MONTERREY, Mexico--(EON: Enhanced Online News)--Deutsche Bank México, S.A., Institución de Banca Múltiple, División Fiduciaria F/1616 o 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 the Company is following the legal process to reform the Income Tax Law (“the Law”) and is cognizant of the fact that the current Fibra structure could vary as a result of changes made during the legislative process.
If approved under the current terms, we reiterate our firm interest in maintaining our Fibra status and will make the necessary adjustments to our structure in order to minimize any negative impact to our investors.
Since its creation, the F/1616 Trust is designed to adapt to a changing regulatory and business environment, and thus has the flexibility to make the necessary changes in order to minimize the effects of possible tax reforms. These changes are regarding the separation of revenues that differ from rental revenues, so that they are taxed separately, in order to comply with the new requirement of the maximum contribution of the variable component of rental revenues.
In addition, given that business class hotels make up the majority of Fibra Inn’s properties, the component of Food and Beverage revenues within the rental operation is relatively small, therefore the income tax from these revenues would be below 1% of total revenues and would represent between 2% and 2.5% of the Fibra’s NOI.
We will keep the market informed of any changes in the event that they take place.
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 18 high-quality hotels and geographically-diverse located in ten states throughout Mexico, comprising approximately 3,336 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.