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 : F o u r t h Q u a r t e r 2 0 2 2

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

Mexico City, February 23rd, 2023.

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

• In 2022, Hotel RevPAR (revenue per available room) increased 43% year-over-year, 14% higher than 2019.
• Q4 revenue was $2,472 million, a 14% increase QoQ.
• 2022 revenue was $9,078 million, a 23% increase YoY.
• 4QEBITDA was $364 million and in 2022 $1,563 million, 16% higher YoY.
• Net income was $217 million for 2022.
• Pipeline with 19 new hotels with 3,219 rooms.
• Cash available as of December 31, 2022 was $1,939 million (US$100 million).

	Million pesos as of			4Q22		Var.			2022		Var.
	December 31, 2022	$	%		YY %	$	%		YY %
	Total Revenues		2,472.3		100		14.2		9,078.0		100		22.6
	EBIT		268.4		10.9		12.5		825.9		9		225.3
	EBITDA		505.2		20.4		7.1		1,704.2		19		48.1

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Relevant Events

During the second half of 2022, performance exceeded our expectations, after continuing to operate with the effects related to the pandemic in the first half of the year.

According to the World Tourism Organization (UNWTO), in 2022 twice as many international trips were made compared to 2021, although this figure remains 37% below pre-pandemic levels.

Mexico was among the top ten countries for international tourist arrivals in 2022, and showed an accelerated recovery compared to the rest of the world. Hotel occupancy in Mexico is close to 2019 levels, with the destinations recording the highest number of arrivals being Cancun, Mexico City, Los Cabos, Puerto Vallarta and Guadalajara.

In response to these tourism dynamics, we prepared for the needs of our guests and new ways of interacting through important changes at a technological and digital level, as well as in our loyalty programs, focused on a Customer Centric culture to increase the Net Promoter Score (NPS) and ensure the continued leadership of all of our brands.

Our hotels had an increase in RevPAR (revenue per

available room) of 43% compared to the previous year, and 14% higher than pre-pandemic levels in 2019.

Resorts

We continued to achieve extraordinary results in this segment. RevPAR increased by 35% compared to the previous year and 57% compared to 2019.

The "Resorts" capitalized on higher revenues with a more favorable flowthrough of 75%, enabling us to reach operating margins above 43%, improving 7 pp (percentage points) versus the previous year.

Upscale & Luxury Hotels

With better performance in the second half of the year, the "Upscale & Luxury" segment achieved a RevPAR increase of 62% YoY and 10% compared to 2019.

In this segment we generate 80% of the room nights through our own channels. The Business Individuals and Groups segments recovered and began operating at levels above those reached before Covid19. Operating margins improved due to strict cost controls, enabling a 61% flowthrough.

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

Miscale & Economy Hotels

The "Midscale & Economy" segment had an extraordinary fourth quarter, with RevPAR of 11% greater than 2019 levels. RevPAR for the year in the segment grew 42%, only 2% below the 2019 figure.

As in "Upscale & Luxury", in this segment we generate over 80% of the rooms d through our own sales channels. The flowthrough of this group of hotels was 62%, which allowed us to improve operating margins by 8 pp compared to 2021.

Loyalty

We are committed to our partners of the different loyalty products and understanding the evolution of this changing world, and as part of this commitment we relaunched Fiesta Americana Vacation Club Access (FAVC Access). FAVC Access is a vacation membership that offers access to a discount club of up to 50% off of public rates in hotels in Mexico and the world, is valid for 5 years, as well as other benefits linked to the Fiesta Rewards program.

As a result of a strong increase in its total membership, FAVC Access reached a 4% share of room nights among all loyalty products, growing 200% compared to 2021. During the month of December, FAVC Access represented a 50% share in sales across all products.

Together, these Loyalty products contributed to 35% of hotel occupancy overall, generating 2.2 million room nights through direct channels.

At Fiesta Rewards we enrolled 50,000 new members, reaching a total of 400,000 active members. The "Santander Fiesta Rewards" credit card, through which members obtain benefits related to travel, added 63,000 new cardholders, reaching a total of 320,000 and increasing income generated by the co-branded card by 22%.

Innovation and Technology

Through our Phygital program, we have significantly enhanced the digital check in process, providing a positive experience through check-in kiosks, with a fast, personalized experience and, most importantly, contact-free. These enhancements yielded an NPS improvement of 2 points in 2022 versus the traditional check-in method.

Our Digital Concierge (Lexi) interacts with guests both before and during their stay, attending their needs, answering questions, and offering personalized services and products. This digital experience improved the guest recommendation by 19 points in 2022.

Through My Cast, we offer our guests the option to mirror their phone and device screens onto the television, providing an enhanced experience that 60% of guests mentioned had a positive impact on their stay.

As a result of the upgrading of all our owned websites, we increased the number of unique users, surpassing the main indicators at the industry average. With a new architecture and attributes that improve the user experience, we closed the year with 69% of reservations generated through our own channels.

Financials

During the year we generated a net IFRS income of $217 million. Our cash balance as of December 31, 2022 was $1,939 million (US$100 million) with total assets of $17,949 million.

The following payments were made using the cash we generated in 2022:

1. Payments to the tax authorities ("SAT") of $561 million. $174 million was for the resolution of the 2006 trial, and $387 million twas for the ninth and penultimate annuity of the agreement with the
   Mexican tax authorities signed in 2017.
2. Capital expenditure investments of $223 million.
3. Debt service of $355 million, of which $314 million was allocated to the interest on the Senior Notes Due 2027, and $41 million of which was for principal and interest on the Inmobiliaria del Sudeste (Fiesta
   Americana Merida hotel) loan.

