FibraHotel Acquires the Sheraton Ambassador Hotel in Monterrey, Mexico from Starwood Hotels & Resorts
The 229-room hotel will undergo a comprehensive renovation and continue to operate as a Sheraton under a new long-term management agreement
FibraHotel (BMV:FIHO 12), the first real estate investment trust specialized in urban business-class hotels in Mexico, and Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT), today announced the sale of the Sheraton® Ambassador Monterrey hotel to FibraHotel, adding 229 rooms to FibraHotel's portfolio. The transaction will represent a total investment of US$13.5 million by FibraHotel, including a comprehensive property renovation over the next two years. The hotel will be operated by Starwood through a long-term management agreement.
Exterior of the Sheraton Ambassador Hotel (Photo: Business Wire)
FibraHotel and Starwood also announced today that they will collaborate to expand the number of hotels they work on together in Mexico as FibraHotel looks to grow its hotel portfolio. FibraHotel recently signed an agreement with local developers for five business hotels in the country, and will work with Starwood to open those hotels under Starwood's vibrant Aloft® brand with Starwood as the operator.
"We are proud to add the world-renowned Sheraton brand to our expanding portfolio and look forward to collaborating with Starwood on this hotel and are excited about the possibility to grow this partnership in the future," said Simon Galante , CEO of FibraHotel. "Starwood operates many of the industry's most well-respected and innovative hotel brands, and also has a leading operating platform and we are excited to partner with them as we grow our portfolio in Mexico with leading international brands."
"The sale of Sheraton Ambassador Hotel is another example of Starwood's commitment to both an asset-light strategy and working with value-add partners who share our vision for our hotels to be brand-enhancing properties," said Simon Turner , President of Global Development for Starwood. "We continue to seek the right asset disposition opportunities to create value for our shareholders, and very much look forward to working closely with FibraHotel to ensure the future success of this hotel and as we broaden our relationship to expand our presence in Mexico."
Sheraton Ambassador Hotel is ideally located at Ave. Hidalgo 310 Oriente in the heart of downtown Monterrey – one of Mexico's largest cities and an important industrial and global business hub. The hotel currently features 229 guest rooms, over 13,000 square feet of meeting space, full-service dining at Los Vitrales Restaurant, a lobby bar, a health club, an outdoor pool and tennis court, and a Sheraton Club Lounge. The hotel is walking distance to the restaurants, shops and museums of historic downtown Monterrey and just 30 minutes from Monterrey International Airport (MTY).
Mexico is Starwood's largest market in Latin America and continues to lead the company's growth in the region. The agreement with FibraHotel will allow Starwood to grow with a recognized hotel owner and add to its already strong operating portfolio of 28 hotels in Mexico, with six more under development, across eight of its nine world-class brands including Sheraton, Westin, Le Méridien, St. Regis, The Luxury Collection, W Hotels, Aloft and Four Points by Sheraton.
With this acquisition, FibraHotel´s portfolio consists of 66 hotels and 9,098 rooms, of which 53 hotels are in operation (7,334 rooms), 12 in different stages of development, and a hotel under expansion and remodeling.
About FibraHotel
FibraHotel is a Mexican trust created primarily to acquire, develop and operate business-class hotels in the limited service, selected service, full service and extended-stay segments. Our objective is to provide attractive returns to our CBFI holders, through stable cash distributions and the appreciation of our real estate assets. Also, we will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned operators, as well as geographic and segment diversification.
Under Mexican laws, Fibras must invest at least 70% of its assets in real estate for lease, among other requisites. Additionally, Fibras must distribute in cash at least once a year 95% of taxable income to its CBFI holders. Such characteristics, together with a solid performance of the real estate market in Mexico and a team with over two decades of real estate and hotel experience, make FibraHotel an attractive investment vehicle.
FibraHotel is internally managed by Fibra Hotelera, S.C., and is externally advised by Administradora Fibra Hotelera Mexicana, S.A. de C.V whose key executives have extensive experience in the development and operations of commercial real estate and hotels in Mexico.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels &
