Corporate Presentation October 2015 Disclaimer This presentation - PowerPoint PPT Presentation

Corporate Presentation October 2015

Disclaimer This presentation has been prepared with information about Hotels City Express, S.A.B. de C.V. ("HCITY" or the "Company"). The presentation is not intended to be exhaustive and does not necessarily include all the information the receiver should want to be informed of the Company. The forward-looking statements contained in this presentation are based on the current assumptions and outlook of the Company’s management. Actual results, performance and events may differ significantly from those expressed or implied in these forward-looking statements as a result of several factors such as the general and economic conditions in Mexico and abroad, interest and exchange rates, future renegotiations, pre-payments of liabilities or loans denominated in foreign currency, changes in laws and regulations, and general competitive factors (regionally, nationally or internationally). All communications, inquiries and requests for information related to these materials should be directed to the contacts listed below. Abelardo Loscos Corporate Finance and Investor Relations Director Tel: +5255 5249-8056 aloscos@hotelescity.com 2

We are the Leading & Fastest Growing Hospitality Platform in Mexico Business Platform that Provides a Unique Accelerated Growth in the Economy & Budget Lodging Exposure to Hospitality in Mexico Segments Through New-Hotel Development # of Rooms (1) 12,431  The largest limited service hotel chain in Mexico 10,929  Fully integrated platform spanning the complete 9,326 hospitality value chain with best-in-class 8,092 development and distribution capabilities 6,973  Three distinct lodging formats designed to serve 5,562 4,991 the domestic business traveler and capture 3,836 middle class expansion in Mexico 2,850 2,173  Diversified geographic footprint geared towards 1,542 1,061 586 expected GDP growth in Mexico 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E  Significant embedded growth in recently built Hotels (2) 5 10 15 20 26 35 45 50 62 71 82 96 110 inventory  Organic expansion potential in our target markets Launch of due to lower density of hotels per capita, ADRs and occupancy rates Follow On IPO  State-of-the-art distribution systems at the First international hotel opened in San Jose, Costa Rica forefront of industry trends Launch of  Consistent track record of financial performance Launch of Opening of first (1) Number of hotels and rooms at the end of the period. 3

Business Model Tailored to Best Serve Our Target Segments …Offers a Differentiated Value Proposition Within our Our Portfolio of Three Targeted Limited Service Hotel Segment… Brands... Hoteles City Express Brand Portfolio Quality Safety Value • Flagship • City • Budget • Extended- Description brand express segment stay brand • Essential • Apartment product brand Geographic Convenience • Same amenities located in -style Coverage • Economy premium quality but layout Consistency • Economy segment locations smaller rooms segment …to Primarily Target Value Conscious Domestic Business Travelers 23 m 2 (248 17 m 2 (183 30 m 2 (323 Average 23 m2 (248 Room Size ft 2 ) ft2) ft 2 ) ft 2 ) Hotel Industry Market Segments Average $ 600 – $ 1,000 – $ 750 – Market Segment Target ADR (MXN) Daily Rate $ 500 – 750 (ADR) 1,200 1,500 1,700 (MXN) > $1,500 Rooms per 100 – 150 105 – 134 26 – 120 70 - 150 Hotel $700 – 1,500 # of 71 (71%) 9 (9%) 13 (13%) 7 (7%) Hotels (1) # of 8,227 (73%) 1,181 (10%) 1,484 (13%) 421 (4%) Rooms (1) $500 – 700 Target Segment (1) As of September, 2015 4

Largest Hotel Chain in our Target Segment Number of Hotels by Chain in Mexico As of September 2015 Limited Service Hotels 133 129 36 98 41 41 98 93 35 35 31 26 24 11 35 31 Number of Hotels by Brand in Mexico As of September 2015 78 62 50 47 36 16 15 12 13 11 11 11 11 10 8 7 7 7 6 6 5 5 4 Select Service Limited Service Source: Information prepared by the Company based on publicly available information including, prospectuses, quarterly reports, websites and press releases. 5

