1 @ F i b r a H o t e l A n n u a l R e p o r t d. de M
2 +4.2 % stabilized portfolio In the cover: AC Torre Américas Guadalajara RevPAR increase 2014 Highlights 63.5 % stabilized +12 % +38 % increase in distribution per CBFI portfolio occupancy rate room inventory for operating hotels d. de M
3 d. de M 2,693million pesos invested in hotels +79bpsincrease in the lodging contribution margin for managed hotels Camino Real Puebla 14hotels acquired 424million pesos distributed to holders 2,000 million in credit lines available as of Dec. 31, 2014
4 d. de M 2 Hotel s list At the time of this Annual Report, the portfolio of hotels in operation was as follows: No. A n n u a l R e p o r t Hotel Page 1. One Acapulco 3 2. One Aguascalientes 3 3. One Coatzacoalcos 7 4. One Cuernavaca 7 5. One Culiacán 7 6. One Guadalajara Tapatío 9 7. One Monclova 9 8. One Monterrey Aeropuerto 9 9. One Patriotismo One Puebla FINSA One Querétaro Plaza Galerías One Toluca One Xalapa Fiesta Inn Aguascalientes Fiesta Inn Ciudad Juárez Fiesta Inn Ciudad Obregón Fiesta Inn Chihuahua Fiesta Inn Culiacán Fiesta Inn Cuautitlán Fiesta Inn Cuernavaca Fiesta Inn Durango Fiesta Inn Ecatepec Fiesta Inn Guadalajara Expo Fiesta Inn Hermosillo Fiesta Inn León Fiesta Inn Mexicali Fiesta Inn Monclova Fiesta Inn Monterrey La Fe / Aeropuerto Fiesta Inn Naucalpan Fiesta Inn Nuevo Laredo Fiesta Inn Oaxaca 37 No. Hotel Page 32. Fiesta Inn Perinorte Fiesta Inn Perisur Fiesta Inn Puebla FINSA Fiesta Inn Querétaro Fiesta Inn Saltillo Fiesta Inn San Luis Potosí Oriente Fiesta Inn Tepic Fiesta Inn Tlalnepantla Fiesta Inn Torreón Galerías Fiesta Inn Toluca Fiesta Inn Xalapa Fiesta Inn Lofts Querétaro Hotel Fiesta Inn Lofts Monclova Gamma Ciudad Obregón Gamma León Gamma Tijuana Fiesta Americana Aguascalientes Real Inn Guadalajara Centro Real Inn Mexicali Real Inn Morelia Camino Real Puebla Camino Real Hotel & Suites Puebla Hotel Fairfield Inn by Marriott Los Cabos Hotel Fairfield Inn & Suites by Marriott Saltillo Sheraton Ambassador Monterrey Cacao Playa del Carmen 55 AC Antea Querétaro
5 Annual Report 2014 Letter from the CEO Introduction to FibraHotel Presentation History Structure Management Team Industry overview FibraHotel s Strategy Competitive strengths Strategy Acquisitions Developments FibraHotel s Portfolio Presentation Map Brands and Operators Portfolio Segments Key Performance Indicators Financial section Financial results for 2014 Cash flow and liquidity position Capital Expenditures Cash flow distribution FibraHotel Corporate Governance Technical Committee and FibraHotel Committees Alignment of long-term interests FibraHotel on the Mexican Stock Exchange CBFI price Stock ownership Post-2014 events Consolidated Financial Statementss NOTE: The publication date of this Annual Report is May 15th, Page One Acapulco d. de M This limited-service, 126-room, hotel is located in the city of Acapulco, in the State of Guerrero. Acapulco is one of the primer touristic beach destinations in Mexico. This property is on Avenue Costera Miguel Alemán in the heart of Acapulco city, just 20 minutes from Acapulco International Airport. It is nearby the Acapulco Convention Center, and has easy access to restaurants, nightclubs, and shopping centers. This hotel is an excellent alternative for business travelers during the week, and for tourists on weekends. Retail component included. As of Dec. 31, 2014, the number of employees was One Aguascalientes This limited-service, 126-room hotel is located in the city of Aguascalientes, in the State of Aguascalientes. The property is on José Ma. Chávez Boulevard, just 20 minutes from the Aguascalientes International Airport, and ten minutes from downtown Aguascalientes. It is also located nearby a busy shopping center, with various entertainment options. It is just 100 meters from the Nissan assembly plant, as well as the Aguascalientes Convention Center. As of Dec. 31, 2014, the number of employees was 24. F i b r a H o t e l 3
