Presentación Corporativa: Octubre 2023

Excellent exposure to flagship hotel

properties

Corporate Presentation

April 2024

1

Index

1. Introduction
2. Strategy
3. History
4. Portfolio
5. Key figures
6. Shareholder Structure
7. Corporate Governance
8. Management
9. Market Environment
10. Conclusions
11. Appendix

2

Disclaimer

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 for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

It is expressly stated that these materials shall in no case be intended to be distributed among persons resident in countries in which the distribution of these materials or the carrying out of any offer of securities could trigger any reporting, information or registration obligations, in particular, these material or any other copy of it shall not be distributed in the United Estates, Australia, Canada, South Africa of Japan. Any failure to comply with this restriction may constitute a violation of the lows of these jurisdictions. Investors and potential investors in the shares of the Company shall carry out an independent research on their account and an assessment of the Company's business and financial situation.

The information contained in this presentation or its integrity may not be relied upon for any purpose. No representation or warranty, whether express or implied, is or will be made by or on behalf of the Company, any of its officers, or their respective affiliates or agents, or any of their directors, officers, employees or advisers, or any other person concerning the accuracy, integrity or truthfulness of the information or opinions contained in this presentation, and, if relied upon, shall be at your own risk. In addition, no responsibility or liability (whether direct or indirect, contractual, tort or otherwise) is or will be accepted by the Company, any director or any other person in respect of the referred information or opinions or any other or any other matter in connection with this presentation or its content or otherwise arising in connection therewith. Accordingly, each of these persons waives all responsibility, whether in tort, contract or otherwise, with respect to this presentation or the information contained therein.

This presentation may include forward-looking statements regarding the Company. All statements, except for those referred to historical data included in this presentation, including without limitation, those referred to our financial situation, business strategy, management plans and targets or future transactions should be understood as mere forward-looking statements. These forward-looking statements are subject to known or unknown risks, uncertainties and other factors, which could lead our current results, returns or achievements, or industrial results, being materially different from those expressed or implied in these forward-looking statements. The forward-looking statements are based on several assumptions regarding our present and future business strategies and the environment in which we intend to operate in the future. Forward-looking statements speak as of the date of this presentation and we expressly waive any obligation to issue any updates or revisions to this presentation's forward-looking statements, any changes in our expectations, or changes in any events, conditions or circumstances in which these forward-looking statements are based. The forward-looking statements speak as of the date of this release and no one undertakes to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Accordingly, undue reliance should not be placed on any forward-looking statement contained in this presentation.

To the extent possible, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the markets in which the Group operates. While the Company reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation.

This presentation also includes certain alternative performance measures pursuant to Commission Delegated Regulation (EU) 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 financial information of the Company, have a limited use and can not be indicative of the results of the operations. Undue reliance should not be placed on this information.

3

Introduction

The only listed company with a Value-Added focus on luxury hotels and presence in Spain and Portugal

PLATFORM

5* Hotels in prime

PORTFOLIO FIGURES 1H23

FINANCIAL METRICS 1H23

locations

in major Spanish tourist cities and in

Portugal.

+20 years

average experience among the

management team

Best-in-class Corporate

Governance

Stable shareholder

Castlelake (49,72%)

+12 hotels

>1,000 rooms

100% hotels in prime locations in

major Spanish cities

5* and boutique hotels

LEED Gold Certification is

the goal for all hotels under

construction

€661 M GAV (1)

66% in operation

14% in restructuring

20% in development

GAV(1)/Cost

Acquisition(3)

+4.5%

(+19%, hotels in operation as at 31

December 2023)

Low LTV leverage level(2) 17,7%

(Gross LTV 26,1º% )

80% of the debt matures

after

January 2026

EPRA NTA €4.63/share

(-0,6% vs 2022)

MHRE beats the industry average

trend in Spain

1. Valuation as at December 31, 2023, by independent experts.
2. Net Debt/GAV

(3)	Acquisition price + capex+ transaction cost	4

Growth and Quality

Model

Prime Assets Strategy

+

Defensive and profitable

structure

We operate in a growing

market

5

Strategy

The only listed real estate company with a Value-Added focus on luxury hotels and presence in Spain and Portugal

