Hoteles City Express Announces Sale of 50% Equity Stake in the Ce Chihuahua Hotel

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Mexico City, March 24th, 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 sale of a 50% equity stake in the Ce Chihuahua hotel. The agreed transaction price was $149,800,000.00 (one hundred and forty-nine million eight hundred thousand Mexican pesos 00/100 M.N.). Once the transaction is completed, Hoteles City Express will continue to operate the hotel under a management and franchise agreement.

With part of the resources obtained from the transaction, the Company will make a prepayment to the syndicated loan in the amount of $21,500,000.00 (twenty-one million five hundred thousand Mexican pesos 00/100 M.N.). Likewise, with the deconsolidation of these properties, $56,427,464.80 (fifty-six million four hundred and twenty-seven thousand four hundred and sixty-four Mexican pesos 80/100 M.N.) of debt will no longer be considered in the Company’s balance sheet.

During the last 12 months, the Company has announced asset sales for a total amount of $782,000,000.00 (seven hundred eighty-two million Mexican pesos 00/100 M.N.). The Company will continue to monitor and analyze different balance sheet deleveraging opportunities, as well as strategies to preserve and capture more liquidity.

 

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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