Fibra Inn Announces Binding Agreement to Acquire Mexico Plaza Irapuato Hotel and Conversion to Wyndham Garden
By: Robert Diamond Jul. 25, 2013
The price was Ps. 93 million, excluding taxes and acquisition expenses and will represent 3% of the total value of Fibra Inn's portfolio. This acquisition will be paid in cash with the proceeds from the initial public offering that took place on March 13, 2013 at a stabilized cap rate of 10.1%.
Following our strategy to operate global brands, Fibra Inn will do a rebranding to Wyndham Garden assigning Ps. 6.8 million for this purpose.
The Mexico Plaza Irapuato is located in the city of Irapuato, in the Bajio region. It is a leading hotel in the local market and is located on the main avenue of the city, facing the most important commercial mall, Plaza Cibeles.
The Mexico Plaza Irapuato is a select service hotel with 102 rooms and no addition of rooms is planned. During 2012, this hotel's occupancy rate was 54%; its average room rate was Ps. 640 and the RevPar was Ps. 342. A third-party operator will manage this hotel: Operadora Mexpla Irapuato, S.A. de C.V.
About the Company
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 14 high-quality hotels and geographically-diverse located in ten states throughout Mexico, comprising approximately 2,423 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 Bursatiles 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.
SOURCE: BUSINESS WIRE
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