Grupo Posadas B de C : Quarterly Report

O p e r a t i n g & F i n a n c i a l R e s u l t s : S e c o n d Q u a r t e r 2 0 2 1

Grupo Posadas, S.A.B. de C.V. & Subsidiaries

Mexico City, July 28th, 2021.

Information presented with respect to the same quarter of previous year under IFRS accounting standards (figures in MXN):

• The COVID-19 pandemic has required us to continue operating our hotels with limited services, in accordance with capacity restrictions determined by health authorities.
• 2Q21, revenue was $1,934 million, representing a 364% increase QoQ.
• 2Q21 EBITDA was $315 million, reflecting the implementation of IFRS 16, which went into effect on January 1, 2019.
• As of June 30, 2021, the Company had $810 million (US$41 million) in cash on hand, $156 million of which is in restricted cash.

Million pesos as of	2Q21		Var.
June 30, 2021.	$		%	YY %
Total Revenues	1,933.6		100	363.7
EBIT	91.1		5	na
EBITDA	315.1		16	na

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The Ministry of Health has submitted a new methodology for determining the restrictions required for epidemiological safety in Mexico to the General Health Council corresponding to the states to implement it. The system reflects traffic lights, with red and orange zones reflecting greater restrictions than yellow and green zones. In response to the recent resurgence in COVID-19 cases, several states have reinstituted restrictions. As of the date of issuance of this report, according to the federal traffic light, one state is red, thirteen are orange, fifteen are yellow and three are green.

Notably, Mexico continues to be impacted by a sustained decline in business travel. With most corporations continuing to operate remotely or on a hybrid model, there is lower demand for hotel rooms in Central Mexico, which accounts for 40% of the Company's inventory.

Nonetheless, during 2Q21, the Company observed better performance than in the prior quarter. This improvement was primarily concentrated in coastal destinations, as occupancy in urban hotels continued to be lower than in previous years. The average occupancy in urban hotels was 50%, compared to 67% in coastal areas. As a result of the aforementioned restrictions, RevPAR (revenue per available room) in urban hotels declined 33% compared to the same period in 2019.

As of June 30, the balance of the vacation club receivables portfolio was $5,947 million, in line with the prior quarter.

In 2Q21, the Company terminated hotel management contracts with the Gamma Cancun Downtown and Fiesta Inn Tuxtla Gutierrez and temporarily closed the One Guadalajara Downtown hotel.

On June 29, the Company announced that it would forgo the payment of its coupon due June 30, 2021 on the "7.875% Senior Notes Due 2022", as well as that it has resumed negotiations with a group of bondholders.

In its July 8 relevant event titled, "Grupo Posadas consolidates its portfolio of hotels in Mexico," the Company announced that as of August 15, 2021, it is terminating its lease with the Grand Fiesta Americana Puerto Vallarta hotel agreeing a discount on rent payments; the Company also communicated that it will no longer be operating the project under development for two hotels in the Riviera Maya. The termination agreement related to the operation of these two dictates that payments previously made will be reimbursed, as described in the 2020 audited Consolidated Financial Statements (see Note: Significant events 2. t.) and services performed for US$ 6 million.

Investor Relations:	Gerardo de Prevoisin	Atziri Medina
	Tel.: [phone]	[e-mail]
	[e-mail]

On July 21, a Special Meeting of Shareholders was held to update the Company's corporate purpose. Minor changes to the corporate purpose were made in order to specify the commercial activity of the Company to provide greater clarity and understanding to authorities and third parties.

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Investor Relations:	Gerardo de Prevoisin	Atziri Medina
	Tel.: [phone]	[e-mail]
	[e-mail]

> Hotel Development

We end the quarter with a total of 181 hotels and 28,697 rooms in more than 60 destinations.

Openings LTM	No. of Rooms	Type of Contract
Gamma Morelia Vista Bella	20	Franchised
Curamoria Náay Tulum	36	Franchised
Gamma Acapulco Copacabana	431	Managed
Live Aqua Beach Resort Punta Cana	347	Managed
Curamoria Ilo Rojo San Miguel de Allende	30	Franchised
Curamoria Casa de la Marquesa Querétaro	13	Franchised
Total	877

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> EBITDA

EBITDA in the second quarter was $315 million, while in the same quarter of the previous year it was $382 million.

> Comprehensive Financial Results

At the end of the quarter (LTM), the net coverage ratio was negative, considering the effect of IFRS 16.

The exchange gain in 2Q21 was $201 million (including leases), as a result of the MXN / USD appreciation of 3.9% versus the prior quarter.

Concept	2Q21	2Q20	2021	2020
Interest Income	(4,459)	(5,329)	(7,818)	(18,778)
Accrued interest	195,673	192,397	380,471	362,455
Exchange (gain) loss, net	(295,734)	(147,169)	(33,212)	1,113,882
Accrued interest from lease payments	(72,971)	(55,633)	(12,437)	426,691
Exchange (gain) loss, from lease payments	94,731	99,434	191,177	202,157
Other financial costs (products)	17,517	17,754	35,033	35,508
Other financial expenses	5,508	4,573	7,893	7,674
Total	(59,736)	106,027	561,108	2,129,589
Figures in thousands of pesos

> Net Majority Income

As a result of the above, net income in the quarter was $227 million, while in the second quarter of the previous year, the Company recorded a net loss of $428 million loss due to the depreciation of MXN/USD. In 1H21, the Company recorded a net loss of $432 million.

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