FibraHotel acquired the Fiesta Americana Condesa Cancun resort hotel in Cancun, Mexico, under a 2.89 billion-Mexican-peso sale and leaseback deal with Grupo Posadas.
Under a long-term lease agreement, containing fixed and variable rent components, the hotel real estate investment trust and Grupo Posadas will jointly serve as operators of the property. The deal will be equivalent to a Jan. 1 closing, and FibraHotel will receive the fixed and variable components of the hotel's lease, while the seller is entitled to the interest income from the cash deployed in the acquisition.
Fiesta Americana features 507 recently renovated rooms, alongside amenities that include bars and restaurants and more than 1,100 square meters of meeting and event space, among other things. The all-inclusive hotel also includes a 200-meter beach front.
FibraHotel used proceeds from its September 2017 equity issuance to fund the acquisition.
The transaction marks the trust's first property purchase in the resort segment, boosting its asset count to 83 operating hotels with 11,926 rooms.
As of Feb. 20, US$1 was equivalent to 18.66 Mexican pesos.