Hotel Transaction Mexico Monterrey

Crowne Plaza Monterrey Aeropuerto Hotel Sold to Fibra Inn

The acquisition price for the hotel was Ps. 351.0 million, excluding taxes, acquisition expenses and costs related to the improvement of 28 rooms, which are estimated at Ps. 33.8 million. The projected cap rate for 2015 is 10.0%.
Crowne Plaza Monterrey Aeropuerto
Crowne Plaza Monterrey Aeropuerto

Fibra Inn Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV:FINN13), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced that it closed the acquisition of Crowne Plaza Monterrey Aeropuerto hotel, a hotel with a total of 219 rooms.

The acquisition price for the hotel was Ps. 351.0 million, excluding taxes, acquisition expenses and costs related to the improvement of 28 rooms, which are estimated at Ps. 33.8 million. The projected cap rate for 2015 is 10.0%. The total payment was made using funds from the CBFI issuance, which took place in November. The purchase agreement was announced on September 5; the transaction closed today.

Fibra Inn opted to acquire this hotel for the following reasons:

  • Location: The property is strategically located, at just a three-minute drive from the airport. It is surrounded by the city’s main industrial parks, which generate important demand.
  • Leadership: The hotel has been the leader in terms of occupancy and rates among the hotels located in the airport area, a market that is very competitive in terms of the segment and price.
  • Growth in Future Demand: The announcement of the KIA plant in the municipality of Pesqueria, will generate important room demand the area.
  • Property in excellent conditions: The hotel is less than five years old and is in perfect condition.
  • Objective Market: This hotel has an important proportion of foreign travelers. The hotel will offer dollar-denominated rates to these travelers. Considering the recent exchange rate fluctuations, the average daily rate is expected to significantly benefit.
This hotel operates in the full service segment. Its cumulative operating indicators from January to November 2014 reported occupancy of 64.7%, an average daily rate of Ps. 1,231.0, and Revenue per Available Room equal to Ps. 805.0. Fibra Inn will operate the hotel. With this acquisition, Fibra Inn has a portfolio of 31 hotels, including two under agreement and three under development, with a total of 5,718 rooms; 645 of these are currently under construction.

Fibra Inn is a Mexican trust formed primarily to acquire, develop, operate and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality real estate properties aimed at the business traveler and that are geographically diversified throughout Mexican territory. 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 and Crowne Plaza; with Wyndham Hotel Group to operate its global brands Wyndham Garden and Microtel Inn & Suites by Wyndham. 

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 like Camino Real and Casa Grande. Additionally, Fibra Inn has agreements with IHG, Marriott International, Wyndham Hotel Group and Hoteles City Express for development of properties. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn recently 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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