Fibra Inn Announces Acquisition of Hotel Mexico Plaza Celaya, to be Converted to Wyndham Garden

MONTERREY, Mexico--()--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 the acquisition of the Hotel México Plaza Celaya, located in the state of Guanajuato. This hotel will be converted to the Wyndham Garden brand.

The acquisition price was Ps. 139 million, excluding Ps. 8.1 million in expenses for brand name change, as well as respective taxes and acquisition costs. Fibra Inn’s internal bodies approved the purchase of this property, at a stabilized cap rate of 10%. The acquisition was paid in cash using proceeds from the initial public offering that took place on March 13, 2013.

The conversion to the Wyndham Garden Brand is expected to conclude by April of 2014. This property has 150 rooms, will operate under the limited service segment; and will be operated by Fibra Inn´s Hotel Operator supported by the current Hotel Operator.

Fibra Inn opted to purchase this hotel for the following reasons:

  • Bajio is an attractive area due to high growth caused by direct foreign investment, which has benefitted occupancy and room rates.
  • The influx of people into the Bajio area has increased during weekends, due to extended stays of employees in the auto industry.
  • The hotel has experienced a solid performance with the regional Mexico Plaza, which is expected to improve even more upon conversion to the international Wyndham Garden brand.
  • The hotel is located at the northern entrance of the city and is surrounded by stores and restaurants.
  • The property is located near the Mazda and Honda automotive plants as well companies in the food and beverage, electronics and metallurgical sectors, such as Bachoco, Gamesa, Grupo Modelo, Campbell´s, Mabe, Moulinex, P&G, Whirlpool, and others.

This hotel is located at Eje N, Poniente 101, almost at the corner of Av. Tecnológico, Col. Ciudadela, Celaya, C.P. 38017, Guanajuato. Its location is strategic as it is near the México – Querétaro freeway and along the Industrial Zone.

With this acquisition, Fibra Inn has 19 hotels in its portfolio, plus two under development, with a total of 3,850 rooms, of which 3,186 are currently in operation.

About Us

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 3,850 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.

Contacts

In Monterrey, México:
Fibra Inn
Lizette Chang, IRO, 52 1 (81)1778-5926
lchang@fibrainn.mx
or
In New York:
i-advize Corporate Communications, Inc.
Maria Barona / Melanie Carpenter
212-406-3691/92
mbarona@i-advize.com / mcarpenter@i-advize.com
twitter@fibrainn

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Contacts

In Monterrey, México:
Fibra Inn
Lizette Chang, IRO, 52 1 (81)1778-5926
lchang@fibrainn.mx
or
In New York:
i-advize Corporate Communications, Inc.
Maria Barona / Melanie Carpenter
212-406-3691/92
mbarona@i-advize.com / mcarpenter@i-advize.com
twitter@fibrainn