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 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.
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
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