VERACRUZ, MEXICO—Deutsche Bank Mexico, S.A., Institucion de Banca Multiple, and Fibra Inn, a Mexican real estate investment trust, 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. Fibra Inn expects three months for the planning and securing of permits with an additional 12 months for the construction process. Operations are expected to initiate at this hotel during the second or third quarter of 2015.