Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Consolidated Financial Statements for the Years Ended December 31, 2014 and 2013, and Independent Auditors’ Report Dated March 31, 2015

Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Independent Auditors’ Report and Consolidated Financial Statements 2014 and 2013

Table of contents Page

Auditors’ Report 1

Consolidated Statements of Financial Position 3

Consolidated Statements of Income and Other Comprehensive Income 4

Consolidated Statements of Changes in Trustees’ Equity 5

Consolidated Statements of Cash Flows 6

Notes to the Consolidated Financial Statements 7

Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Consolidated Statements of Financial Position As of December 31, 2014 and 2013 (In thousands of Mexican pesos)

Assets Notes 2014 2013

Current assets: Cash, cash equivalents and restricted cash 5. $ 2,091,905 $ 4,787,793 Trade accounts receivable and other receivables 6. 169,174 106,396 Due from related parties 11. 3,190 2,816 Recoverable taxes, mainly value-added tax 234,063 204,319 Prepaid expenses 2,614 1,961 Total current assets 2,500,946 5,103,285

Non-current assets: Hotel properties, furniture and operating equipment – Net 7. 6,725,074 4,734,606 Properties under development 8. 773,571 250,874 Security deposits 1,654 905 Deferred income taxes 13. 3,995 2,193 Total non-current assets 7,504,294 4,988,578

Total assets $ 10,005,240 $ 10,091,863

Trustees’ Equity and Liabilities

Current liabilities: Suppliers and accrued expenses 10. $ 233,880 $ 157,160 Taxes payable 4,370 3,414 Total current liabilities 238,250 160,574

Total liabilities 238,250 160,574

Trustees’ equity: Contribution from the trustees 12. 9,495,343 9,846,459 Unsubscribed equity (15) (15) Retained earnings 271,662 84,845 Total trustees’ equity 9,766,990 9,931,289

Total trustees’equity and liabilities $ 10,005,240 $ 10,091,863

See accompanying notes to consolidated financial statements.

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Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Consolidated Statements of Income and Other Comprehensive Income For the years ended December 31, 2014 and 2013 (In thousands of Mexican pesos)

Notes 2014 2013

Revenues from: Rooms $ 1,162,025 $ 758,495 Real Estate Rentals 68,797 88,433 Food and beverages 289,662 164,869 Other income 10,280 20,684 1,530,764 1,032,481 Costs and expenses: Rooms (198,587) (130,404) Food and beverages (164,666) (110,816) General and administrative (642,668) (452,695) Property (21,644) (16,791) Corporate (102,731) (82,168) Depreciation 7. (162,930) (120,041) Business acquisition (73,689) (79,857) (1,366,915) (992,772)

Other (expenses) income, Net (31,783) 6,960 Interest income 120,807 119,126 Foreign exchange gain (loss), Net 3,572 (964) Income before net income taxes 256,445 164,831

Income taxes 13. 2,742 2,078

Consolidated net comprehensive income $ 253,703 $ 162,753

Net income per weighted average CBFIs with economic rights (pesos) $ 0.5144 $ 0.3953

Net income per weighted average CBFIs (pesos) $ 0.5080 $ 0.3884

Weighted average CBFIs with economic rights 493,175,302 411,704,070

Weighted average outstanding CBFIs 499,401,766 419,059,300

See accompanying notes to consolidated financial statements.

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Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Consolidated Statements of Changes in Trustees’ Equity For the years ended December 31, 2014 and 2013 (In thousands of Mexican pesos)

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

Balances as of January 1, 2013 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

Balances as of December 31, 2013 499,401,766 9,846,459 (15) 84,845 9,931,289

Distribution to trustees - (351,116) - (66,886) (418,002)

Consolidated net comprehensive income - - - 253,703 253,703

Balances as of December 31, 2014 499,401,766 $ 9,495,343 $ (15) $ 271,662 $ 9,766,990

See accompanying notes to consolidated financial statements.

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Fideicomiso Irrevocable No. F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Consolidated Statements of Cash Flows For the years ended December 31, 2014 and 2013 (In thousands of Mexican Pesos)

2014 2013 Cash flows from operating activities: Consolidated net income $ 253,703 $ 162,753 Adjustments for non-cash items: Income taxes recognized in comprehensive income 2,742 2,078 Investing activities: Loss in furniture and hotel equipment sale 15,982 868 Depreciation 162,930 120,041 Interest income (120,807) (119,126) Total 314,550 166,614

(Increase) decrease in: Trade accounts receivable and other receivables (62,778) (84,732) Due from related parties (374) 8,613 Recoverable taxes, mainly value-added tax (29,657) 106,220 Prepaid expenses (653) (1,961) Security deposits (749) (905) Advances to suppliers - 52 Increase (decrease) in: Suppliers and accrued expenses 76,720 130,153 Taxes payable 956 635 Income tax paid (4,570) (4,150) Net cash generated by operating activities 293,445 320,539

