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http://www.fibrahotel.com 1
@FibraHotel
FibraHotel (“FibraHotel”), the first real estate investment trust specialized in
business-class hotels in Mexico, announces its financial results and distribution
corresponding to the first quarter of 2014.
Mexico City, April 29th, 2014 --- FibraHotel (BMV: FIHO 12), the first real estate investment
trust specialized in business-class hotels in Mexico, announces its results and distribution
corresponding to the first quarter of 2014. Except where noted, all figures included herein were
prepared in accordance with IFRS and are stated in nominal Mexican pesos.
1st Quarter 2014 Highlights
• FibraHotel ended the first quarter of 2014 with 50 hotels and 6,883 rooms, including 43
hotels in operation (6,115 rooms) and 7 hotels in different stages of development1 (768
rooms).
During the quarter FibraHotel added 442 rooms through the acquisitions of the Fiesta
Americana Aguascalientes, Fiesta Inn Xalapa and One Xalapa hotels, and opened the 149
room Camino Real Hotel & Suites Puebla hotel.
• On February 1st, 2014, the lease agreements for the Camino Real Puebla and Fiesta Inn
Culiacan hotels were changed to hotel management contracts.
• On a comparable property basis of 40 hotels2 (2014 Initial Portfolio), the average daily rate
(“ADR”) was Ps. $905, representing an increase of 3.7% versus the first quarter of 2013, the
occupancy rate was 59.7%, representing decrease of (0.6pp) versus the first quarter of 2013
and the revenue per available room (“RevPAR”) was Ps. $540, representing an increase of
2.7% versus the first quarter of 2013.
• On a comparable property basis of 30 hotels3 (IPO Initial Portfolio), the ADR was Ps. $909,
representing an increase of 4.7% versus the first quarter of 2013, the occupancy rate was
61.5%, representing decrease of (1.5pp) versus the first quarter of 2013 and the RevPAR was
Ps. $559, representing an increase of 2.2% versus the first quarter of 2013.
• Total revenues of Ps. $308.8 million.
• Lodging contribution4 of Ps. $104.1 million.
• Adjusted funds from operations (“AFFO”)5 of Ps. $96.3 million.
1 Not considering the Project of a Fairfield Inn & Suites hotel in Villahermosa and the acquisition of the Fiesta Inn Obregón hotel announced on April
4th and 7th, 2014, respectively. 2 Includes FibraHotel’s 37 stabilized at the end of 2013 and the three hotels acquired during the first quarter of 2014, all in operation during the first
quarter of 2013 (“2014 Initial Portfolio”). Real Inn Morelia, One Guadalajara Tapatio and Camino Real Hotel & Suites Puebla were not included as they
are part of the Development Portfolio. 3 Includes FibraHotel’s 30 hotels which integrated the portfolio at the Initial Public Offering at end of 2012. 4 Lodging contribution equals total revenues (room rental, food and beverage, leasing and other) minus costs and general expenses directly related to
the hotel operation, excluding real estate expenses and FibraHotel’s administration expenses. Lodging contribution is not an IFRS figure 5 Adjusted funds from operation defined as net income plus depreciation plus non-operating adjustments less maintenance Capex reserve of the
period. AFFO is not an IFRS figure.
http://www.fibrahotel.com 2
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• FibraHotel will pay a distribution of Ps. $98.6 million, equivalent to 20.01 cents (Ps. $0.2001)
per CBFI6.
• As of March 31st, 2014, FibraHotel had a net cash position of Ps. $4,171 million, or Ps. $4,324
million including the reimbursement of VAT.
• As of March 31st, 2014, total owner’s equity of Ps. $9,891 million.
“During the first quarter of 2014, FibraHotel continued executing its growth strategy with 9.2% growth
in rooms thanks to the acquisition of the Fiesta Americana Aguascalientes, Fiesta Inn Xalapa, and One
Xalapa hotels, as well as the announcement of the Fairfield Inn & Suites Villahermosa and the opening of
the Camino Real Hotel & Suites Puebla. Additionally, we finished the refurbishment of the Fiesta Inn
Queretaro and the Fiesta Inn Naucalpan hotels. Finally, during the quarter we also renegotiated the lease
agreements for the Camino Real Puebla and Fiesta Inn Culiacán into hotel management agreements. On
the operating front, our 40 stabilized comparable properties continued showing ADR growth above
inflation, with a 3.7% y-o-y growth, while occupancy fell (0.6pp) reaching 60% mostly due to the weaker
economic conditions, leading RevPAR to a 2.7% y-o-y growth. We are happy to announce a distribution
of 20.01 cents per CBFI for Q1 2014, notwithstanding that this is the weakest cyclical quarter in the year
and that over Ps. 4.3 billion is currently held in cash”, said Simón Galante, CEO FibraHotel.
6 Calculated based on the number of outstanding CBFIs as of March 31st, 2014, excluding the CBFIs issued in exchange of the Development Portfolio
that are not entitled to receive distributions until such properties are in operation.
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Development portfolio:
As of April 29th, 2014, FibraHotel has 8 hotels in different stages of development (the Fairfield
Inn & Suites Villahermosa was announced after the close of the quarter):
- Cancun Extended-Stay: The 74-room extended-stay hotel is located at Malecon Americas
Cancún shopping mall. Currently, the construction of the building is completed. We
continue working to determine the best alternative for the project in terms of brand and
operator.
- Fiesta Inn & Suites / One Monclova: The project, located adjacent to the Fiesta Inn
Monclova hotel is currently under construction with 66 limited service rooms under the
One Hotels brand and 39 extended stay rooms under the Fiesta Inn & Suites brand. The
project is on schedule and budget to open during the fourth quarter of 2014.
