Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13, ADR OTC:DFBRY) announced that it has concluded the acquisition of the Casa Grande Ciudad Juarez hotel. The hotel has 145 rooms and operates in the full-service segment. Fibra Inn´s hotel operator will be in charge of the operation of the hotel.
The transaction was paid with resources coming from debt issuance, representing a final investment of Ps. 111.3 million plus taxes, acquisition-related expenses and corresponding VAT expenses. The strategy is to maximize the return of this property focusing on the following:
(i) The conversion of this hotel to the Holiday Inn brand, for which an additional Ps. 110.4 million will be allocated.
(ii) The construction of 50 additional rooms, for which Ps. 57.2 million will be allocated.
The projected cap rate for 2016 is 9.26%. Once stabilized, with the room expansions and the conversion to an international brand, a cap rate of 10.71% is expected for 2018. The rebranding and the room additions are expected to conclude during the fourth quarter of 2017.
This is the 10th acquisition in Chihuahua and reaffirms Fibra Inn’s leadership position in this highly-dynamic state. This is due to the strong maquiladora and manufacturing activity in this area, which shall benefit as a result of its proximity to the U.S. border.
As a result of this acquisition, Fibra Inn has a total portfolio of 42 properties; of which 41 hotels are in operation and one is under a binding agreement. The total is 7,027 rooms, of which 221 are currently under construction.
Casa Grande Chihuahua
Av. Tecnológico 3620, Col. Partido Iglesias, 32617, Ciudad Juárez, Chihuahua.
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, license and brand usage agreements with international hotel brands for the operation of global brands as well as the operation of national brands. Additionally, the Company has development agreements. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn trades its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADR trades on the OTC market in the U.S. under the ticker symbol “DFBRY”.
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