Strategically Planned Geographic Footprint and Deployment of Capital Aligned with the Key Drivers of Economic Activity Strategically Planned Footprint Provides Diversified Exposure to Mexico’s … with a Balanced Leverage to the Main Business, Industrial and Commercial Hubs and Corridors… Main Drivers of Economic Activity • Recently enacted Energy Reform A Maquila Export and Logistics • Opening of oil and gas sector to Corridor private participants B • Growth of Mexico’s manufacturing Mining Corridor sector driven by competitive and logistic advantages of the Country • Recently announced investments Energy, Petrochemical by automotive industry, aviation and Export industry and infrastructure Corridor C • Economic recovery of the United NAFTA States , Mexico’s main business Agricultural partner Export Corridor • Resurgence of maquila industry • Decreasing levels of violence in northern Mexico • Recently enacted structural D NAFTA Industrial, Manufacturing, Logistics reforms in the mining sector and Export Corridors E • Resuming government spending in transportation infrastructure Hotels in Operation 2015 Development Pipeline 6

Geographic Coverage and Portfolio Mix by Industry and Sector Geographic Coverage by Country Presence in Mexico by Economic Activity As of September 2015 As of September 2015, % of Total Portfolio based on number of hotels Commercial, Financial and Energy 1% Tourism Services & Petrochemical Activities 1% 12% - 17% 15% - 20% México Mining and Transformation Costa Rica 10% - 15% Colombia 10% - 15% 98% Agriculture & Exports 35% - 40% Manufacturing Hotel Portfolio by Brand Hotel Portfolio by Ownership As of September 2015, # Hotels and % of Total Portfolio As of September 2015, # Hotels and % of Total Portfolio 7 23 13 40 7% 24% Owned 13% 39% Co-Owned 9 Leased 12 9% 12% Franchise and Management 71% 71 25% Consolidated 77% 25 7

Macroeconomic & Industry Fundamentals Ce Plus Patio Universidad México D.F.

Macroeconomic Fundamentals Pointing to a Gradual Economic Growth Annual GDP Growth: México and the U.S. Growth Evolution of Mexican GDP Contribution to GDP Growth % % Percentage points Retail Sales and Private Consumption Components of Investment Global Economic Activity Indicator (IGAE) Year over Year Change (%) Year over Year Change (%) Year over Year Change (%) Source: BBVA Research, Santander Economic Analysis, SECTUR and INEGI. 9

Tourism Sector With Growth in Recent Years Tourism GDP Growth Foreign Exchange Entries International Tourists Arrivals Thousands % USD Million 10 CAGR CAGR 16.4 29.2 +3.3% 5 +4.1% 0 +27.1% 2008 2009 2010 2011 2012 2013 2014 13.9 13.5 -5 12.9 24.1 23.4 12.0 -10 23.2 23.2 22.9 11.8 11.7 22.5 Tourism GDP Total GDP 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Domestic Tourism Consumption Growth Airlines Passenger Traffic Growth Room Supply Growth Thousand Rooms Index 2008 = 100 (Million Passengers) 117 33 692 CAGR CAGR 112 30 +2% 672 +7% 107 661 28 102 651 26 97 24 638 92 2008 2009 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Total GDP Evolution Domestic Tourism Private Consumption Source: HSBC Economic Analysis, Santander Economic Analysis, SECTUR and INEGI. 10

Fragmented Industry that Presents Consolidation Opportunities Hotel Supply – Fragmented and Dominated by Hotel Demand – Driven by our Target Customers Independent, Non-Standardized Hotels Breakdown of Independent and Chained Hotels Occupied Room Nights by Nationality of Guests 2014 (% of Rooms) 2014 (% of Occupied Room Nights) 100 100 100 100 100 100 22 15 Target 30 33 segment 56 74 85 78 70 67 44 26 1 - 4 Stars 5 Stars All Hotels United States Brazil Mexico Independent Chained Domestic International Hotel Rooms in Mexico by Quality – Breakdown by Tourism Spending in Number of Stars Mexico Domestic Airline Passengers 2014 2014 (Million Passengers) 32.8 International 30.5 Mainly independent, family operated, non 28.1 Tourists 25.5 standardized hotels subject to substitution 182,160 182,145 24.4 12% 142,533 121,426 64,087 5 Stars 4 Stars 3 Stars 2 Stars Others 2010 2011 2012 2013 2014 88% Low Cost Carriers Domestic Tourists Legacy Carriers 46% of Total Rooms in Mexico Source: INEGI, Ministry of Tourism, Ministry of Communications and Transportation, JLL, PwC, Euromonitor. 11

Business Model that Boosts Value Creation with Each New Hotel Ce Chetumal, Quintana Roo