% of operating income is deposited in this fund. As in the case of cash equivalents, this restricted cash is invested in government securities.

IBRA OTEL F H 73 Financial Statements 6. Trade accounts receivable and other receivables

2013 2012 Clients $ 57,848 $ 7,471 Travel agencies 30,567 2,599 Credit cards 6,244 1,829 Other 2,582 2,418 97,241 14,317 Lease receivables from: Hoteles y Villas Posadas, S. A. de .C V. 4,676 - Inmobiliaria CR Juárez, S. A. de C. V. 1,501 1,450 Posadas de Latinoamérica, S. A. de C. V. 1,289 5,897 Others 1,689 - 9,155 7,347 $ 106,396 $ 21,664

a. Clients, lease receivables and credit risk management

Accounts receivable from customers and other accounts receivable with fixed or determinable payments, which are not traded on an active market, are classified as notes and accounts receivable. Interest income is recognized by applying the effective interest rate, except in the case of short-term accounts receivable for which interest recognition is not significant.

b. Accounts receivable aging

FibraHotel currently has monthly collection levels that reflect its monthly billing; similarly, commercial and negotiating practices allow it to keep accounts receivable aging at less than 90 days. The accounts receivable subject to legal proceedings are insufficiently material to merit the creation of an allowance for bad debts.

2013 2012

60-90 days $ 4,601 $ - More than 90-120 days 13,460 -

Total $ 18,061 $ - 38 - Average Antique (days)

7. Hotel properties, furniture and operating equipment

2013 2012

Cost $ 4,857,914 $ 2,024,716 Less- Accumulated depreciation (123,308) (7,246)

$ 4,734,606 $ 2,017,470

Land $ 827,570 $ 372,043 Building 3,532,018 1,547,458 Hotel furniture and operating equipment 498,326 105,215

$ 4,857,914 $ 2,024,716

74 Hotel furniture and Cost Land Building equipment Total

Balances as of July 31, 2012 $ - $ - $ - $ - Acquisitions: Contribution Portfolio (1) 349,319 1,465,651 98,643 1,913,613 Acquisition Portfolio (2) 22,724 81,807 6,572 111,103

Balances as of December 31, 2012 372,043 1,547,458 105,215 2,024,716 Acquisitions: Contribution Portfolio (3) 24,041 151,553 24,405 199,999 Acquisition Portfolio (4) 431,486 1,833,007 368,706 2,633,199

Balances as of December 31, 2013 $ 827,570 $3,532,018 $ 498,326 $4,857,914

Hotel furniture and Accumulated depreciation Building equipment Total

Balances as of July 31, 2012 $ - $ - $ - Depreciation expense 6,424 822 7,246

Balances as of December 31, 2012 6,424 822 7,246

Depreciation expense 59,434 56,628 116,062

Balances as of December 31, 2013 $ 65,858 $ 57,450 $ 123,308 (1) As discussed in Note 1, on November 30, 2012, FibraHotel carried out an IPO involving the placement of CBFIs in Mexico and in other international markets. The adherent’s trustees contributed the properties to FibraHotel composing the Contribution Portfolio in exchange for 80,290,656 CBFIs.

(2) On December 17, 2012, FibraHotel utilized the resources derived from the IPO to acquire ownership of the Fiesta Inn Torreón hotel.

(3) During 2013, FibraHotel paid the remainder of the hotels One Guadalajara Tapatío and Real Inn Morelia, which were in the Portfolio under Development and are integrated into the Contribution Portfolio. (4) (5) During 2013, FibraHotel acquired a saloon and 19 hotels which form part of the Acquisition Portfolio, which were paid with the resources from the subsequent offering of CBFI’s that occurred on May 30, 2013 (see Notes 1b and 12c).

