FIBRA Inn Seizes Business Opportunities with Tesla's Gigafactory in Nuevo Leon

FIBRA Inn is preparing to seize the business opportunities that will arise from the development of Tesla's Gigafactory in Santa Catarina, located in Nuevo Leon, northern Mexico. To accomplish this, the company has authorized the issuance of debt certificates through the Mexican Stock Exchange (BMV) to raise approximately 1.5 billion pesos. Part of the funds raised will be used to improve hotels within a 50-kilometer radius of where the American electric car manufacturer's plant will be constructed. According to data analyzed by SiiLA, this investment entails renovating at least ten properties in Nuevo Leon and Coahuila.

Currently, FIBRA Inn owns seven hotels with 1,347 rooms in Nuevo Leon and three hotels with 586 rooms in Coahuila. These properties account for one-third (32%) of the hotel REIT's rooms nationwide, according to SiiLA FIBRA Analytics data. To understand FIBRA Inn's investment logic in this Mexican region, it is necessary to mention that the company's hotels in the northeastern zone of Mexico, including properties in Nuevo Leon, Coahuila, and four hotels in Tamaulipas, represent 39% of the REIT's portfolio and generate 62% of its net operating income (NOI).

FIBRA Inn emphasizes the need to capitalize on the increased activity from Tesla's suppliers in Nuevo Leon and eastern Coahuila to maintain its leadership in the region with the highest economic growth in the country. However, the REIT's presence in both states has grown since its establishment in 2013. Between the first quarter of that year and 2023, the number of FIBRA Inn's hotel rooms in Nuevo Leon increased by 220%, while in Coahuila, the increase was 44%, according to FIBRA Analytics data.

In the coming years, FIBRA Inn expects to increase the occupancy levels of its hotel group. In this regard, strengthening its portfolio of properties in northeastern Mexico is essential, as these properties generate a significant portion of the REIT's income and have one of the highest occupancy rates within the group nationwide. During the first quarter of 2023, hotels in northeastern Mexico had an occupancy rate of 62.2%, surpassing FIBRA Inn's average hotel occupancy rate of 60.5% in Mexico.

¿Do you want to know more? For further information about the performance of FIBRA Inn and other REITs, visit FIBRA Analytics or contact us at contacto@siila.com.mx.