Investing activities: Businesses acquired (1,764,318) (2,533,386) Acquisition of hotel properties, furniture and operating equipment (663,319) (253,108) Proceeds from furniture and hotel operating equipment sale 1,379 377 Investment in projects development (265,880) (127,538) Interest received 120,807 119,126 Net cash used in investing activities (2,571,331) (2,794,529)

Financing activities: Issuance of CBFIs - 4,877,725 Issuance expenses of CBFIs - (242,235) Distribution to trustees (418,002) (251,482) Net cash (used in) generated by financing activities (418,002) 4,384,008

Cash, cash equivalents and restricted cash Net (decrease) increase in cash, cash equivalents and restricted cash (2,695,888) 1,910,018 Cash, cash equivalents and restricted cash at the beginning of the year 4,787,793 2,877,775

Cash, cash equivalents and restricted cash at the end of the year $ 2,091,905 $ 4,787,793 (including restricted cash of $1,968,184 and $4,658,355 as of December 31, 2014 and 2013, respectively)

See accompanying notes to consolidated financial statements.

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Fideicomiso Irrevocable No. F/1596 Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary

Notes to Consolidated Financial Statements For the years ended December 31, 2014 and 2013 (In thousands of Mexican Pesos)

1. General information

Fideicomiso F/1596 (Deutsche Bank México, S. A. Institución de Banca Múltiple, División Fiduciaria) and Subsidiary (jointly referred as to “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 its name in Spanish) and FibraHotel itself are not subject to income tax in Mexico. In order to maintain FIBRA status, the Income Tax Law (“ISR” for its name in Spanish) has established in Articles 187 and 188, 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;

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iv. Hotel operating and lease agreements with Grupo Posadas, S. A. de C. V., Grupo Real Turismo, S. A. de C. V., Operadora Marriott, S. A. de C. V. and Operadora Sheraton, S. de R. L. de C. V. (“Operadoras”) in relation to the 53 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, paying operating expenses with a charge to the accounts of FibraHotel, advising on necessary disbursements, preparing marketing plans and hiring the employees for each hotel. 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.

Fibra Hotelera S. C. is a 99.99% owned subsidiary of Fideicomiso F/1596. Its responsibilities include managing the business, providing maintenance to 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. One Aguascalientes Sur Hotel operations (1) Contribution 2. One Coatzacoalcos Fórum Hotel operations (1) Contribution 3. One Toluca Aeropuerto Hotel operations (1) Contribution 4. Fiesta Inn Naucalpan Hotel operations (1) Contribution 5. Fiesta Inn Perinorte Hotel operations (1) Contribution 6. Fiesta Inn Nuevo Laredo Hotel operations (1) Contribution 7. One Acapulco Costera Hotel operations (1) Contribution 8. One Monterrey Aeropuerto Hotel operations (1) Contribution 9. One Culiacán Forum Hotel operations (1) Contribution 10. Fiesta Inn Durango Hotel operations (1) Contribution 11. Fiesta Inn Hermosillo Hotel operations (1) Contribution 12. Fiesta Inn Tepic Hotel operations (1) Contribution 13. One Guadalajara Tapatío Hotel operations (1) Contribution 14. Real Inn Morelia Hotel operations (1) Contribution 15. Fiesta Inn Cuautitlán Leasing (2) Contribution 16. Fiesta Inn Perisur Leasing (2) Contribution 17. Fiesta Inn Ecatepec Leasing (2) Contribution 18. Camino Real Puebla Hotel operations (1) Contribution 19. Camino Real & Suites Puebla Hotel operations (1) Contribution 20. One Puebla Finsa Hotel operations (1) Acquisition 21. One Querétaro Plaza Galerías Hotel operations (1) Acquisition 22. One Ciudad de México Patriotismo 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 Mexicali Hotel operations (1) Acquisition 29. Fiesta Inn Monclova Hotel operations (1) Acquisition 30. Fiesta Inn Monterrey La Fe Hotel operations (1) Acquisition