- Fairfield Inn & Suites Villahermosa: The limited-service hotel is being constructed in Plaza
Sendero, in Villahermosa, Tabasco. The 135-room hotel will be a Fairfield Inn & Suuites
and will be operated by Marriott International. The project is currently in the license and
permitting stage. We expect to begin construction during the second quarter of 2014 and
to open the hotel during the first quarter of 2015.
- Trebol Monterrey (Fiesta Americana Grand Monterrey y Aqua Monterrey): Two hotels to be
constructed within the Trebol mixed use project, a 180 room Fiesta Americana Grand
and a 46 room Live Aqua. Both hotels will be operated by Posadas and will open in
conjunction with the project in the fourth quarter of 2015. Both buildings in the project
are currently under construction.
- Via Vallejo (Courtyard y Fairfield Inn & Suites Vallejo): Two hotels to be constructed within
the Vial Vallejo shopping center, a 152-room Fairfield Inn & Suites and a 93-room
Courtyard by Marriott. Both hotels will be operated by Marriott International and will
open in conjunction with the project in the fourth quarter of 2015. Currently the project
is under construction of the foundations of the shopping center.
Expected Number of Cost to FibraHotel (Ps. $ millions)
Hotel Statetermination
date
rooms under
construction Total
Spent as of
Mar 31 2014 Remaining
1 Cancún Extended-Stay Quintana Roo 2014 74 130.0 94.9 35.1
2 Fiesta Inn Suites / One Monclova Coahuila Q4 2014 105 100.0 21.0 79.0
3 Fairfield Inn & Suites Villahermosa Tabasco Q1 2015 135 110.0 12.6 97.4
4 Fiesta Americana Grand Monterrey Nuevo Leon Q4 2015 180
5 Live Aqua Monterrey Nuevo Leon Q4 2015 46
6 Courtyard Vallejo Mexico Q4 2015 93
7 Fairfield Inn & Suites Vallejo Mexico Q4 2015 152
8 Hotel en Toluca Tollocan Mexico TBD 100 TBD 8.2 TBD
Total 885 1,170.0 316.0 862.2
600.0 144.3 455.7
230.0 34.9 195.1
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- Hotel in Toluca Tollocan: The land is located adjacent to the Fiesta Inn Toluca Tollocan
hotel. The project is currently being defined to be either or an extended-stay hotel and/or
a limited service hotel. We are currently evaluating the market to determine an expected
opening date.
Relevant events after March 31st, 2014
On April 4th, 2014, FibraHotel acquired the rights of a land plot in Villahermosa, Tabasco for the
development of a 135-room hotel inside the Plaza Sendero Villahermosa Shopping Mall,
property of Fibra Uno. The hotel will be a Fairfield Inn & Suites by Marriott and will be
operated by Marriott International. Villahermosa is one of the most important oil and gas hubs
in Mexico and is one of the most dynamic cities for business hotels in Mexico.
On April 7th, 2014, FibraHotel Acquired the Fiesta Inn Ciudad Obregon hotel. The hotel has 141
rooms (123 in operation) and represented an investment of Ps. $141.5 million. Additionally
FibraHotel will invest approximately Ps. $6.5 million to add 18 rooms to the hotel during the
second half of 2014.
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FibraHotel’s Portfolio as of March 31st, 2014 – Hotels in operation
Hotel StateNumber
of RoomsOperator Brand Segment
Selected-Service Hotels - Managed
1 Fiesta Inn Aguascalientes Aguascalientes 125 Grupo Posadas Fiesta Inn Selected-Service
2 Fiesta Inn Ciudad Juarez Chihuahua 166 Grupo Posadas Fiesta Inn Selected-Service
3 Fiesta Inn Chihuahua Chihuahua 152 Grupo Posadas Fiesta Inn Selected-Service
4 Fiesta Inn Culiacan Sinaloa 142 Grupo Posadas Fiesta Inn Selected-Service
5 Fiesta Inn Durango Durango 138 Grupo Posadas Fiesta Inn Selected-Service
6 Fiesta Inn Guadalajara Expo Jalísco 158 Grupo Posadas Fiesta Inn Selected-Service
7 Fiesta Inn Hermosillo Sonora 155 Grupo Posadas Fiesta Inn Selected-Service
8 Fiesta Inn Leon Guanajuato 160 Grupo Posadas Fiesta Inn Selected-Service
9 Fiesta Inn Mexicali BCN 150 Grupo Posadas Fiesta Inn Selected-Service
10 Fiesta Inn Monclova Coahuila 121 Grupo Posadas Fiesta Inn Selected-Service
11 Fiesta Inn Monterrey La Fe Nuevo Leon 161 Grupo Posadas Fiesta Inn Selected-Service
12 Fiesta Inn Naucalpan State of Mexico 119 Grupo Posadas Fiesta Inn Selected-Service
13 Fiesta Inn Nuevo Laredo Tamaulipas 120 Grupo Posadas Fiesta Inn Selected-Service
14 Fiesta Inn Oaxaca Oaxaca 145 Grupo Posadas Fiesta Inn Selected-Service
15 Fiesta Inn Perinorte (1) State of Mexico 123 Grupo Posadas Fiesta Inn Selected-Service
16 Fiesta Inn Puebla FINSA Puebla 123 Grupo Posadas Fiesta Inn Selected-Service
17 Fiesta Inn Queretaro Queretaro 175 Grupo Posadas Fiesta Inn Selected-Service
18 Fiesta Inn Saltillo Coahuila 149 Grupo Posadas Fiesta Inn Selected-Service
19 Fiesta Inn Tepic Nayarit 139 Grupo Posadas Fiesta Inn Selected-Service
20 Fiesta Inn Tlalnepantla State of Mexico 131 Grupo Posadas Fiesta Inn Selected-Service
