Fibra Inn Signs Agreement to Acquire Hotel Aloft® Guadalajara Las Americas, a Starwood Hotels & Resorts Worldwide Brand
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 that it has signed a binding agreement for the acquisition of the Hotel Aloft® Guadalajara Las Américas in the State of Jalisco. The hotel will be the third property in Guadalajara and the twenty-third in Fibra Inn’s total portfolio, including properties under development.
Through this binding agreement, Fibra Inn begins the process with Starwood® to integrate into its portfolio of hotels the Aloft® Brand of the W Hotels division of the international chain Starwood® Hotels & Resorts Worldwide, Inc. Fibra Inn is in the process to obtain the approval. Starwood® is one of the leading global hotel chains, with approximately 1,169 properties in 100 countries. Starwood® is one of the strongest chains in the lifestyle concept, with brands such as W and Aloft®. Furthermore, it has other well-positioned brands such as Sheraton, Four Points by Sheraton and Westin, among others.
The agreed upon price for the hotel is Ps. 220 million at a 10% cap rate, with an additional Ps. 20.3 million in taxes and acquisition expenses. The hotel was built recently and will be paid for in the following manner:
a. Ps. 41.2 million in cash from the remaining proceeds of the initial public offering that took place on March 13, 2013.
b. The remaining balance will be paid with a temporary credit line contracted through Actinver.
In the event that in the third year the hotel reaches profitability in real terms exceeding 10.6%, the seller will have the right to receive a performance Premium, equivalent to the profitability reached.
The Technical Committee approved this acquisition on November 29, 2013, given that it will represent 6% of the Fibra’s portfolio value. In accordance with Fibra Inn’s by-laws, the Technical Committee must approve acquisitions that exceed 5% of the portfolio, while the Shareholders’ Meeting must approve those that exceed 20%.
Fibra Inn opted to acquire this hotel for the following reasons:
- Guadalajara is one of the three most important cities in the country, from an economic standpoint; as a result, it has a high level of market demand and there is a need for hotel options across all market segments.
- The city has a diversified economy with a high number of technology and manufacturing companies with a large service offering.
- Avenida de las Américas is one of Guadalajara’s main thoroughfares and is located in the financial and business area of the city, surrounded by stores and restaurants that house the two top-end hotels, the NH Select and the Fiesta Americana Grand Guadalajara Country Club, which have high occupancy levels and are leaders in the price segment. Expo Guadalajara is the most important convention center in the country with historically high occupancy rates in previous years that result in high demand for hotel options throughout the city.
- The Aloft® brand of W Hotels, with its lifestyle concept has a high probability of success in this area and location since it is geared towards the business traveler with high purchasing power.
The operation of this hotel will be managed by Starwood®, which has more than 17 hotels in operation in Mexico, in addition to other franchisees, operated by third parties.
The Hotel Aloft® Guadalajara Las Américas is the second Aloft® hotel in Mexico; the first one is located in Cancún and it features an innovative concept that redefines the elect service segment with a lifestyle hotel that is priced at a competitive rate. The hotel Aloft® Guadalajara Las Américas has 142 rooms and will open to the public on January 27. It is located at 1528 Avenida de las Américas, Col. Country Club, Guadalajara, Jalisco, 44637. It is surrounded by corporate offices, hotels, shopping centers and mixed developments. With this acquisition, Fibra Inn has a portfolio of 21 hotels in operation, plus two under development, with a total of 4,118 rooms, of which 664 are under construction.
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 4,118 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 Starwood Hotels & Resorts Worldwide to operate the brand Aloft. Additionally, Fibra Inn has agreements with IHG, Marriott International and Wyndham Hotel Group. 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