Mexican REIT Fibra Inn has signed an agreement to purchase the 192-room Marriott Real Puebla Hotel in Puebla, Mexico, for US$27.8 million. This acquisition will be paid in cash with the proceeds from the initial public offering that took place March 13.
Monterrey, Mexico-based Fibra Inn expects to add 100 rooms to the hotel by the fourth quarter of 2014, and its hotel operating company will manage the property.
Fibra Inn considers this acquisition strategic as it signifies the addition of the Marriott brand to Fibra Inn’s portfolio. This property will contribute approximately 15% of the hotel revenues and will represent 12% of Fibra’s property value.
The Marriott Real Puebla is located on Avenida Hermanos Serdan very close to the Mexico-Puebla highway and the FINSA industrial park. This area is strategic for Fibra Inn as it has demonstrated significant economic growth that is linked to automotive industry investment, mainly in the Volkswagen and Audi plants, as well as in their auto parts providers. Puebla is also a weekend tourist destination for citizens of Mexico City and surrounding towns.
During 2012, this hotel’s occupancy rate was 74%; its average room rate was 1,191 pesos (US$92.15) and RevPAR was 885 pesos (US$68.47).