21 Fiesta Inn Torreon Galerias Coahuila 146 Grupo Posadas Fiesta Inn Selected-Service
22 Fiesta Inn Toluca Tollocan State of Mexico 144 Grupo Posadas Fiesta Inn Selected-Service
23 Fiesta Inn Xalapa Veracruz 119 Grupo Posadas Fiesta Inn Selected-Service
24 Real Inn Guadalajara Centro (1) Jalisco 197 Grupo Real Turismo Real Inn Selected-Service
25 Real Inn Morelia Michoacan 155 Grupo Real Turismo Real Inn Selected-Service
26 Real Inn Mexicali BCN 158 Grupo Real Turismo Real Inn Selected-Service
Sub Total Portfolio Selected-Service 3,771
Limited-Service Hotels - Managed
27 One Acapulco Costera (1) Guerrero 126 Grupo Posadas One Limited-Service
28 One Aguascalientes Sur (1) Aguascalientes 126 Grupo Posadas One Limited-Service
29 One Coatzacoalcos Forum Veracruz 126 Grupo Posadas One Limited-Service
30 One Culiacan Forum Sinaloa 119 Grupo Posadas One Limited-Service
31 One Guadalajara Tapatio Jalisco 126 Grupo Posadas One Limited-Service
32 One Monterrey Aeropuerto (1) Nuevo León 126 Grupo Posadas One Limited-Service
33 One Puebla FINSA Puebla 126 Grupo Posadas One Limited-Service
34 One Querétaro Plaza Galerias Querétaro 126 Grupo Posadas One Limited-Service
35 One Toluca Aeropuerto State of Mexico 126 Grupo Posadas One Limited-Service
36 One Ciudad de Mexico Patriotismo Mexico DF 132 Grupo Posadas One Limited-Service
37 One Xalapa Veracruz 108 Grupo Posadas One Limited-Service
Sub Total Portfolio Limited-Service 1,367
Other Hotels - Managed
38 Fiesta Americana Aguascalientes (1) Aguascalientes 192 Grupo Posadas Fiesta Americana Full-Service
39 Camino Real Puebla Puebla 153 Grupo Real Turismo Camino Real Full-Service
40 Camino Real Hotel & Suites Puebla Puebla 149 Grupo Real Turismo CR Hotel & Suites Extended-Stay
Sub Total Portfolio Other 494
Leased Hotels
41 Fiesta Inn Cuautitlan State of Mexico 128 Grupo Posadas Fiesta Inn Selected-Service
42 Fiesta Inn Ecatepec State of Mexico 143 Grupo Posadas Fiesta Inn Selected-Service
43 Fiesta Inn Perisur Distrito Federal 212 Grupo Posadas Fiesta Inn Selected-Service
Sub Total Portfolio Leased 483
Total Operating Hotels as of March 31, 2014 6,115
(1) Includes retail component.
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Quarterly selected information
• The following table shows the main financial indicators for the last quarters7:
7 Lodging Contribution, NOI, EBITDA, FFO and AFFO are not IFRS figures.
(In thousand pesos except per CBFI data) 2Q 2013 3Q 2013 4Q 2013 1Q 2014 LTM
Total revenues 249,671 295,366 309,972 308,816 1,163,826
Revenues - Managed hotels 228,901 269,832 284,256 290,261 1,073,250
% of total revenues 91.7% 91.4% 91.7% 94.0% 92.2%
Lodging contribution 93,212 105,943 108,179 104,118 411,451
Margin 37.3% 35.9% 34.9% 33.7% 35.4%
Lodging contribution - Managed hotels 72,498 80,352 82,463 85,562 320,876
Margin 31.7% 29.8% 29.0% 29.5% 29.9%
Net Operating Income 89,706 101,824 102,901 99,303 393,734
Margin 35.9% 34.5% 33.2% 32.2% 33.8%
EBITDA 68,327 71,310 70,664 66,396 276,697
Margin 27.4% 24.1% 22.8% 21.5% 23.8%
Consolidated net (loss) income 1,922 58,304 74,148 65,068 199,442
Margin 0.8% 19.7% 23.9% 21.1% 17.1%
Funds From Operation 33,980 92,806 107,957 101,285 336,029
FFO / CBFI with economic rights 0.0691 0.1886 0.2194 0.2058 0.6829
Adjusted Funds From Operation 75,237 100,371 105,022 96,342 376,972
AFFO / CBFI with economic rights 0.1529 0.2040 0.2134 0.1958 0.7661
Distribution 74,414 99,542 105,001 98,590 377,547
Distribution / CBFI with economic rights 0.1512 0.2023 0.2134 0.2001 0.7670
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Results for the first quarter of 2014
FibraHotel started the quarter with 39 hotels in operation and closed the quarter with 43 hotels
in operation thanks to the acquisition of three hotels and the opening of one hotel during the
period8.
Total Revenues
During this period, FibraHotel’s total revenue was Ps. $308.8 million:
Ps. $235.6 million of room rentals (76.3% of total revenues).
Ps. $53.0 million of food and beverage (17.1% of total revenues).
Ps. $17.8 million for the lease of (i) three hotels9 y (ii) retail and other leases in hotel
properties (combined, 5.8% of total revenues).
Ps. $2.5 million (0.8% of total revenues) corresponded to other revenues.
Costs and General Expenses
During this period, FibraHotel’s costs and general expenses were Ps. $204.7 million:
Ps. $130.7 million of administrative costs and expenses including the payment of the
operators’ fees (63.8% of costs and general expenses).
Ps. $41.8 million of room expenses (20.4% of costs and general expenses).
Ps. $32.2 million of food and beverage expenses (15.7% of costs and general expenses).
Lodging Contribution
Lodging contribution amounted to Ps. $104.1 million, representing 33.7% of total revenues:
Ps. $85.6 million corresponded to the managed hotels (29.5% margin).