8. Properties under development

2013 2012

Cancún Estancia Prolongada Project(1) $ 94,872 $ 94,872 Mixto Trébol Monterrey Project 59,500 - Vía Vallejo Project 34,000 - Real Inn Morelia Proyect(1) - 43,339 Puebla Estancia Prolongada Proyect (1) 28,462 28,462 One Guadalajara Tapatio Proyect(1) - 12,738 One Toluca Tollocan Project 8,200 - Ciudad del Carmen Project 5,000 - Others 20,840 - $ 250,874 $ 179,411

(1) The Contribution Portfolio includes as of December 31, 2013 and 2012, two and four hotels, respectively for which distributions from the tax results of these hotels will not be made until such hotels commence operations.

IBRA OTEL F H 75 Financial Statements 9. Financial instruments

Categories of financial instruments

2013 2012 Financial assets: Cash, cash equivalents and restricted cash $ 4,787,793 $ 2,877,775 Trade accounts receivable and other receivables $ 106,396 $ 21,664 Due from related parties $ 2,816 $ 11,429 Financial liabilities: Suppliers and accrued expenses Cuentas por pagar a proveedores y otras $ 104,648 $ 13,326

Equity management

FibraHotel manages its equity to ensure its ability to continue as a going concern, while maximizing the net worth of its trustors and distributions to the trustors by optimizing its use of debt and equity.

The equity of FibraHotel is primarily composed by the net worth of its trustors. Equity Management objectives include ensuring the availability of operating funds to maintain the consistency and sustainability of distributions paid to trustors, while funding the required capital expenditure requirements and providing the resources needed to acquire and develop new properties.

FibraHotel can acquire hotels subject to existing financial mortgages or other encumbrances; similarly, it can acquire new debt or refinance existing debt to acquire hotels, albeit subject to compliance with leverage policies. Under certain circumstances, it could have the obligation to pay distributions in excess of the cash available for this purpose; if necessary, it can utilize the resources generated by organizing future debt and equity offerings, selling assets or obtaining loans to make certain distributions. The debt service related to this financing or indebtedness takes priority over any distributions related to the CBFIs.

The reason for liquidity requirement is determined on the stable funding available between the illiquid assets, the amount as of 31 December 2013 is .094.

Financial risk management

Financial risk management is intended to manage financial expectations, while generating results of operations and cash flows to improve the financial position of FibraHotel and ensure its ability to make distributions to the holders of the CBFIs and fulfill any future debt obligations.

The Technical Committee of FibraHotel is responsible for advising and instructing the trustee with regard to the sale or cancellation of the CBFIs, analyzing and improving potential investments, sales and acquisitions, providing business services, coordinating access to national financial markets, as well as monitoring and managing the financial risks derived from the operations of FibraHotel through internal risk reports which provide an analysis of the level and magnitude of FibraHotel’s risk exposure. These risks include the market risk (including exchange rate and interest rate risks), credit risk and liquidity risk.

Market risk management

The activities of FibraHotel essentially expose it to financial risks involving interest rates and foreign currencies. FibraHotel is able to obtain financing under different conditions, whether from third or related parties; however, variable interest rates are usually subject to market rate fluctuations.

Foreign currency risk management

As FibraHotel performs transactions denominated in U.S. dollars (“U.S. dollar”), it is exposed to exchange rate fluctuations involving the Mexican peso and the U.S. dollar.

76 a. As of December 31, 2013 and 2012 the foreign currency monetary position is as follows:

2013 2012

Thousands of U.S. dollars: Monetary assets $ 904 453 Monetary liabilities (250) - Long position 654 453

Equivalent in Mexican pesos $ 8,557 $ 5,884

b . Mexican peso exchange rates in effect at the date of the consolidates statement of financial position and at the date of issuance of these consolidates financial statements were as follows:

December 31, 2013 December 31, 2012 April 3, 2014 U.S. dollar $ 13.0843 $ 12.9880 $ 13.0991 Foreign currency sensitivity analysis

Management considers that its exchange rate risk is not significant, given the amount of its long position in U.S. dollars.

