Fibra Inn Signs Binding Agreement to Acquire Its First Hotel in Mexico City
- the Holiday Inn Mexico Coyoacan
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.
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.
In Monterrey, México:
Lizette Chang, 52 1 (81)1778-5926
In New York:
i-advize Corporate Communications, Inc.
Maria Barona, 212-406-3691
Melanie Carpenter, 212-406-3692
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