Ps. $17.8 million corresponded to leases (100% margin)
Ps. $0.8 million corresponded to other revenues (100% margin).
Operating Profit
Other operating expenses of Ps. $73.9 million consisted of: (i) real estate expenses of Ps. $4.8
million; (ii) administrative expenses of Ps. $7.3 million; (iii) advisory fee of Ps. $25.6 million; and
(iv) depreciation of Ps. $36.2 million.
The operating profit was Ps. $30.2 million, or 9.8% of total revenues.
8 Fiesta Inn and One Xalapa hotels, acquired on March 27th, 2014 did not generate revenues as managed hotels (room rentals, food and beverage
revenues…) for the first quarter of 2014. 9 Leased hotels for the entire quarter are Fiesta Inn Cuautitlan, Fiesta Inn Ecatepec and Fiesta Inn Perisur. Fiesta Inn Culiacan and Camino Real Puebla
changed to hotel management contract on February 1st, 2014.
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Adjusted Operating Profit
During the first quarter, FibraHotel had Ps. $16.2 million of non-operating expenses, which
corresponded mainly to one-time expenses related to hotel acquisitions and development,
including transaction taxes, appraisals and technical audits, among others.
The adjusted operating profit amounted to Ps. $14.0 million.
Non-operating Revenues
During the first quarter, FibraHotel had Ps. $10.3 million of non-operating revenues, Ps. $4.3
million corresponding to the VAT actualization related to the Ps. $120 million reimbursement
that FibraHotel received during the quarter and Ps. $6.1 million corresponding to the payment
by Grupo Posadas of the remaining CAPEX account related to the Fiesta Inn Culiacan hotel
when the lease contract changed to hotel management contract.
Comprehensive Financial Cost
FibraHotel closed the quarter with a cash position of Ps. $4,171 million and interests earned
during the period of Ps. $40.6 million. The cash position was fully invested in Mexican Federal
invested in Mexican Federal Government issued debt securities.
Consolidated Net Income
Income taxes at the subsidiary level on the taxable profits generated by the ancillary hotel
income such as food and beverage were (Ps. $0.6 million). After these taxes, the consolidated net
income was Ps. $65.1 million.
Adjusted funds from operation (“AFFO”) 10
During the fourth quarter 2013, FibraHotel generated adjusted funds from operation of Ps. $96.3
million:
Note: Non-operating adjustments refer mainly to one-time expenses related to hotel acquisitions and developments including transaction
taxes, appraisals, and technical audits among others).
10 FFO and AFFO are not IFRS figures.
Ps. $ thousand 1Q 2014 1Q 2013 Variation
Consolidated net (loss) income 65,068 28,379 129.3%
(+) Depreciation 36,217 19,672
Funds From Operation 101,285 48,051 110.8%
(-) Maintenance CAPEX (15,072) (7,685)
(+) Non operating result adjustments 10,129 16,070
Adjusted Funds From Operation 96,342 56,435 70.7%
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Cash flow and liquidity position
During the fourth quarter of 2013, FibraHotel had the following key cash flow items:
FibraHotel had a net operating cash flow excluding activities from hotel operations of
Ps. $82 million. Taking into account the cash flow related to investment activities
(mainly payment and reimbursement of VAT related to hotels acquisition), the net cash
flow from operations was Ps. $111 million.
The net cash flow from investment activities was a negative (Ps. $623 million), mainly
due to: i) the acquisition of three hotels for (Ps. $440 million), ii) disbursements related to
the development portfolio of (Ps. $103 million), iii) capital expenditures during the
quarter of (Ps. $122.0 million), mainly the payment of the Camino Real Hotel & Suites
Puebla hotel for (Ps. $96.5 million), and iv) interest generated from our cash position of
Ps. $40.9 million.
Payments related to acquisitions are as follows:
o Fiesta Americana Aguascalientes: Ps. $226.7 million
o Fiesta Inn and One Xalapa: Ps. $212.9 million
Payments related to development portfolio are as follows:
o Trebol Project (two hotels in Monterrey): Ps. $84.8 million
o Other projects: Ps. $18.3 million
The net cash flow from financing activities was a negative (Ps. $105 million), mostly
related to the distribution of the fourth quarter of 2013.
FibraHotel ended the first quarter of 2014 with no debt and a net cash position including VAT
of Ps. $4,324 million (VAT recoverable totaled Ps. $153 million). Excluding recoverable VAT
FibraHotel had a cash position of Ps. $4,171 million compared to Ps. $4,788 million as of
December 31st, 2013.
Capital Expenditures (“CapEx”)
As of March 31st, 2014, the available capital expenditures reserve amounted to Ps. $32.1 million
compared with Ps. $19.7 million as of December 31st, 2013. The capital expenditure reserve is
generated to maintain the standards of our hotels in operation and is constituted based on
percentage of total revenues, on a monthly basis.
During the first quarter of 2014, FibraHotel had the following capital expenditures:
Maintenance CapEx: Ps. $2.6 million.
CapEx investment in hotel repositioning: FibraHotel constantly analyzes opportunities
to make capital investments in hotels which have an opportunity to increase cash flows.
During the quarter, FibraHotel invested Ps. $23.8 million in repositioning CapEx, mainly
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in the Fiesta Inn Culiacan, Fiesta Inn Naucalpan, Fiesta Inn Queretaro and Fiesta Inn
Leon hotels:
o During the quarter, we finished the repositioning of Fiesta Inn Naucalpan,
including: (i) improvement in 119 rooms to “Fiesta Inn 360” standards, (ii)
changed air conditioning from in-window to central air conditioning, (iii)
improvements in common areas to “Fiesta Inn 360” standards, (iv)
improvements to the motor lobby, and (v) complete change of the hotel´s facade.
