Industry Update
Press Release27 July 2016

RLH Properties announces the development of new hotels in Mexico

As well as potential acquisitions after a successful follow-on offering on the Mexican Stock Exchange

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RLH Properties

  • This is the first successful equity capital offering placement in Mexico after Brexit, which will boost the growth in Mexico's tourism sector.

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  • Primary public offering for a total amount of Mx$1,338,430,888.95.
  • Price per share was settled at Mx$15.45, a 2% above the pricing at the IPO. A total of 86,629,831 shares were issued.
  • Through this offering, RLH Properties converts itself from a SAPIB to a SAB in record time. This case is an example of the opportunities that mid-cap companies can obtain financing through the Mexican Stock Exchange (BMV, by its Spanish initials).
  • Evercore Partners Mexico acted as Financial Advisor. Evercore Casa de Bolsa acted as Leading Coordinator and Underwriter of the public offering, and Casa de Bolsa Banorte Ixe together with BTG Pactual Casa de Bolsa acted as Underwriters.

Mexico City -- On July 13, RLH Properties successfully carried out a follow-on offering for a total of Mx$1,338'430,880.95 (approximately US$73.1 million), including overallotment, which represents a 48.49% of RLH Properties' equity. This is the first equity capital offering in Mexico after Brexit and the hike of interest rates by the Central Mexican Bank (Banco de México). Despite market conditions, the transaction generated a lot of interest and long-term commitments from investors, proving confidence in RLH Properties and its management team. In particular, confidence by institutional investors who acquired the largest percentage of the offering (especially, Mexican pension funds – "Afores").

The net proceeds of the follow-on will be used in the construction of the One&Only Mandarina Hotel to be located on a 34-hectare lot on the Nayarit Riviera. The net proceeds could also be used on potential investments in the Four Seasons Hotel in Mexico City, owned by RLH Properties, as well as towards potential acquisitions of high-end hotels reinforcing, therefore, RLH Properties' positioning as a reference in the luxury hotel sector.

It is important to consider that RLH Properties debuted in the Mexican Stock Exchange last November as an Anonymous Company of Investment Promotion in the BMV (SAPIB in Spanish), taking advantage of the modifications in the BMV regulation which facilitate the access of small and mid-cap companies to the BMV. After only eight months of RLH Properties' IPO, the company has now become a regular Listed Company (SAB in Spanish). RLH Properties is now a clear example of how these mid-cap companies can successfully access public market to obtain financing in Mexico.

On behalf of RLH Properties' team, we want to thank all the investors who participated in this offering, as well as our Underwriters (Evercore, Banorte and BTG Pactual) and Advisors (Galicia Abogados, Greenberg Traurig and PricewaterhouseCoopers).

About RLH Properties, S.A.B. de C.V.

RLH Properties is an asset management holding company whose subsidiaries acquire, develop and manage city

and beach high-end hotels and resorts in Mexico. Its main goal is to become the leading investment platform of high-end hotels and resorts in Mexico and the Caribbean, through the development of new hotels and the selective acquisition of operating hotels. Currently, the Company owns 66.7% of the Four Seasons Hotel in Mexico City and a 34-hectare lot in the Nayarit Riviera where the One&Only Mandarina Hotel is being developed.
Contact
Elisenda Casellas
LLORENTE&CUENCA
Phone: +52 55 5257 1084 (ext. 1230)
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