Deutsche Bank Mexico, S.A., Banking Institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced yesterday that it has signed a binding agreement for the acquisition of the Hotel Aloft® Guadalajara Las Américas in the State of Jalisco. The hotel will be the third property in Guadalajara and the twenty-third in Fibra Inn’s total portfolio, including properties under development.
Through this binding agreement, Fibra Inn begins the process with Starwood® to integrate into its portfolio of hotels the Aloft® Brand of the W Hotels division of the international chain Starwood® Hotels & Resorts Worldwide, Inc. Fibra Inn is in the process to obtain the approval. Starwood® is one of the leading global hotel chains, with approximately 1,169 properties in 100 countries. Starwood® is one of the strongest chains in the lifestyle concept, with brands such as W and Aloft®. Furthermore, it has other well-positioned brands such as Sheraton, Four Points by Sheraton and Westin, among others.
The agreed upon price for the hotel is Ps. 220 million at a 10% cap rate, with an additional Ps. 20.3 million in taxes and acquisition expenses. The hotel was built recently and will be paid for in the following manner:
a. Ps. 41.2 million in cash from the remaining proceeds of the initial public offering that took place on March 13, 2013.
b. The remaining balance will be paid with a temporary credit line contracted through Actinver.
In the event that in the third year the hotel reaches profitability in real terms exceeding 10.6%, the seller will have the right to receive a performance Premium, equivalent to the profitability reached.
The Technical Committee approved this acquisition on November 29, 2013, given that it will represent 6% of the Fibra’s portfolio value. In accordance with Fibra Inn’s by-laws, the Technical Committee must approve acquisitions that exceed 5% of the portfolio, while the Shareholders’ Meeting must approve those that exceed 20%.
Fibra Inn opted to acquire this hotel for the following reasons:
- Guadalajara is one of the three most important cities in the country, from an economic standpoint; as a result, it has a high level of market demand and there is a need for hotel options across all market segments.
- The city has a diversified economy with a high number of technology and manufacturing companies with a large service offering.
- Avenida de las Américas is one of Guadalajara’s main thoroughfares and is located in the financial and business area of the city, surrounded by stores and restaurants that house the two top-end hotels, the NH Select and the Fiesta Americana Grand Guadalajara Country Club, which have high occupancy levels and are leaders in the price segment. Expo Guadalajara is the most important convention center in the country with historically high occupancy rates in previous years that result in high demand for hotel options throughout the city.
- The Aloft® brand of W Hotels, with its lifestyle concept has a high probability of success in this area and location since it is geared towards the business traveler with high purchasing power.
The Hotel Aloft® Guadalajara Las Américas is the second Aloft® hotel in Mexico; the first one is located in Cancún and it features an innovative concept that redefines the elect service segment with a lifestyle hotel that is priced at a competitive rate. The hotel Aloft® Guadalajara Las Américas has 142 rooms and will open to the public on January 27. It is located at 1528 Avenida de las Américas, Col. Country Club, Guadalajara, Jalisco, 44637. It is surrounded by corporate offices, hotels, shopping centers and mixed developments. With this acquisition, Fibra Inn has a portfolio of 21 hotels in operation, plus two under development, with a total of 4,118 rooms, of which 664 are under construction.
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 high-quality hotels and geographically-diverse located in twelve states throughout Mexico, comprising approximately 4,118 rooms, which 664 are under construction. T
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