The project had a total budget of Ps. $35 million, out of which Ps. $4.7 million
were spent during the first quarter of 2014.
o During the quarter, we finished the repositioning of Fiesta Inn Queretaro hotel,
including: (i) improvement in 175 rooms to “Fiesta Inn 360” standards, (ii)
changed air conditioning from in-window to central air conditioning, (iii)
improvements in common areas to “Fiesta Inn 360” standards, and (iv)
improvements to the motor lobby. The improvement had a budget of Ps. $42
million, out of which Ps. $4.5 million were spent during the first quarter of 2014.
o Fiesta Inn Culiacan: (i) improvement in 146 rooms to “Fiesta Inn 360” standards
(currently the hotel has 142 rooms, with the repositioning we will add 4 new
rooms), (ii) improvement of rooms corridors (iii) improvements to common areas
to “Fiesta Inn 360” standards, and (iv) improvement to the motor lobby. The
improvement has a budget of Ps. $30 million, of which Ps. $6 millon is coming
from the CAPEX reserve returned by Grupo Posadas with the termination of the
lease agreement. Ps. $7.5 million were spent as of March 31st, 2014 (Ps. $7.2
million during the first quarter). The project is currently under way floor by floor
without closing the hotel and will be in process during the second and the third
quarters of 2014.
o Fiesta Inn Leon: (i) improvements in common areas to “Fiesta Inn 360” standards
and (ii) improvements to the motor lobby. The project has a budget of Ps. $7.0
million, out of which Ps. $2.7 million were spent as of March 31st, 2014 (Ps. $2.6
million during the first quarter). The project will be finished during the second
quarter of 2014.
o Camino Real and Camino Real Hotel & Suites Puebla: (i) improvements in
common areas, (ii) increase in restaurant and bar capacity, and (iii) connecting
bridge between the two hotels. The budget is Ps. $13.5 million, out of which Ps.
$2.7 million were spent as of March 31st, 2014 (Ps. $2.2 million during the first
quarter). The project will be done during the second quarter of 2014.
CapEx to reposition and rebrand acquired hotels:
o Real Inn Guadalajara: the repositioning to bring the hotel up teo the Real Inn
brand standards is done. The repositioning had a budget of Ps. $10.0 million, out
of which Ps. $7.7 million were spent as of March 31st, 2014 (Ps. $1.7 million
during the first quarter).
o Real Inn Mexicali: The hotel is being repositioned to comply with the Real Inn
brand standards and additionally an opportunity was identified to close non-
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productive areas and they will be transformed into a 450m2 leasable area for
retail or office space. The repositioning has a budget of Ps. $10 million, out of
which Ps. $2.6 million were spent as of March 31st, 2014 (Ps. $0.8 million during
the first quarter).
Distribution corresponding to the first quarter of 201411
FibraHotel looks to generate value for its certificate holders, and therefore on April 29th, 2014,
FibraHotel’s Technical Committee approved a distribution of Ps. $98.6 million, equivalent to
20.01 cents (Ps. $0.2001) per CBFI, calculated based on the outstanding CBFIs excluding the
CBFIs related to the Development Portfolio which currently do not have economic rights. This
distribution is based on the results and operations of FibraHotel between January 1st and March
31st, 2014. The distribution will be paid on May 15th, 2014.
The distribution payment is broken as follows12:
Under Mexican law, FibraHotel is required to pay at least 95% of its annual taxable income to
holders of CBFIs at least once a year.
Corporate Governance
On April 29th, 2014, there was an Audit Committee and Technical Committee meeting for the
approval of the first quarter financial results and distribution, which were approved
unanimously. As of April 29th, 2014, FibraHotel’s Technical Committee is comprised by 10
members, three of whom are independent. Additionally, on April 29th, 2014, the Nomination
Committee nominated an additional independent member to the Technical Committee, which if
approved by the Holders Assembly on April 30th, 2014 will change FibraHotel’s Technical
Committee composition to 11 members, four of whom are independent
11 This Press Release is not a Distribution Notice 12 The amount of the distribution per CBFI was calculated as follows: total distribution amount divided by the number of outstanding CBFIs, excluding
the CBFIs corresponding to the Development Portfolio which currently do not have economic rights (499,401,766 – 6,666,666 = 492,735,100)
Amount
Concept per CBFI Total
Ps. $ Ps. $ million
Taxable Income - -
Depreciation 0.2001 98.6
Total 0.2001 98.6
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Operating Highlights of FibraHotel´s Portfolio
The following graph shows the quarterly evolution, from the first quarter of 2007 to the first
quarter of 2014, of the ADR, the occupancy rate and the RevPAR for the 40 stabilized hotels of
the portfolio.
As of March 31st, 2014, FibraHotel’s total portfolio of 43 hotels in operation reported the
following:
Occupancy rate of 58.1%
ADR of Ps. $898
RevPAR of Ps. $522
The following tables show selected operating information of FibraHotel’s hotels in operation for
the first quarter of 2014 with different perimeters:
2014 Initial Portfolio / Total Portfolio of stabilized hotels: includes 40 stabilized hotels in
operation as of March 31st, 2014 (excludes Real Inn Morelia and One Guadalajara Tapatio
hotels that started operations in 2013, Camino Real Hotel & Suites hotel that started
operations during the first quarter of 2014).
