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 that it acquired two Microtel Inn & Suites by Wyndham hotels, located in Culiacan and Ciudad Juarez, both limited service hotels, with a total of 226 rooms.
The acquisition price for the Culiacan hotel was Ps. 55.0 million, excluding taxes and acquisition expenses, and a projected cap rate for 2015 of 10.9%. The amount paid for the Ciudad Juarez hotel was 61.0 million, excluding acquisition expenses, and the projected cap rate for 2015 of 10.4%. The total payment was made using funds from the recent CBFI issuance.
Fibra Inn opted to acquire these hotels for the following reasons:
a. The Culiacan hotel is exposed to the growing agro-industrial and food sector, with increasing hotel demand as a result of interstate agreements signed. The property is located in a desirable location, facing the Country Club and adjacent to the Hospital Angeles; only an 8-minute drive from the Culiacan airport.
b. The Ciudad Juarez hotel’s market is one of most active border cities due to the maquiladora industry, which has favored from foreign investment. The property benefits from the operation of a brand recognized by international travelers, and is located near the U.S. Consulate and the Zaragoza International Bridge.
Fibra Inn will operate both hotels, each with 113 rooms. With this acquisition, Fibra Inn has a portfolio of 30 hotels, including five under agreement and three under development, with a total of 5,532 rooms; 645 of these are currently under construction.
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, develop, operate and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality real estate properties aimed at the business traveler and that are geographically diversified throughout Mexican territory. The Company has signed Franchise Agreements with IHG to operate its global brands, including: Holiday Inn, Holiday Inn Express, Holiday Inn & Suites, Holiday Inn Express & Suites and Crowne Plaza; with Wyndham Hotel Group to operate its global brands Wyndham Garden and Microtel Inn & Suites by Wyndham. Additionally, it has licensing agreements and brand usage agreements with Hilton to operate its brand Hampton Inn by Hilton and with Starwood Hotels & Resorts Worldwide to operate the Aloft brand. The Company has properties that operate with domestic brands like Camino Real and Casa Grande. Additionally, Fibra Inn has agreements with IHG, Marriott International, Wyndham Hotel Group and Hoteles City Express for development of properties. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn recently listed its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.
For more information, please visit our new website: 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.
