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Fibra Inn Announces the Payment and Acquisition of the Casa Grande Ciudad Juarez Hotel

MONTERREY, Mexico, Apr 26, 2016 (BUSINESS WIRE) -- Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (bmv:FINN13)(adr otc:DFBRY) (“Fibra Inn” or “the Company”), the Mexican real estate investment trust specializing in the hotel industry serving the business traveler with global brands, announced that it has concluded the acquisition of the Casa Grande Ciudad Juarez hotel. The hotel has 145 rooms and operates in the full-service segment. Fibra Inn's hotel operator will be in charge of the operation of the hotel.

The transaction was paid with resources coming from debt issuance, representing a final investment of Ps. 111.3 million plus taxes, acquisition-related expenses and corresponding VAT expenses. The strategy is to maximize the return of this property focusing on the following:

(i) The conversion of this hotel to the Holiday Inn brand, for which an additional Ps. 110.4 million will be allocated.

(ii) The construction of 50 additional rooms, for which Ps. 57.2 million will be allocated.

The projected cap rate for 2016 is 9.26%. Once stabilized, with the room expansions and the conversion to an international brand, a cap rate of 10.71% is expected for 2018. The rebranding and the room additions are expected to conclude during the fourth quarter of 2017.

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