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31. Fiesta Inn Oaxaca Hotel operations (1) Acquisition 32. Fiesta Inn Puebla Finsa Hotel operations (1) Acquisition 33. Fiesta Inn Querétaro Hotel operations (1) Acquisition 34. Fiesta Inn Saltillo Hotel operations (1) Acquisition 35. Fiesta Inn Tlalnepantla Hotel operations (1) Acquisition 36. Fiesta Inn Torreón Galerías Hotel operations (1) Acquisition 37. Fiesta Inn Toluca Tollocan Hotel operations (1) Acquisition 38. Real Inn Guadalajara Hotel operations (1) Acquisition 39. Real Inn Mexicali Hotel operations (1) Acquisition 40. Fiesta Inn Culiacán Hotel operations (1) Acquisition 41. Fiesta Americana Aguascalientes Hotel operations (1) Acquisition 42. One Xalapa Hotel operations (1) Acquisition 43. Fiesta Inn Xalapa Hotel operations (1) Acquisition 44. Fiesta Inn Cd. Obregón Hotel operations (1) Acquisition 45. Gamma León Hotel operations (1) Acquisition 46. Gamma Cd. Obregón Hotel operations (1) Acquisition 47. Gamma Tijuana Hotel operations (1) Acquisition 48. Fiesta Inn San Luis Oriente Hotel operations (1) Acquisition 49. One Monclova Hotel operations (1) Acquisition 50. Fairfield Inn Los Cabos Hotel operations (1) Acquisition 51. Sheraton Monterrey & Ambasador Hotel operations (1) Acquisition 52. Fiesta Inn Cuernavaca Hotel operations (1) Acquisition 53. Fiesta Inn Lofts Querétaro Hotel operations (1) Acquisition 54. Fiesta Inn Lofts Monclova Hotel operations (1) Acquisition 55. Cacao Playa del Carmen Hotel operations (1) Acquisition 56. One Cuernavaca Hotel operations (1) Acquisition Under development Acquisition 57. Extended stay Cancún stage (3) Under development Acquisition 58. Microtel Inn Saltillo stage (3) Under development Acquisition 59. Torre Americas 1500 Guadalajara AC stage (3) Under development Acquisition 60. Courtyard by Marriott Ciudad del Carmen stage (3) Under development Acquisition 61. Fairfield Inn & Suites Marriott Villa Hermosa stage (3) Under development Acquisition 62. Fiesta Americana Grand Monterrey stage (3) Under development Acquisition 63. Live Aqua Monterrey stage (3) Under development Acquisition 64. Fairfield Inn & Suites Vía Vallejo stage (3) Under development Acquisition 65. Courtyard by Marriott Vía Vallejo stage (3) Under development Acquisition 66. Proyecto Hotel Toluca stage (3) Under development Acquisition 67. Courtyard by Marriott Toreo stage (3) Under development Acquisition 68. One Perisur stage (3) Under development Acquisition 69. Fiesta Inn Los Mochis stage (3) Under development Acquisition 70. AC by Marriot Antea Querétaro stage (3)

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(1) Fifty three 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.

(2) Three 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. As of December 31, 2014 and 2013, the cost of the fifteen and two properties under development is $773,571 and $250,874, respectively. Grupo GDI received, as a consideration for its contribution of those hotels for 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 2014, FibraHotel concluded the acquisition of 14 operating hotels which are part of the Acquisition Portfolio.

Consideration transferred and paid in Acquired properties Acquisition date cash

1. Fiesta Inn Cuernavaca December11, 2014 $ 193,995 2. One Cuernavaca December 11, 2014 73,999 3. Hotel Cacao Playa del Carmen December 8, 2014 211,180 4. Sheraton Monterrey & Ambassador November 13, 2014 108,782 5. Microtel Inn Saltillo September 30, 2014 53,600 6. Fiesta Inn San Luis Potosi Oriente July 21, 2014 124,982 7. Gamma Tijuana Otay August 29, 2014 114,996 8. Fairfield Inn by Marriott Los Cabos July 11, 2014 107,495 9. Gamma Ciudad Obregón June 16, 2014 89,995 10. Gamma León Universidad June 16, 2014 103,995 11. Fiesta Inn Ciudad Obregón May 5, 2014 141,495 12. One Xalapa March 27, 2014 68,999 13. Fiesta Inn Xalapa March 27, 2014 143,912 14. Fiesta Americana Aguascalientes January 15, 2014 226,893

$ 1,764,318

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Assets acquired and recognized at the acquisition date

The fair value of the net assets acquired are as follow:

Furniture and hotel equipment Acquired properties Land Building Total

1. Fiesta Inn Cuernavaca $ 34,964 $ 141,015 $ 18,016 $ 193,995 2. One Cuernavaca - 67,098 6,901 73,999 3. Hotel Cacao Playa del Carmen 42,250 137,313 31,617 211,180 4. Sheraton Monterrey & Ambassador 38,523 64,793 5,466 108,782 5. Microtel Inn Saltillo 11,108 35,318 7,174 53,600 6. Fiesta Inn San Luis Potosi Oriente 8,963 103,409 12,610 124,982 7. Gamma Tijuana Otay 23,000 76,171 15,825 114,996 8. Fairfield Inn by Marriott Los Cabos 7,346 89,152 10,997 107,495 9. Gamma Ciudad Obregón 37,143 44,555 8,297 89,995 10. Gamma León Universidad 27,050 70,417 6,528 103,995 11. Fiesta Inn Ciudad Obregón 12,966 119,113 9,416 141,495 12. One Xalapa 4,050 58,000 6,949 68,999 13. Fiesta Inn Xalapa 17,958 114,042 11,912 143,912 14. Fiesta Americana Aguascalientes 54,808 148,958 23,127 226,893

$ 320,129 $ 1,269,354 $ 174,835 $ 1,764,318

During 2013, FibraHotel concluded the acquisition of 19 operating hotels and one saloon which are part of the Acquisition Portfolio.

