December 03, 2014 – MONTERREY, Mexico – 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 that it signed a closed purchase-sale agreement to acquire Mexico Plaza Guadalajara Andares Hotel, located in the state of Jalisco.
The acquisition price for the hotel was Ps. 183.0 million, excluding Ps. 24.7 million for taxes, acquisition expenses and re-branding investment expenses. The projected stabilized cap rate for 2015 is 10.0%. A down payment of Ps. 90 million was made upon signing of the agreement, and the remaining balance will be paid in January 2015, when the final public acquisition deed is completed. It is important to highlight that, upon the agreement signing, Fibra Inn is receiving income from the operation of the property.
The hotel has 186 rooms and is in the limited service segment. The annual cumulative operating indicators from January to October 2015 show an occupancy rate of 50.6%, an average daily rate of Ps. 763.4 and RevPAR of Ps. 386.3. Fibra Inn will operate the hotel. An amount of Ps. 9.0 million, included in the aforementioned acquisition expenses, will be used to re-brand the hotel to the Wyndham Garden brand. The re-branding will take place during 2015.
Fibra Inn opted to acquire this hotel for the following reasons:
- • City – Guadalajara is the main city of Western Mexico and is near the Bajio region. This central area has experienced one of the largest economic growth rates in the country.
- • Economy – The city’s economy is diversified, and includes a large number of companies in the technology, manufacturing, and electronics industries. The metropolitan area is considered one of the cities with the highest potential to attract investments in Mexico.
- • Location – The locale is strategic as it is adjacent to the Andares and Puerta de Hierro Mall, which is the most prestigious financial and commercial areas in the city, and is ideal for business travelers.
- • Demand – The source of demand comes from two sources: (i) the Guadalajara Expo for meetings and conventions and (ii) the Ciudad Creativa Digital project, which is focused on creating and strengthening the digital design, software, film and video games industries; and which is expected to drive foreign investment and incentivize job creation.
- • Synergies – This is Fibra Inn’s fourth hotel in this city, which strengthens the ability to implement aggressive marketing strategies in this city.
With this acquisition, Fibra Inn has a portfolio of 31 hotels, and three under development, with a total of 5,718 rooms; 645 of these are currently under construction.
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.