6 4 Dear FibraHotel Certificate Holders, Letter from the CEO 2014 was a growth year for FibraHotel with 24 new hotels and over 3,200 additional rooms representing an investment of over three billion pesos, which led us to fully commit all available cash and clearly lay out our growth plan. We are the leading owner of business hotels in Mexico with a portfolio of diversified, high quality hotels, managed by the best team with the ability to identify and execute on attractive investment opportunities, and all of this on top of the right vehicle to grow and with aligned incentives with our investors. During our second year as a public company, we reached important milestones across our business leading the way to our goal of FibraHotel 100. I will go into detail of our achievements during the year, as well as our future growth plans in this letter, but first I would like to highlight the partnership we signed with Starwood in which FibraHotel will grow through the ownership of hotels in Mexico that will be operated by Starwood under their well-regarded portfolio of brands. This agreement once again proves our open architecture business model and gives us access to an attractive array of growth options. Additionally, as part of the agreement we were able to acquire the Sheraton Ambassador Monterrey hotel, which was a strategic and highly profitable addition to our portfolio. The business hotel market in Mexico performed relatively well during the year in the context of a slower than expected Mexican economy, and we continue being very optimistic about the potential growth, on which we plan to capitalize. In 2014 there were several investment announcements across the country but focused in the Bajio and North regions, positioning room demand growth in a sustainable way for the near future. The announced investments were led by export driven business including manufacturing and automotive. For example, during the year we acquired the Fiesta Inn San Luis Potosi hotel, which will be benefited by the construction of a BMW manufacturing plant in San Luis Potosi with an annual production of 150,000 cars. Additionally, we continue believing that were will be a positive impact from reforms, specifically the energetic one which will potentially bring large investments into the Gulf and Center/South regions of the country. All of these investments benefit A n n u a l R e p o r t our existing portfolio of hotels and present opportunities for investments in new locations. Aside from these future investments, during the year we saw attractive investments from existing companies mainly led by export and consumer companies, which continued increasing production in the country and adding projects that require room nights at our hotels. On the supply side, we continue seeing both interest and hotel construction which will come in line in the following years in certain cities. To date, we believe that demand continues to grow faster than supply, and as an example, in Queretaro we saw almost 19% new rooms in the market and our hotels either maintained or slightly increased RevPAR. We continue focused on growing through acquisition of stabilized hotels which meet our investment criteria of a proper return (>10% cap rate) and real estate asset value (price per key). During 2014, we acquired 14 hotels with 1,995 rooms, representing an investment of almost two billion pesos. These acquisitions were done at a cap rate above 10% and with an average price per key of Ps. 975, These acquisitions were strategic for the growth of our portfolio, and as a summary, these acquisitions added: > Presence in four new states in the country (i) San Luis Potosi (Fiesta Inn San Luis Potosi), (ii) Veracruz (Fiesta Inn y One Xalapa), (iii) Baja California Sur (Fairfield Inn Los Cabos), (iv) Quintana Roo (Cacao Playa del Carmen), y Morelos (Fiesta Inn y One Cuernavaca). > International brands and operators: (Fairfield Inn Los Cabos operated by Marriott International and Sheraton Ambassador Monterrey operated by Starwood). > Our first boutique hotel (Cacao Playa del Carmen). > Conversions of independent hotels, including the partial repositioning of the Gamma Tijuana, Gamma Leon and Gamma Ciudad Obregon hotels and the total repositioning and expansion of the Fairfield Inn & Suites Saltillo hotel. > The addition of iconic full service hotels (Fiesta Americana Aguascalientes and Sheraton Ambassador Monterrey). Even though strategically we prefer to acquire stabilized hotels to conversions or new developments, we analyze each market and opportunity for the best available alternative between these options. As such, during 2014 we d. de M May 2015
