Fibra Inn Signs Binding Agreement to Acquire Its First Hotel in Mexico City - the Holiday Inn Mexico Coyoacan Business Wire MONTERREY, Mexico -- September 3, 2013 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 the signing of a binding agreement to purchase the Holiday Inn Mexico Coyoacan hotel. The purchase price of this hotel is Ps. 468 million, plus Ps.46.6 million in taxes and acquisition expenses. The price includes a 1,500 m^2 lot, which is utilized for customer parking for groups and events arriving via bus; these rooms may be used for future room expansion. This acquisition will be paid in cash from proceeds derived from the initial public offering that took place on March 13, 2013 and has a stabilized cap rate of 9.5% calculated based on the amount of the total investment including acquisition expenses. The Technical Committee approved this acquisition on August 29, 2013, which will represent 12% of the value Fibra’s portfolio. In accordance with Fibra Inn’s by-laws, the Technical Committee must approve acquisitions exceeding 5% of the total equity value, while the Shareholders’ Meeting must approve acquisitions that exceed 20%. The Holiday Inn Mexico Coyoacan is Fibra Inn’s first hotel in Mexico City, which will increase its diversification and national presence. The hotel is located in Calzada de Tlalpan and has a steady client base from the government sector with a high demand for rooms and event space. There is potential growth stemming from demand in the southern portion of the city from companies within the television, laboratory, hospital and financial sectors. Fibra Inn has a sales office in Mexico City with a solid client base to strengthen its position at this hotel. The Holiday Inn Mexico Coyoacan is a full-service hotel with 214 rooms. It has ample capacity to meet the high demand for event services with 11 conference rooms, as well as guest rooms that can be converted into event rooms in order to accommodate up to 1,800 people. It is located 20 minutes from the Mexico City International Airport, 5 minutes from Coyoacan and 15 minutes from downtown Mexico City. During 2012, the occupancy rate was 65%, ADR was Ps. 1,002 and the RevPar was Ps. 652. Of 2012 total hotel revenue, 43% corresponded to revenue from event room rentals and 6% from sales of food and beverage revenue; in addition to room revenue. This hotel will be operated by Fibra Inn’s Hotel Operator. With this acquisition, Fibra Inn owns 18 hotels with a total of 3,336 rooms, 300 of which are under construction. About Us 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. Contact: In Monterrey, México: Fibra Inn Lizette Chang, 52 1 (81)1778-5926 IRO email@example.com or In New York: i-advize Corporate Communications, Inc. Maria Barona, 212-406-3691 firstname.lastname@example.org or Melanie Carpenter, 212-406-3692 email@example.com @i-advize or visit: http://fibrainn.mx/inversionistas.php
Fibra Inn Signs Binding Agreement to Acquire Its First Hotel in Mexico City - the Holiday Inn Mexico Coyoacan
Press spacebar to pause and continue. Press esc to stop.