MEXICO CITY, Dec. 11, 2018 — Grupo Hotelero Santa Fe, S.A.B. Of C.V. (BMV: HOTEL) ("HOTEL" or "the Company"), one of the leading companies in the hotel industry in Mexico, announces the signing of a strategic alliance with a group of private investors and AMResorts with the objective to develop the Breathless Tulum Resort & Spa, a Grand Tourism category resort. The construction of this resort will begin in 2Q19 and will offer 300 Suites.
The total estimated investment that will be executed from 2019 to 2021 is of approximately US$ 80 million. Out of the total investment, it is estimated that US$ 32 million will be debt, and HOTEL will contribute US$ 12 million, which represents 25% of the equity. The remaining 75% equity stake will be covered by the group of private investors. The resort will tentatively open in the second half of 2021.
The management of this property will be similar to our recently announced deal for the three Reflect Krystal Grand properties. HOTEL will oversee operation of the property, and AMResorts will be responsible for the commercialization, sales and marketing, which will benefit the property with a high dollar-denominated revenue share due to international (mostly American) sales, as well as better customer acquisition thanks to Apple Leisure Group’s distribution network, the largest global operator for leisure travel to Mexico, the Dominican Republic and one of the largest to the Caribbean.
This development is aligned with our diversification strategy which contemplates growth in the resort segment with partners. Including this transaction, the Company’s portfolio will reach 28 hotels and 6,932 rooms in 18 cities across Mexico, including hotels currently under construction or expansion. The Company will continue to seek and analyze investment opportunities for hotels and properties, as well as third-party hotel management contracts in the ordinary course of business.
AMResorts is a brand of Apple Leisure Group, and a leading hotel brand management company with a collection of 55 resorts in Mexico and the Caribbean, and a solid global sales, marketing and distribution structure. Currently, AMResorts has an inventory of over 20,000 rooms and specializes in the luxury all-inclusive vacation segment. Apple Leisure Group is a leading North American leisure travel company, with the only vertically integrated business model, serving travelers and destinations around the world.