7 saw an important shift in the market turning into a sellers-market, and as such we adapted to the market conditions and in order to maximize the value per certificate in the medium term, we turned our focus to our development pipeline, which provides attractive investment opportunities and leverages our know-how as hotel developers, with high quality products in unique locations developed at the right price. During the year, we grew our development portfolio from eight to 14 hotels with a focus on securing a strong pipeline to insure our growth in the near term. During the year, we opened on budget and on time four hotels, the: (i) Fiesta Inn Lofts Queretaro with 50 extended-stay rooms, (ii) Fiesta Inn Lofts Monclova with 37 extended-stay rooms, (iii) One Monclova with 66 limited-service rooms, and (iv) Camino Real Suites Puebla with 121 extended-stay rooms. These properties are currently in the stabilization period and allowed us to expand our extended-stay offering. Additionally, we invested over 500 million pesos during the year in development projects and had important construction progress in hotels to be opened during 2015, such as the Trebol Monterrey, Torre Americas, Courtyard and Fiesta Inn Ciudad del Carmen projects. We are very focused on executing our development pipeline and in line with our information transparency; you will be able to see in this document and in our quarterly releases the progress, details and pictures of all of our development hotels. We continue focused on the organic growth of our portfolio, especially on increasing room rates. During 2014 we achieved an ADR and RevPAR growth of 4.0% and 4.2% respectively, almost double the 2.1% Mexico GDP growth, and slightly above inflation of 4.1%. Our team continues working on either increasing or maintaining the high RevPAR penetration levels of our hotels with a focus on sales and cost control to maximize the cash flow of each asset. Our open architecture strategy continues being a key growth driver going forward, and we are happy that in less than a year from our agreement with Marriott, today we have 10 hotels either in operation or development with them. Additionally, as I mentioned at the beginning of this letter, we were pleased to add Starwood as an operating partner, and with the access this provides us for future growth with their well-regarded brand portfolio including W, Westin, Sheraton, Le Meridien, Aloft, Four Points and Element. Finally, during 2014 we distributed 86 cents per certificate notwithstanding the fact that we continue in our investment phase. I would like to thank all of our investors, associates and operating partners for all their effort and support during the year was very productive and represented an important step towards our goal of FibraHotel 100 and on capitalizing the opportunities that lay ahead. Simon Galante CEO FibraHotel d. de M Live Aqua Monterrey F i b r a H o t e l 5
8 6 Introduction to 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. FibraHotel is the first lodging real-estate investment trust (REIT), known as Fideicomiso de Inversión en Bienes Raíces or FIBRA in Spanish, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores). The trust is the first lodging REIT in Latin America and the best-positioned as the owner of the largest hotel portfolio in Mexico. FibraHotel s objective is to provide attractive returns to its CBFI holders, through stable cash distributions and the appreciation of our real estate assets. Also, FibraHotel 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. FibraHotel is only owner of the real estate property of each hotel, as such it participates only as an owner and not as an operator or brand owner. This open A n n u a l R e p o r t Fiesta Americana Grand Monterrey architecture allows to work with the hotel operator and brand appropriate for each asset. d. de M FibraHotel successfully completed its Initial Public Offering (IPO) through a public offering in Mexico and an international private offering on Nov. 30, 2012, raising MXN $4,137 million (US $321 million). FibraHotel successfully completed a follow-on offer on May 30, 2013 through a public offering in Mexico as well as an international private offering, raising MXN $4,878 million (US $381 million) to continue to execute its growth plans and as at that time total resources left over from the IPO (approximately MXN $1,100 million) were totally committed to acquisitions and/or development projects. During 2013 and 2014, FibraHotel has grown very rapidly though a mix of acquisitions of operating hotels and development of new properties. This strong increase in number of rooms has allowed FibraHotel to expand our portfolio geographically and across service segments, operators and brands.
