News for the Hospitality Executive
MONTERREY, Mexico-May 28, 2013 --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 has completed the acquisition of the Holiday Inn Express Playa del Carmen Hotel.
Fibra Inn paid Ps. 135.8 million for this hotel, excluding taxes and acquisition expenses. The property was paid in cash and is the second hotel acquisition purchased with the proceeds from the initial public offering that took place on March 13, 2013. Furthermore, this select service hotel is part of the Acquisition Portfolio, which will include the purchase of four additional properties as part of the Initial Portfolio.
The hotel was purchased for a Price of US$ 11 million and was paid for utilizing an exchange rate of Ps. 12.3414 per dollar, which is equivalent to Ps. 135.8 million. This reflected a benefit of Ps. 7.2 million, since this real estate property was agreed upon at an exchange rate of Ps. 13.00 per dollar, equivalent to Ps.143.0 million.(1)
The Holiday Inn Express Playa del Carmen initiated operations in November 2006 and has a total of 145 rooms. Fibra Inn expects to add an additional 51 rooms, which will begin operating during the first quarter of 2014. This hotel is aimed at the business traveler that uses lodging in this area, which is located along the Cancun – Chetumal highway. The property is within close proximity to Walmart, Citi Club, Inbursa, Pepsi and Juarez Avenue, as well as tourist hotels and the Xcaret, Xplor and Xel-ha water parks.
Fibra Inn will operate this hotel, via its Hotel Operator. During 2012, this hotel’s occupancy rate was 43%; its average room rate was Ps. 954 and reached a Rev Par of Ps.407.
(1) Regarding the amount of Ps. 143.0 million, please refer to the Fe de Erratas located at the end of this document. This Fe de Erratas was issued in a separate press release where we clarify the value of the real estate properties in the Acquisition Portfolio.
The actions that will be taken in order to strengthen the operating indicators relating to the occupancy rate and improvements in room rates will be the following:
Joel Zorrilla, Chief Commercial Officer, stated: “This acquisition is a strategic one for the Company’s geographic diversification and seeks to meet the demand of guests who do business in the Riviera Maya area. Once this hotel is fully operating under Fibra Inn’s standards, we expect to improve its operating indicators by penetrating the market further with the experience of our sales force”.
FE DE ERRATAS
Fibra Inn clarifies that there was a significant error in both the IPO Prospectus as well as the Offering Memorandum that were published during the offering process on March 13, 2013. This mistake refers to the value of 4 out of the 6 properties that are included in the Acquisition Portfolio, but not in the total value of the portfolio, as follows:
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn owns 10 hotels and will have a high-quality, geographically-diverse portfolio of 14 hotels located in nine 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, as well as with Hilton to operate its brand Hampton Inn by Hilton. 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 Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.
For more information, please visit: http://fibrainn.mx/inversionistas.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.
more information, contact:
In Monterrey, México:
Inn, a Mexican REIT, Completes Acquisition of the 100-room Holiday Inn
Express Guadalajara UAG Hotel with Plans to Add 99-Rooms; Group to
Purchse Five Additional Hotel Properties / May 2013