Fibra Hotel celebrates ten years on the Stock Market with a loss of 57.96%

Fibra Hotel celebrated its tenth anniversary this Wednesday by listing on the Mexican Stock Exchange (BMV) with a loss in its stock certificates of 57.96% since it began trading on the stock market.

Real estate trust stock certificates (CBFI) began trading on the market with an initial price of 19.7 pesos each. Currently, they are listed at 8.39 pesos each.

The CEO of Fibra Hotel (FIHO), Simón Galante, said that despite the negative return of their certificates, investors have not had losses since dividends have been delivered.

The trust has had very significant profits, we have distributed more than six pesos per certificate to investors via dividend,” said the manager at a press conference on the occasion of the BMV bell ringing for the tenth anniversary.

Simón Galante explained that the losses in the certificate are due to the Covid-19 pandemic, as well as the suspension of the dividend payment that Fibra Hotel had to make in 2020 to strengthen the company.

“I am convinced that (stopping the dividend payment) was the best decision we could make, since obviously we did not have that flow and we used it to repay the debt we took on,” said the manager.

In May 2020, the certificates reached a minimum of 3.74 pesos each, due to investor concern about the impact of the pandemic on the operation of Fibra Hotel.

“What I would tell investors is to be patient, this is a long-term real estate business and cyclicality has played against not just more than Fibra Hotelbut of many listed companies”, he said.

He announced that for the following year a scheme with three actions will be announced: return to the distribution of profits, reinvestments or even repurchase of shares, as well as deleveraging of the company through debt repayment.

“I think we are on the right track after two terrible years and we will have this recovery. We as management and as the largest shareholder of this vehicle are fully committed to this for the long term,” he stated.

In 2022, certificates of Fibra Hotel they have risen 47.19% as the company has recovered its occupancy and profit levels. In the third quarter of this year, Fibra reported revenues and operating flow (EBITDA) at record levels, although it has not yet recovered the occupancy rate it had before the covid-19 pandemic.

Fibra Hotel account in its portfolio with the hotels of Posadas Group (Fiesta Americana, Fiesta Inn, Real Inn and Gamma), Marriot (Courtyard) y Royal Tourism Group (Royal Road). It has a total of 86 hotel complexes and 12,558 rooms, according to its latest quarterly report.

Fibra refers to a Real Estate Investment Trust, which is a stock instrument that allows investors to participate in the real estate market through the BMV. FIHO is the first instrument of its kind dedicated to the hotel segment.

access to capital

The investment director of Fibra HotelGuillermo Bravo, stressed that the greatest benefit for the company from being listed on the Mexican stock market has been the access to capital that has allowed it to expand.

“We came from a private company where it took 17 years to make 17 hotels and with access to institutional capital we managed 86 hotels in these 10 years,” said Guillermo Bravo.

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