Fibra Inn, a Mexican real estate investment trust specializing in the hotel industry, has acquired two Microtel Inn & Suites located in Culiacan and Ciudad Juarez and totaling 226 rooms.
The acquisition price for the Culiacan hotel was Ps. 55.0 million, excluding taxes and acquisition expenses, and a projected cap rate for 2015 of 10.9 percent. The amount paid for the Ciudad Juarez hotel was 61.0 million, excluding acquisition expenses, and the projected cap rate for 2015 of 10.4 percent. The total payment was made using funds from the recent CBFI issuance.
Fibra Inn opted to acquire these hotels for the following reasons:
a. The Culiacan hotel is exposed to the growing agro-industrial and food sector, with increasing hotel demand as a result of interstate agreements signed. The property is located in a desirable location, facing the Country Club and adjacent to the Hospital Angeles; only an 8-minute drive from the Culiacan airport.
b. The Ciudad Juarez hotel’s market is one of most active border cities due to the maquiladora industry, which has favored from foreign investment. The property benefits from the operation of a brand recognized by international travelers, and is located near the U.S. Consulate and the Zaragoza International Bridge.
Fibra Inn will operate both hotels, each with 113 rooms. With this acquisition, Fibra Inn has a portfolio of 30 hotels, including five under agreement and three under development, with a total of 5,532 rooms; 645 of these are currently under construction.