Grupo Hotelero Santa Fe has announced the acquisition and expansion of two hotels in Mexico that will be rebranded into Krystal Grand 5 star hotels. The hotels will comprise 933 rooms under the brand’s all-inclusive model with the transaction expected to close in the following days once the contractual conditions have been met.
The Krystal Grand brand will grow from two to four hotels and the company will grow 16 percent in the number of operated rooms. The hotels are located in Los Cabos and Nuevo Vallarta, both of which are recognized internationally as top tourist destinations with significant connectivity to the main North American and European markets.
The total value of the assets is $119.8 million, approximately half of which will be financed with debt. The company will contribute $29.8 million which represents 50 percent of the equity and will consolidate both hotels’ operations. The other 50 percent of the equity will remain with the group of private Mexican investors who currently own the hotels.
The Krystal Grand Los Cabos will be a 454 room all-inclusive resort as of March 1, 2017; currently it has 267 rooms and will be operated by the company under a different brand until the before mentioned date. In addition, the hotel will have six restaurants and bars, a ball room and break out rooms capable of holding 1,000 people. Nuevo Vallarta will be a 479 room all-inclusive resort as of November 1, 2017; currently it has 230 rooms and will be operated by the company under a different brand until then. Additionally the hotel will have six restaurants and bars, a ball room and break out rooms for 1,000 people.
The company projects that 23 operating hotels and 6,493 rooms, of which 3,410 hotel rooms will be in the resort segment, representing 53 percent of its portfolio this year. This investment is in line with an expansion strategy which aims towards growth in the main international resort and urban destinations in Mexico in the 4 star and 5 star categories.