9 As of Dec. 31, 2014, FibraHotel s portfolio was composed of the following: > 56 operating hotels: 39 owned by FibraHotel as of Dec. 31, hotels acquired during the year Four hotels which FibraHotel had in its development portfolio as of Dec. 31, 2013, which initiated operations during the year > 14 hotels under development: 13 in distinct phases of development. One hotel in the process of being repositioned. As of the date of this Annual Report, FibraHotel s portfolio consists of 71 hotels (57 in operation and 14 under development) thanks to the opening of one hotel that was part of the development portfolio and the acquisition of a hotel project under development. These hotels are located in 27 states throughout Mexico, and are tied to wellestablished hotel brands which confer significant advantages and increased demand as a result of the: i) quality of service, ii) loyalty programs, iii) modern reservation systems, and iv) national and international distribution channels. FibraHotel will continue to expand its portfolio of brands through development projects under way, including Live Aqua, Courtyard by Marriott, AC by Marriott, Aloft, among others. The hotels in FibraHotel s portfolio fundamentally provide services to national business travelers and to a lesser degree to international travelers. For this reason, the majority of FibraHotel s hotels are in strategic locations where there is significant business and industrial activity as well as close to mixed-use developments, malls and industrial parks, airports and bus terminals which provide guests with access to a great variety of amenities and services. Fiesta Inn Culiacán 3. One Coatzacoalcos This limited-service, 126-room hotel is located in the city of Coatzacoalcos, in the State of Veracruz. This property is located within Fórum Coatzacoalcos, a busy shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is located just 15 minutes from Minatitlán International Airport, as well as several industrial installations, and Pemex offices. As of Dec. 31, 2014, the number of employees was One Cuernavaca This select-service, 125-room hotel is located on the Mexico-Acapulco highway, opposite the Galleries Cuernavaca, and just 10 minutes from the Historic Center and CIVAC, the most important industrial area of the city. The hotel has a restaurant and serves hot breakfast as a courtesy. Hotel amenities include: Internet, laundry and an ironing area. As of Dec. 31, 2014, the number of employees was One Culiacán This limited-service, 119-room hotel is located in Culiacán, in the State of Sinaloa. This property is located within Plaza Fórum, a shopping center with various entertainment options like restaurants, prestigious boutiques, and cinemas. It is just 20 kilometers from the city s airport, with easy access to downtown Culiacán, and the principal agro-business district. As of Dec. 31, 2014, the number of employees was 27. F i b r a H o t e l d. de M 7
10 d. de M 8 Introduction to FibraHotel Main Events since FibraHotel s creation until December : Cacao Playa del Carmen A n n u a l R e p o r t Summary > July 31, 2012: the Trust is formed. > Nov. 30, 2012: FibraHotel Initial Public Offering on the Mexican Stock Exchange. > Jan. 15, 2014: acquisition of the Fiesta Americana Aguascalientes (192 rooms / investment of MXN $227 million). > Jan. 21, 2014: completion of the construction of the Camino Real Hotel & Suites in Puebla (121 rooms / investment of MXN $125 million). > March 27, 2014: acquisition of Fiesta Inn Xalapa and One Xalapa hotels (245 rooms / investment of MXN $221 million). > April 4, 2014: acquisition of a development project in Villahermosa for the building of a Fairfield Inn & Suites by Marriott (135 rooms / investment of MXN $110 million). > April 7, 2014: acquisition of Fiesta Inn Ciudad Obregon (141 rooms / investment of MXN $148 million). > May 16, 2014: announcement of the development of a Fiesta Inn Lofts hotel in Queretaro (45 rooms / investment of MXN $45 million). > May 22, 2014: acquisition Hotel Fusion 5 in Leon, which was repositioned as Gamma by Fiesta Inn (165 rooms / investment of MXN $136 million). > May 28, 2014: announcement of the