Hoteles City Express Announces the Signing of a Syndicated Structured Facility for MXN $2,000 Million Guaranteed by 43 Properties Valued at MXN $6,370 Million

Mexico City, October 16, 2017 – Hoteles City Express, S.A.B. de C.V. (“Hoteles City Express” or “the Company”) (BMV: HCITY), announces the execution of its Vehículo de Refinanciamiento de Activos Turísticos (the “Vehicle”) through the successful closing of a MXN $2,000 Million Syndicated Structured Facility. BBVA Bancomer, S.A. Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer (“BBVA Bancomer”) and Scotiabank Inverlat, S.A., Institución de Banca Múltiple, Grupo Financiero Scotiabank (“Scotiabank”) acted as Lending Institutions and Structuring Banks.

The Vehicle is comprised of Company’s wholly-owned subsidiaries for a loan in the amount of MXN $2,000 million, with a 5-year term and amortization based on a 12-year repayment calendar. The cost of the loan is at the rate Interbank Equilibrium Interest Rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”; Mexico’s base rate) for 28 days + 1.75%. It will be disbursed in subsequent months based on the Company´s liquidity needs.

The Vehicle will be used to refinance and consolidate existing debt expiring in 2019 and following years based on a portfolio of 43 hotels, as well as for securing funds for the Company’s 2017-2018 Development Pipeline.

Through this transaction, Hoteles City Express underpins its growth plan while demonstrating its properties’ market value and potential for capital appreciation. The assets included in the portfolio used for the Vehicle guarantee represent approximately 40% of the Company’s Total Net Property, Plant and Equipment as of June 2017. The asset revaluation has been assessed by a third party, and represents a total value of MXN $6,370.0 million.

About Hoteles City Express
Hoteles City Express is considered the leading and fastest-growing limited-service hotel chain in Mexico in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 130 hotels in operation located throughout Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol “HCITY”; furthermore, on October 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels in coming years.

For further information, please visit our website: https://cityexpress.com/en/investors/