Hotel Fibra Sets Target

Mexico’s Grupo GDI has scheduled November 29 as the pricing date for the IPO of its Fibra Hotelera Mexicana, targeting more than MXP4bn ($302m). The transaction will create a fund holding hotel assets, according to regulatory documents, and is set to be the second-ever Fibra and the first with a hotel focus. GDI is offering 194m shares at MXP18.00-MXP21.00 each, indicating a MXP4.35bn deal if done at the midpoint and a 15% greenshoe is exercised. The issuer plans to place 30% of the deal with international investors. The fund would include 30 operating Mexican hotels and four in development, including the Fiesta Inn, One and Camino Real brands. Proceeds would be used for acquiring and developing additional properties. BBVA and JPMorgan are global coordinators, with Evercore and Banorte-Ixe joining on the local portion. GDI specializes in hotels, malls and residential property development. Following a resurgence in Mexican equity issuance since September, several real estate players are lining up to issue the REIT-like Fibra transactions. Omni Hotel plans a deal similar, though smaller, to Grupo GDI’s. Macquarie’s Mexican real estate operation has also filed for a Fibra involving multiple types of real estate assets.