FibraHotel (BMV: FIHO 12), the first real estate investment trust specialized in urban business-class hotels in Mexico, announces that it closed the acquisition of the 128-room limited-service hotel Fairfield Inn by Marriott located in Los Cabos, Baja California Sur. The hotel will continue to be branded under as a Fairfield Inn by Marriott and will be operated by Marriott International.
The transaction was paid with cash and represents a total investment of Ps. $110.0 million.
The hotel is located at Avenida Lázaro Cárdenas 2709, Col. Medano, Cabo San Lucas, Baja California Sur, on the main avenue of Cabo San Lucas and walking distance to the beach and the marina. This acquisition complements our portfolio by adding presence in Baja California Sur, and now FibraHotel has presence in 24 states in Mexico. This hotel is mostly targeted to business travelers but is also benefitted during vacations and weekends.
The Fairfield Inn Los Cabos hotel represents FibraHotel´s first operating hotel with Marriott International reinforcing our partnership signed in November 2013. Under the agreement with Marriott, FibraHotel will own 20 hotels that are operated by Marriott International under their brands. In addition to this operating hotel, FibraHotel has announced 4 hotels with Marriott which are under development.
With this acquisition FibraHotel´s portfolio consists of 58 hotels and 7,886, rooms, of which 47 hotels are in operation (6,666 rooms) and 11 are in different stages of development.
FibraHotel is a Mexican trust created primarily to acquire, develop and operate business-class hotels in the limited service, selected service, full service and extended-stay segments. Our objective is to provide attractive returns to our CBFI holders, through stable cash distributions and the appreciation of our real estate assets. Also, we will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned operators, as well as geographic and segment diversification.
Under Mexican laws, Fibras must invest at least 70% of its assets in real estate for lease, among other requisites. Additionally, Fibras must distribute in cash at least once a year 95% of taxable income to its CBFI holders. Such characteristics, together with a solid performance of the real estate market in Mexico and a team with over two decades of real estate and hotel experience, make FibraHotel an attractive investment vehicle.
FibraHotel is internally managed by Fibra Hotelera, S.C., and is externally advised by Administradora Fibra Hotelera Mexicana, S.A. de C.V whose key executives have extensive experience in the development and operations of commercial real estate and hotels in Mexico.