Mexico is clearly emerging as a winning destination coming out of the pandemic, so it's no surprise to see more cash pouring into the region.
Mexican hotel operator FibraHotel said on Wednesday it is looking to buy resorts and all-inclusive hotels in the coming years while shedding some under-performing properties, aiming to seize on what it described as a boom in beach travel by U.S. tourists.
Los Cabos, Puerto Vallarta and Cancun are among the sunny Mexican spots where the company could be making purchases, FibraHotel’s investments head, Guillermo Bravo, told a news conference.
Bravo declined to disclose how many hotels the company plans to add, or on what timeline.
The firm holds 86 hotel properties in 26 states operated by international brands such as Marriott and Hilton, and aims to add more prestigious partners with the new acquisitions, he added.
The firm is also considering selling some of its buildings in urban areas in Nuevo Leon and Sonora states, citing a slower pick-up in urban tourism despite recovery from the pandemic.
FibraHotel President Simon Galante said the company would also consider expanding in northern border cities as more companies move supply chains from Asia to Latin America.
Mexico’s gross domestic product for the tourism industry grew 19.3 percent in the second quarter from the year-ago-period, and consumption by tourists rose 21.2 percent, according to the national statistics agency.
FibraHotel values its portfolio at about $881.79 million. Yet the company’s debt and shares amount to just $520 million, chief financial officer Edouard Boudrant said.
The company will keep distributing dividends, buy back shares and repay its debt to continue growing and reduce the difference between its value and its assets, Bravo said.
FibraHotel, which went public 10 years ago, posted record results in the third quarter, Boudrant added, as it lured in 1.2 billion pesos, aided by the returning of tourists as pandemic restrictions eased.
(Reporting by Valentine Hilaire; Editing by Sandra Maler)
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Photo credit: Puerto Vallarta is among the sunny Mexican spots where the company could be making purchases. Roman Lopez / Unsplash