Fibra Hotel Nears ECM Return

Concentradora Fibra Hotelera Mexicana is scheduled to price an equity follow-on today targeting more than MXP4.5bn ($356m). The hotel real estate fund owned by Grupo GDI and known as Fibra Hotel is planning to sell 196m primary shares, according to regulatory documents, what would be a MXP5.03bn deal if done at Wednesday’s MXP25.69 closing price. The total assumes a 15% greenshoe. The issuer is raising proceeds for acquiring and developing additional properties, as well as for general corporate purposes, and both domestic and international tranches are available. BBVA and JPMorgan are global coordinators, joined by Goldman Sachs on the international portion and Evercore and Banorte-Ixe on the domestic piece. Fibra Hotel has been widely expected to hold a follow-on after a successful MXP4.14bn IPO in December. It follows the pattern of Fibra Uno, the trust that was the pioneer of the Fibra real estate fund asset class and has been to the market three times to raise more than MXP34bn. The fund includes 39 operating Mexican hotels and 16 in development, under the Fiesta Inn, One and Camino Real brands, in 22 Mexican states. The sale kicks off a busy June-July period in Mexico’s ECM, with Vesta, OHL Mexico and Inbursa all planning follow-ons and hotel operator City Hoteles preparing an IPO.