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 today that it has completed the acquisition of the Wyndham Casa Grande Hotel in Monterrey.
The price for this hotel was Ps. 204.0 million(1), excluding taxes and acquisition expenses. This is the fifth hotel acquisition purchased with the proceeds from the initial public offering that took place on March 13, 2013. Furthermore, this full service hotel is part of the Acquisition Portfolio, which will include the purchase of three additional properties as part of the Initial Portfolio.
The Wyndham Casa Grande Hotel initiated operations in August 2004 and has a total of 198 rooms. The property is located in the business district of the city Monterrey, in the Zona Valle in San Pedro Garza Garcia. The hotel is a 4 mile drive from downtown Monterrey and 15 minutes away from the convention centers; as well as other touristic attractions.
Fibra Inn will operate this hotel, via its Hotel Operator. During 2012, this hotel’s occupancy rate was 67%; its average room rate was Ps. 844 and reached a Rev Par of Ps. 565.
The Company expects to raise the room rates for this hotel, since currently this property has very low rates, which will be reviewed. Additionally, the Company will be implementing strategies in order to either get rid of those accounts that do not comply to current price conditions or to place these accounts at adequate levels. Since this is a compact full service hotel, the Company expects to employ more aggressive promotional activities in the local market to promote the use of the conference rooms.
Fibra Inn will implement administrative and operating synergies for the Wyndham Casa Grande and the Hampton Inn by Hilton Monterrey Obispado hotels. These synergies allow us better control costs.
(1) Regarding the amount of Ps. 204.0 million, please refer to the Fe de Erratas disclosed on May 24th, 2013.
Comments from Fibra Inn’s Chief Operating Officer
Joel Zorrilla, Chief Operating Officer, commented: “This acquisition consolidates our presence in the city of Monterrey, which is a very well-known market for us and one that we have been developing as hoteliers for the past 30 years .”
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn owns 13 hotels and will have a high-quality, geographically-diverse portfolio of 14 hotels located in nine states throughout Mexico, comprising approximately 2,423 rooms. The Company has signed Franchise Agreements with IHG to operate its global brands Holiday Inn, Holiday Inn Express, and Holiday Inn Express & Suites, as well as with Hilton to operate its brand Hampton Inn by Hilton. 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: http://fibrainn.mx/en/investors.php
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.