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 its growth plans for the coming years, in which it expects to add 15 hotels to its portfolio during 2015, and an additional 15 hotels during 2016. As a result, Fibra Inn expects to have approximately 45 hotels in its portfolio during 2015 and 60 hotels during 2016.
The funds available for the hotel expansion are mainly derived from two sources:
(i) Ps. 2,832.2 million derived from the recent capital increase that took place with the CBFI subscription in which holders on record as of November 4, 2014 participated, and in which 69.2% of available CBFIs were subscribed.
(ii) Ps. 1,400 million derived from the debt incurred in addition to the current credit line of Ps. 2,300 million; this amount reflects a higher capitalization level in which leverage level is estimated at a maximum 33% relative to the total asset value.
To achieve this goal, Fibra Inn is currently reviewing various hotels, and has identified a portfolio of potential acquisitions and developments valued at Ps. 8,600 million, representing approximately 7,000 rooms.
Fibra Inn competes in a fragmented industry, which is in the consolidation process. For this reason, management’s strategy is focused on having the required funding to execute the Company’s growth plans. The future expansion of the portfolio will comply with the established profitability criteria, consisting of the acquisition of hotels with stabilized cap rates over NOI higher than 10%, and the development of properties at levels higher than 11.5%.
As of today, Fibra Inn has a portfolio of 31 hotels, plus three under development, with a total of 5,718 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.
