Cyclicality of the lodging industry Geographic concentration in Mexico Less dynamism in the Mexican tourism due to the recently approved fiscal reform and less dynamism in the Mexican economy Volatility in revenues at its Vacation Club unit Lower profitability than those of its peers The largest hotel operator in Mexico Diversified hotel portfolio with well-recognized brands Core debt to EBITDA and funds from operations (FFO) to debt of 4.3x-4.7x and 12%-15%, respectively, in the next two years Negative free operating cash flow (FOCF) of about Mexican pesos (MXN)550 million in 2014 considering the recent deterioration on the company's operating performance, its remodeling plan as well as the additional outflows the company will face due to the new fiscal reform No
