Hotel Transaction Mexico Chihuahua

Fibra Inn Acquires Four Hotels in Chihuahua

Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13) announced today the signing of a purchase agreement to acquire four hotels in the state of Chihuahua totaling 551 rooms.
Courtyard by Marriott Chihuahua
Courtyard by Marriott Chihuahua

Fibra Inn Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13) announced today the signing of a purchase agreement to acquire four hotels in the state of Chihuahua totaling 551 rooms. These are:

Hampton Inn by Hilton Chihuahua

Courtyard by Marriott Chihuahua

City Express Chihuahua

City Express Junior Chihuahua

The business fundamentals employed by Fibra Inn for the acquisition of these hotels are the following:

  • Market Strength: Chihuahua is a consolidated state in the north of Mexico; it has a diversified industry and is a leader in manufacturing and export activities due to its proximity to the U.S.
  • Economic Growth: During the past four years Chihuahua average annual GDP growth rate has been 5.4%.
  • Diversified Industry: The state’s economy is supported by a large number of companies, including: Ford, Grupo Bafar, Interceramic, Honeywell Aerospace, Delphi, Cementos Chihuahua, American Industries, Textron, Visteon Corporation, Fokker Aerospace, Heineken, Emerson, Laminal and Jabil.
  • Private Investments: A number of companies have initiated significant investments in the state. Such is the case of Ford, which began expanding its plant in the Industrial Manufacturing Complex of Chihuahua with an investment of US$ 1. 3 billion. Heineken who will build a plant in Meoqui with an investment of Ps. 7.5 billion, expected to start operations in 2017.
Oscar Calvillo, Fibra Inn’s Chief Executive Officer, stated: “The acquisition of these four hotels consolidates our leadership position in Chihuahua, where we will now operate nine hotels. The 9.4% consolidated cap rate for the combined properties for 2016 is based on the outstanding economic performance of the state of Chihuahua. We continue to review purchase opportunities to continue adding suitable properties to the Fibra.”

The acquisition price of Ps. 678.7 million, plus taxes and acquisition-related expenses, as well as the corresponding VAT, will be paid using proceeds from the debt issuance.

With these acquisitions, Fibra Inn has a portfolio of 41 hotels: 39 in operation and two under development, with a total of 6,834 rooms; 548 of these are currently under construction. Fibra Inn’s corporate governance committees approved the purchase of these properties. Fibra Inn will be in charge of the operation of the four hotels.

Hampton Inn by Hilton Chihuahua

Periférico de la Juventud No. 6100, Fraccionamiento Las Haciendas, 31236, Chihuahua, Chih.

The acquisition price will be Ps. 322.2 million, plus Ps. 11.4 million that will be used for taxes and acquisition-related expenses. Additionally, the Company has budgeted Ps. 5.0 million for property improvements. The hotel operates 190 rooms in the select-service segment.

The Hampton Inn by Hilton Chihuahua hotel is a leader in the area and is the only Hilton hotel located in the city. In addition, the hotel operates under the Hampton Inn by Hilton brand, which has one of the highest room rates in Mexico. The hotel is located in the largest real estate development corridor, which includes retail, residential and office buildings. The property has 71% occupancy levels, an average daily rate (“ADR”) of Ps. 1,297 and RevPar of Ps. 917 for the accumulated January to September 2015 period.

Courtyard by Marriott Chihuahua

Periférico de la Juventud s/n, Desarrollo Comercial El Saucito, 31110, Chihuahua, Chih.

The acquisition price will be Ps. 234.4 million, plus Ps. 8.7 million that will be used for taxes and acquisition-related expenses. The hotel, which is currently under construction, will be ready to start operations during the first quarter of 2016 and the Company expects to execute the franchise agreement by then. The hotel will operate 152 rooms in the select-service segment.

The Courtyard by Marriott Chihuahua hotel has a high performance potential from being a well-positioned brand in the U.S. market and will be the first and only Marriott brand hotel in Chihuahua. The hotel is located in the largest real estate development corridor, which includes retail, residential and office buildings.

City Express Chihuahua

Periférico de la Juventud No. 6108, Desarrollo Comercial El Saucito, 31110, Chihuahua, Chih.

The acquisition price will be Ps. 86.8 million, plus Ps. 3.8 million that will be used for taxes and acquisition-related expenses. Additionally, the Company has budgeted Ps. 2.5 million for property improvements. The hotel operates 104 rooms in the select-service segment.

The City Express Chihuahua will be the first hotel operating under this brand in Fibra Inn’s portfolio. It is located in a premium, mixed-use real estate complex and is surrounded by popular restaurants. The property has 74% occupancy levels, an ADR of Ps. 785 and RevPar of Ps. 580 for the accumulated January to September 2015 period.

City Express Junior Chihuahua

Av. Cristóbal Colón esquina Jorge Luis Bordes No. 100, Complejo Industrial Chihuahua, 31109, Chihuahua, Chih.

The acquisition price will be Ps. 35.3 million, plus Ps. 2.2 million that will be used for taxes and acquisition-related expenses. Additionally, the Company has budgeted Ps. 1.5 million for property improvements. The hotel operates 105 rooms in the limited service segment.

The City Express Junior Chihuahua hotel is located next to Ford’s manufacturing plant, which recently announced a US$ 1.3 billion investment. The property has 56% occupancy levels, an ADR of Ps. 542 and RevPar of Ps. 303 for the accumulated January to September 2015 period.

Fibra Inn is a Mexican trust formed primarily to acquire, develop, operate and rent a broad range of hotel properties in Mexico aimed at the business traveler. The Company has signed franchise agreements with IHG to operate its global brands, including: Holiday Inn, Holiday Inn Express, Holiday Inn & Suites, Holiday Inn Express & Suites, Crowne Plaza and Staybridge Suites; with Wyndham Hotel Group to operate its global brands, Wyndham Garden and Microtel Inn & Suites by Wyndham; with Marriott International to operate its brands Marriott and Courtyard by Marriott. Additionally, it has licensing agreements and brand usage agreements with Hilton to operate its brand Hampton Inn by Hilton and with Starwood Hotels & Resorts Worldwide to operate the Aloft brand. The Company has properties that operate with domestic brands such as Camino Real, City Express, City Express Junior, Casa Grande and Arriva Express. Additionally, Fibra Inn has agreements with IHG, Marriott International, Wyndham Hotel Group and Hoteles City Express for the development of properties. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn has listed its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.



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