FibraHotel, a real estate investment trust specialized in urban business-class hotels in Mexico, has acquired the Sheraton Ambassador Monterrey, adding 229 rooms to FibraHotel's portfolio. The transaction will represent a total investment of $13.5 million by FibraHotel, including a renovation over the next two years.
The hotel will be operated by Starwood through a long-term management agreement.
FibraHotel and Starwood also announced that they will collaborate to expand the number of hotels they work on together in Mexico as FibraHotel looks to grow its hotel portfolio. FibraHotel recently signed an agreement with local developers for five business hotels in the country, and will work with Starwood to open those hotels under Starwood’s vibrant Aloft brand with Starwood as the operator.
“We are proud to add the world-renowned Sheraton brand to our expanding portfolio and look forward to collaborating with Starwood on this hotel and are excited about the possibility to grow this partnership in the future,” said Simon Galante, CEO of FibraHotel. “Starwood operates many of the industry’s most well-respected and innovative hotel brands, and also has a leading operating platform and we are excited to partner with them as we grow our portfolio in Mexico with leading international brands.”
“The sale of Sheraton Ambassador Hotel is another example of Starwood’s commitment to both an asset-light strategy and working with value-add partners who share our vision for our hotels to be brand-enhancing properties,” said Simon Turner, president of Global Development for Starwood. “We continue to seek the right asset disposition opportunities to create value for our shareholders, and very much look forward to working closely with FibraHotel to ensure the future success of this hotel and as we broaden our relationship to expand our presence in Mexico.”
With this acquisition, FibraHotel´s portfolio consists of 66 hotels and 9,098 rooms, of which 53 hotels are in operation (7,334 rooms), 12 in different stages of development, and a hotel under expansion and remodeling.