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 140-room select-service hotel Fiesta Inn San Luis Potosi Oriente the hotel will continue to be branded under as Fiesta Inn and will be operated by Grupo Posadas.
The transaction was paid with cash for Ps. $125,000,000.00 (one hundred twenty five million Pesos MN).
The Fiesta Inn San Luis Oriente hotel is located at Carr. 57 km. 197+100, No 2390 Periférico Oriente, 78090, San Luis Potosí, San Luis Potosí. This acquisition complements our portfolio by adding presence in San Luis Potosi and taking FibraHotel´s exposure to 25 states in Mexico. The hotel is located in the industrial corridor of San Luis Potosí, which has experienced important growth, as an example, the BMW Group recently announced a US$1bn investment in manufacturing plant with capacity for 150,000 cars a year.
With this acquisition FibraHotel´s portfolio consists of 59 hotels and 8,026 rooms of which 48 hotels are in operation (6,806 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.