Deutsche Bank Mexico, S.A., Institucion de Banca Multiple, Division Fiduciaria, Fideicomiso F/1616 or Fibra Inn (BMV:FINN13) ("Fibra Inn" or "the Company"), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced that its internal corporate governance bodies approved the purchase of a land bank located in the city of Coatzacoalcos, Veracuz, to be used for the development of a select service hotel.

Fibra Inn is evaluating the franchises in order to select the global brand that it will use to operate this hotel. The investment for this development will be Ps. 162.8 million, excluding acquisition costs. Of this amount, Ps. 137.4 million correspond to the construction of the hotel and Ps. 25.4 million correspond to the purchase of the land bank. The projected cap rate is 11.30%.

The hotel will have 180 rooms. The Company expects 3 months for the planning and securing of permits with an additional 12 months, approximately, for the construction process, thus operations are expected to initiate at this hotel during the second or third quarter of 2015.

Fibra Inn opted to develop a hotel in Coatzacoalcos, for the following reasons:

  • Coatzacoalcos is a growth market that is mainly dependent on the oil and petrochemical industries.
  • PEMEX's Ethylene 21 plant is currently under construction.
  • The city includes the following major companies: Weatherford, Haliburton, Dowell Schlumberger, Comesa, Cotemar, Grupo Idesa, Pemex, Cydsa and Mexichem.
  • This city has an average overall occupancy rate of 66% with demand growth potential.
  • Most of the hotel offerings in this location are comprised of independent hotels.
  • Due to the recent Energy Reform, there is an expected positive impact on this city, which will benefit the performance of this hotel.

The land bank is located at a waterfront corridor at Abraham Zabludovsky No. 101 on the corner of Boulevard Costero. This property represents 4% of the total value of the portfolio of the fibra. To date, Fibra Inn has 18 hotels in operation, plus one more under development; with 3,520 rooms in operation, of which 484 are under construction.

About Us

Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality hotels serving the business traveler that are geographically-diversified throughout 12 states throughout Mexico, comprising approximately 3,520 rooms, of which 484 are under construction. The Tenant has signed Franchise Agreements with IHG to operate its global brands, which include: Holiday Inn, Holiday Inn Express, and Holiday Inn Express & Suites. It also has license agreements with Hilton to operate its brand Hampton Inn by Hilton; and has development agreements with IHG, Marriott International and Wyndham Hotel Group. These hotel brands enjoy some of the industry's top loyalty programs and offer attractive lodging options for businesses travelers. Fibra Inn trades its Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or "CBFIs") on the Mexican Stock Exchange and under the ticker symbol "FINN13".

For more information, please visit: www.fibrainn.mx

Note on Forward-Looking Statements

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

In Monterrey, México:
Fibra Inn
Lizette Chang, 52 1 (81)1778-5926
IRO
lchang@fibrainn.mx
www.fibrainn.mx
or
In New York:
i?advize Corporate Communications, Inc.
Maria Barona, 212-406-3691
mbarona@i-advize.com
or
Melanie Carpenter, 212-406-3692
mcarpenter@i-advize.com
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