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 the purchase of the Mexico Plaza Irapuato hotel.
The acquisition was paid in cash with the proceeds from the initial public offering that took place on March 13, 2013. The price was Ps. 93 million, excluding taxes and acquisition expenses at a stabilized cap rate of 10.1%. Fibra Inn will convert this property into a Wyndham Garden hotel with an investment of Ps.6.8 million.
This acquisition represents the second hotel of the pipeline, after completing the purchase of hotels announced during the Initial Public Offering.
The Mexico Plaza Irapuato is located in the city of Irapuato, in the Bajío region. It is a leading hotel in the local market and is located on the main avenue of the city, facing the most important commercial mall, Plaza Cibeles. During 2012, this hotel’s occupancy rate was 54%; its average daily rate was Ps. 640 and the RevPar was Ps. 342. This hotel will be operated by Operadora Mexpla Irapuato.
Including this acquisition, Fibra Inn owns 16 hotels with a total of 2,830 rooms; and 200 out of the total 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 16 high-quality hotels and geographically-diverse located in ten states throughout Mexico, comprising approximately 2,830 rooms. 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, Marriott International 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.