Deutsche Bank Mexico, Banking institution, Trust Division F/1616 or Fibra Inn purchased the Holiday Inn Reynosa Industrial Poniente hotel in the State of Tamaulipas, Mexico.
The acquisition price was $6.89 million, and land will be acquired for $730,000. An additional $5.5 million will be destined for a 100-room expansion and 1.7 million for taxes and acquisition-related expenses, for a total investment of $14.8 million. Fibra Inn's internal management approved the acquisition with a projected stabilized cap rate equal to 10.55 percent. The payment will be made using funds from the CBFI issuance carried out during November 2014.
The hotel currently has 95 rooms, is in the full-service segment and will be operated by Fibra Inn. The cumulative operating indicators for 2014 reported occupancy of 65 percent, average daily rate of $6, and revenue per available room equal to $43.6.
With this acquisition, Fibra Inn has a portfolio of 31 hotels, plus one hotel under agreement, and two under development, with a total of 5,733 rooms; 565 of these are currently under construction.