development of two hotels in Ciudad del Carmen: a Courtyard by Marriott with 130 rooms and a Fiesta Inn lofts with 124 rooms (investment of MXN $256 million). > May 30, 2014: acquisition of the Valle Grande hotel in Ciudad Obregón, which was repositioned as a Gamma by Fiesta Inn (135 rooms / investment of MXN $110 million). > June 20, 2014: acquisition of the Fairfield Inn by Marriott in Los Cabos (128 rooms / investment of MXN $110 million). Summary > May 31, 2013: FibraHotel Follow-On on the Mexican Stock Exchange. > Acquisition of 19 hotels (2,779 rooms / investment of more than MXN $2.5 billion). > Opening of two hotels of the development portfolio (281 rooms). > Announcement of six hotel projects under development. Details > July 21, 2014: acquisition of the Fiesta Inn San Luis Potosi Oriente (140 rooms / investment of MXN $125 million). > July 24, 2014: acquisition of the Lausanne Tijuana hotel, which was repositioned as Gamma by Fiesta Inn (140 rooms / investment of MXN $120 million). > Sept. 25, 2014: acquisition of the Microtel Inn Saltillo, which was repositioned as Fairfield Inn & Suites by Marriott (142 rooms / investment of MXN $112 million). > Oct. 21, 2014: announcement of the development of an AC by Marriott hotel in Guadalajara within the Americas 1500 tower mixed-use project (189 rooms / investment of MXN $246 million). > Oct. 28, 2014: announcement of an agreement to purchase five turnkey hotels to be developed with international brands (775 rooms / investment of MXN $900 million). > Oct. 31, 2014: announcement of the development of an AC by Marriott Queretaro hotel within the Antea mall (175 rooms / investment of MXN $212 million) > Nov. 4, 2014: announcement of the opening of two hotels under development in Monclova, a One with 66 rooms and a Fiesta Inn Lofts with 37 rooms (investment of MXN $80 million). > Nov. 14, 2014: announcement of the opening of the Hotel Fiesta Inn Lofts under development in Querétaro with 50 rooms (investment of MXN $45 million). > Nov. 19, 2014: acquisition of Sheraton Ambassador in Monterrey (229 rooms / investment of USD$13.5 million). > Nov. 19, 2014: Acquired the Hotel Cacao, Playa del Carmen (60 rooms / investment of USD $15 million). > Nov. 20, 2014: announcement of the development of a Fiesta Inn in Los Mochis inside the Paseo Los Mochis mall (125 rooms / investment of MXN $112 million). > Dec. 15, 2014: acquisition of the Fiesta Inn and One Cuernavaca (155 plus 125 rooms / investment of MXN $268 million). 6. One Guadalajara Tapatío This limited-service, 126-room hotel is located in Tlaquepaque, in metropolitan Guadalajara, in the State of Jalisco. It is just 10 minutes from the airport, and located within a shopping center that has convenience stores and restaurants. As of Dec. 31, 2014, the number of employees was One Monclova This limited-service, 66-room hotel is located just five minutes from the major industrial areas of the city. It is located in a complex, adjacent to the Fiesta Inn Lofts and Fiesta Inn Monclova hotels. As of Dec. 31, 2014, the number of employees was One Monterrey Aeropuerto This limited-service, 126-room hotel is located on Boulevard Aeropuerto Avenue, in the city of Monterrey, in the State of Nuevo León. This property is just five minutes from the Monterrey International Airport. Its location is ideal for business travelers, due to its proximity to the airport, and to Cintermex, one of the most important business centers in Monterrey. Retail component included. As of Dec. 31, 2014, the number of employees was 27. F i b r a H o t e l d. de M 9
