MONTERREY, Mexico–Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13, ADR OTC: DFBRY) (“Fibra Inn” or “the Company”), the Mexican real estate investment trust specializing in the hotel industry serving the business traveler with international brands, announced today that it has completed the payment and acquisition of the Best Western Valle Real Hotel located in Monterrey, in the state of Nuevo Leon; and which adds 85 rooms to the Company’s portfolio.
The transaction was paid in cash using the resources obtained from the bank loan, and represented a total investment of Ps. 67.0 million, plus Ps. 3.7 million in taxes, acquisition-related expenses and corresponding VAT expenses. A projected cap rate of 9.6% is estimated for 2016.
The hotel will be operated by the Hotel Manager, a Fibra Inn related party, and the corresponding synergies are being implemented.
The Best Western brand is the fourteenth global brand in Fibra Inn’s portfolio. The hotel is categorized under the limited-service segment. It has a strategic location, since the northern region of the country continues to strongly perform within the industrial sector. It is important to mention that this hotel was acquired at the right price given its potential stemming from a target corporate client base in the Western part of Monterrey, which also includes the U.S. Consulate and the Santa Catarina industrial area.
To date, Fibra Inn has a total portfolio of 43 properties in operation. This represents a total of 7,112 rooms, of which 6,891 are in operation and 221 are under construction. Additionally, Fibra Inn has a minority interest in one property, currently being externally developed under the Hotel Factory model, representing 250 rooms.
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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.
