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 3

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

Mexico City, July 26, 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 24% year-over-year, 9% higher than 2019.
• Q2 revenue was $2,7671 million, a 6.7% increase QoQ. Includes $304 million from advertising and marketing recoverable revenue.
• 2QEBITDA was $545 million, 24% higher YoY.
• Net income was $394 million.
• Launched Fiesta Americana Travelty, a new and improved booking platform.
• Pipeline with 17 new hotels with 3,430 rooms, 12% growth.
• Cash available as of June 30, 2023 was $1,486 million (75% denominated in USD).

	Million pesos as of			2Q23		Var.
	June 30, 2023	$	%		YY %
	Total Revenues		2,767.4		100		6.7
	EBIT		333.5		12.1		46.1
	EBITDA		545.1		19.7		23.8

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Relevant Events

We recorded a strong second quarter with good occupancies in all of our segments.

The occupancy rate was 66%, with an ADR (available daily rate) of $1,948. This resulted in RevPAR of $1,284, which was 9% higher than in 2022 and 24% higher than 2019.

Coastal hotels (Resorts) had an occupancy rate of 81% (+3pp vs 2Q22) and an available daily rate of $6,772. This yielded a RevPAR of $5,504, 3% lower than 2Q22 but 56% higher than 2019. The variation is mainly due to the strength of the peso (MXN) against the USD (15% vs. 2Q22 exchange rate).

In the Upscale & Luxury segment, occupancy was 61%, and the available daily rate was $2,491. This resulted in a RevPAR of $1,523, an increase of 10% and 20% in RevPAR for 2022 and 2019, respectively.

Midscale & Economy urban hotels had an occupancy and available daily rate of 66% and $1,217, respectively, resulting in a RevPAR of $799. This compares favorably with the previous year, 16% higher than the same quarter of 2022 and 13% higher than 2019.

Sales thru our channels grew 13% QoQ, a result of both non-business and business individuals as well as group reservations.

The Loyalty segment (vacation properties) registered an increase in net sales of 2% QoQ. Fiesta Americana Vacation Club Access net sales grew 35% QoQ, representing 46% of current sales, increasing from $256 million to $346 million over the same period. Notably, this product is not recorded as timeshare.

FAVC and LARC sales represented 54% of net sales in 2Q23, a decrease of 16%.

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

The balance of vacation club receivables was $6,598 million, as of June 30, 2023, representing an increase of 6% compared to the previous year.

During the quarter we generated a net IFRS income of $394 million. The cash balance as of June 30, 2023 was $1,486 million, including US$60 million that represent 75% of said balance.

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

With the cash flow generation, we made a $174million interest payment (US$9.8 million for the Senior Notes Due 2027). Total assets were $17,216 million.

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 41.3% net (+7.3pp) and 28.8% (gross) (+10.1pp) when the aforementioned revenues and costs are included.

Fiesta Americana Travelty

In connection with the consolidation of our sales channels, we launched a new branded and improved centralized digital bookings platform called Fiesta Americana Travelty, which will allow travelers to select everything they need to prepare their trip from a single place. They can access the more than 190 hotels and 9 company brands in Mexico and the Dominican Republic: Live Aqua, Grand Fiesta Americana, Curamoria Collection, Fiesta Americana, The Explorean, IOH, Fiesta Inn, Gamma and One. This effort is part of a broader effort to simplify and consolidate our services for the benefit of our customers.

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

> Hotel Development

As of June 30, 2023, the Company continues its development plan that includes agreements to operate 17 new hotels with 3,430 rooms. Of the total investment for these projects worth $14,199 million (US$832 million), Posadas will contribute 2% of the resources, with 98% contributed by other investors. This will increase the supply of rooms by 12%.

These hotel openings will begin during the third 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.

During the quarter we opened the following three hotels with a total of 138 rooms: Gamma Querétaro BNL, Curamoria Orizaba La Casona 142 and Curamoria Orizaba tres79.

	New Hotels by Brand		Mexico	Caribbean		Total	%
		Hotels		Rooms	Hotels	Rooms	Hotels		Rooms
	Live Aqua		3		1,032			3		1,032		30.1
	Live Aqua Residence Club		1		33			1		33		1.0
	Grand Fiesta Americana		2		763			2		763		22.2
	Fiesta Americana		1		184			1		184		5.4
	Curamoria Collection		1		95			1		95		2.8
	Fiesta Inn		1		140			1		140		4.1
	Fiesta Inn Loft/Express
	Gamma		3		203			3		203		5.9
	One		4		482			4		482		14.1
	IOH
	Others					1	498	1		498		14.5
	Total	16	2,932	1	498	17	3,430	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
Celeste Beach Residences & Spa Huatulco Curamoria Collection	8	Franchised
Gamma Colima Garden	91	Franchised
Gamma Querétaro	116	Franchised
Curamoria Orizaba Tres79	14	Franchised
Curamoria Orizaba la casona 142	8	Franchised
Total	237

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> EBITDA

EBITDA IFRS-16 in the quarter was $545 million, while in the same quarter of the previous year it was $440 million on a comparable basis.

> Comprehensive Financial Results

At the end of the quarter (LTM), the net coverage ratio was 5.4 times, 3.2x higher than in 2Q22. Net Debt to EBITDA was 4.4x, 1.3 times lower than in 2Q22.

The exchange gain in 2Q23 was $349 million (including leases) as a result of the appreciation of the MXN/USD of 5.7% compared to the previous quarter. For the 1H23, the foreign exchange gain was $750 million.

Concept	2Q23	2Q22	2023	2022
Interest Income	(26,761)	(9,211)	(58,936)	(17,560)
Accrued interest	93,742	73,981	192,027	163,389
Exchange (gain) loss, net	(261,044)	1,407	(552,465)	(167,927)
Exchange (gain) loss, from lease payments	(87,886)	(819)	(197,524)	(55,298)
Accrued interest from lease payments	67,472	73,653	137,840	149,571
Other financial costs (products)	(3,932)	(107,972)	(3,932)	(107,972)
Other financial expenses	18,252	32,231	34,837	61,772
Total	(200,157)	63,269	(448,152)	25,975
Figures in thousands of pesos

> Capital Expenses

In 1H23, capital expenditures were $117 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 $394 million versus $146 million for the prior year. For the first half of 2023, net income reached $673 million, while in 2022 it was $163 million.

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