Hoteles City Sets Bolsa Check-in Date

Hoteles City plans to price its IPO June 13 and is targeting $250m, according to regulatory documents. The Mexican operator of hotel chains including City Suites and City Express is planning a sale of 87m primary and 34.5m secondary shares at MXP24.00-MXP29.00 each, indicating a MXP3.22bn ($251m) size at the midpoint. The total assumes a 15% greenshoe. Secondary share sellers include founders and company officials, as well as investors including Wamex, the IFC and the IDB. Proceeds from the primary portion will be used for expansion. Bank of America Merrill Lynch, Citi and Morgan Stanley are managing the sale, joined by Actinver on the domestic tranche. Founded in 2003, City Hoteles claims to have grown at an average of 34% per year since, reaching 71 hotels throughout Mexico at the end of last year, to make it Mexico’s third-largest operator. Following Thursday’s follow-on from Fibra Hotel, City Hoteles is joined by Inbursa, Vesta and OHL Mexico in a growing June-July Mexican equity pipeline.