FibraHotel to acquire Fiesta Americana Condesa Cancun resort hotel in Mexico

17th August 2017 (Last Updated August 17th, 2017 18:30)

FibraHotel, a real estate investment trust specialised in hotels in Mexico, has signed an agreement to acquire the Fiesta Americana Condesa Cancun resort hotel in a sale and leaseback transaction, worth MXN2.8bn ($162.9m), with Grupo Posadas.

FibraHotel, a real estate investment trust specialised in hotels in Mexico, has signed an agreement to acquire the Fiesta Americana Condesa Cancun resort hotel in a sale and leaseback transaction, worth MXN2.8bn ($162.9m), with Grupo Posadas.

FibraHotel and Grupo Posadas signed a binding agreement, which is subject to some conditions including the shareholders' approval of both the firms; FibraHotel´s CBFI placement and, COFECE1 Authorization.

The deal is slated to close at the beginning of next year.

Further, FibraHotel and Grupo Posadas have committed to invest about MXN60m ($3.3m) each to renovate public areas of the hotel between this year and next year.

Along with the recent room renovation, this will represent an investment of over MXN400m ($22m) in the hotel in the past few years.

FibraHotel called for a CBFI holders assembly on 1 September in order to fund this investment as well as other projects.

The focus of this meeting will be on the approval of an equity shelf programme of up to MXN10bn ($563m), of which MXN4bn ($225m) and an overallotment option will be the first issuance of the equity programme, and the acquisition of the Fiesta Americana Condesa Cancun hotel.

Fiesta Americana Condesa Cancun hotel has 507 full-service rooms, which recently underwent renovation.

The hotel will be operated by Grupo Posadas and FibraHotel under a long-term lease agreement with fixed and variable rent components.

Fiesta Americana Condesa Cancun is a five star resort hotel with five specialty restaurants, five bars, spa, over 1,100m2 of meeting and event space, a kid's club and other amenities.

Recently, Grupo Posadas invested MXN300m ($22.5m) to undertake the hotel's renovation.