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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 43
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