• Acquisition of flagship Real Estate assets in prime areas of major tourist cities in Spain and Portugal, with might be hotels in operation or properties with potential to become luxury hotels.
• Unique positioning in luxury hotels and prime locations: 4-starsuperior, 5-star,resorts and grand luxury boutique hotels.
• MHRE combines value creation through transformation and repositioning of acquired assets, and through active management of lease agreements with tier 1 operators, under a scheme with guaranteed fixed rent plus variable rent indexed to the hotel's profits, which helps boost the sector and maximize returns while minimizing risks
• Financial discipline.
• The tourism sector is the main industry in Spain, representing 12,8% of Spanish GDP in 2023.
• The Spanish and Portuguese hotel industry mostly developed the medium price and volume tourism segments, and the luxury hotel offer remains very limited, with considerable growing demand from premium clients and high-quality international operators keen to enter and gain presence in Spain
• In 2023, hotel investment stood at €4,2 billion, after an excellent 2022 in which this figure reached €3.279 billion. A consolidation of investor interest in urban areas can be seen, with the operations in Madrid and Barcelona in 5-starhotels being particularly significant.

• The main hotel variables in the 5* segment in 2023 have continued to show signs of strength:
• • 9,5% increase in ADR in 2023, standing at €256.3
  • 14.66% increase in REVPAR in 2023, standing at €173.7

5

Aligned Shareholders and

Management

Best-in-class corporate

governance:

Rigor, Experience and

Independence

Strategy

The only listed company with a Value-Added focus on luxury hotels and presence in Spain and Portugal

• Shareholders who prioritize investment in quality assets, medium- and long- term value creation and dividends.
• Approximately 500 shareholders with a Free Float of 40%
• Management team with a successful track record, boasting over 20 years of average experience in Real Estate, the hotel industry and capital markets, highly qualified and committed to the Company's strategy
• Efficient and scalable personnel strategy
• The Board of Directors comprises 10 best-in-class members
• Appointments and Remuneration and Audit and Control Committees, as well as an Executive Real Estate Committee

6

Contract Structure is Built on Operator and Property Owner Alignment

Rent Structure

Guarantee

Contract Duration

Risk Mitigation

Monitoring and

Controls

• Lease agreement base on a variable rent (70-75% of the hotel GOP) with a guaranteeing minimum fixed rent linked to CPI
• Variable rent makes it possible to participate in the sector's bounce-back and maximize returns while minimizing risks
• 12 months of bank guarantee
• 20-yearwith break clauses every five years subject to performance test.
• Operator business plan projections provided every five years and measured against market benchmark
• Asset maintenance paid by hotel income through FF&E (1) reserve
• Prime locations allows for easy operator rotation in case of underperformance
• Supervision of the hotel's operations, positioning in the market, income evolution and maintenance

(1)

Furniture Fixture and Equipment

7

History

Millenium Hospitality Real Estate great Evolution in 5 years

Millenium

Hospitality RE is registered with a single shareholder:

Javier Illán Plaza

and

began operations

on

2018

3

May 2018

4

October 2018

MHRE acquires the	MHRE acquires Vía
building for Plaza
Castellana Hotel (Madrid)
Magdalena Hotel (Seville)

5 March 2019

MHRE acquires the building for Gran Vía Bilbao Hotel (Bilbao)

6 April 2019

MHRE acquires the second

building for Plaza

Magdalena Hotel (Seville)

7 April 2019

MHRE acquires the buildings for Plaza San Francisco Hotel (Seville)

8 July 2019

July 4, 2019,

Millenium

debuts with

250M€ of

capitalization

on BME Growth(1)

9	October 2019	10 November 2019	11 December 2019

MHRE acquires the buildings	MHRE acquires Meliá	MHRE acquires the land for
for Plaza de Canalejas Hotel	the La Hacienda San Roque
(Madrid)	Bilbao Hotel (Bilbao)	(Cádiz) project and 2 golf
		courses

