07

Hotelera

Posadas

Fiesta Americana Condesa Cancún

Redefining

the course

We have 175 hotels, more than 27,400 rooms and over 60 destinations

In 2018, the average rate increased by 1.7%, while occupation showed a decrease of 1.2 percentage points (“pp”), resulting in an effective rate (Revenue per available room) similar to that of the previous year.

In the urban hotel segment, which accounts for 84% of the rooms in the system, we registered an increase in the effective rate of 2% with respect to the same period in the previous year. Beach hotels were less dynamic, registering a decrease in effective rate of 3.5%.

We are focused on making guest experience a factor that differentiates us from our competitors in every category and market niche of the cities in which we are present.

Throughout 2018 our task has been to increase the number of our hotels and make them more competitive and profitable, as well as to strengthen our programs in order to achieve higher additional earnings. Thus, we have positioned ourselves among the hotels with the best rates in Mexico.

At Posadas we seek to improve competitiveness and the experience of our clients; thus, we seek to boost not only our business, but also food and beverage culture.

Through diverse alliances with top chefs, we have realized important projects, among them: the Proyecto del Azul with chef Ricardo Muñoz Zurita, who has developed the menus for thirteen of our hotels; the opening of Eduardo Palazuelo’s restaurant Zibu in the AQUA San Miguel de Allende hotel, and last, but not least, the important participation of Gerardo Rivera, our Executive Chef, and the alliance with Starbucks for the Fiesta Inn hotels.

Live Aqua Urban Resort San Miguel de Allende

94

of our hotels have been awarded the trip advisor certificate of excellence; two of them are ranked in Travelers Choice's top 25 in mexico

Moreover, together with Universidad Posadas and through the Lobster Ink learning platform, we have developed the Culinary Processes program whereby in 2018 we carried out the re-certification of 34 of our chefs for the Fiesta Americana and Fiesta Inn hotels. The objective of the program is to ensure quality standard compliance and follow-up, food safety and hygiene, compliance with corporate guidelines, and create pride in the work place.

Once the program ends, our chefs receive a certification recognized by the Culinary Institute of America.

Our approach goes beyond only food; in order to generate a better experience for our guests, we have prioritized aspects most enjoyed by our guests in their rooms: upgrading of bed and bathrooms, and entertainment inside and outside the rooms.

In 2018 we adopted an important hotel operating platform called Alice which allows hotel personnel to interact with guests in order to provide the best possible service. Through this platform all guest requests can be controlled and followed up in a more efficient way.

In addition, the platform allows registering the tasks assigned by Corporate Management to the general managers and monitoring inter-departmental requests. This permits having a real-time control board of all hotels, which in turn translates into a great improvement in the stabilization of the satisfaction index. We are currently the only hotel company that has this tool.

Furthermore, we have focused on streamlining expenses, reviewing marketing costs, reducing energy consumption and seeking alliances to reduce the impact of electricity costs. Since 2017 we have been working on contracting alternate or cogeneration electricity, which as of September, 2019 will produce savings for the company of up to 30%.

In addition, we have focused on the leisure and business segments of the commercial area by building an occupancy data base and prioritizing our own channels to achieve updated content relevant to every customer journey.

Live Aqua Beach Resort Cancún

Our

People

Grand Fiesta Americana Coral Beach Cancun

Talent Development

One of Posada’s most important strategic approaches is developing the talent of our associates.

More than 360 managers have been integrated into the Talent Management process in order to measure and improve their leadership skills.

Through Universidad Posadas we provide continuous development programs. Our Language School started its first English program; the Services School reached 16,000 associates; the Business and Leadership School reached over 7,700.

Moreover, through Universidad Posadas we also implement PCI Certification at all of our hotels, thus ensuring that our credit card transactions comply with all security standards and that personal and financial data of our clients and guests is handled under the highest security standards.





Posadas Careers

We continued to consolidate our Posadas Careers platform; this has allowed to centralize the job opportunities of all our work centers and has enabled us to reach more people in all the cities where we are present.

Using our social networks strategy for generating traffic, we have continued to focus on promoting and disseminating our culture and the Posadas lifestyle. This has been rewarded with the smiles of our associates.

Our people grow; Posadas grows.

With our accelerated growth plan, the principal challenge of Human Capital in 2018 was identifying more than 90 associates to fill the Executive Committee positions created by the opening of all our hotels, as well as for the training program for Business Unit and Vacation Property Managers.

Therefore, we continuously provide new growth opportunities, promoting internal talent and taking firm steps in our expansion process.

We know how to

listen our guest

quality systems

LINC

There is no doubt that this was a great year for the LINC quality system. We transformed the way in which we listen to our guests consolidating our customer-centered philosophy, that places clients at the heart of our strategies and decision-making, and achieving excellent results in our satisfaction indexes.

