Mexico City, March 17th, 2022 – Hoteles City Express, S.A.B. de C.V. (“Hoteles City Express” or “the Company”) (BMV: HCITY) announces, as part of the Company’s asset recycling and liquidity strategy, the close of the sale of a 50% equity stake in a portfolio of three hotels located in Tijuana (City Express and City Junior Tijuana Otay) and Ensenada (City Express Ensenada). The agreed transaction price was $539,229,000.00 (five hundred thirty-nine million, two hundred twenty-nine thousand Mexican pesos 00/100 M.N.). This represents a cap rate of 9.5%, considering the 2021 NOI, and an appreciation of 57% over the historical acquisition cost. Hoteles City Express will continue to operate the hotels under its management and franchise scheme.
With part of the resources obtained from the transaction, the Company will make a prepayment to the syndicated loan in the amount of $107,600,000.00 (One hundred and seven million six hundred thousand pesos). Likewise, with the deconsolidation of these properties, $104,619,548.86 (One hundred and four million six hundred and nineteen thousand five hundred and forty-eight pesos 86/100 M.N.) of debt will no longer be considered in the Company’s balance sheet.
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Investor Relations Contact Details
Héctor Vázquez
Corporate Finance and IR
Phone: +52 (55) 5249 8067
E-mail: hvazquez@hotelescity.com