FibraHotel entered into an agreement to acquire the Fiesta Americana Condesa Cancun resort hotel from Grupo Posadas S.A.B. de C.V. (BMV:POSADAS A) for MXN 2.9 billion.

FibraHotel (BMV:FIHO12) entered into an agreement to acquire the Fiesta Americana Condesa Cancun resort hotel from Grupo Posadas S.A.B. de C.V. (BMV:POSADAS A) for MXN 2.9 billion on August 15, 2017. FibraHotel acquired the hotel in a sale and leaseback transaction. FibraHotel and Grupo Posadas have committed to invest about MXN 60 million each to renovate public areas without closing the hotel during 2017 and 2018.

To fund the purchase investment as well as other projects and other general corporate purposes, FibraHotel called a CBFI holders assembly to take place on September 1, 2017. The items in the agenda will focus on, among other things, the approval of an equity shelf program of up to MXN 10 billion of which, MXN 4 billion will be first issuance from the equity program and acquisition of the Fiesta Americana Condesa Cancun hotel. Completion of the transaction is subject to approval by shareholders of Grupo Posadas and FibraHotel, successful CBFI placement by FibraHotel and approval by Mexican anti-trust commission.

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