To do this, we started work following the NPS metric (a client loyalty indicator) focusing on identifying the moments of the survey that have the most impact on our clients. With the information obtained we have worked on strengths and opportunity areas of the experience we provide for our guests.

The information of our quality surveys not only confirms that we are on the right track to obtaining ever better results; it has also enabled us to improve our knowledge of the guest profile of each of our brands and their travel motivation. In addition, we are now able to provide corporate areas with information for focusing on goals and initiatives. In 2018, our guest response ratio was 14%, 8 points above the desirable minimum for loyalty and satisfaction surveys of our brands. We received 192,815 surveys and analyzed 243,095 comments.

Concerning client loyalty, we achieved a NPS (Net Promoter Score) of 60 percentage points, 10 points above the mean of the industry (50%). Regarding the satisfaction index, 6 out of every 10 guests are satisfied with the service provided by our hotels.

On the other hand, 6 out of every 10 guests congratulated us in their comments, a sign that we have their confidence and that they will keep responding to our surveys. This will allow us to listen to our guests, find out their needs and take the proper steps to offer a better service at our hotels

All of our general managers review guest feedback in order to understand their requests and needs; follow up is 95% of the feedback. This complies with our standards for covering the needs and preferences of our guests.

All change and innovation in standards is supported by the voice of our guests received through the Ask Now LINC tool. In 2018, we reviewed 37 pilots to ensure that the initiatives being implemented are really what our guests need and require, and to provide a competitive experience.

We have established two main guidelines for listening to our guests:

This year we worked on 141 studies and analyses that helped to improve continuous transformation of the experience and ensuring adherence to our brands, processes and standards.

Similarly, we successfully closed the new concept for our one brand, for which we achieved an increase in the NPS and satisfaction with physical conditions of 20 points with respect to the previous product.

This has allowed to identify three factors which are key for our guests: staff courtesy, staff efficiency, and room neatness and cleanliness we have turned these into the three main strengths of all our brands.

Trip Advisor

The main strengths that characterize Trip Advisor and that we offer our guests are service, location and cleanliness of the premises.

In 2019 we will continue to listen to our guests focusing on innovation, investment and operational strategies in order to ensure the best experience

Prometeo

The second most important feature in a brand study is the product. One of our main objectives is ensuring that the premises are maintained, that they increase their value and that they fulfill the needs of our guests. We also ensure that standards are complied with in order to fulfill brand promise of every one of our hotels.

NPS OF 60 PERCENTAGE POINTS

6 of every 10 guests are satisfied with our service

75% positive reviews

94 hotels awarded trip advisor's excellence certified

Grand Fiesta Americana Coral Beach Cancún

At Posadas, the safety of our staff is of fundamental importance; this why the Zero Tolerance program has become critical to the group. Today, our guests can be more confident that they are safer at our properties than in their own homes.

In 2018, eight in ten of our hotels complied with the goal for human safety: Zero Tolerance. This is one of the most important indicators in our annual goal of 95%. The final evaluation of Prometeo Físico 2018 increased by 2.5% with respect to 2017, showing that we have properties which are safer, in better condition and which comply with our standards to guarantee owner investment.

The Prometeo Brand

In 2018 we placed an emphasis on topics dealing with icons and standards that comprise hotel genetics and which are identified with Brand, Product and Standards, and Quality areas.

This was a defining year in the implementation of every one of the standards with which we guarantee brand promise to our guests; we also increased the number of our promoters.

Nine in ten of our hotels comply with brand standards, an increase of 2 points with respect to 2017.

Support and Follow-up Systems

Payment Processing

In 2018, as part of the PCI (Payment Card Industry) certification, we implemented the Smart Payment process at 100% of our hotels complying with the requirements of the ABM (Asociación de Bancos de México). The implementation of this platform standardizes the functionality and operational processes related to processing, storage, and transmission of the bank card information of our guests in order to reduce risks and ensure its secure handling; it also complies with the security requirements set by VISA, MASTER CARD and AMERICAN EXPRESS.

MEXICO CITY, IS CONSIDERED ONE OF THE BEST DESTINATIONS IN THE WORLD. ITS HISTORICAL DOWNTOWN, DECLARED HERITAGE OF THE HUMANITY BY THE UNESCO; ITS MULTIPLE MUSEUMS; THE COLONIAL AND MODERN ARCHITECTURE; ITS SUBURBS FULL OF WONDERFUL SPOTS AND THE EXCELLENT GASTRONOMIC OFFER GIVE TESTIMONY OF ITS GREAT HISTORY, CULTURE AND TRADITIONS.

CIUDAD DE MÉXICO

Ángel de la Independencia