MONTERREY, Mexico--(BUSINESS WIRE)--Deutsche Bank Mexico, S.A., Institucion de Banca Multiple, Division Fiduciaria, Fideicomiso 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 that its internal corporate governance bodies approved the development of the Hotel Courtyard by Marriott in Saltillo, Coahuila, as per a franchise agreement with Marriott International.
The total investment in this development will be Ps. 198 million with a projected cap rate of 11.30%. The total investment is composed of Ps. 176.5 million corresponding to the construction of the hotel, Ps. 10.7 million corresponding to the purchase of the land, Ps. 2.8 million for working capital and Ps. 8.0 million for acquisitions costs.
The project is planned at a commercial mall that will be developed by a third party, and which is expected to take 18 months; estimated to be completed in the second half of 2015. The hotel will have 180 rooms, operating under the select service segment and will be operated by Fibra Inn’s Hotel Operator.
Fibra Inn opted to develop a Courtyard by Marriott hotel in Saltillo, for the following reasons:
- The competitive advantage derived from Fibra Inn’s extensive expertise of this location, since the Company currently has two other hotels in Saltillo.
- The location is benefited by its proximity to Monterrey and the border with the United States, furthermore there is a solid demand from the automotive (General Motors, Chrysler, Fiat, Mitsubishi, among others) and auto parts industries, as well as other industrial companies, such as Grupo Industrial Saltillo and General Electric.
- The hotel will be located in a new mixed-use development located in a high-class area with intensive growth in Saltillo. The property will be situated in a new commercial mall, surrounded by restaurants and across from Galerias Saltillo.
This hotel represents 5% of the total value of the portfolio of the Fibra and is the second development in the overall portfolio of Fibra Inn.
The hotel is located on Boulevard Galerías, Colonia Tanque de Peña, between the Nazario Ortiz Garza Avenue and Boulevard Venustiano Carranza.
To date, Fibra Inn has a portfolio of 18 hotels in operation, plus two more under development; with 3,700 rooms, of which 664 are under construction.
Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality hotels serving the business traveler that are geographically-diversified throughout 12 states throughout Mexico, comprising approximately 3,700 rooms, of which 664 are under construction. The Tenant has signed Franchise Agreements with IHG to operate its global brands, which include: Holiday Inn, Holiday Inn Express and Holiday Inn Express & Suites. It also has license agreements with Hilton to operate its brand Hampton Inn by Hilton; and has development agreements with IHG and Wyndham Hotel Group. These hotel brands enjoy some of the industry’s top loyalty programs and offer attractive lodging options for businesses travelers. Fibra Inn trades its Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and under the ticker symbol “FINN13”.
For more information, please visit: 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.