2018-2024

12

1H20

13

3Q20

14

July 2021

15 December 2021

16 January 2022

17

May 2022

18 July 2022

19

October 2022

20

November 2022

21	March 2024

Millenium

MHRE acquires several palaces to develop a 5`* luxury boutique hotel in Cordoba

MHRE acquires Vista Eder Palace in San Sebastian to develop a 5`* luxury boutique hotel

Approval of a Share

Capital Increase of up to

€250 M,

to take place through 2 disbursements

+

1st disbursement of 89.3M

+

Castlelake joins as main

shareholder

MHRE acquires Alcalá 26,

Madrid

MHRE sells Vía Castellana Hotel (Madrid)

successfully completes its capital increase with a subscribed amount of 246 million euros.

2nd disbursement

of €156.4M

MHRE acquires

Zorrilla 19

(Madrid)

MHRE acquires

MHRE acquires

Hotel Iberostar las Letras

El Palmar

Gran Vía

(Cadiz)

(Madrid)

MHRE sold Eurostars

Lucemtum Hotel (Alicante)

Sustainable Portfolio: All assets will have LEED Gold certification

8

Portfolio summary as at 31 December 2023

			Portfolio GAV performance (1)						GAV breakdown by location (1)
				+12.6%
							661	631			Córdoba; 0,2%
			587
									Cadíz; 21,0%	Madrid; 49,5%
			444									San Sebastian;
			349
		319								3,2%
											Bilbao; 16,1%
	33%						After sale of
						the Lucentum			Sevilla;
	75							hotel	9,9%

12/31/2018	12/31/2019	12/31/2020	12/31/2021 12/31/2022	31/12/2023 Adj 31/12/23	Excludes recently sold Lucentum

Data as at 31 December 2023

• 12.6% increase in GAV. In LfL terms, the variation was -1%.
• GAV(1)/acquisition cost total portfolio: +4.5%; +19% in the portfolio of hotels in operation
• Capex
• • Implemented in 2023 €79 million
  • Pending implementation €99 million.

Estimated date of entry into operation of the assets

					Estimate opening
		Category	Sustainability certificate	Keys	date
	Lucentum (sold in January 2024)	4*		0
	Melia Bilbao (Upgrading)	5*		211	jun-24
	Radisson Collection Sevilla	5*	Leed Gold	89	In operation
	Radisson Collection Bilbao	5*	Leed Platinium	137	In operation
	Iberostar Las Letras Gran Vía	4*		109	In operation
	Hotel JW Marriot Madrid	5*	Leed Gold	139	In operation
	Hotel Nobu Sevilla	5*	Leed Gold	25	In operation
	Nobu San Sebastian	5*	In process of Leed Gold	19	In operation
	La Hacienda San Roque	5*	In process of Leed Gold	213	4Q24
	Autograph Collection, Madrid	5*	In process of Leed Gold	50	4Q24
	Nobu Madrid	5*	In process of Leed Gold	50	1T26
	Palacetes de Córdoba (2)	5*	In process of Leed Gold	nd	Pending
	El Palmar Cadiz (2)	5*	In process of Leed Gold	nd	Pending
	TOTAL PORTFOLIO			1.042

Note: The Iberostar Las Letras hotel will close on 31 June to undergo a repositioning process to a 5-star category under the Nomade brand, which is expected to be completed within 18 months

(1)	Source CBRE, JLL and Savills as at 31 December 2023	8
(2)	Project being defined, consequently, the number of rooms could vary

Overall view of the portfolio as at 31 December 2023

LEED Gold certification has been requested for all assets undergoing restructuring

Assets in portfolio with a GAV(1) of 661 million

GAV(1) 30

million

Alicante

Hotel

Lucentum

• Bedrooms: 169
• Category 4*
• Type: Leisure
• Operator: Eurostars
• Contract type: Fixed income until 2025. From 2025, variable income with a guaranteed minimum income
• Incorporated into the scope in 2018

Sold in

March 2024.

