Grupo Hotelero Santa Fe, S.A.B. de C.V., one of the leading companies in the Mexican hotel industry, announced today the acquisition of real estate properties consisting of 54 units for hotel-only purposes, as well as an undeveloped land lot of 1,043 square meters, which currently comprise 162 hotel suites, located in usable area of approximately 15,100 square meters, and is adjacent to the Hilton® Puerto Vallarta hotel.
The transaction represented an investment of US$ 12.0 million (Ps. 224 million). The Company expects an additional investment of Ps. 296.0 million for this project for a total amount of Ps. 520 million. Given that the acquisition would consist of the expansion of an existing hotel, the Company expects to achieve operating efficiencies as well as economies of scale that will result in profit and margin increases. The anticipated opening date of the expansion project is the fourth quarter of 2017.
The target properties of the acquisition were previously owned by Promotora Turística Mexicana, S.A. de C.V., which is the current owner of Krystal® Puerto Vallarta hotel, and is considered a related entity to the Company. Due to the aforementioned, the transaction was reviewed and recommended by the Corporate Practices Committee, the Audit Committee and, subsequently, the Company’s Board of Directors unanimously decided to approve the transaction during the October 20, 2016 meeting. Notably, three valuations were undertaken by separate subject matter expert firms, and these were reviewed by the aforesaid corporate bodies.
The Company expects to renovate the existing 162 suites and develop 30 additional suites for a total of 192 luxury suites, in addition to banquet rooms, restaurants, bars and complementary services, under the Hilton® brand. With this expansion, the Hilton® Puerto Vallarta hotel would increase the number of rooms and luxury suites from 259 to 451, under the all-inclusive Grand Tourism category.
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