Millenium Hospitality Real Estate SOCIMI S A : 2022 Results presentation

Excellent exposure to iconic hotel assets

January-December 2022 results

15 March 2023

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Disclaimer

This document has been prepared by MILLENIUM HOSPITALITY REAL ESTATE, SOCIMI, SOCIEDAD ANÓNIMA ("MHRE" or the "Society") solely for use in the Company's results presentations.

This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue, or invitation to purchase or subscribe, or any request for an offer to purchase or subscribe, any of the Company's securities, nor shall it form the basis of, or be relied on, even the fact that it is distributed, in connection with any contract or investment decisions.

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To the extent possible, the industry, market and competitive position data contained in this Presentation come from official or third-party sources. In general, third-party industry publications, studies and surveys assert that the data they contain was obtained from sources believed to be reliable, but the accuracy or completeness of such data is not guaranteed. Although the Company reasonably believes that each of these publications, studies and surveys has been prepared by a reliable source, the Company has not independently verified the data contained in them. In addition, some of the industry, market and competitive position data contained in this Presentation comes from the Company's internal research and estimates based on the knowledge and experience of the Company's management in the markets in which the Group operates. Although the Company reasonably believes that such research and estimates are reasonable and reliable, said research and estimates, as well as their underlying methodology and assumptions, have not been verified by any independent source as to their accuracy or completeness, and they are subject to change. Consequently, undue reliance should not be placed on any industry, market or competitive position data contained in this Presentation.

This Presentation contains alternative performance measures according to Commission Delegated Regulation 2019/979 of 14 March 2019 and the ESMA Guidelines on Alternative Performance Measures of 5 October 2015. Other companies may calculate such financial information differently or use such measures for different purposes than those of the Company, which limits the comparability of these measures. These measures should not be considered as alternatives to those established in the Company's financial information, they have limited use and may not be indicative of the results of operations. Recipients of this Presentation should not place undue reliance on this information.

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Contents

1. Main figures
2. Main milestones in the period
3. Consolidated Results 2022
4. Portfolio
5. Market context
6. Conclusions
7. Annexes
8. • Balance sheet
   • EPRA metrics
   • Relevant and Privileged Information
9. Contact

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Main figures as at 31 December 2022

PRIME PORTFOLIO WITH HIGH

VALUE POTENTIAL

GAV(1) €586.5 million

(+32,1 vs 2021)

43% in operation

42% in restructuring

15% in development

GAV(1)/Acquisition

Cost(3)

+6.3%

FINANCIAL

SOUNDNESS

Liquidity of €72.5 million

Low LTV leverage level(2)

8.8%

(Gross LTV 21,2% )

86% of the debt matures

after

January 2026

80.8% fixed rate debt

(2.98%)

THE IMPROVEMENT STARTED

IN 1H22 CONTINUES

Revenues

€12.3 million

(+45.5% vs. 2021)

Net Result €11.8 million (+24% 2021)

Result of hotel business activity +€15.65 million (+32.2% vs 2021)

EPRA NTA

EPRA NTA €4.66/share

Increase in asset value +12.5 million, which highlights the quality and value potential of the portfolio, as well as the

effectiveness of MHRE's

strategy

1. Valuation carried out on 31 December 2022 by independent experts.
2. (Financial Debt - Cash and cash equivalents)/GAV
3. Acquisition cost = acquisition price + transaction costs + Capex

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1. Valuation carried out on 31 December 2022 by independent experts.
2. Net Financial Debt/GAV
3. Source INE (National Statistics Institute) and Colliers International

Main milestones in the period

• Increase in the portfolio's GAV to €586.5 million(1);;+32.1% vs. 2021; (+46.3% excluding the effect of the sale of Hotel Vía Castellana in January 2022). The variation is due to:
• • The sale of Hotel Vía Castellana on 31 January 2022 for €43 million.
  • The CAPEX implemented in the period amounting to €57 million, arising from the progress of the repositioning works in the hotels.
  • The incorporation of new assets amounting to €114.3 million.
  • The increase in the valuations carried out by an independent expert amounting to €12.5 million. This demonstrates the value-generating capacity of the Company's portfolio strategy and potential, despite the difficult and adverse post-COVID market environment and the generalised rise in interest rates.
• During 2022, the Radisson Collection Hotel, Gran Vía Bilbao and the Golf Alcaidesa Links course opened its doors after an extensive refurbishment, has enabled it to position itself at the highest level and which has meant it can join the European Tour Destination network. For the remaining part of the portfolio under transformation, major progress has been made in its conversion. As a result of these developments, the JW Marriott Hotel Madrid, Nobu Sevilla and Nobu San Sebastian are expected to open their doors in 2023. It is expected to end the year with 8 of the 13 hotels in the portfolio in operation.
• In addition, we continue to conclude agreements with some of the main leading hotel chains worldwide that operate in the luxury segment. In 2022, an agreement was signed with Nobu for the asset located at Alcalá 26 in Madrid, and an agreement was reached with Fairmont (Accor) for the opening of a Fairmont hotel La Hacienda San Roque in Cádiz. After year end, the contract with Alma Hoteles for the Plaza San Francisco asset in Seville was terminated early and amicably and a new agreement was signed with Nobu, which will improve the expected profitability of the asset. 10 of the 13 assets currently have a lease agreement in place.
• 2022 has been an intense year in acquisitions (€114.3 million), adding to the portfolio the Iberostar Las letras, located in Gran Vía 11, Madrid, and also in the capital a building at 19, Zorrilla Street, as well as a plot of land in El Palmar, Cádiz to develop a luxury eco-resort.In addition, the purchase of a plot of land in Marbella has been booked with a disbursement of €6.7 million. This purchase of a seafront plot of land in Marbella is expected to be completed this year once the conditions agreed for this are met.
• Significant improvement in results (revenues of €12.3 million, and net result of €11.8 million (+45.5% and 24% vs. 2021, respectively)as a result of highest revenues due to the improvement in the hotel business activity as a result of the commissioning of new assets, the updating of rents in line with the CPI, the positive impact of the sale of Hotel Vía Castellana and the significant improvement in the valuation of the portfolio.
• We maintain a strong balance sheet: net LTV(2) of 8.8% with a cash on hand balance of €72.5 million at 31 December 2022.
• The market has acknowledged the company's good development and in May 2022, MHRE completed the second payment of the capital increase executed in July 2021 amounting to €156.4 million, which was the largest operation in the Spanish primary market to date and demonstrated the solidity and attractiveness of the MHRE project. After this operation, Castlelake placed its stake in the capital at 49.72%, and Mutualidad de la Abogacía and Arconas International entered as main shareholders, with a 5.05% stake respectively.
• The investments made during the year have significantly improved the positioning of the Portfolio, since thanks to the proactive management of the same, it has been divested, generating capital gains, in an asset which, although of good quality, was not homogeneous with the category of hotels sought, and assets of greater distance, quality and in a better location have been acquired, with the added bonus that the greatest weight of the portfolio has been oriented towards the City of Madrid (50,1% GAV value) destination of choice for the investment community. Also significant is the increase in the price paid per room (+7%(3) vs 2021), which has reached a new all-timerecord. As for the 5* segment, this is the preferred by investors, not only because they show a clear preference for assets located in prime locations, but also because of the strength shown by the sector's main variables. The experts' outlook for the industry remains positive despite the macroeconomic environment.

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