Consideration transferred and paid in Acquired properties Acquisition date 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

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Assets acquired and recognized at acquisition date

The fair value of the net assets is shown as follows: Furniture and hotel Under Acquired properties 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 Juárez 11,937 33,741 7,407 - 53,085

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

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 and expenses, among others. As of December 31, 2014 and 2013, necessary market valuations and other calculations have been completed. Fair value has been determined based on the best management’s estimate as of December 31, 2014 and 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, 2014 and 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 as of December 31, 2014 and 2013 of the real estate properties aforementioned included in the accompanying consolidated financial statement with its respective acquisitions are of $162,656 and $51,025 and $566,707 and $155,799, respectively.

If the real estate property aforementioned would have been acquired on January 1, 2014 and 2013, income and net income of FibraHotel for the period from January 1, 2014 to December 31, 2014 and 2013, would have been for $1,543,395 and $286,954 and $1,782,582 and $379,478, respectively.

Acquisition costs of the acquired hotels as of December 31, 2014 and 2013 are of $44,508 and $66,442, respectively; recognized in the consolidated statement of income and other comprehensive income.

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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 November 20, 2014, FibraHotel announced the development of a hotel with select services with 125 rooms inside Paseo Los Mochis shopping center, the hotel will be a Fiesta Inn and will be operated by Grupo Posadas.

ii. On November 4, 2014, FIbraHotel announced the opening of two hotels in Monclova, One Monclova with 66 rooms and limited services; and Fiesta Inn Lofts Monclova with 37 rooms for extended stay. Both hotels were built in the same building and are connected to Fiesta Inn Monclova.

iii. On October 31, 2014, FibraHotel announced an agreement for the development of a hotel in Queretaro with select services will have 175 rooms inside of Antea Lifestyle Center Queretaro with the brand AC by Marriott. The hotel will be operated by Marriott International.

The hotel will be connected with Antea Lifestyle Center, one of the most important shopping center of Latin America. The construction began in 2014 and it is expected to be open to the public on the fourth quarter of 2015.

iv. On October 28, 2014, FibraHotel announced an agreement with Grupo Plan and Grupo Favier for the acquisition of five hotels with select services. Those hotels will be developed with international brands in the following twenty four months.

Those hotels will have between 140 and 170 rooms and they will represent an estimated investment of $900 million. The hotels will be located in five cities of Mexico and will be developed during the following two years. It is expected to start the construction in 2014 and the rest of the project during 2015.

v. On October 21, 2014, it was decided to end the operation relating to the contribution to FibraHotel of the Cancun development project extended-stay, without liability for the parties, then it was issued the portfolio of contribution in development of FibraHotel. The cancellation of the project is the result that after reviewing the requirements of the potential operators of the property was determined that the returns of the project were not sufficiently attractive to FibraHotel. The CBFIs 5,218,208 without economic rights that were issued in the initial Price Offering to be handed over to the owners of the property once this brings to the FibraHotel, will be retained by FibraHotel.

vi. On October 21, 2014, FibraHotel executed an agreement for the development of a hotel inside of the project Torre Americas 1500. The hotel will be built in a project of mixed use of offices, trade area and a hotel. The hotel of select services will have 189 rooms and will be set in the first seven floors with a sky pool, the brand and the operator will be announced in a future. The project is in process with seven underground parking floors and the ground floor or approximately 40% of the structure finished and it is expected to start operations with the project on the fourth quarter of 2015.

vii. On June 30, 2014, FibraHotel held a simple loan agreement with Banco Mercantil del Norte, S. A. Institución de Banca Múltiple, Grupo Financiero Banorte (Banorte) for an amount of up to $1,000,000. The date of the issuance of the consolidated financial statements, has not been disposed of this credit line.