If the exchange rate increased or decreased by $1 peso per U.S. dollar and all other variables remained constant, the result of the year and net worth of FibraHotel for the period ended December 31, 2013 and 2012 would have decreased/increased by approximately $654 and $453, respectively.

Credit risk management

Credit risk refers to the situation in which counterparty defaults on its contractual obligations, thereby generating a financial loss for FibraHotel. Virtually all the revenues generated by FibraHotel are derived from the provision of hotel services. Consequently, its performance depends on its ability to collect revenues from hotel services from guests, as well as the capacity of the latter to make the required payments. FibraHotel’s income and funds available for distribution would be adversely affected if a significant number of guests or its main leaseholders defaulted on their rental payments, closed their businesses or filed bankruptcy proceedings.

FibraHotel has adopted the policy of negotiating hotel leases with solvent counterparties and obtaining sufficient guarantees, when necessary, as a means of mitigating the risk of losses generated by nonpayment.

Credit risk is generated by the balances of cash and cash equivalents, trade accounts receivable and other receivables included in the consolidated statement of financial position.

Liquidity risk management

Liquidity risk represents the risk whereby FibraHotel faces certain difficulties when fulfilling obligations associated with financial liabilities which must be settled in cash or through the delivery of another financial asset. As FibraHotel is responsible for liquidity risk management, it has established a suitable liquidity risk management structure to manage its short, medium and long-term financing, while satisfying liquidity management requirements. FibraHotel manages its liquidity risk by maintaining adequate reserves, monitoring projected and actual revenue cash flows and reconciling the maturity profiles of financial assets and liabilities. The Treasury department monitors liability maturities so as to program the respective payments.

The following table details the outstanding maturities of FibraHotel’s financial liabilities according to payment periods.

IBRA OTEL F H 77 Financial Statements Less than one year

As of December 31, 2012 Suppliers and others $ 104,648

As of December 31, 2012 Suppliers and others $ 13,326

Fair value of financial instruments

Fair value of financial instruments recorded at amortized cost

Cash, cash equivalents and restricted cash, trade accounts receivable and other receivables, due from related parties, suppliers and accrued expenses are short-term in nature and, in certain cases, accrue interest at rates linked to market indicators. FibraHotel therefore considers that the carrying value of these financial assets and liabilities approximates their fair values.

Fair value of financial instruments carried at FVTPL on a recurring basis

Relationship of Valuation Input(s) unobservable Financial Fair value techniques and key significant input to the fair assents Fair value at hierarchy inputs unobservable value December December 31, 2013 31, 2012 Market value. The fair value of investments is measured by quoted prices (unadjusted) in Investments in active markets government for identical securities $4,698,908 $2,861,392 Level 1 instruments. - - Fair value of lands and building

Lands and buildings of FibraHotel are recorded at fair value, which is their fair value at acquisition date, minus accumulated depreciation and accumulated depreciation losses. Measurements of fair value of lands and buildings of FibraHotel as of December 31, 2013 are determined based on the paid value.

The fair value of the lands and buildings is determined based on the income view.

The fair value of the lands and buildings of FibraHotel and the information about the hierarchy of fair value as of December 31, 2013 is established as follows:

Level 2 Fair value total

Hotels of Acquisition Porfolio that includes: – Lands $ 431,484 – Buildings 1,772,279

$ 2,203,763

78 Valuation techniques and assumptions applied for purposes of determining the fair value

• The fair value of financial assets and financial liabilities with standard terms and traded in active liquid markets are determined with reference to quoted market prices (including unlisted redeemable notes, bills of exchange, perpetual and government bonds).

• The fair value of other financial assets and liabilities (excluding those described above) are determined in accordance with pricing models generally accepted, based on the analysis of discounted cash flows using prices from observable current transactions in the market and quotations for similar instruments. In particular, the fair value of long-term debt, which is calculated only for the purpose of this disclosure and not for the accounting of the debt, which is considered Level of measurement 3, as described below, it was determined using a model of discounted cash flows, using current rates estimates based on observable market TIIE curves and credit spread estimated using observable credit similar entities, which is adjusted as needed.

