September 08, 2014 – MONTERREY, Mexico – 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, today announced the signature of an agreement for the acquisition of Crowne Plaza Monterrey Airport Hotel located in the state of Nuevo Leon.
The amount of the acquisition was Ps. 351 million, plus Ps. 33.8 million, which will be used for taxes and acquisition-related expenses as well as the improvement of 28 rooms. Fibra Inn’s internal bodies approved the acquisition of the property with a projected cap rate of 10.0%. The acquisition will be paid with funds from the bank credit.
The hotel has 219 rooms and operates in the Full Service segment. Fibra Inn will be in charge of the operation, which is expected to generate operating synergies with Holiday Inn Express & Suites Monterrey Airport Hotel. Annual operating indicators for 2013 show an occupancy rate of 64%, an average daily rate of Ps. 1,194 and RevPAR of Ps. 766.
With this acquisition, Fibra Inn fulfills the commitment made during its Initial Public Offering, as it currently owns a portfolio of 30 hotels under operation and three hotels under development, for a total of 33 properties.
The business rationale for the acquisition of the hotel by Fibra Inn is the following:
- Location: The property is strategically located, at just a three minute drive from the airport. It is surrounded by the city’s main industrial parks, which generate an important demand.
- Leadership: The hotel has been the leader in terms of occupancy and rates among the hotels located in the airport area, a market with high segment and price competition.
- Synergies: Due to its location next to Holiday Inn Express & Suites Monterrey Airport Hotel, a property of Fibra Inn, synergies are expected that should reduce operating costs and improve revenue margins.
- Growth in Future Demand: The announcement of the KIA plant in the municipality of Pesqueria, will create important demand for rooms in the area.
- Property in excellent conditions: The hotel is less than five years old and is in perfect condition. Low cost improvement of 28 rooms is expected, given that the installations are ready for the project.
Note on Forward-Looking Statements
This press release may contain forward-looking statements. These 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.
