Concentradora Fibra Hotelera Mexicana SA (FIHO12), Mexico’s biggest hotel-focused real-estate investment trust, rose the most since October after saying it will partner with Marriott International Inc. on 20 new hotels.
FibraHotel rose 4.5 percent to 20.48 pesos at 11:48 a.m. in Mexico City, the steepest intraday gain since Oct. 28. The BMV Fibras index of six Mexican real-estate trusts rose 1.6 percent, in line with the increase for the country’s benchmark IPC index of 35 stocks.
FibraHotel, which will own the hotels as Marriott operates them, said in an e-mailed statement yesterday that they will open by the end of 2016, adding the global brand to a portfolio that already includes 49 properties in 22 states. The Marriott name may help ensure traffic from international visitors more familiar with it than some of FibraHotel’s other offerings, including Fiesta Inn and One, said Jose Itzamna Espitia Hernandez, an analyst with Grupo Financiero Banorte SAB.
“We consider it positive,” Espitia Hernandez said. “One of the advantages is that they’ll win international business. The other advantage is diversification.”
The Mexico City-based company said it signed deals this week to formalize plans for the first six hotels, which will contribute about 800 rooms.
Mexico’s real-estate investment trust market has been expanding through initial public offerings. Concentradora Fibra Danhos SA became the nation’s seventh REIT to do an IPO with its offering last month. FibraHotel went public in November 2012 and was at the time just the nation’s second such trust.
FibraHotel has told investors it plans to own 100 hotels in the coming years, which would mean doubling its current portfolio.
The funds have lost 0.9 percent this year, based on total returns, as rising bond yields in the U.S. and Mexico make REIT dividends less attractive on a relative basis. Yields on Mexico’s benchmark peso bonds due in 2024 have climbed 0.79 percentage point to 6.21 percent in 2013, according to data compiled by Bloomberg.
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