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viii. On May 28, 2014, FibraHotel acquired the rights of a land for the construction of two hotels with a total of 254 rooms in Ciudad del Carmen, Campeche, which form part of a Project of Mixed Use. Those hotels will be set in one building inside the development and will be part of a Courtyard by Marriott with select services with 130 rooms and a Fiesta Inn Lofts with extended stay with 124 rooms, those hotels will be operated by Marriot International and Grupo Posadas respectively. The construction in both hotels started in the second quarter of 2014 and it is expected to start operation in the first quarter of 2015.

ix. On April 4, 2014, FibraHotel acquired the rights of a land in Ciudad de Villahermosa for the construction of a hotel inside of Plaza Sendero shopping center. FibraHotel will develop a hotel with limited services with 135 rooms and will be operated under the branch Fairfield Inn & Suites bye Marriott International as a part of the association announced on November 14, 2013 and it is expected to start operations on the first quarter of 2015.

x. On February 17, 2014, FibraHotel hired a simple loan agreement with BBVA Bancomer, S. A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer (Bancomer)for a mount of $1,000,000. The date of the issuance of the consolidated financial statements, has not been disposed of this credit line.

xi. On January 21, 2014, FibraHotel announced the construction of Camino Real Hotel & Suites Puebla has finished and the hotel is in preoperational phase. This hotel is part of the Contribution Portfolio under Development.

2. Basis of presentation

a. Application of new and revised International Financing Reporting Standards (“IFRSs”) and interpretations that are mandatorily effective for the current year

In the current year, the Entity has applied a number of amendments to IFRSs and new Interpretation issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after January 1, 2014.

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

The Entity has applied the amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities for the first time in the current year. The amendments to IFRS 10 define an investment entity and require a reporting entity that meets the definitions 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 entity is required to:

• Obtain funds from one or more investors for the purpose of providing them with 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; and • Measure and evaluate performance of substantially all of its investments on a fair value basis.

Consequential amendments have been made to IFRS 12 and IAS 27 to introduce new disclosure requirements for investment entities.

As FibraHotel is not an investment entity (assessed based on the criteria set out in IFRS 10 as of January 1, 2014), the application of the amendments has had no impact on the disclosure or the amounts recognized in the Entity consolidated financial statements.

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3. Significant accounting policies

a. Statement of Compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards released by 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 generally based on the fair value of the consideration given in exchange for goods and services.

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. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the FibraHotel and its subsidiaries controlled by it. Control is achieved when FibraHotel:

• Has power over the investee; • Is exposed, or has rights, to variable returns from its involvement with the investee; and • Has the ability to use its power to affect its returns.

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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 2014 and 2013 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.

FibraHotel reassessed whether it has maintained effective control over the entities mentioned in Note 1 paragraphs ii) and iii); based on its assessment, the management of the FibraHotel concluded that in accordance with IFRS 10 it 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, 2014 and 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 acquisition- date fair values of the assets transferred by FibraHotel, 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. Acquisition-related costs are generally recognized in profit or loss as incurred.

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At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their 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 held equity interest in the acquired (if any) over the net of the acquisition-date amounts of identifiable assets acquired and liabilities assumed. 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 to the 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 issuance 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), held-to-maturity investments, available-for-sale (AFS), financial assets loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of its initial recognition. All way purchases or sales of financial assets recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require the delivery of assets within the time frame established by regulation or convention in the marketplace.

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

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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.

Impairment in the value of financial assets

Financial assets, other than those financial assets at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be 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.

Classification as debt or equity

Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual.

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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.

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 1. 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:

% 2014 and 2013

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.

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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.

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, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured 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.

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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”). 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.

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, 2014 and 2013 subtracting to the total of 499,401,766 of outstanding CBFIs, respectively to 5,128,205 and 7,355,230 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 in applying 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.

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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 an investment property from an owner-occupied property.

FibraHotel is the owner of the property and manages the 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 a property 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. b. Key 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 assessment. Any changes in estimates 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.

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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

2014 2013

Cash and bank deposits $ 123,721 $ 88,885 Cash equivalents - 40,553 Restricted cash: Real property investment fund (i) 1,926,518 4,638,650 Capital expenditure reserve fund (ii) 41,666 19,705

$ 2,091,905 $ 4,787,793

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 $1,926,518 and $4,638,650 as well as for the purpose of paying funding $773,571 and $250,874 at December 31, 2014 and 2013, respectively. As in the case of cash equivalents, this restricted cash is invested in government securities.

(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.

6. Trade accounts receivable and other receivables

2014 2013

Clients $ 111,862 $ 57,848 Travel agencies 42,575 30,567 Credit cards 6,363 6,244 Other 2,927 2,582 163,727 97,241 Lease receivables from: Hoteles y Villas Posadas, S. A. de C. V. 5,447 4,676 Inmobiliaria CR Juárez, S. A. de C. V. - 1,501 Posadas de Latinoamérica, S. A. de C. V. - 1,289 Others - 1,689 5,447 9,155

$ 169,174 $ 106,396

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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 doubtful debts.

