Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced that its internal corporate governance bodies approved the development of the Hotel Fairfield Inn & Suites by Marriott in Ciudad del Carmen, Campeche, as per a franchise agreement with Marriott International.
The total investment in this development will be Ps. 188.9 million with a projected cap rate of 12.3%. The total investment is comprised of Ps. 179.2 million corresponding to the construction of the property and the purchase of the land, Ps. 1.9 million for working capital and Ps. 7.8 million for development costs.
The hotel will be in the budget or limited service segment and will have 180 rooms. The construction will take approximately 12 months after the obtainment of permits. This hotel will be operated by Fibra Inn’s Hotel Operator.
Fibra Inn opted to develop a Fairfield Inn & Suites by Marriott hotel in Ciudad del Carmen, for the following reasons:
• Ciudad del Carmen is one of the most leading oil-producing cities in Mexico.
• This city lodges important companies such as Weatherford, Halliburton, Dowell Schlumberger, Comesa, Cotemar, Grupo Carso, Compañía Perforadora México and Pemex.
• This is a market with an average occupancy of 65% and has expected growth potential in terms of demand.
• Most of the current lodging is comprised of independent hotels.
• Ciudad del Carmen’s economic activity is expected to be a positively impacted by the recent approval of the Energy Reform, therefore benefiting the performance of this hotel.
The land lot is located in a property that is yet to be labelled with an address, on 31st street in Colonia Benito Juarez, Ciudad del Carmen, Campeche. This property represents 4% of the total value of Fibra Inn’s portfolio. To date, Fibra Inn has a portfolio of 21 hotels in operation plus 3 under development for a total of 4,298 rooms, of which 844 are under construction.
About the Company
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 13 states throughout Mexico, comprising approximately 4,501 rooms, which 898 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”.
For more information, please visit our corporate site and investor relations section at: http://www.fibrainn.mx