IPO Initial Portfolio: includes 30 hotels in operation which integrated the portfolio at the
Initial Public Offering.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0
100
200
300
400
500
600
700
800
900
1,000
2007 2008 2009 2010 2011 2012 2013 2014
ADR RevPAR Occupancy
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Comparable table for the first quarter of 2014 and the first quarter of 201313
The change in RevPAR between the first quarter of 2013 and the first quarter of 2014 is
asfollows:
2014 Initial Portfolio (40 hotels): +2.7%
Total Portfolio of stabilized hotels (40 hotels): +2.7%
IPO Initial Portfolio (30 hotels): +2.2%
The following table shows certain operating information by segment for the hotels in operation
for the first quarter of year 2012, 2013 and 2014:
The following table shows certain operating information by region14 for the hotels in operation
for the first quarter of year 2012, 2013 and 2014:
The following table shows FibraHotel’s Total Portfolio distribution (43 hotels) as of March 31st,
2014 by segment, region, number of hotels and rooms:
13 In 2014 and 2012, Holy Week was during the second quarter while during 2013,it was on the first quarter. 14 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, Michoacan, Oaxaca, Puebla, Querétaro, Veracruz, and Mexico City. West corresponds to the following states: Jalisco and
Nayarit.
2014 Initial Port. (40H) Total Port. of stab. Hotels (40H) IPO Initial Portfolio (30H)
1Q 2014 1Q 2013 4Q 2013 1Q 2014 1Q 2013 4Q 2013 1Q 2014 1Q 2013 4Q 2013
Ocupancy 59.7% 60.3% 64.7% 59.7% 60.3% 64.7% 61.5% 63.0% 66.0%
ADR 905 872 869 905 872 869 909 868 869
RevPAR 540 526 563 540 526 563 559 547 574
Total Portfolio of Stabilized Hotels (40H) Total Portfolio (43H)
1st Quarter 2012 1st Quarter 2013 1st Quarter 2014 1st Quarter 2014
Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR
Limited-Service 58.6% 635$ 372$ 57.6% 670$ 386$ 58.9% 688$ 405$ 58.5% 682$ 399$
Selected-Service 63.6% 867$ 551$ 61.6% 910$ 561$ 59.6% 954$ 569$ 58.8% 947$ 557$
Full-Service 60.1% 982$ 591$ 55.2% 1,122$ 620$ 63.7% 1,082$ 689$ 63.7% 1,082$ 689$
Extended-Stay n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.5% 846$ 64$
Total 62.4% 831$ 518$ 60.3% 872$ 526$ 59.7% 905$ 540$ 58.1% 898$ 522$
Vs. previous year 4.0 bp 2.0% 9.0% (2.1 bp) 5.0% 1.5% (0.6 bp) 3.7% 2.7%
Total Portfolio of Stabilized Hotels (40H) Total Portfolio (43H)
1st Quarter 2012 1st Quarter 2013 1st Quarter 2014 1st Quarter 2014
Region Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR Ocup. ADR RevPAR
Norwest 58.9% 858$ 505$ 53.8% 907$ 488$ 56.5% 959$ 542$ 56.5% 959$ 542$
Noreast 73.6% 680$ 501$ 70.8% 737$ 522$ 59.4% 803$ 477$ 59.4% 803$ 477$
Center and South 62.6% 858$ 537$ 61.4% 898$ 551$ 61.9% 910$ 563$ 59.7% 905$ 540$
West 54.9% 832$ 456$ 56.8% 833$ 473$ 54.5% 871$ 474$ 51.6% 829$ 427$
Total 62.4% 831$ 518$ 60.3% 872$ 526$ 59.7% 905$ 540$ 58.1% 898$ 522$
Vs. previous year 4.0 bp 2.0% 9.0% (2.1 bp) 5.0% 1.5% (0.6 bp) 3.7% 2.7%
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Quarterly Operating Portfolio Highlights (excluding leased hotels)
Timeline of hotel additions generating room revenue by month during 2014 (managed hotels):
January 2014: includes the 34 managed hotels as of December 31st, 2013
February 2014: Fiesta Americana Aguascalientes (acquisition), Camino Real Puebla
(change from lease to management contract) and Fiesta Inn Culiacan (change from lease
to management contract) are added to our portfolio
March 2014: Camino Real Hotel & Suites Puebla is added to our portfolio (opening)
SEGMENTHotels Rooms
REGIONHotels Rooms
# % # % # % # %
Limited-Service 11 25.6% 1,367 22.4% Center and South 25 58.1% 3,492 57.1%
Selected-Service 29 67.4% 4,254 69.6% Noreast 5 11.6% 677 11.1%
Full-Service 2 4.7% 302 4.9% Norwest 9 20.9% 1,326 21.7%
Extended-Stay 1 2.3% 192 3.1% West 4 9.3% 620 10.1%
TOTAL 43 100.0% 6,115 100.0% TOTAL 43 100.0% 6,115 100.0%
PeriodAvailable
Rooms
Occupied
RoomsOccup.
