MEXICO CITY, Feb. 16, 2017 — Grupo Hotelero Santa Fe, S.A.B. Of C.V. (BMV:HOTEL) ("HOTEL" or "the Company"), one of the leading companies in the hotel industry in Mexico, announces the acquisition and expansion of two hotels that will be rebranded into Krystal Grand® 5 star hotels, with a total of 933 rooms under the All-Inclusive model. The transaction is expected to close in the following days once the contractual conditions have been met. The Krystal Grand® brand will grow from 2 to 4 hotels, and the Company will grow 16% in number of operated rooms. The hotels are located in Los Cabos and Nuevo Vallarta, two of the most important resorts destinations in Mexico, which are recognized internationally as top tourist destinations with significant connectivity to the main North American and European markets. The total value of the assets is US$119.8 million, approximately half of which will be financed with debt. HOTEL will contribute US$29.8 million which represents 50% of the equity and will consolidate both hotels’ operations. The other 50% of the equity will remain with the group of private Mexican investors who currently own the hotels.
The Krystal Grand® Los Cabos will be a 454 room all-inclusive resort as of March 1st 2017; currently it has 267 rooms and will be operated by the Company under a different brand until the before mentioned date. Additionally the hotel will have 6 restaurants and bars, a ball room and break out rooms for 1,000 people, all under compliance with Krystal Grand® standards. Los Cabos is one of the most important resort destinations on the Pacific Coast in Mexico with hotel occupancy of 70% in 2016(1). Los Cabos International airport received 4.2 million passengers in 2016, a 25% increase compared to 2015, of which over 70% were international passengers (2).
The Krystal Grand® Nuevo Vallarta will be a 479 room all-inclusive resort as of November 1st 2017; currently it has 230 rooms and will be operated by the Company under a different brand until the before mentioned date. Additionally the hotel will have 6 restaurants and bars, a ball room and break out rooms for 1,000 people, all under compliance with Krystal Grand® standards. Nuevo Vallarta is one of the top destinations of the pacific coast of Mexico with hotel occupancy of 70% in 2016(1). Puerto Vallarta International airport received 4.1 million passengers in 2016, a 16% increase compared to 2015, of which over 65% were international passengers (2).
With these projects, HOTEL will reach 23 operating hotels and 6,493 rooms, of which 3,410 hotel rooms will be in the resort segment, representing 53% of the Company’s portfolio. This investment is in line with the Company’s expansion strategy, which aims towards growth in the main international resort and urban destinations in Mexico in the 4 star and 5 star categories, through hotels in key locations under our proprietary Krystal® brands. The Company will continue seeking and analyzing investment opportunities in hotels and properties as well as third-party hotel management contracts in the ordinary course of business.
(1) Source: Datatur – Tourism ministry of Mexico (2) Source: Grupo Aeroportuario del Pacifico Website