2014 2013

60-90 days $ 10,086 $ 4,601 More than 90-120 days 21,241 13,460

Total $ 31,327 $ 18,061

Average Aging (days) 40 38

7. Hotel properties, furniture and operating equipment

2014 2013

Cost $ 7,008,511 $ 4,857,914 Less- Accumulated depreciation (283,437) (123,308)

$ 6,725,074 $ 4,734,606

Land $ 1,176,161 $ 827,570 Building 5,159,009 3,532,018 Hotel furniture and operating equipment 673,341 498,326

$ 7,008,511 $ 4,857,914

Hotel furniture and Cost Land Building equipment Total

Balances as of January 1, 2013 $ 372,043 $ 1,547,458 $ 105,215 $ 2,024,716 Acquisitions: Contribution Portfolio (1) 24,041 151,553 24,405 199,999 Acquisition Portfolio (2) 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 Acquisitions: Contribution Portfolio (3) 28,462 96,538 - 125,000 Acquisition Portfolio (4) 320,129 1,530,453 175,015 2,025,597

Balances as of December 31, 2014 $ 1,176,161 $ 5,159,009 $ 673,341 $ 7,008,511

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Hotel furniture Accumulated depreciation Land Building and equipment Total

Balances as of January 1, 2013 $ 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

Depreciation expense - 93,674 66,455 160,129

Balances as of December 31, 2014 $ 159,532 $ 123,905 $ 283,437

(1) During 2013, FibraHotel off the hotels One Guadalajara Tapatío and Real Inn Morelia, which were in the Portfolio under Development and are integrated into the Contribution Portfolio.

(2) 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).

(3) During 2014, FibraHotel paid off the hotel extended stay Puebla, which was in the Portfolio under Development and is integrated into the Contribution Portfolio.

8. Properties under development

2014 2013

Trebol Monterrey mixed used project $ 292,303 $ 59,500 Torres Americas1500 Guadalajara AC 136,337 - Cancún Extended Stay project (1) 94,872 94,872 Ciudad del Carmen project 47,927 - Via Vallejo project 35,577 34,000 AC Antea project 28,833 - Saltillo project 27,794 - Juriquilla project 21,956 - Villahermosa project 21,761 - Ciudad del Carmen project 17,407 5,000 Los Mochis project 10,114 - Hotel Toluca project 8,200 8,200 Puebla Extended Stay project (1) - 28,462 Others 30,490 20,840

$ 773,571 $ 250,874

(1) The Contribution Portfolio includes as of December 31, 2014 and 2013, two and four hotels, respectively for which distributions from the tax results of these hotels will not be made until such hotels commence operations.

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9. Financial instruments

Categories of financial instruments

2014 2013 Financial assets: Cash, cash equivalents and restricted cash $ 2,091,905 $ 4,787,793 Trade accounts receivable and other receivables $ 169,174 $ 106,396 Due from related parties $ 3,190 $ 2,816 Financial liabilities: Suppliers and accrued expenses $ 227,748 $ 104,648

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 December 31, 2014 and 2013 is 10.49 and 31.78, respectively.

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 exposed to market rate fluctuations for properties value.

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

2014 2013 Thousands of U.S. dollars: Monetary assets 1,750 904 Monetary liabilities (131) (250) Long position 1,619 654

Equivalent in Mexican pesos $ 23,856 $ 8,557 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, 2014 December 31, 2012 March 31, 2015

U.S. dollar $ 14.7348 $ 13.0843 $ 15.2427

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 had increased or decreased by $1 peso per U.S. dollar and all other variables had remained constant, the result of the year and net worth of FibraHotel for the period ended December 31, 2014 and 2013 would have decreased/increased by approximately $1,619 and $654, 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.

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

Less than one year As of December 31, 2014 Suppliers and others $ 227,748

As of December 31, 2013 Suppliers and others $ 104,648

Fair value of financial instruments

Fair value of financial instruments recorded at amortized cost

Carrying value of 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 recognized at amortized cost approximates their fair values.

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

Relationship of Input(s) unobservable Financial Fair value Valuation techniques significant input to the fair assents Fair value at hierarchy and key inputs unobservable value December December 31, 2014 31, 2013 Market value. The fair value of investments is measured by Investments in quoted prices government $1,968,184 $4,698,908 Level 1 - - (unadjusted) in securities active markets for identical 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, 2014 and 2013 are determined based on the paid value. The fair value of the lands and buildings is determined based on the income view. There has been no change in valuation technique during the period.

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

2014 2013

Level 2 Fair value Level 2 Fair value total total Hotels of Acquisition Portfolio that include: – Lands $ 320,129 $ 431,484 – Buildings 1,269,354 1,772,279

$ 1,589,483 $ 2,203,763

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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 measurement Level 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.