GAV(1) : 46.4	GAV(1) : 48.6	GAV(1) : 74.1	GAV(1) : 165.4	GAV(1:) 16.5	GAV(1) : 20.4	GAV(1): 53.1	GAV(1): 36	GAV(1): 126.1	GAV(1): 37.7	GAV(1) : 1.3	GAV(1) 5
million	million	million	million	million	million	million	million	million	million	million	million
Seville	Bilbao	Madrid	Madrid	Seville	San	Bilbao	Madrid	Cádiz	Madrid	Córdoba	Cadiz
Sebastian

Radisson	Radisson	Hotel Iberostar	JW Marriott	Nobu Seville	Nobu San	Meliá Bilbao	Autograph	Fairmont La	Nobu Madrid	Palacetes de	El Palmar
Seville	Bilbao	Las Letras	Sebastian	Collection	Hacienda	Córdoba

▪

Bedrooms: 89

▪

Bedrooms: 137

▪

Bedrooms: 109

▪ Bedrooms: 139

▪ Bedrooms: 25

▪ Bedrooms: 19

▪

Bedrooms: 211

▪ Bedrooms: 50

▪ Bedrooms: 213

▪ Bedrooms: 50

▪ Bedrooms: 44

▪ Bedrooms: 130

▪ Category 5*

▪ Category 5*

▪ Category 4*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Category 5*

▪ Type: Luxury

▪ Type: Luxury

▪ Type: Bleisure

▪ Type: High-end

▪ Type: Boutique

▪ Asset type:

▪ Type: Bleisure

▪ Operator Marriott

▪ Type: Luxury

▪ Asset type:

▪ Type: boutique

▪ Type: Luxury eco-

▪ Operator:

▪ Operator: Radisson

▪ Operator:

Luxury

luxury

Boutique luxury

▪ Operator: Meliá

Autograph

resort with villas

Luxury.

▪ Operator: pending

resort

▪ Operator: JW

▪ Operator: Nobu

▪ Operator: Nobu

Collection

and golf courses

▪ Included in the

▪ The project design

Radisson

Collection

Iberostar

▪ Contract type:

▪

▪

Operator:

▪ Included in the

Collection

Marriot

▪

Contract type:

▪

Contract type:

Contract type:

portfolio in

portfolio in

is currently

▪

Contract type:

▪ Contract type:

Variable income

Variable income

Fairmont

December 2021.

underway

▪ Contract type:

▪ Contract type:

Variable income

variable income

1H2020. Consists

Variable income

Fixed income:

with guaranteed

with guaranteed

▪ Contract type:

▪ Operator Nobu.

▪ Incorporated into

Variable income

with guaranteed

Variable income

Variable income

with guaranteed

with guaranteed

minimum income

of converting

with guaranteed

minimum income

minimum

minimum income

Variable income

different

the scope in

with guaranteed

minimum income

with guaranteed

after the

▪ Contract type:

minimum income.

▪ Incorporated into

with guaranteed

properties into a

November 2022

minimum income

▪

Incorporated into

minimum income

▪

Incorporated into

▪ Included in the

repositioning that

variable income

the scope in July

minimum income

single hotel

▪ Main building

after the

▪ Incorporated into

the scope in 2019.

portfolio in 4Q20.

has been taking

with guaranteed

▪ Operator Pending

the scope in

2022

▪

incorporated into

1H2019

repositioning that

the scope in

Consists of two

place since January

▪ Incorporated into

minimum.

The project

the scope in 2018

▪ LEED Platinum

will take place

October 2019.

buildings

24.

the scope in

design is currently

from July 2024.

Consists of two

▪ LEED Gold

▪ Incorporated into

December 2019.

underway

and annex in

Certificate

1H2019

▪ Incorporated into

buildings

Certificate

the scope in

Consists of

▪ LEED Gold

the scope in

▪ LEED Gold

November 2019

different plots of

land, two golf

Certificate

October 2022

Certificate

Openings in 2023.

Openings scheduled for 2024

courses and a

(1)

Valuation carried out on 31 December 2023 by

9

clubhouse.

independent experts.