Cancun landmark hotel undergoes renovations as part of sale-leaseback deal

CANCUN — FibraHotel, the first real estate investment trust specialized in hotels in Mexico, announced an agreement to acquire the Fiesta Americana Condesa Cancun resort hotel for a purchase price of $2,892 million pesos ($152 million USD) in a sale and leaseback transaction with Grupo Posadas.

FibraHotel and Grupo Posadas have signed a binding agreement subject to shareholders’ and government regulators’ approval.

The transaction is expected to close at the beginning of 2018.

Additionally FibraHotel and Grupo Posadas have committed to invest about $60 million pesos ($3.1 million USD) each to renovate public areas without closing the hotel during 2017 and 2018. Together with the recent room renovation, this will represent an investment of over $400 million pesos ($21 million USD) in the hotel in the past few years.

The FIBRA shareholders meeting is set to take place on September 1^st 2017.

A Cancun landmark, the Fiesta Americana Condesa Cancun hotel has 507 full-service rooms that were recently renovated. The hotel will be operated by Grupo Posadas, and FibraHotel will sign a long-term lease agreement with fixed and variable rent components. The Fiesta Americana Condesa Cancun is an iconic all-inclusive five star resort hotel in a prime location with over 200m of beach front in a land plot of over 40,000m2 in the zona hotelera region of Cancun.

Fiesta Americana Condesa Cancun recently underwent a $300 million pesos renovation by Grupo Posadas.

Source: prnewswire.com