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 Mexico Plaza Leon Centro Max Hotel, located in the state of Guanajuato. This hotel will be converted to the Wyndham Garden brand.
This is the third hotel acquired from Grupo Mexico Plaza, which is a regional hotel chain primarily present in central Mexico. The acquisition price was Ps. 150 million, excluding Ps. 6.9 million in expenses for brand name change. Fibra Inn’s internal committees approved the purchase of this property at a stabilized cap rate of 10.1%. The acquisition was paid in cash with the proceeds from the initial public offering that took place on March 13, 2013.
The conversion of this property to the Wyndham Garden brand will be completed by April of 2014. This property has 126 rooms, will operate under the limited service segment and its operation will be conducted by the Fibra Inn´s Hotel Operator, subcontracting the current Hotel Operator.
Fibra Inn opted to purchase this hotel for the following reasons:
- Bajio is an area with high economic growth, driven by the automotive industry, with an increase in direct foreign investment that has led to occupancy growth rates and increased demand for groups and extended stay.
- Leon is a market with a strong hotel demand, as it is the Bajio’s most important city in terms of highest hotel occupancy as reported by the Ministry of Tourism and the largest in the state for its economic activity.
- Leon in one of the most benefited cities due to the Bajio’s economic growth, capturing the majority of the hotel demand compared with other cities of the area; it is the most complete in services and installations, which makes it a more attractive option compared to other less important cities of the state of Guanajuato.
- The hotel has experienced a solid performance with the regional Mexico Plaza brand, which is expected to improve even more upon conversion to the international Wyndham Garden brand.
- It is a hotel focused on suites, which is a segment with longer duration of stay and less competition.
The hotel is located at Blvd. Adolfo López Mateos 2510, Col. Jardines de Jerez, C.P. 37530, León, Guanajuato. Its location is strategic as it at the heart of a commercial area in the city of Leon, next to Centro Max Mall and opposite Leon’s footwear manufacturing area, ideal for business travelers in the area.
With this acquisition, Fibra Inn has 20 hotels in its portfolio, plus two under development, with a total of 3,976 rooms, of which 3,312 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 twelve states throughout Mexico, comprising approximately 3,976 rooms, which 664 are under construction. 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 IHG and Wyndham Hotel Group to operate its global brands. 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.
For more information, visit: www.fibrainn.mx