Room Revenues
Ps. $ MillionADR RevPAR
1st quarter 462,562 270,340 58.4% 235.7$ 872$ 510$
2nd quarter - - - - - -
3rd quarter - - - - - -
4th quarter - - - - - -
Total 462,562 270,340 58.4% 235.7$ 872$ 510$
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FibraHotel’s portfolio evolution by quarter: Hotels and Rooms
FIESTA INN
Acquisition
Date4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014
% of
Rooms
1 * Fiesta Inn Aguascalientes 21/01/2013 125 125 125 125 125 2.0%
2 * Fiesta Inn Ciudad Juárez 21/01/2013 166 166 166 166 166 2.7%
3 * Fiesta Inn Chihuahua 21/01/2013 152 152 152 152 152 2.5%
4 * Fiesta Inn Culiacán 01/12/2012 142 142 142 142 142 142 2.3%
5 * Fiesta Inn Durango 01/12/2012 138 138 138 138 138 138 2.3%
6 * Fiesta Inn Guadalajara 21/01/2013 158 158 158 158 158 2.6%
7 * Fiesta Inn Hermosillo 01/12/2012 155 155 155 155 155 155 2.5%
8 * Fiesta Inn León 21/01/2013 160 160 160 160 160 2.6%
9 * Fiesta Inn Mexicali 21/01/2013 150 150 150 150 150 2.5%
10 * Fiesta Inn Monclova 28/02/2013 121 121 121 121 121 2.0%
11 * Fiesta Inn Monterrey 21/01/2013 161 161 161 161 161 2.6%
12 * Fiesta Inn Naucalpan 01/12/2012 119 119 119 119 119 119 1.9%
13 * Fiesta Inn Nuevo Laredo 01/12/2012 120 120 120 120 120 120 2.0%
14 * Fiesta Inn Oaxaca 05/07/2013 145 145 145 2.4%
15 * Fiesta Inn Perinorte 01/12/2012 123 123 123 123 123 123 2.0%
16 * Fiesta Inn Puebla FINSA 03/07/2013 123 123 123 2.0%
17 * Fiesta Inn Querétaro 21/01/2013 175 175 175 175 175 2.9%
18 * Fiesta Inn Saltillo 21/01/2013 149 149 149 149 149 2.4%
19 * Fiesta Inn Tepic 01/12/2012 139 139 139 139 139 139 2.3%
20 * Fiesta Inn Tlalnepantla 24/06/2013 131 131 131 131 2.1%
21 * Fiesta Inn Torreón 19/12/2012 146 146 146 146 146 146 2.4%
22 * Fiesta Inn Toluca 30/04/2013 144 144 144 144 2.4%
23 * Fiesta Inn Xalapa 27/03/2014 119 1.9%
Subtotal 1,082 2,599 2,874 3,142 3,142 3,261 53.3%
REAL INN
24 * Real Inn Guadalajara 01/08/2013 197 197 197 3.2%
25 * Real Inn Mexicali 01/07/2013 158 158 158 2.6%
26 Real Inn Morelia 01/03/2013 155 155 155 155 155 2.5%
Subtotal - 155 155 510 510 510 8.3%
ONE
27 * One Acapulco 01/12/2012 126 126 126 126 126 126 2.1%
28 * One Aguascalientes 01/12/2012 126 126 126 126 126 126 2.1%
29 * One Coatzacoalcos 01/12/2012 126 126 126 126 126 126 2.1%
30 * One Culiacán 01/12/2012 119 119 119 119 119 119 1.9%
31 One Guadalajara Tapatío 24/06/2013 126 126 126 126 2.1%
32 * One Xalapa 27/03/2014 108 1.8%
33 * One Monterrey 01/12/2012 126 126 126 126 126 126 2.1%
34 * One Puebla FINSA 02/07/2013 126 126 126 2.1%
35 * One Querétaro 21/01/2013 126 126 126 126 126 2.1%
36 * One Toluca 01/12/2012 126 126 126 126 126 126 2.1%
37 * One Patriotismo 21/01/2013 132 132 132 132 132 2.2%
Subtotal 749 1,007 1,133 1,259 1,259 1,367 22.4%
Other
38 * Camino Real Puebla 01/12/2012 153 153 153 153 153 153 2.5%
39 Camino Real Hotel & Suites Puebla 01/03/2014 149 2.4%
40 * Fiesta Americana Aguascalientes 14/01/2014 192 3.1%
Subtotal 153 153 153 153 153 494 8.1%
Hotels with lease agreements
41 * Fiesta Inn Cuautitlán 01/12/2012 128 128 128 128 128 128 2.1%
42 * Fiesta Inn Ecatepec 01/12/2012 143 143 143 143 143 143 2.3%
43 * Fiesta Inn Perisur 01/12/2012 212 212 212 212 212 212 3.5%
Subtotal 483 483 483 483 483 483 7.9%
TOTAL ROOMS IN OPERATION 2,467 4,397 4,798 5,547 5,547 6,115 100.0%
NUMBER OF HOTELS 18 31 34 39 39 43
Development Opening
Real Inn Morelia - Opened 01/01/2013 155
One Tapatío - Opened 24/06/2013 126 126
Camino Real Hotel & Suites Puebla - Opened 01/03/2014 134 134 134 149 149
44 Cancún Extended Stay 2014 74 74 74 74 74 74 9.6%
45 Toluca Tollocan Hotel TBD 126 100 100 100 13.0%
46 Monclova Hotel 4Q 2014 105 105 13.7%
47 Courtyard Vallejo 4Q 2015 93 93 12.1%
48 Fairfield Inn & Suites Vallejo 4Q 2015 152 152 19.8%
49 Fiesta Americana Grand Monterrey Trebol 4Q 2015 180 180 23.4%
50 Live Aqua Monterrey Trebol 4Q 2015 46 46 6.0%
Extensión One Xalapa 2H 2014 18 2.3%
TOTAL DEVELOPMENT 489 334 334 323 899 768 100.0%
FIBRAHOTEL TOTAL PORTFOLIO 2,956 4,731 5,132 5,870 6,446 6,883
NUMBER OF HOTELS 22 34 37 42 47 50
* 2014 Initial Portfolio (40 stabilized hotels in operation)
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BALANCE SHEET
As of March 31st, 2014
(figures in thousands pesos)
Assets
Current assets
Cash, cash equivalents and restricted cash 4,170,795
Trade accounts receivable and other receivables 127,822
Due from related parties 3,698
Prepaid expenses 7,304
Recoverable taxes, mainly value-added tax 153,030
Total currents assets 4,462,648
Non current assets
Hotel properties, furniture and operating equip. - Net 5,276,970
Properties under development 325,526
Advance to suppliers 978
Deferred income taxes 3,621
Total non-current assets 5,607,094
Total assets 10,069,742
Liabilities and partners' equity
Current liabilities:
Suppliers and accrued expenses 175,162
Due to related parties 0
Taxes payable 3,098
Other 127
Total current liabilities 178,387
Trustors' equity:
Contribution from the trustors 9,741,443
Retained earnings 149,913
Total trustors' equity: 9,891,355
Total liabilities and trustors' equity 10,069,742
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INCOME STATEMENT
From January 1st to March 31st, 2014, compared with previous year
(figures in thousands pesos)
1Q 2014 1Q 2013
Revenue:
Rooms 235,565 128,499
Food and beverages 52,952 23,148
Leases 17,790 20,308
Others 2,509 5,508
Total revenue 308,816 177,463
Costs and general expenses
Rooms 41,823 23,286
Food and beverages 32,213 16,400
Administrative expenses 130,662 67,641
Total costs and general expenses 204,698 107,327
Lodging contribution 104,118 70,137
Real estate expenses 4,815 3,816