11 d. de M 10 Introduction to FibraHotel The following diagram outlines the FibraHotel structure: Deutsche Bank México, S.A. (Trustee) CBFIs Holders > Receives rental revenue from rooms and pays related costs and expenses as well as real estate expenses. > Receives after tax dividend from the Management Subsidiary and pays any expense shortfall. CI Banco, S.A. (Common Representative) > Provides hotel services and property management services (with assistance form third parties). > Receives revenue from non-room related hotel services and pays related costs and expenses. > Pays expenses related to its own operation. > Taxable entity. > Pays after-tax dividends to FibraHotel or receives distributios to cover shortfall. CBFIs Holders Assembly 83.7% 16.3% Hotel Portfolio A n n u a l R e p o r t Management Subsidiary Agreement Fibra Hotelera, S.C. (Management Subsidiary) Service Agreements Compensation of 5% of Gross Payroll Control Trust Administradora Fibra Hotelera Mexicana, S.A. de C.V. (Advisor) Hotel Management Agreements Rental Revenue (lodging) > Elects Technical Committee and appoints Common Representative. > Able to amend Trust Agreement or liquidate trust assets. > Able to terminate Advisory Agreement without cause. > Approves CBFIs issuance, delisting or cancel registration of CBFIs with CNBV. > Approve large Real Estate transactions. Advisory Agreement. Annual fee of 1.00 % of undepreciated book value of assets, net of debt, payable quarterly. Hotel Management Companies Guests Revenue from non-room hotel services. Services Companies > Provides personnel services. > Empoyees: operating staff of hotel portfolio. Camino Real Hotel & Suites Puebla
12 FibraHotel s structure is composed of the following entities: Advisor. FibraHotel is externally advised by Administradora Fibra Hotelera, S.A. de C.V., the Advisor. The Advisor was founded on Sept. 20, 2012 for the purpose of providing advisory services to FibraHotel and said advisory services are the sole purpose of the Advisor s operations. The Advisor is responsible for, among other things, providing orientation and consulting to FibraHotel in its development and hotel acquisition strategies, long-term strategic planning and financial planning, implementation of important decisions, and the management of investor relations. The Advisor has the right to an annual commission, paid every quarter, equivalent to 1.00% of the undepreciated book value of assets, net of debt. No other commission is paid to the Advisor (acquisition commission, development commission or any other type of commission). Administrator. FibraHotel is internally managed by Fibra Hotelera S.C., the Administrator. The Administrator was founded on Oct. 5, 2012 for the sole purpose of taking responsibility for the day-to-day management of FibraHotel s business. As of the date of this Annual Report, the Administrator has a team of 21 (Senior management, Administration and Finance, Legal, Development, and Operations). The Administrator is responsible, among other things, for the day-to-day management of FibraHotel s business, maintenance of the properties and hotels, acquisition of the necessary permits and licenses, implementation of the auditing tasks necessary for the pre-assessment of acquisition opportunities and development, supervision of renovations / development / re-development projects, supervision of matters related to property insurance, negotiations in behalf FibraHotel, and the organization and signing of hotel management contracts associated with the hotels. The Administrator is also responsible for providing certain services unrelated to the rental of rooms, such as food and beverage, phone, Internet and similar services, which are billed to hotel guests separately in that such services are subject to taxation. The Administrator is not subject to the FIBRA tax structure and pays taxes, as any business organization is required to do. The Administrator pays its portion of the general costs of FibraHotel and its taxes as a result of the profits generated by activities not related to the rental of rooms. Any profits left over after the Administrator s taxes are distributed to FibraHotel, which is responsible for any deficits resulting from the income and costs of the Administrator. Services companies. Services companies are responsible for providing Fibra- Hotel with the personnel necessary to operate the hotels, sometimes excluding the Executive Committee of each hotel (general manager, controller, sales force, and housekeeping). In some cases, the services of the Executive Committee are provided directly by the hotel operators and are subject to the supervision and monitoring of the Administrator. In conformance with the services contracts terms, the Services Companies have the right to receive a consideration of 5% calculated based upon the total payroll that they administer, for the purposes of covering their operational costs and expenditures. FibraHotel reimburses the Services Companies on a monthly basis for the salaries that they pay to the employees that deliver services at the hotels. 