BUSINESS DESCRIPTION

RLH Properties was established on 28 February 2013 in Mexico City with a focus on activities exclusively related to the high-end segment of the hotel business and branded villas.

Thus, it focuses in the acquisition, development and managing high-end hotels and resorts as well as related branded villas operated by leading brands. Its main goal is to become the leading investment platform of high-end hotels, resorts and residences, through the development of new hotels and the selective acquisition of operating hotels.

The company has unique assets in premium locations operated by world renowned luxury brands with regional exclusivity rights. Currently, the company has 6 hotels (1,266 rooms) and one 18-hole golf course as Operating Assets; and 2 hotels (approx. 235 rooms), approx. 202 full ownership branded villas and approx. 64 branded fractional units as Assets under Development/Construction.

CORPORATE STRATEGY

RLH’s corporate strategy focuses on the following:

Selective and focused search for investment opportunities:

Focused on exceptional assets in both city and beach destinations featuring one-of-a-kind, irreplaceable locations within Mexico’s main urban and tourist markets.

Focus on increasing the profitability of the hotels acquired:

Our leadership team identifies opportunities to optimise the use of hotels in terms of rates, occupancy, new hotel inventory, renovations, commercial spaces, food and beverages sales, and more.

Balanced and diversified portfolio

We expect to have a balanced and diversified portfolio of high-quality hotels comprised of beach and city hotels.

Positioning with the world’s most-recognised operators of high-end segment hotel brands:

We maintain close relations with these operators, thereby gaining valuable knowledge of the brand’s concept and access to opportunities for development and acquisition which could be restricted for our competitors.

Organic growth:

We believe that current rates and occupation in the high-end segment of the hotel market could still have potential growth in the coming years.

OUR COMPETITIVE ADVANTAGES

The competitive advantages that differentiate us from our competitors and enable us to maintain a successful strategy of long-term sustainable growth are as follows:

  • Niche player with a high growth potential
  • Close relationship with key operators of luxury hotels.
  • A differentiated and hard-to-replicate business model and strategy.
  • Extensive experience, recognition and specialisation of the management team and shareholders.
  • Access to unique land.
  • Access to public and private capital.

INVESTMENT CRITERIA

A) For the acquisition of operating hotels:

  • Hotels operated by prestigious international hotel brands under a management system.
  • Hotels located in the main cities and tourist destinations of the countries of Latin America with an initial focus on Mexico and the Caribbean.

B) For the development of hotels:

Locations in the main cities and tourist destinations of the countries of Latin América.

  • Projects in the last stage of development, with all the environmental permits and operation contracts signed with internationally prestigious operators under a management or lease system.
  • Projects that are 18 to 30 months from initiating operations.

RLH may also invest in other real estate products (commercial, residential and office uses), only if they have a hotel-related component that represents the most significant part of the investment as part of a mixed-use project.

In the case of residential products, only projects related to and operated by internationally renowned hotel chains will be invested in and marketed.