MESSAGE TO INVESTORS
Two years have passed since the creation of Fibra Inn took place. We sought to become a publicly-held company, and we felt that in order to reach the growth we anticipated in the hotel sector we had to resort to the most efficient financing source: the capital markets. Today, we can be certain that we were not wrong and that we chose the correct path.
Fibra Inn became committed to the financial markets in order to reach objectives in the face of a challenging scenario. Today we can assure our holders that we have accomplished each of those.
The most important accomplishments were:
- Growth of the portfolio to 30 hotels at the end of 2014. Today we have 34 properties: 31 hotels in operation, 2 in development and one lot.
- Payment of attractive dividends to our investors. Out of the public hotel companies, Fibra Inn has paid the highest interest rate in distributed dividends to the market.
- Change in fee structure. he market spoke and we listened, eliminating the 3% acquisition fee and making the required adjustments.
- The operation of hotels with a greater number of global brand names. We went from two to 12 internationally recognized brand names.
- Geographic Diversification. We went from operating hotels in 6 states, mainly in the northern region of Mexico, to a total of 14 states. Today, we are present mostly in the central part of Mexico, where the greatest economic activity is located.
- Continuous improvement in operational efficiency. Today, Fibra Inn is the publicly-held hotel FIBRA with the best efficiency and profitability indicators.
But that is all history now...
Looking towards the 2015-2016 period, the challenges are not fewer. Therefore, in order to double the portfolio, we have defined a strategy that will place us on the correct path to achieving our objectives.
For this, we are making decisions at the top level, that we are confident will help us reach our established goals. Fibra Inn's Technical Committee Chairman shall adopt the following measures in order to ensure that we reach our long-term goals in the most efficient manner.
- Ensure that our Portfolio Expansion is carried out in accordance with the quality and profitability criteria we have followed until now. That is, we will ensure that these investments adhere to prudent hotel business criteria and are consistent with Fibra Inn's strategy of serving the business traveler in the regions we have defined as strategic throughout Mexico.
- Improve Fibra Inn's Corporate Governance standards by carrying out changes in our organization, which will ensure the implementation of the best industry practices. As an example, we recently made the decision to separate the duties of the Chairman of the Technical Committee and those of the Chief Executive Officer. We have also strengthened our organizational structure with an experienced and seasoned team of executives.
- Finally, we will work towards fortifying Fibra Inn's Strategic Control Group, in order to obtain strategic alliances that will continue to drive growth and generate investor value.
I wish to thank our investors for the confidence they have placed in Fibra Inn by participating in the subscription of capital last November. As a result of this transaction, today Fibra Inn is in a position to meet its growth objectives of reaching 60 hotels by the end of 2016, thereby substantially increasing Fibra Inn's size.
As of this date, our market capitalization amount has reached nearly US$486 million, compared with nearly US$385 million on the date of our Initial Public Offering.
Fibra Inn's liquidity is extremely important to the capital markets, thus we are focused on doing everything possible to increase the liquidity of the CBFIs. For this reason, we will continue to promote a virtuous circle that will generate liquidity with a greater and diversified investor base. Our ultimate objective continues to be to maximize visibility, interest in and, as a result, the long-term liquidity of the Company.
Finally, I wish to express my appreciation to all of you –our partners, colleagues, investors and employees who form a part of the Fibra Inn group– for your interest in our Company.
Sincerely,
Victor Zorrilla Vargas