9. One Patriotismo This limited-service, 132-room hotel is located in Mexico City. It is located on one of the city s main avenues, Avenue Patriotismo, within the Plaza Metrópoli shopping center, offering access to restaurants, cinemas, prestigious boutiques, and a gym. It is located just six blocks from the World Trade Center of Mexico, which hosts numerous exhibitions and conventions, and nine kilometers from the international airport. As of Dec. 31, 2014, the number of employees was One Puebla FINSA This limited-service, 126-room hotel is located in the City of Puebla, in the State of Puebla. It is five minutes from FINSA industrial park, which houses major automotive companies. It is nearby the México-Puebla highway, and at the main entrance to Hermanos Serdán Boulevard. The hotel is 20 minutes from the city center, and 15 minutes from important shopping centers. Retail component included. As of Dec. 31, 2014, the number of employees was One Querétaro Plaza Galerías This limited-service, 126-room hotel is located in the city of Querétaro, in the State of Querétaro. It is ten minutes from downtown, 30 minutes from the international airport, and is nearby the city s principal industrial parks. As of Dec. 31, 2014, the number of employees was 27. F i b r a H o t e l d. de M 11
13 12 Introduction to FibraHotel FibraHotel s management team is made up of the following persons: > Simón Galante Zaga: is Chief Executive Officer of the Advisor and a member of the FibraHotel Technical Committee. Founding Member and CEO of Grupo GDI, Mr. Galante Zaga has more than 20 years of experience in the hotel, commercial and residential sectors as both a developer and in real estate management as well as in acquisitions and the development and financing of these types of projects. Mr. Galante Zaga is a member of the Board of Directors of the Fondo Hotelero Mexicano I and II, Fondo Comercial Mexicano, La Vista Country Club, and Bosque Real and Mercap, which are Grupo GDI companies. He has a specialty in business administration from IPADE. > Eduardo López García: is CEO of the FibraHotel Administrator. Mr. López García served as the investment and development manager at Grupo Posadas beginning in 1993 and up until he joined Grupo GDI as Director of Hotels in 2006 when the group had just six hotels. Eduardo López Garcia negotiated a contract with the leading real estate developer in Mexico and with Grupo Posadas for the development of additional hotels to be operated by Grupo Posadas. He has 20 years of experience in hotel development and management. A n n u a l R e p o r t d. de M Fairfield Inn Los Cabos > Edouard Boudrant: is CFO of the FibraHotel Administrator. He has a Bachelor s Degree in Business Management from the Universidad de las Américas (UDLA) in Puebla and from the Centre d Études Supérieures Européennes de Management (CESEM) in Reims, France, and a Master s Degree in Corporate Law from the École Supérieure des Sciences Économiques et Commerciales (ESSEC) in Paris. His professional experience includes eight years working in investment banking in both France (Société Générale and Lazard-NATIXIS) and in Mexico (BBVA Bancomer). > Guillermo Bravo Escobosa: is Head of Corporate Development & Investors Relations of the Fibra- Hotel Administrator. He has a Bachelor s Degree in Industrial Engineering from the Universidad Iberoamericana de México and an MBA from the Universidad de Chicago Booth School of Business and his professional experience includes working as a Credit Analyst and Executive Relations Manager at Scotiabank Inverlat in Mexico as well as Associate in M&A and US Diversified Industries at J.P. Morgan in New York. > Lorena García Núñez: is Legal Counsel of the Fibra- Hotel Administrator. She joined Grupo GDI in 2002 and has more than 15 years of experience in both the hotel and real estate industries.