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 today its decision to exercise its call option to purchase the Hampton Inn by Hilton Hermosillo hotel in the State of Sonora.
The acquisition price was Ps. 175.0 million. An additional Ps. 27.3 million will be destined for a 56-room expansion and Ps. 12.7 million for taxes and acquisition-related expenses, for a total investment of Ps. 215 million. Fibra Inn’s internal management approved the acquisition with a projected stabilized cap rate equal to 10.2%. The payment will be made using funds from the CBFI issuance carried out during November 2014.
The hotel currently has 51 rooms and is in the select-service segment. The hotel operation will be executed by Fibra Inn. The cumulative operating indicators for the hotel are in process of stabilization as this property initiated operations six months ago.
The business fundamentals for the acquisition of this hotel are the following:
- Diversified Industry: The hotel is located in a region with diverse industries, with an important presence of the automotive sector. Companies in the region include Ford Motors, Delphi, Bosch, Tyco Electronics, Bachoco, Bimbo, Thermadyne, Magna, Lear and BASF. Recently, the mining industry saw a comeback, with companies such as Grupo Mexico, Cementos Apasco, Cementos Portland, Mineria Pilares, among others. In addition, the U.S. Consulate centralized its visa operations in this location to serve the Northwestern region of Mexico.
- Leadership Potential: The hotel has the potential to become a leader in the region, as it operates under a globally-renowned brand, and is in a market with a hotel offering that includes 34 mostly independent properties.
- Location: The hotel is strategically located, as it is surrounded by the main industrial parks of the city, which generate an important demand.
- Expansion Potential: The hotel current has 151 rooms and the construction of 56 additional rooms will maximize income and dilute operating costs.
With this acquisition, Fibra Inn has a portfolio of 31 hotels, plus two hotels under agreement, and two under development, with a total of 5,940 rooms; 621 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.
