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 global brands, announced that it will invest in the rebranding of the Arriva Express Guadalajara Plaza del Sol Hotel to the international brand, AC Hotels by Marriott; therefore the new hotel will be called the AC Hotels by Marriott Guadalajara Expo.
In August 2015, Fibra Inn paid Ps. 275.0 million for the acquisition of the Arriva Express and Staybridge Suites hotels. The Company decided to include the AC Hotels by Marriott global brand in its portfolio, which is a Lifestyle Premium offering, and will allow Fibra Inn to maximize its benefit from the hotel location via the use of a global brand, as it had previously done in other hotels in the portfolio that were also strategically located. With this investment, Fibra Inn expects to reach an average room rate increase of over 70% during the first year of operations. The Company expects to invest Ps. 176.8 million in this project and this investment would reach a marginal cap rate of 10.6% for 2019. Considering both properties, the combined total cap rate for 2019 is estimated in 11.0%.
Renovations began in December 2016 and this hotel is expected to initiate operations during the second quarter of 2017. Grupo Hotelero Prisma, a Fibra Inn related company, will be in charge of the hotel operations. The property will operate in the select-service segment with 178 rooms.
Oscar Calvillo, Fibra Inn’s Chief Executive Officer, stated: “The inclusion of the AC Hotels by Marriott represents the 15th global brand in Fibra Inn’s portfolio. This property, together with Staybridge hotel were acquired at a reasonable price, which together with the rebranding investment, results in value generation. Now we will have a completely renovated property that will offer our guests premium services and will contribute to higher profitability, operating under the highly performing Marriott brand and with a hotel management that has a proven track record adhering to Fibra Inn’s high standards.”
To date, Fibra Inn has a total portfolio of 43 properties in operation. The total is 7,113 rooms, of which 6,713 are rooms in operation and 400 are under construction. Additionally, Fibra Inn has minority participation with third parties in the Strategic Hotel Acquisition Pipeline model, which represents 430 rooms.
———————————————————————————————————————–
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.