Advisory fee 7,258 3,012
Administrative expenses related to FibraHotel 25,649 13,799
Depreciation 36,217 19,672
Income from operations 30,179 29,839
Extraordinary expenses, net 16,185 16,070
Adjusted (loss) from operations 13,994 13,769
Comprehensive financing result 10,327 0
Comprehensive financing result 40,149 14,610
Income before taxes 64,470 28,379
Tax (598) 0
Consolidated net (loss) income 65,068 28,379
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CASH FLOW STATEMENT
From January 1st to March 31st, 2014, compared with previous year
(figures in thousands pesos)
1Q 2014 1Q 2013
Operating Activities
Consolidated net income 65,068 28,379
Adjustments for non cash items
Tax (598) 0
Cost for asset sale 10,289 0
Depreciation 36,217 19,672
Interest income (40,649) (15,317)
Total 70,327 32,734
(Increase) decrease in:
Trade accounts receivable and others (22,010) (64,313)
Due from related parties 0 9,271
Recoverables taxes, mainly VAT 51,289 (234,790)
Prepaid expenses (5,343) (32,353)
Other assets (74) (1,324)
Increase (decrease) in:
Suppliers and accrued expenses 18,324 68,567
Due to related parties (0) 15,892
Tax payable (1,339) (955)
Net cash flow used in operating activities 111,175 (207,270)
Investing activities
Business acquired, net of cash received (439,805) (1,654,694)
Development portfolio (103,114) (86,661)
Acquisition of other assets (120,604) (695)
Interest income 40,649 15,317
Net cash flow used in investing activities (622,873) (1,726,733)
Financing activities
Ditributions to trustors (105,001) (18,539)
CBIFs issuance 0 0
Issuance expenses 0 (5,097)
Other (299) (0)
Net cash flow used in financing activities (105,300) (23,636)
Net increase (decrease) in cash, cash equivalents and
restricted cash (616,998) (1,957,639)
Cash, cash equivalents and restricted cash at the beginning of the
period 4,787,793 2,877,775
Cash, cash equivalents and restricted cash at the end of the
period 4,170,795 920,136
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Current situation of development hotels under construction:
Fiesta Inn Suites y One Monclova:
The construction is currently under way. As of this date, the foundation has been finished and
we are waiting to receive the Steel structure in May. The construction termination will be
during the third quarter and the hotel opening during the fourth quarter of 2014.
Current construction pictures of the hotel
Monterrey Trebol (Fiesta Americana Grand y Aqua):
The construction of the hotel tower is currently under way. To the date, the foundations have
been finished and the cement is currently being poured, with seven of the nine parking floors
finished. The construction termination and opening of the hotel will be during the fourth
quarter of 2015.
Current construction pictures of the hotel
Via Vallejo (Fairfield Inn & Suites y Courtyard):
The construction is current being preparated to begin excavations and foundations in May 2014.
The construction termination and opening of the hotel will be during the fourth quarter of 2015.
Current construction pictures of the hotel
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Property renovations during the quarter:
Fiesta Inn Querétaro
During the first quarter of 2014, the Fiesta Inn Queretaro hotel was renovated to take it to
“Fiesta Inn 360” standards. The total budget was Ps. $42 million including the following
changes:
Improvement in 175 rooms to “Fiesta Inn 360” standards
Changed air conditioning from in-window to central air conditioning
Improvements in common areas to “Fiesta Inn 360” standards
Increased capacity for bar and restaurant
Improvements to the motor lobby
Hotel before renovation Hotel afore renovation
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Property renovations during the quarter (cont´d):
Fiesta Inn Naucalpan
During the first quarter of 2014, the Fiesta Inn Naucalpan hotel was renovated to take it to
“Fiesta Inn 360” standards. The total budget was Ps. $35 million including the following
changes:
Improvement in 119 rooms to “Fiesta Inn 360” standards
Changed air conditioning from in-window to central air conditioning
Improvements in common areas to “Fiesta Inn 360” standards
Improvements to the façade and motor lobby
Hotel before renovation Hotel afore renovation
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About FibraHotel
FibraHotel FibraHotel is a Mexican trust created primarily to acquire, develop and operate business-class hotels in
the limited service, selected service, full service and extended-stay segments. Our objective is to provide attractive
returns to our CBFI holders, through stable cash distributions and the appreciation of our real estate assets. Also, we
will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned
operators, as well as geographic and segment diversification.
Under Mexican laws, Fibras must invest at least 70% of its assets in real estate for lease, among other requisites.
Additionally, Fibras must distribute in cash at least once a year 95% of taxable income to its CBFI holders. Such
characteristics, together with a solid performance of the real estate market in Mexico and a team with over two
decades of real estate and hotel experience, make FibraHotel an attractive investment vehicle.
FibraHotel is internally managed by Fibra Hotelera, S.C., and is externally advised by Administradora Fibra Hotelera
Mexicana, S.A. de C.V whose key executives have over 60 years of combined experience in real estate development
and operations and hotels in Mexico.
Investor Relations Contact
Mexico City
Guillermo Bravo
Tel: +52 (55) 5292 8050
E-mail: [email protected]