MONTERREY, Mexico--(BUSINESS WIRE)--Deutsche Bank Mexico, S.A., Banking Institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced the acquisition of Hotel Mexico Plaza Silao, in the state of Guanajuato, which will be the fourth hotel to be converted to Wyndham Garden.
The acquisition price, was Ps. 80 million, plus Ps. 11.2 million in order to pay taxes and expenses related to the acquisition. Fibra Inn’s internal committees approved the purchase of this property, at a projected cap rate of 10%. The acquisition was paid with a second temporary credit line contracted with Banorte, which is expected to be refinanced once the Company formalizes the contract, currently under negotiation. This is a temporary credit line of Ps. 500 million, at a TIIE rate of 2.5 points, for 180 days and without commission.
The conversion to the Wyndham Garden Brand is expected to conclude by the last quarter of 2014. This property has 143 rooms, will operate under the limited service segment; and will be supervised by Fibra Inn under a sub-management structure with the current Hotel Operator.
During 2013, occupancy was 31%, with and average daily rate of Ps. 586.2 and RevPar of Ps. 181.7.
Fibra Inn opted to purchase this hotel for the following reasons:
- As we have previously mentioned, the Bajio region is a strategic area with high growth, and great lodging demand, mainly driven by the automotive industry along with the economic activity that this region generates. Foreign investment has benefited occupancy and room rates, as well as demand for group rates and events.
- This city only has 3 chain hotels: one Holiday Inn Express, one México Plaza and one Citi Express.
- This hotel is under an improvement phase, which will be accelerated once the conversion to Wyndham Garden takes place.
- This hotel is strategically located in front of the Bajio Airport and within 4 kilometers distance from the Puerto Interior complex, which is an industrial park with specialized terminals in train cargo with internal customs.
This hotel is located at Carretera 45 León a Silao en el Km 156 + 400 s/n, Col. Nuevo México, Silao, Guanajuato, near to the Colinas and Fipasi industrial parks.
With this acquisition, Fibra Inn has 23 hotels in its portfolio, plus three under development, with a total of 4,644 rooms, of which 3,746 are currently in operation.
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, own, develop, operate and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality hotels and geographically diverse located in 13 states throughout Mexico, comprised of 23 hotels and 3 under development. The Company has signed Franchise Agreements with IHG to operate its global brands Holiday Inn, Holiday Inn Express, and Holiday Inn Express & Suites; with Hilton to operate its brand Hampton Inn by Hilton; and is in the process with Starwood Hotels & Resorts Worldwide to operate the brand Aloft. Additionally, Fibra Inn has agreements with IHG, Marriott International and Wyndham Hotel Group. These hotels enjoy some of the industry’s top loyalty programs and, offer attractive hotel options for businesses travelers. Fibra Inn recently listed its Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.
For more information, please visit our corporate site and investor relations section at: http://www.fibrainn.mx
Note on Forward-Looking Statements
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