The financial instruments that are subsequently measured at initial recognition at fair value, are grouped in 3 levels, based on the degree to which the fair value is observable:

• Level 1 valuations at fair value are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 valuations at fair value are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and • Level 3 valuations at fair value are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable indicators).

10. Suppliers and accrued expenses

2013 2012

Suppliers $ 94,550 $ 8,383 Accrued expenses 52,512 13,678 Other accounts payable 10,098 4,943 $ 157,160 $ 27,004

11. Transactions and balances with related parties

Balances and transactions between FibraHotel and its subsidiary, which is a related party of FibraHotel, have been eliminated of the consolidation and are not revealed in this not. Further, transactions between FibraHotel and its related parties are detailed.

a. Comercial transactions:

During the year, FibraHotel and its subsidiary made the following transactions with related parties which are not members of FibraHotel:

2013 2012 Administradora Fibra Hotelera: Management fee (1) $ 82,168 $ 4,518

Prestación de Servicios Hoteleros GG (2) Administrative services $ 20,405 $ 1,903

Soluciones y Administración Estratégica (2) Administrative services $ 3,512 $ 389 (1) FibraHotel pays an annual fee equal to 1% of the undepreciated carrying value of FibraHotel’s net assets (total assets less outstanding indebtedness), plus any applicable value-added tax.

(2) FibraHotel pays an annual fee for the administrative services provision corresponding to the amount of the economic benefit of the personnel and taxes plus 5 % of the total sum of that concepts.

The above transaction is documented through an agreement executed with the entity, renewable for five- year periods.

IBRA OTEL F H 79 Financial Statements b. Due from related parties:

2013 2012

Controladora Cabi FHM $ 2,535 $ 9,698 Grupo Innovador Turístico y de Servicios, S. de R. L. de C. V. 233 582 Grupo Empresarial Hermosillo 48 1,149 $ 2,816 $ 11,429

12. Trustees’ equity

Contributions

a. Equity contributions of trustors at par value is as follows:

Initial capital contribution Issuance of CBFIs Total $ 15 $ 10,009,645 $ 10,009,660 At December 31, 2013, the initial contributed net worth of FibraHotel has not been fully paid-in.

b. The net worth of FibraHotel is represented by an initial contribution of $15, the Contribution Portfolio, the Contribution Portfolio under Development and the resources generated by issuing the CBFIs in the IPO, as discussed below:

c. On May 30, 2013, FibraHotel held a subsequent offering of CBFIs in the BMV and in other international markets. The total amount of the offering was up to $4,877,725, offering 195,000,000 CBFIs, including over allocation at a price of $24.95. The Trust of Control of FibraHotel participated in the subscription of 2,000,000 CBFIs.

d. As discussed in Note 1, on November 30, 2012, FibraHotel carried out an OPI involving the placement of CBFIs in the Mexican Stock Market and other international markets. The global offering amount was $4,136,806 based on 223,611,110 CBFIs, including an overallotment option, at a price of $18.50.

In addition to the IPO, the trustors contributed hotels composing the Contribution Portfolio and Contribution Portfolio under Development to FibraHotel in exchange for 80,290,656 CBFIs, representing an amount of $1,485,377.

e. At December 31, 2013 and 2012, there were 499,401,766 and 303,901,766 CBFIs outstanding, respectively.

Distributions-

The Technical Committee of FibraHotel has approved and paid distributions of the tax income accounts, to the CBFIs owners as follows:

Distributions from Distributions of Date of distribution approval equity redemption taxable income Total Distributions October, 22, 2013 $ 83,445 $ 16,097 $ 99,542 July 22, 2013 41,248 33,166 74,414 April, 22 2013 36,952 22,038 58,990 January 22, 2013 1,556 16,980 18,536

Total December 2013 $ 163,201 $ 88,281 $ 251,482 These distributions are equal to 6.30 cents per CBFI and were calculated based on the number of outstanding CBFIs, excluding those CBFIs related to the Contribution Portfolio under Development at December 31, 2013 and 2012 of 7,355,230 and 9,697,897 CBFIs, respectively, which currently have no economic rights until the construction of the respective hotels has concluded and the hotels are opened to the public.

