Corporate Presentation February 2015 Disclaimer This presentation - PowerPoint PPT Presentation

Corporate Presentation February 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 (1) Segments Through New-Hotel Development # of Rooms (2) 13,350  The largest limited service hotel chain in Mexico  Fully integrated platform spanning the complete 10,929 hospitality value chain with best-in-class 9,326 development and distribution capabilities 8,092 6,973  Three distinct lodging formats designed to serve 5,562 the domestic business traveler and capture 4,991 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 96 118 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) Based on information prepared by the Company using publicly available information. (2) 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 (74%) 6 (6%) 13 (14%) 6 (6%) Hotels (1) # of 8,246 (75%) 806 (7%) 1,484 (14%) 393 (4%) Rooms (1) $500 – 700 Target Segment (1) As of December, 2014. 4

Largest Hotel Chain in our Target Segment Number of Hotels by Chain in Mexico As of December 31, 2014 133 Limited Service Hotels 124 Full and Select Service Hotels 91 41 41 94 35 35 31 26 24 33 Number of Hotels by Brand in Mexico As of December 31, 2014 75 88 62 50 47 + 35 16 15 12 13 11 11 11 11 10 7 6 6 6 5 5 4 Select-Service Hotel Brands Limited-Service Hotel Brands 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 Maquila Export and • Opening of oil and gas sector to Logistics Corridor private participants Corredor D Minero Mining Corridor B • Growth of Mexico’s manufacturing sector driven by global economic recovery and increased labor and A energy cost competitiveness Energy Petrochemical, • Recently announced investments and Export Corridor by auto manufacturers and suppliers E NAFTA C • Economic recovery of the United Agricultural Export States , Mexico’s main business Corridor partner • Resurgence of maquila industry • Decreasing levels of violence in B northern Mexico NAFTA Industrial, Manufacturing, Logistics D • Recently enacted structural and Export Corridors reforms in the mining sector E • Resuming government spending in transportation infrastructure Hotels in Operation 2015 Openings 6

Geographic Coverage and Portfolio Mix by Industry and Sector Geographic Coverage by Country Presence in Mexico by Economic Activity As of December 31, 2014 As of December 31, 2014, % of Total Portfolio based on number of hotels Commercial, Financial and Energy 1% Tourism Services & Petrochemical Activities 1% 17% 21% 20 hotels on the México Gulf of Mexico’s Energy Corridor Costa Rica Exporting Activities 15% Colombia 98% 5% Agriculture Activities 42% Manufacturing Hotel Portfolio by Brand Hotel Portfolio by Ownership As of December 31, 2014, # Hotels and % of Total Portfolio As of December 31,2014, # Hotels and % of Total Portfolio 6 13 24 6% 35 25% Owned 14% Co-Owned 6 36% 6% Leased 13% 12 Franchise and Management 71 74% 26% Consolidated 75% 25 7

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

Solid Macroeconomic Fundamentals Pointing to a Economic Recovery Quarterly GDP Growth Contribution to GDP Growth Gross Fixed Investment Loans for Machinery & Equipment Public Construction Expenditure Private Consumption Source: HSBC Economic Analysis, Santander Economic Analysis, SECTUR and INEGI. 9

Tourism Sector With Solid Growth in Recent Years Tourism GDP Growth GDP Contribution by Economic Activity Services Sector GDP % Primary Secondary Tertiary 10 100% 5 36% 36% 36% 0 2008 2009 2010 2011 2012 2013 2014 -5 62% 61% 61% -10 Tourism GDP Total GDP 2011 2012 2013 Domestic Tourism Consumption Growth Airlines Passenger Traffic Growth Room Supply Growth Rooms Index 2008 = 100 (Million Passengers) 117 33 672,296 CAGR +2% 112 30 +7% 660,546 107 28 651,160 102 26 97 638,494 24 92 2008 2009 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014E 2010 2011 2012 2013 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 2013 (% of Rooms) 2013 (% of Occupied Room Nights) 100 100 100 100 100 100 21 17 28 Target 38 segment 60 69 79 83 72 62 40 31 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 2013 2013 (Million Passengers) International 30.5 Mainly independent, family operated, non 28.1 Tourists 25.5 standardized hotels subject to substitution 180,116 24.4 179,968 10% 135,986 113,961 60% 57% 55% 62,265 50% 5 Stars 4 Stars 3 Stars 2 Stars Others 2010 2011 2013 2013 90% 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