Corporate Presentation February 2016 Disclaimer This presentation - PowerPoint PPT Presentation

Corporate Presentation February 2016

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. Corporate Finance and Investor Relations Tel: +5255 5249-8050 rpalacios@hotelescity.com smayoral@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) 11,944  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 2015  Significant embedded growth in recently built Hotels (2) 5 10 15 20 26 35 45 50 62 71 82 96 106 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 72 (69%) 12 (11%) 13 (12%) 9 (8%) Hotels (1) # of 8,313 (70%) 1,612 (14%) 1,484 (12%) 535 (4%) Rooms (1) $500 – 700 Target Segment (1) As of December, 2015 4

Largest Hotel Chain in our Target Segment Number of Hotels by Chain in Mexico As of December 2015 Limited Service Hotels 133 129 104 36 104 41 41 93 35 35 31 26 24 11 35 31 Number of Hotels by Brand in Mexico As of December 2015 82 62 50 47 36 16 15 13 12 11 11 11 11 10 9 8 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 C • Opening of oil and gas sector to private participants B • Growth of Mexico’s manufacturing D sector driven by competitive and logistic advantages of the Country • Recently announced investments A by automotive industry, aviation industry and infrastructure C • Economic recovery of the United C States , Mexico’s main business partner • Resurgence of maquila industry • Decreasing levels of violence in northern Mexico B E • Recently enacted structural D reforms in the mining sector E • Resuming government spending in transportation infrastructure Hotels in Operation 2016 Development Pipeline 6

Geographic Coverage and Portfolio Mix by Industry and Sector Geographic Coverage by Country Presence in Mexico by Economic Activity As of December 2015 As of December 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 December 2015, # Hotels and % of Total Portfolio As of December 2015, # Hotels and % of Total Portfolio 9 24 45 13 8% 23% Owned 12% 42% Co-Owned Leased 12 11% 12 11% Franchise and Management 69% 72 24% Consolidated 77% 25 7

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

Tourism Sector in Expansion Regional Indicators of Activity in the Tourism Sector Adequate Absorption of Installed Capacity that Translates Positive Trend on Tourist Arrivals into Increasing Occupancy Passenger Arrivals to Airports Index Hotel Occupancy Index Base 2008 (2008 = 100) Base 2008 (2008 = 100) North North 160 160 Center North Center North Center Center 150 South 150 South 140 140 130 130 120 120 110 110 100 100 90 90 80 80 70 70 60 60 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Source: Elaboration and seasonality adjustments by Banco de México with respect to data from the Tourism Ministry of the Federal Government and Airports and Auxiliary Services. 9

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. 10

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

Our Fully Integrated Business Model Provides Broad Exposure to Hospitality in Mexico Fully integrated platform provides flexibility and control over investment cost, growth, marketing and customer experience Hotel Management & Marketing and Development Hotel Ownership Franchising Distribution • Strong brand recognition • 20,000+ rooms developed • 45 owned hotels (1) • Best-in-class operating by the Hoteles City margins • Own distribution • 25 co-owned hotels (1) Express team • Standardized room layouts, channels account for • 12 leased hotels (1) • Systematic and vast majority of furnishings and processes • Primary focus on reservations streamlined design and • Brand licensing to third- ownership and co- development • City Premios guest loyalty party hotel owners under ownership of hotels – Low, predictable costs program management contracts – 50%+ ownership in co- • Corporate and local – Benefit from scale in owned hotels agreements development – Business partners • Targeted and cost-efficient • Strong ROIC track record contribute land and/or marketing • Control over “going in” cap equity and local market • At the forefront of digital rates insight and social media distribution International Chains FIBRAS Independent Hotels (1) As of December 2015; excludes managed and franchised hotels. 12