03

Finances

Fiesta Inn CancĂșn Las AmĂ©ricas

Financial

Results

$7,910

million pesos Total Income

Our finances are healthy: in 2018 total income was $7,910 million pesos with an EBITDA (NIIF) of $1,272 million pesos, which added to the sale of the Fiesta Americana Condesa Cancun, closed at $2,425 million pesos.

From the proceeds of the sale of the Fiesta Americana Condesa Cancun Hotel (FACC) -a net amount of $2,004 million pesos- we have invested $1,489 million in projects; some of the main ones are the following:

In addition, the company is considering the following investment projects still in the definition stage:

On the other hand, net profits in 2018 were for $929 million pesos, including the sale of the Fiesta Americana Cancun Hotel registered in the first Quarter of the year.

Cash balance as of December 31, 2018 was $2,734 million (equal to USD $139 million at an exchange rate of $19.6829), and total company assets were $17,170 million pesos (USD $872 million).

The leverage ratio at the end of 2018 was 2.1, while net interest coverage was 5.0x, and average life of total company debt was 3.6 years.

Regarding operational result of the hotels, average rates increased by 1.7% and occupation decreased by 1.2 percentage points (pp), resulting in an effective rate (Revenue per available room) similar to that of the previous year.

In the City Hotel sector -equal to 84% of the total available rooms in the system- we registered an effective rate performance higher by 2% with respect to the same period of the previous year; beach hotels underwent a lower performance, with a 3.5% decrease in the effective rate.

With the objective of generating efficiency of transaction and group control and management, we continued the process of internal streamlining,reducing the number of Grupo Posadas subsidiaries from 136 at the end of 2013, to 21. In 2018, we carried out the merger of a Grupo Posadas subsidiary, equal to the payroll of hotel committees, assuming the total equity and obligations of said society.

Furthermore, we dissolved a foreign subsidiary once the hotel in Laredo, Texas was sold.

Concerning our shareholders, their meeting was held on April 12, 2018.

Among the resolutions passed was the payment of dividends in the amount of $200 million pesos.

Live Aqua Urban Resort San Miguel de Allende

3 7 , 7 34 8, 4 7 1 7 ,910 20 16 20 17 20 18 Total Income
41,6501,65 2 2, 425* 20 16 20 17 20 18 EBITD A
51, 7 7 0 1,3842,7 34* 20 16 20 17 20 18 Cash Balance

*Includes the sale of the Fiesta Americana Condesa Cancun

  • 72802902892922712932912952783343203241892292522594T 20171T 20182T 20183T 20183T 20172T 20171T 20174T 20162T 20163T 20161T 20164T 20153T 20152T 20151T 20154T 2018Net Debt US$M
  • 82.9x3.1x3.0x2.9x2.9x2.9x2.7x2.7x2.8x2.8x4.8x4.8x5.0x4.7x2.8x2.8x1T 20152T 20153T 20154T 20151T 20162T 20163T 20164T 20161T 20172T 20173T 20174T 20171T 20182T 20183T 20184T 2018 Net Interest Coverage
  • 93.7x3.7x3.7x3.7x3.6x3.1x3.1x3.4x1.4x1.9x2.0x2.1x3.6x3.6x3.6x3.9x1T 20152T 20153T 20154T 20151T 20162T 20163T 20164T 20161T 20172T 20173T 20174T 20171T 20182T 20183T 20184T 2018 Net Debt/EBITDA

Grand Fiesta Americana Los Cabos All Inclusive Golf & Spa