Hoteles City Express Announces Sale of 50% Equity Stake in Hotel Portfolio in Tijuana and Ensenada

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.

 

Miranda Newswire – Full Press Release: Download PDF

 

Investor Relations Contact Details

Héctor Vázquez
Corporate Finance and IR
Phone: +52 (55) 5249 8067
E-mail: hvazquez@hotelescity.com 

Marimar Torreblanca
Miranda IR
Phone: +52 55-5282-2992
 
About Hoteles City Express
Hoteles City Express is the leading and fastest-growing limited-service hotel chain in Mexico, in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared mainly towards domestic business travelers. With 152 hotels located in Mexico, Costa Rica, Colombia and Chile, Hoteles City Express operates five distinct brands: City Express, City Express Plus, City Express Suites, City Express Junior and City Centro, to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol “HCITY” furthermore, on October 8, 2014, Hoteles City Express completed a follow on with the aim of accelerating its growth in new hotels over the next few years.

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