Investor Presentaiton
42
Changes to the hotel
revenue structure
2013 Annual Report / Fibra Inn
2013 Annual Report / Fibra Inn
As a result of legislative modifications contained in the
new Income Tax Law which will become effective January
1, 2014, Fibra Inn's Technical Committee decided to make
changes to the revenue structure of the Trust as of Decem-
ber 26, 2013.
providing said services, as well as the respective rental of space, equivalent to an average of Ps.
Income Tax.
Given that the revenues derived from Other
Select Services are not significant (on average
3% of hotel revenues), Fibra Inn's management
decided to establish a monthly fixed rent for the
182.5 per square meter per month, which repre-
sents 55% of the revenues received for the ser-
vices provided at these facilities. Trust F/1616 will
receive this revenue as rent given that is the only
concept for which a FIBRA can receive revenue.
Diagram of Limited
and Select Service Hotels
Lodging Services
Lease
Spaces
Fibra Inn
(Trust F/1616)
Fixed
Rent
The two main objectives were: 1) maintain
strict adherence to the provisions established
in the new Income Tax Law; and 2) avoid any
material impact that would affect Fibra Inn's
profitability. It is important to highlight that with
the modifications made to its hotel revenue
structure, Fibra Inn fully complies with Articles
187 and 188 of the new Income Tax Law, as well
as with Articles 223 and 224 of the Income Tax
Law effective through December 31, 2013, as
well as with Rule 1.3.20.2.5 of the Miscellaneous
Tax Resolution for 2012, which has to do with
real estate utilized for lodging. The Articles of
the new Income Tax Law as well as the Miscella-
neous Tax Resolution mentioned above can be
found at the end of this press release for refer-
ence and informational purposes.
1. Select and Limited Service Hotels
a. Lodging - Lodging services ("Lodging")
of the hotels will be included and billed directly
by Trust F/1616, who at the same time will pay
for the relative Lodging costs. In the case of
the 11 Select Service hotels and the 1 Limited
Service hotels, this revenue represents approx-
imately 97% of total revenues and, as per Rule
1.3.20.2.5. of the Miscellaneous Tax Resolution
for 2012, Lodging revenues are considered
rental revenues.
-
b. Other Services The remaining services
("Other Select Services"), which consist of the
use of meeting spaces, coffee break service, te-
lephony, laundry and dry cleaning services and
snack bars, among others, Fibra Inn will rent
the facilities directly to an operator, provided
they provide the respective services. For this
purpose, a rental agreement has been entered
into by each of the hotels, between Operadora
México, Servicios y Restaurantes, S.A.P.I. de C.V.
("Operadora México") and Fibra Inn. This will
ensure that profitability is based on fixed rental
revenues and it transfers to Operadora México
the supply of all services other than lodging. As
a result, Other Select Services will be registered
and invoiced by Operadora México, who will pay
directly the costs and operating expenses for
2. Full Service Hotels
Other Select
Services
a. Lodging - Lodging services ("Lodging")
for the hotels will be included and billed directly
by Trust F/1616, who at the same time will pay
the relative lodging costs. In the case of the
6 Full-Service hotels, this revenue represents
approximately 65% of total revenues and, in
accordance with Rule 1.3.20.2.5 of the Miscella-
neous Fiscal Resolution, in 2012, lodging reve-
nues are considered rental revenues.
-
b. Other Services The remaining services
("Other Full Services"), which consist of the food
and beverage served at restaurants and ban-
quet facilities, the use of meeting spaces, coffee
break service, telephony, laundry and dry clea-
ning services, snack bars among others, Fibra
Operadora México, Servicios y
Restaurantes, S.A.P.I de C.V.
(Operadora México)
Inn will rent the facilities directly to an operator,
provided they provide the respective services.
For this purpose, a rental agreement has been
entered into by each of the hotels, between
Operadora México and Fibra Inn. This will ensu-
re that profitability is based on rental revenues
and it transfers to Operadora México the supply
of all services other than lodging. As a result,
Other Full Services will be registered and invoi-
ced by a new Trust entity ("Fideicomiso F/1765"
or "Other Full Services Trust"). In the case of
Full Service Hotels, revenues from Other Full
Services represent approximately 35% of total
revenues for these hotels. The Other Full Servi-
ces Trust will pay directly its inputs and expen-
ses related to Other Full Services. It will also
pay the salaries and expenses related to per-
sonnel required for these services. Gross profit
43View entire presentation