Financial instruments measured at fair value after initial recognition are grouped in three 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

2014 2013

Suppliers $ 139,921 $ 94,550 Accrued expenses 73,714 52,512 Other accounts payable 20,245 10,098

$ 233,880 $ 157,160

11. Transactions and balances with related parties

Balances and transactions between FibraHotel and its subsidiary, have been eliminated of the consolidation and are not disclosed in this note. Transactions between FibraHotel and its related parties are detailed below.

a. Comercial transactions:

During the year, FibraHotel and its subsidiary carried out the following transactions with related parties:

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2014 2013 Administradora Fibra Hotelera: Management fee (1) $ 96,730 $ 82,168

Prestación de Servicios Hoteleros GG (2) Administrative services $ 22,154 $ 20,405

Soluciones y Administración Estratégica (2) Administrative services $ - $ 3,512

Fibra Hotelera: Administrative services (2) $ 14,265 $ -

Solución en Recursos Humanos FH Administrative services (2) $ 3,820 $ -

Administradora GDI Administrative services (2) $ 379 $ -

Control y Desarrollo Administrativo Administrative services (2) $ 28 $ -

(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 value-added tax.

(2) FibraHotel pays an annual fee for the administrative services provision corresponding to personnel employee benefits and taxes, plus 5 %.

The above transaction is documented through five-year agreements, renewable.

b. Due from related parties:

2014 2013

Controladora Cabi FHM $ 2,174 $ 2,535 Alterturismo, S. de R. L. de C. V. 734 - Grupo Innovador Turístico y de Servicios, S. de R. L. de C. V. 233 233 Grupo Empresarial Hermosillo 49 48

$ 3,190 $ 2,816

12. Trustees’ equity

Contributions

a. Equity contributions of trustors at par value are as follow:

Initial capital contribution Issuance of CBFIs Total

$ 15 $ 10,009,645 $ 10,009,660

As of December 31, 2014 and 2013, the initial contributed net worth of FibraHotel has not been paid in full.

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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 Bolsa Mexicana de Valores (“BMV”) and in other international markets. The total amount of the offering was up to $4,877,725, offering 195,000,000 CBFIs, including overallotment at $24.95. The Trust of Control of FibraHotel participated in the subscription of 2,000,000 CBFIs. d. As of December 31, 2014 and 2013, there were 499,401,766 CBFIs outstanding, respectively.

Distributions- a. As of December 2014, 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

February 17, 2014 $ 105,001 $ - $ 105,001 April 29, 2014 98,590 - 98,590 July 22, 2014 47,421 66,886 114,307 October 21, 2014 100,104 - 100,104

Total December 2014 $ 351,116 $ 66,886 $ 418,002 b. As of December 31, 2013 the Technical Committee has approved and paid FibraHotel distributions of tax revenue accounts to holders’ CBFIs 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 as of December 31, 2014 and 2013 of 5,128,205 CBFIs and 7,355,230 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.

Issuance of CBFIs-

As of December 31, the issuance of CBFIs as a part of FibraHotel net worth is composed as follows:

2014 2013 Price Trustees’ equity Price Trustees’ equity

Initial contribution – in cash: 195,500,000 issued CBFIs $ - $ - $ 24.95 $ 4,877,725 Issuance expenses - - - (242,235)

Total CBFIs issuance $ - $ - $ - $ 4,635,490

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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 2014 and 2013 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:

2014 2013

ISR: Current tax $ 4,545 $ 4,150 Deferred tax (1,803) (2,072)

$ 2,742 $ 2,078

b. At December 31, 2014 and 2013 the deferred income tax asset is composed solely of temporary differences resulting from accrued expenses of $3,995 and $2,193, 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

Less than 1 year $ 43,120

1 to 5 years 62,143

$ 105,263

The lease contracts have remaining terms ranging from one to five 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.

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15. Business segment information

a. Operating segment information is presented below, based on the focus given by management.

Analytical information by operating segment:

2014 F/1596 Fibra Hotelera Total

Total revenues $ 1,237,854 $ 292,910 $ 1,530,764

Rooms Costs and Expenses (198,587) - (198,587) Food and beverages costs and expenses - (164,666) (164,666) Management costs and expenses (559,929) (82,739) (642,668) Property expenses (17,325) (4,319) (21,644) Corporate expenses (96,731) (6,000) (102,731) Depreciation (162,805) (125) (162,930) Business acquisition expenses (52,394) (21,295) (73,689)

150,083 13,766 163,849

Other income, Net (29,819) (1,964) (31,783) Interest income 120,820 (13) 120,807 Foreign exchange gain, Net 3,455 117 3,572

