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 i r s t Q u a r t e r 2 0 2 3

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

Mexico City, April 27, 2023.

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

• Hotel RevPAR (revenue per available room) increased 31% year-over-year, 25% higher than 2019.
• Q1 revenue was $2,7271 million, a 19% increase QoQ.
• 1QEBITDA was $510 million, 56% higher YoY.
• Net income was $279 million.
• Pipeline with 22 new hotels with 3,711 rooms, 13% growth.
• The 10th and last payment for $415 million of the agreement signed with the SAT (Mexico's tax authorities) in 2017 was made.
• Cash available as of March 31, 2023 was $1,682 million (80% denominated in USD).

	Million pesos as of			1Q23		Var.
	March 31, 2023	$	%		YY %
	Total Revenues		2,727.4		100		18.7
	EBIT		298.5		10.9		165.8
	EBITDA		510.5		18.7		56.3

Relevant Events

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During the first quarter of 2023, performance exceeded our expectations. The occupancy rate was 64%, with an ADR (available daily rate) of $2,093. This resulted in RevPAR of $1,335, which was 31% higher than in 2022 and 25% higher than 2019.

Coastal hotels (Resorts) had an occupancy rate of 83% and an available daily rate of $7,929. This yielded a RevPAR of $6,611, 18% higher than 2022 and 54% higher than 2019. Operating margins recorded a 96% flowthrough.

In the Upscale & Luxury segment, occupancy was 61%, and the available daily rate was $2,500. This resulted in a RevPAR of $1,534, an increase of 42% and 25% in RevPAR for 2022 and 2019, respectively. Operating margins recorded a 55% flowthrough.

Midscale & Economy urban hotels had an occupancy and available daily rate of 62% and $1,210, respectively, resulting in a RevPAR of $756. This compares favorably with the previous year, 37% higher than the same quarter of 2022 and 13% higher than 2019. Operating margins flowthrough was 58%.

This is mainly due to the recovery that we have observed in individual business, individual public and group reservations for all segments.

The Loyalty sales force registered an increase in net sales of 13% TT.

Fiesta Americana Vacation Club Access net sales grew 50% QoQ, representing 49% of current sales, increasing from $214 million to $322 million over the same period. Notably, this product is not recorded as timeshare. FAVC and LARC sales represented 51% of net sales in 1Q23, a decrease of 9%.

As of 2023, the sale of FAVC Access memberships appear registered in the Management segment.

The balance of vacation club receivables was $6,585 million, as of March 31, 2023, representing an increase of 4% compared to the previous year.

During the quarter we generated a net IFRS income of $279 million. The cash balance as of March 31, 2023 was $1,682 million, which was $82 million higher than the cash balance year-over-year.

1: Includes $307.1 million from advertising, marketing, commissions and centralized services recoverable revenue.

Total assets were $17,668 million.

With the cash flow generation, a $415 million payment to the tenth and last annuity of the agreement with the Mexican tax authorities signed in 2017 was made.

As of 2023, we have added the revenue and costs related to advertising and marketing, centralized services (payroll of the executive committees of the hotels and other recoverable expenses, among others) that were previously presented net, in the profit and loss statement. This change has enabled revenue from the Management segment to be more appropriately sized. The contribution margin for this segment is 41.7% net and 28.5% (gross) when the aforementioned revenues and costs are included.

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

> Hotel Development

As of March 31, 2023, the Company continues its development plan that includes agreements to operate 22 new hotels with 3,711 rooms. Of the total investment for these projects worth $14,259 million (US$788 million), Posadas will contribute 2% of the resources, with 98% contributed by other investors. This will increase the supply of rooms by 13%. During the quarter we signed an agreement to manage a condominium and residential lodging in Tulum, under development.

These hotel openings will begin during the second quarter of 2023, and according to the commitments assumed by the owners of said properties, it is estimated that most of them will be in operation by 2025. The average life of these operating contracts is more than 15 years.

	New Hotels by Brand		Mexico	Caribbean		Total	%
		Hotels		Rooms	Hotels	Rooms	Hotels		Rooms
	Live Aqua		4		1,101			4		1,101		29.7
	Live Aqua Residence Club		1		33			1		33		0.9
	Grand Fiesta Americana		2		763			2		763		20.6
	Fiesta Americana		1		170			1		170		4.6
	Curamoria Collection		3		117			3		117		3.2
	Fiesta Inn		2		180			2		180		4.9
	Fiesta Inn Loft/Express
	Gamma		3		241			3		241		6.5
	One		5		608			5		608		16.4
	IOH
	Others					1	498	1		498		13.4
	Total	21	3,213	1	498	22	3,711	100

We end the quarter with a total of 189 hotels and 29,150 rooms, in more than 60 destinations.

Openings LTM	No. of rooms	Type of Contract
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	389

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> EBITDA

EBITDA IFRS-16 in the quarter was $510 million, while in the same quarter of the previous year it was $327 million on a comparable basis.

> Comprehensive Financial Results

At the end of the quarter (LTM), the net coverage ratio was 5.1 times.

The exchange gain in 1Q23 was $401 million (including leases) as a result of the appreciation of the MXN/USD of 6.5% compared to the previous quarter.

Concept	1Q23	1Q22
Interest Income	(32,174)	(8,348)
Accrued interest	98,285	89,408
Exchange (gain) loss, net	(291,422)	(169,334)
Exchange (gain) loss, from lease payments	(109,637)	(54,478)
Accrued interest from lease payments	70,368	75,918
Other financial costs (products)	0	0
Other financial expenses	16,585	29,541
Total	(247,995)	(37,295)
Figures in thousands of pesos

> Capital Expenses

In 1Q23, capital expenditures were $41 million, invested in hotels, vacation properties and in cor- porate.

> Net Majority Income

As a result of the above, net income in the quarter was $279 million versus $17 million for the prior year.

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