2022 operational highlights are as follows:

• An agreement was signed to develop a facility on a plot of land in the Acapulco Diamante area in Acapulco, Guerrero. The project consists of
  Posadas contributing the land in a trust and a third party developing of a building with 128 units and service areas, of which Posadas will receive 29 units. The entire complex will operate under the
  Live Aqua Residence Club brand.

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

• 3,101 Partner contracts with fully paid memberships, who failed to pay their maintenance fee for 3 consecutive years, were cancelled. This is equivalent to 11.9 million points, representing $117.1 million pesos that were returned to real estate inventory.
• On June 30, 2022, US$26,850,570 in principal tendered post Effective Date were issued. Notes in an amount of US$5,346,298 were fully discharged with no further distributions as part of the financial restructuring process (the prepackaged Chapter 11).
• During 2022, performance guarantees were paid for Live Aqua Beach Resort Punta Cana and Fiesta Americana Satelite.
• In March 2022, operation contracts were terminated early in order to convert to a franchise model for the following hotels: Fiesta Inn Coatzacoalcos Hotel, Fiesta Inn Poza Rica Hotel and Fiesta Inn Tampico Hotel. Additionally, the contract for the
  Hotel One Leon was canceled.
• As part of the corporate simplification process, the following subsidiaries were merged into the company Soluciones de Lealtad S.A. de C.V.: Inmobiliaria Administradora del Bajío, S.A. de C.V., Promoción y Publicidad Fiesta, S.A. de C.V. and
  Dirección Corporativa Posadas, S.A. de C.V.

4Q22

Q4 financial performance exceeded expectations, with a higher occupancy rate of 66%, an available daily rate of $1,974. This resulted in a RevPAR of $1,308, which is 27% higher than in 2021 and 28% higher than 2019. Operating margins improved due to strict cost control practices that reflected in a 79% flowthrough.

Coastal hotels (Resorts) had an occupancy rate of 75% and an available rate of $7,291. This resulted in a RevPAR of $5,476, which is 14% higher than 2021 and 72% higher than 2019. Operating margins recorded a 79% flowthrough.

In the Upscale & Luxury segment, an occupancy of 66% and an available daily rate of $2,609 was recorded. Resulting in a RevPAR of $1,712, representing an increase of 36% and 27% in RevPAR for 2021 and 2019, respectively. Operating margins recorded a 63% flowthrough.

Midscale & Economy urban hotels had an occupancy and available daily rate of 66% and $1,196, respectively, resulting in a RevPAR of $784. This compares favorably with the previous year, 33% higher than the same quarter of 2021 and 11% higher than 2019. Operating margins flowthrough was 62%.

These occupancy and daily available rates are mainly due to the recovery that we have observed in individual and group reservations for all segments.

The Loyalty segment (vacation properties) registered an increase in operating sales of 10% QoQ. However, the accounting of Access sales (which represented 40% of net sales), unlike a traditional membership, is deferred to a 60-month term, so this change in accounting gives the appearance of a decrease in revenues.

The balance of vacation club receivables was $6,488 million, as of December 31, 2022, representing an increase of 5% compared to the previous year.

During the last quarter of 2022, a corporate restructuring was executed. This reduction generated expenses of $63.6 million and a provision for $17.4 million.

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

> Hotel Development

As of December 31, 2022, the Company continues its development plan that includes agreements to operate 19 new hotels with 3,219 rooms. Of the total investment for these projects worth $13,399 million (US$692 million), Posadas will contribute 3% of the resources, with 97% is being made by other investors. This will increase the supply of rooms by 11%.

Hotel openings will begin during the first quarter of 2023, and it is estimated that most of them will be in operation by 2024. The average life of these operating contracts is more than 15 years.

Our portfolio of hotel projects under development contemplates important additions such as: Live Aqua Playa Mujeres, Live Aqua Riviera Cancún, Grand Fiesta Americana Riviera Cancún, Fiesta Americana Mazatlán Zona Dorada and Grand Fiesta Americana Punta Cana Los Corales, in the Dominican Republic.

As part of the expansion strategy in the Caribbean, we signed a contract to operate the first hotel under the Funeeq by Fiesta Americana brand in the Dominican Republic, which we estimate will open in 2025.

	New Hotels by Brand		México	Caribbean		Total	%
		Hotels		Rooms	Hotels	Rooms	Hotels		Rooms
	Live Aqua		4		958			4		958		29.8
	Live Aqua Residence Club		1		33			1		33		1.0
	Grand Fiesta Americana		1		600			1		600		18.6
	Fiesta Americana		1		170			1		170		5.3
	Curamoria Collection		2		22			2		22		0.7
	Fiesta Inn		2		180			2		180		5.6
	Fiesta Inn Loft/Express
	Gamma		2		150			2		150		4.7
	One		5		608			5		608		18.9
	IOH
	Others					1	498	1		498		15.5
	Total	18	2,721	1	498	19	3,219	100

During 2022, we opened 6 hotels ending the year with a total of 189 hotels and 29,152 rooms, in more than 60 destinations.

Openings LTM	No. of rooms	Type of Contract
Huayacán Cuernavaca Curamoria Collection	40	Franquiciado
IOH Mérida MID Center	136	Administrado
Gamma Villahermosa	72	Franquicia
Gamma Guaymas Armida	82	Franquicia
Celeste Beach Residences & Spa Huatulco Curamoria Collection	8	Franquicia
Gamma Colima Garden	91	Franquicia
Total	429

During the year the following hotels are were removed from our portfolio: One León Antares, Pug Seal Curamoria Collection y Casa de la Marquesa Querétaro.

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