80 Issuance of CBFIs- At December 31, the issuance of CBFIs as a part of FibraHotel net worth is composed as follows:

2013 2012 Price Trustees’ Price Trustees’ equity equity

Initial contribution – in cash $ - $ - $ - $ 15 Cash contribution (IPO): 195,500,000 issued CBFIs 24.95 4,877,725 - - 223,611,110 issued CBFIs - - 18.50 4,136,806 Contribution in-kind: 80,290,656 issued CBFIs - - 18.50 1,485,377 Issuance expenses - (242,235) - (248,028)

Total CBFIs issuance $ - $ 4,635,490 $ - $ 5,374,170

13. Income taxes

In order to maintain its status as a FIBRA, per requirements of SAT, in conformity with Articles 187 and 188 of the Income Tax Law (LISR), FibraHotel must annually distribute at least 95% of its taxable income to the holders of the CBFIs.

Fibra Hotelera, S. C. is subject to income tax (“ISR” for its acronyms in Spanish) and to business flat tax (“IETU” for its acronyms in Spanish).

ISR - The rate was 30% in 2013 and 2012 and as a result of the new 2014 ISR law (2014Tax Law), the rate will continue at 30% in 2014 and thereafter.

IETU - IETU was eliminated as of 2014; therefore, up to December 31, 2013, this tax was incurred both on revenues and deductions and certain tax credits based on cash flows from each year. The respective rate was 17.5%.

The current income tax is the greater of ISR and IETU up to 2013.

Based on its financial projections, Fibra Hotelera, S. C. determined that it will basically pay ISR. Therefore, it only recognizes deferred ISR.

a. Income taxes expense are as follows:

2013 2012 ISR: Current tax $ 4,150 $ 586 Deferred tax (2,072) (121) $ 2,078 $ 465

b. At December 31, 2013 and 2012 the deferred income tax asset is composed solely of temporary differences resulting from accrued expenses of $2,193 and $121, respectively.

14. Minimum lease payments

The aggregate annual future minimum lease payments expected to be received under existing operating leases are as follows:

Period Fiesta Inn Camino Real Total

Less than 1 year $ 43,044 $ 15,000 $ 58,044

1 to 5 years 172,177 60,000 232,177 $ 215,221 $ 75,000 $ 290,221

IBRA OTEL F H 81 Financial Statements The lease contracts have remaining terms ranging from five to ten years.

The aforementioned minimum lease payments do not include amounts expected to be received with respect to contingent rentals, which is mainly comprised of rent increases based on inflation and variable income, if any. Additionally, the payments disclosed only consider the compulsory lease term and do not consider any renewal periods, related to minimum future rentals.

15. Business segment information

Operating segment information is presented below, based on the focus given by management to evaluation of performance and allocation of resources.

Analytical information by operating segment:

2013 F/1596 Fibra Hotelera Total Total revenues $ 854,471 $ 178,010 $ 1,032,481 Expenses: Rooms (130,404) - (130,404) Food and beverages costs and expenses - (110,816) (110,816) Management costs and expenses (397,126) (55,569) (452,695) Property expenses (13,201) (3,590) (16,791) Corporate expenses (80,668) (1,500) (82,168) Depreciation (119,974) (67) (120,041) Business acquisition expenses (79,857) - (79,857) (821,230) (171,542) (992,772)

Other income, Net 7,002 (42) 6,960 Interest income 119,126 - 119,126 Foreign exchange, Net (959) (5) (964)

Income before income taxes 158,410 6,421 164,831

Income taxes - 2,078 2, 078 Consolidated net and comprehensive income $ 158,410 $ 4,343 $ 162,753

