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 that it acquired the Aloft Guadalajara Las Americas hotel, which is a select service hotel with 142 rooms.
The acquisition price, excluding taxes and acquisition expenses, was Ps. 220 million. The acquisition was paid using Ps. 41.2 million in cash from the remaining proceeds of the initial public offering that took place on March 13, 2013, and the balance was paid with a temporary credit line contracted through Actinver.
The projected cap rate for this acquisition is 10%. 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 excess profitability reached.
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, with significant hotel demand coming from technology, manufacturing and service companies.
- The property is located in a financial area, with businesses, commerce and restaurants, with the highest daily rates in the city. Furthermore, it is close to the Expo Guadalajara, which also creates a lot of demand.
- Aloft is a new brand concept, from the W Hotels division, which introduces the “lifestyle” concept geared towards the business traveler with high purchasing power.
This hotel was recently built and will be operated by Starwood. The property is located at Avenida de las Américas 1528, Col. Country Club, Guadalajara, Jalisco, 44637.
With this acquisition, Fibra Inn has a portfolio of 22 hotels, including one under contract and two in development, that have a total of 4,321 rooms, of which 769 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 4,321 rooms, which 769 are under construction. 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 Starwood Hotels & Resorts Worldwide to operate the brand Aloft. Additionally, Fibra Inn has agreements with IHG, Marriott International and Wyndham Hotel Group. 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”.
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