Millenium Hospitality Real Estate SOCIMI S A : Result Presentation 1H22

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Millenium

H o s p i t a l i t y R e a l E s t a t e

Excellent exposure to flagship hotel

properties

Results for the first half of 2022

7 October 2022

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H o s p i t a l i t y R e a l E s t a t e

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 jurisdictios. 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 plan 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.

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Contents

1. Key figures

2. Main milestones for the period

3. Results H121

4. Portfolio

5. Market context

6. Annex

• Balance Sheet

• Relevant and Inside Information 7. Contact

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Millenium	Key figures at 30 June 2022
H o s p i t a l i t y R e a l E s t a t e

PRIME PORTFOLIO WITH HIGH

VALUE POTENTIAL

GAV(1) €445M

40% in operation

45% under refurbishment

15% in development

GAV(1)/Cost of acquisition +9.4%

CAPEX in the process of

execution of €126M

SOLVENCY

SOLVENCY AND INVESTMENT

CAPACITY

Liquidity of €204.4M

Net Cash of 79.1M

Low gross LTV leverage(2)

of 26.7%

68% of debt matures

after

January 2026

79% fixed-rate debt

CONTINUED IMPROVEMENT IN

RESULTS STARTED IN 2021

Revenues

€5.5M; +47.8% vs 1H21,

Asset rental income increased by 49.2% and golf course income increased by 39.3%.

Net Profit €15.8M (vs €1.2M in1H21)

Income from hotel activity €17.2M

EPRA NAV

EPRA NAV

EUR 4.71/share

The difference vs 31/12/21 is largely due to the €156.4 million euro capital increase in May 2022

Increase in value of assets of

+16.8M (+4.2%LFL),

pointing to the quality and

potential value of the portfolio,

as well as the solidity of Millennium's strategy.

After the end of the period, a building was acquired in calle Zorrilla 19, Madrid, for €31 million, including transaction costs. This increased GAV

to €476 million (4)

(1)	Valuation as at 30	June 2022 by independent experts. Does not include Via Castellana, which was sold on 31 January 2022, nor the acquisition of Madrid, Zorrilla 19.
(2)	Gross Financial Debt/GAV	4
(3)	Acquisition cost=acquisition price + Capex+ transaction costs
(4)	Valuation as at 30	June 2022 by independent experts + acquisition price of Zorrilla 19 (€31M) added to the portfolio in July 2022.

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Significant improvement in portfolio

value

Increase in assets in operation and

incorporation of new high quality assets with

potential increase in value

+

The results are showing a marked improvement, along the lines we were expecting.

+

Capacity for further growth thanks to successful capital increase in May 2022

Potential value >€1.0 billion

+

Excellent market environment

The Spanish hotel market is bouncing back

strongly, especially in the luxurious 5*

category. Investment appetite in Spain remains

high.

.

➢ Further improvement in the GAV of the portfolio in the first half of the year to €445M(1), vs €444M at the close of 2021 (€401 M not incl. Vía castellana). The

variation is due to :

• • The sale of the Vía Castellana hotel on 31 January for €43M, which resulted in a capital gain of €6.8 million (2).
  • The CAPEX invested during the period of €27.7 million, resulting from the progress made in the repositioning of the hotels.
  • The increase of €16.8M (5) in valuations carried out by an independent expert
• The GAV of the portfolio increased by 11% in just 6 months, not including the impact of the sale of Vía Castellana.
• After the end of the half year, MRHE acquired the building at Zorrilla 19 in Madrid for €31M, bringing the value of the portfolio to €476M, up 7.2% compared to the end of 2021 and 18.7%, not including the impact of the sale of the Vía Castellana hotel. This transaction makes MHRE one of the largest asset holders in the Alcalá-Gran Vía axis, one of the most valued and luxurious areas of the capital and one of the most exclusive in Europe.

• In the first half of 2022, the Radisson Collection Gran Vía Hotel opened, to be followed by the JW Hotel in Madrid in Q422. This will bring the total number of operational hotels in the portfolio to five out of 11 by the end of 2022. After a thorough refurbishment, the Alcaidesa Links golf course has been inaugurated last 15 of June and has joined the European Tour Destination network.
• We continued to sign agreements with some of the world's leading luxury hotel chains. In 1H22, MHRE signed an agreement with Nobu for the asset located in Alcalá 26 in Madrid. This is in addition to the agreement signed in 2021 with the same chain for the Hotel de San Sebastian. After that date, last July, an agreement was reached with Accor for the opening of a Fairmont hotel in the La Hacienda asset in La Alcaidesa, Cadiz. Fairmont is one of the world's most exclusive luxury resort brands.
• Significant improvement in revenue (+revenues of €5.5M; +48% vs 1H21 and net profit of €15.8M, almost 13 times higher than 1H21) through the improvement in hotel activity, due to new hotels coming into operation, updated rents in line with the CPI, and the positive impact of the sale of the Vía Castellana hotel, while the value of the portfolio also increased significantly by €16.8 million.
• The company's strong balance sheet (net cash position of +79.1M) and growth potential provides the flexibility to invest in new assets that are aligned with the group's strategy. The goal is to grow the portfolio to a value of close to €1.0 billion over the medium term.
• In May 2022, Millenium completed the second disbirssement of the July 2021 capital increase for an amount of €156.4M. This was the largest transaction in the Spanish primary market to date and demonstrated the strength and attractiveness of Millenium's project. As a result of this transaction, Castlelake's stake in the capital moved to 49.72%. Meanwhile, Mutualidad de la Abogacía and Arconas International became key shareholders, each with a 5.05% stake in the company.
• Hotel investment in Spain continues to grow at a strong pace (+€1,521M invested in H122, +34.5% vs H121). This trend is being driven primarily by investment in urban hotels, which now account for 57% of all hotel investment in Spain. Investors tend to prefer assets located in prime locations. ADRs of 5* hotels continue to increase significantly above inflation (14.62% in July(4) vs July 2021), and occupancy rates are approaching pre-pandemiclevels (in fact, having already reached such levels in some locations).

Main milestones for the period

1. Calculated on the basis of valuations as of 30 June 2022.
2. In the individual financial statements

(3)	NFD/GAV	5
(4)	Source: National Statistics Institute of Spain (INE)
(5)	Do not included the impairment losses from the Golf of €0.7M