2012 F/1596 Fibra Hotelera, S. C. Total

Total revenues $ 25,868 $ 4,185 $ 30,053 Expenses: Rooms (3,934) - (3,934) Food and beverages costs and expenses - (2,211) (2,211) Management costs and expenses (5,603) (794) (6,397) Property expenses (547) - (547) Corporate expenses (4,518) - (4,518) Depreciation (7,246) - (7,246) Business acquisition expenses (3,869) - (3,869) (25,717) (3,005) (28,722)

Other income 9,503 - 9,503 Foreign exchange gain 4 - 4

Income before income taxes 9,658 1,180 10,838

Income taxes - 465 465 Consolidated net and comprehensive income $ 9,658 $ 715 $ 10,373

82 16. Commitments and contingencies

Except as noted previously, neither FibraHotel nor its assets are subject to any type of legal action, other than those stemming from its routine operations and activity.

As part of its incorporation transactions, FibraHotel acquired and has the obligation to acquire certain properties with the resources generated by the IPO.

In accordance to the mentioned in Note 1c, FibraHotel has signed agreements to develop two hotels in Monterrey City and two hotels on the north of Mexico City.

17. Subsequent events to the reporting period

a. On February 17, 2014, the Technical Committee of FibraHotel approved by authorization of the majority of its independent members distributions of the tax income accounts which correspond to the 95% of the tax income of the year; this distribution was paid by FibraHotel on March 10, 2014 in the amount of $105,001.

b. On January 21, 2014, FibraHotel announced that the construction of the Camino Real Hotel & Suites Puebla is finished and that that the hotel is in a preoperation status. This is the third opening of the four hotels originally included in the Portfolio under development

La inversión total en este hotel de 149 llaves fue de $125,000. De esta inversión, el grupo de control recibió 1,538,461 CBFIs sin derechos económicos en la oferta inicial, los cuales recuperaran sus derechos económicos con la distribución del primer trimestre de 2014. Adicionalmente, a la apertura del hotel FibraHotel se realizó un pago el 4 de marzo de 2014 en efectivo de $96,538.

c. During 2014, FibraHotel concluded successfully the acquisition of three hotels which form part of the Acquisition Portfolio; the main activity is the hotel operation.

Consideration transferred and paid Acquired property Acquisition date in cash 1. One Xalapa March 27, 2014 $ 69,000 2. Fiesta Inn Xalapa March 27, 2014 143,917 3. Fiesta Americana Aguascalientes January 15, 2014 227,328

$ 440,245

Assets acquired and recognized at the acquisition date

The fair value of the net assets acquired is shown as follows:

Furniture and hotel Acquired property Land Building equipment Total

1. One Xalapa $ 4,050 $ 58,000 $ 6,950 $ 69,000 2. Fiesta Inn Xalapa 17,958 114,042 11,917 143,917 3. Fiesta Americana Aguascalientes 54,808 148,958 23,562 227,328

$ 76,816 $ 321,000 $ 42,429 $ 440,245

The fair value of the acquired assets aforementioned, is determined provisionally based on estimates of fair value, as of March 27, 2014 the market valuations and other surveys have not been completed. The fair value has been determined based on the best estimate of the management as of March 27, 2014. Those amounts are subjects to changes until FibraHotel concludes its valuations, which will occur during the next twelve months over the acquisition date.

IBRA OTEL F H 83 Financial Statements If the property aforementioned would have been acquired on January 1, 2013, with the properties acquired mentioned in Note 1, the income and net income of FibraHotel for the period from January 1 to December 31, 2013 would have been for $1,913,379 and 415, 924, respectively.

The costs of acquisition are of $6,641 and recognized in the accompanying consolidated statement of comprehensive income.