Income before income taxes 244,539 11,906 256,445

Income taxes - 2,742 2,742

Consolidated net and comprehensive income $ 244,539 $ 9,164 $ 253,703

2013 F/1596 Fibra Hotelera Total

Total revenues $ 854,471 $ 178,010 $ 1,032,481

Rooms Costs and Expenses (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 loss, 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

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b. Segments financial information

Segment information reported externally was analyzed on the basis of the types of lease revenue room, food and beverages income, operating expenses for the different types of hotel brands that comprise the investment portfolio of FibraHotel. However, the information that management who makes the operational decisions of the Trust for purposes of allocating resources and assessing segment performance is provided, focused more specifically on the category of customer for each type of portfolio. The main categories of customers for these goods are provided service and brand. FibraHotel segments to report according to IFRS 8 are therefore the following:

Select service

These hotels provide certain additional services to limited service hotels, including the offer of food and drink, restaurants, bars and room service 24 hours. Rooms for social and business events, as well as additional services within the room.

At the reporting date FibraHotel has 29 hotels Fiesta Inn and three Gamma hotels, both operated by Grupo Posadas and three hotels Real Inn operated by Grupo Real Turismo.

Complete service

These hotels have a robust supply of food and beverages with several centers of consumption (restaurants and bars), boardrooms and conference rooms for business and social events for more than 500 people and additional services related to complete service hotels: spas, room service on extensive hours, valet parking, concierge, buttons and more extensive public areas.

At the reporting date FibraHotel has a Fiesta Americana hotel operated by Grupo Posadas, a Camino Real hotel operated by Grupo Real Turismo, a Sheraton hotel operated by Operadora Sheraton and a Cacao Hotel operated by Cornerstone.

Limited service

Limited service hotels offer a service as its name implies convenient hotel, which traditionally had no bars, restaurants or conference rooms and meetings, neither offered additional services, but in recent years the trend has been that this class hotels offer a mix of services, including business centers, gyms and swimming pools, with a limited selection of food (breakfast included) and limited spaces boardrooms.

At the reporting date, FibraHotel has 13 hotels One of Grupo Posadas and a Fairfield Inn hotel operated by Marriott International.

Extended stay

Hotels in this segment are characterized by a suite format in studio setups with one or two bedrooms, almost always with a full kitchen and a dining space and workspace. Among the services provided by these hotels are areas of washing and drying clothes for guests, public areas for recreation, no restaurant, with the possibility of using an adjoining hotel as the strategy.

At the reporting date, FibraHotel has a Camino Real & Suites hotel operated by Grupo Real Turismo and two Fiesta Inn Lofts hotels which are operated by Grupo Posadas.

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a. Income and segment results

An analysis of income and results of the Trust of continuing operations is presented by reported segment:

2014 Rooms leasing Food and beverages Leasing properties Segment Number of properties Number of rooms Income Expenses Income Expenses Income Expenses

Limited Service 14 1,704 $ 210,495 $ 43,245 $ - $ 1,641 $ 3,777 $ 1,495 Select Service 35 5,110 839,237 139,077 245,726 138,670 62,825 3,306 Extended Stay 3 208 14,565 1,907 - - - - Complete Service 3 574 97,728 14,358 43,936 24,355 2,195 -

Total 55 7,596 $ 1,162,025 $ 198,587 $ 289,662 $ 164,666 $ 68,797 $ 4,801

An analysis of income and results of the Trust of continuing operations is presented by reported segment:

2013 Rooms leasing Food and beverages Leasing properties Segment Number of properties Number of rooms Income Expenses Income Expenses Income Expenses

Limited Service 11 1,325 $ 166,207 $ 34,184 $ - $ 1,511 $ 1,187 $ - Select Service 28 4,139 592,288 96,220 164,869 109,305 69,614 3,533 Complete Service 1 153 - - - - 17,632 468

Total 40 5,617 $ 758,495 $ 130,404 $ 164,869 $ 110,816 $ 88,433 $ 4,001

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.

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17. Subsequent events to the reporting period

a. On February 12, 2015, FibraHotel announced the development of a 134 room limited service hotel inside Uptown Juriquilla shopping center, Queretaro. The hotel will be a Fairfield Inn & Suites by Marriott and will be operated by Marriott International. The hotel is currently under development in the construction of the foundations and it is expected to start operations on the fourth quarter of 2015.

The total estimated investment in this hotel is of $110,000.

18. Authorization to issue the financial statements

The consolidated financial statements were authorized for issue on March 31, 2015, by Lic. Edouard Boudrant Finance Director and Lic. Eduardo López, Managing Director of FibraHotel, consequently they do not reflect events after this date, and subject to the approval at the General Ordinary Trustors meeting which may be modify them.

* * * * *

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