Promotora de Hoteles Norte 19 Announces Sale of 50% Stake in City Express Plus San Luis Potosí and Acquisition of 50% Stake in City Express San Luis Potosí Universidad

Mexico City, October 17th, 2024 – Promotora de Hoteles Norte 19, S.A.B. de C.V. (BMV: HCITY) (“Norte 19” or “the Company”) announces, as part of its asset recycling strategy, the sale of its 50% stake in the City Express Plus by Marriott San Luis Potosí hotel. The asset is valued at $315,000,000.00 pesos (three hundred fifteen million pesos), with $95,000,000.00 pesos (ninety-five million pesos) corresponding to debt. Norte 19 received $110,000,000.00 pesos (one hundred ten million pesos) for its stake, achieving a price above replacement cost and book value.

This transaction reduces the Company’s financial debt by $95,000,000.00 pesos, which will no longer be consolidated in its financials. The hotel portfolio now stands at 151 hotels and 17,394 rooms.

Additionally, Norte 19 valued the City Express by Marriott San Luis Potosí Universidad at $104,000,000.00 pesos (one hundred four million pesos) and acquired the remaining 50% stake for $52,000,000.00 pesos (fifty-two million pesos). This hotel is now part of the Company’s owned portfolio.

The Company will use the net proceeds to prepay $58,000,000.00 pesos (fifty-eight million pesos) of its syndicated loan, reducing interest payments and financial leverage.

This transaction reinforces Norte 19’s commitment to selling non-strategic assets to lower financial leverage.

 

Miranda Newswire – Full Press Release: Download PDF

 

Investor Relations Contact Details

Héctor Vázquez
Corporate Finance, Treasury, and IR
Phone: +52 55-5249-8067
E-mail: hvazquez@norte19.com

Ana Lucía Sors
Miranda IR
Phone: +52 833-293-4232
 
About Norte 19 
Norte 19 is a Mexican company that offers integrated solutions for the hospitality industry, dedicated to providing services ranging from the design and development of hotels to the operation and management of first-class hospitality businesses. With a track record spanning more than two decades, Norte 19 has stood out for its commitment to excellence in service, innovation in technology, and efficiency in operation. Norte 19 operates more than 150 hotels in Mexico, Colombia, Costa Rica, and Chile, establishing strong partnerships with recognized brands and continuously adapting to market demands. Norte 19 will maintain the same ticker symbol (“HCITY”) on the Mexican Stock Exchange (BMV).
For further information, please visit our website: https://norte19.com/en/investors

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