18. New accounting pronouncements

a. New and revised IFRSs in issue but not yet effective

Fibra Hotel has not applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRS 9, Financial Instruments

IFRS 9, issued in November 2009, introduced new requirements for the classification and measurement of financial assets. IFRS 9 was amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition.

b. Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities

The amendments to IFRS 10 define an investment entity and require a reporting entity that meets the definition of an investment entity not to consolidate its subsidiaries but instead to measure its subsidiaries at fair value through profit or loss in its consolidated and separate financial statements.

To qualify as an investment entity, a reporting FibraHotel is required to:

• Obtain funds from one or more investors for the purpose of providing them with professional investment management services. • Commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both. • Measure and evaluate performance of substantially all of its investments on a fair value basis.

Fibra Hotel’s management does not anticipate that the investment entities amendments will have any effect on Fibra Hotel’s consolidated financial statements as Fibra Hotel is not an investment entity.

19. Approval of financial statements

On April 3, 2014, the issuance of the consolidated financial statements was authorized by Lic. Edouard Boudrant, Finance Director and Lic. Eduardo López, Finance Director and Lic. Eduardo López, Management Director These consolidated financial statements are subject to the approval at the General Ordinary Trustors meeting which may be modify them.

* * * * * *

84 Directory Diseño: www.katapolt.mx C.P. 05349, México D.F. Colonia CruzManca,DelegaciónCuajimalpa, Avenida Santa Fe #481 Piso7 Torre Corporativo World Plaza Hotelera Mexicana, S.A.deC.V. Administradora Fibra ADMINISTRATOR: www.fibrahotel.com Cuajimalpa, C.P. 05349, México D.F. Colonia CruzManca,Delegación Avenida Santa Fe #481 Piso7 Torre Corporativo World Plaza FibraHotel ISSUER: www.linkedin.com/company/fibrahotel www.twitter.com/FibraHotel C.P. 06500, México D.F. Colonia Cuauthémoc,Delegación Paseo delaReforma #115, Piso6 Member ofDeloitte Touche Tohmatsu Limited Deloitte –GalazYamazaki, Ruiz Urquiza, S.C. EXTERNAL AUDITOR: Delegación MiguelHidalgo,C.P. 11000, México D.F. Colonia Lomas deChapultepec, Paseo delaReforma #115, Piso23 CI BancoS.A.,InstitucióndeBancaMúltiple COMMON REPRESENTATIVE: Miguel Hidalgo,C.P. 11000, México D.F. Colonia Lomas deChapultepec, Delegación Torre Esmeralda I Blvd. Manuel Ávila Camacho,#40 Piso17, de BancaMúltiple,DivisiónFiduciaria Deutsche BankMéxico, S.A.,Institución TRUSTEE: FIHO (con sobreasignación) Monto Total delaOfertaInternacional: (con sobreasignación) Monto Total delaOfertaenMéxico: (con sobreasignación) Monto Total delaOfertaGlobalInicial: Fecha deListadoenlaBMV: Clave deCotización: FIBRAS emitidosporConcentradoraFibraHoteleraMexicana, Certificados Bursátiles FiduciariosInmobiliariosdenominados Certificados Bursátiles Casa BBVA deBolsa Bancomer, S.A.deC.V. Evercore Casa S.A.deC.V deBolsa, Grupo Financiero BBVA Bancomer La Bolsa Mexicana haceconstarellistadodelos La BolsaMexicana S.A. deC.V., en sucarácterdeFideicomitente. Asesor y Agente EstructuradordelaOferta: Características delaEmisión: IntermediariosColocadores: Evercore Partners México, S.deR.L. Casa de Bolsa Banorte IXE, S.A.deC.V.Casa Banorte deBolsa J.P. Morgan Casa S.A.deC.V. deBolsa, $ 1,451,642,201.00 $ 2,685,163,334.00 $ 4,136,805,535.00 30 denoviembre2012 FIHO Grupo Financiero Banorte J.P. Morgan GrupoFinanciero Torre Corporativo World Plaza

Av. Santa Fe No. 481-Piso 7, Col. Cruz Manca, CP 05349 Del. Cuajimalpa