Investor Presentaiton

80 Credit risk management- Credit risk refers to the risk that a counterparty breaches its contractual obligations resulting in financial loss to Fibra INN. Virtually, all of Fibra INN's income is derived from hotel services. As a result, its performance depends on its ability to collect the amounts from hotel services rendered to guests and the guests' ability to make the payments. Revenue and funds available for distribution would be adversely affected if a significant number of guests do not make the rental payments when they are due; which could result in the closing of operations or bankruptcy. The administration of Fibra INN has determined that the maximum exposure to credit risk is shown in the statement of financial position for its trade, related parties and other accounts receivables. As mentioned in note 6, the Trust does not have an allowance for doubtful accounts as management believes its receivables are collectable. As well, the Trust has no past due loans that are significant as of the date of these consolidated financial statements. In addition, Fibra INN limits the exposure to credit risk investing solely in liquid instruments and with high-credit quality counterparties. Hence, the management does not expect that any of its counterparties do not meet its obligations. Liquidity risk management- Liquidity risk represents the possibility that Fibra INN has difficulties to comply with its obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Fibra INN has established an appropriate framework for managing liquidity risk in the short, medium and long term. Fibra INN manages its liquidity risk by maintaining adequate reserves, monitoring expected cash flow requirements and actual income, and by managing the maturity profiles of its financial assets and liabilities. The Treasury department monitors the maturity of its liabilities to comply with the respective payment terms. The following table shows Fibra INN's outstanding maturities for non-derivative financial liabilities as of December 31, 2013: Suppliers Properties' acquisition liability Other payables Advances from customers Accounts payable to related parties $ One year 11,339,095 275,500,000 4,856,177 168,057 10,000,159 14. Miminum charges on leases- 15. The value of the minimum charges of operating leases where Fibra Inn is the lessor, are as follows: Year Less than a year 1 to 5 years More tan 5 years Total $ 20,376,000 81,504,000 305,640,000 $ 407,520,000 The minimum charges presented above do not consider any adjustment of time value of money to the rental income, to which Fibra INN has contractual rights. As well, it does not consider any variable rents, nor renovation periods, only compulsory terms for lessors. The leasing contracts of hotels reflect terms with a maturity of 20 years. As well, the minimum rental income, by contract, is monitored at least once a year. Business segment information- According to IFRS 8, Operating Segments, Fibra INN discloses selected financial information by region that which is informed and regularly monitored by the Technical Comittee and the executives in charge of making decisions. Fibra INN operates in four geographical areas: • Northeast (Nuevo León, Coahuila and Tamaulipas) South Central (Querétaro, Estado de México, Puebla, Guanajuato, Quintana Roo and Distrito Federal) West (Jalisco); and North (Chihuahua). For the year ended December 31, 2013, income from continuing operations of the Trust from external customers by geographic location are as follows: Northeast South Central West North Consolidated St 301,863,488 Gross margin Rental income $ Lodging income Other income 78,984,409 67,135,872 10,517,280 10,304,627 166,942,188 1,980,292 5,805,374 773,943 12,354,536 10,560,227 3,229,850 82,812,170 72,786,030 12,944,365 189,213 8,748,822 1,075,917 27,220,530 9,907,304 178,449,869 81

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