Hyatt Cancun Caribe Resort In Cancun

Posted on October 11, 2006
Filed Under Hotels |

Neptune Hospitality Advisors, acting as exclusive financial advisor, has arranged the senior financing for the recapitalization of a six property resort hotel portfolio located throughout Mexico.� The portfolio, which included the Hyatt Cancun Caribe also included additional hotels in Cancun, Cozumel, Acapulco, Los Cabos and Ixtapa.� Neptune arranged the US$103 million floating rate interest-only loan through an international investment bank.� The borrower is a private Mexican resort ownership and management company.

“We were able to structure the recapitalization to satisfy a host of strategic and financial objectives including: significantly lowering the overall cost of capital at the corporate level; providing liquidity for future acquisitions; and providing proceeds for significant renovation and expansion of the six resort hotels, thus increasing the room count by almost fifty percent,” commented Gavin Davis, Principal of Neptune Hospitality Advisors. “The transaction was originally scheduled to close in late 2005, until Hurricane Wilma inflicted a significant amount of damage on three of the resorts.� Despite the worst hurricane on record in the Atlantic, the transaction was successfully closed.”

� hyatt cancun caribe resort

“There is no doubt that given its complexity and pricing relative to precedent transactions, that this is the most significant Mexican real estate transaction ever structured through the U.S. securitized markets.� While precedent transactions involving U.S. loans on Mexican real estate do exist, the borrowers were generally U.S. domiciled companies, the collateral were ‘luxury’ hotel assets and the terms were less advantageous than this financing,” commented Stan Kozlowski, Principal of Neptune Hospitality Advisors.� “We were able to provide the borrower with less expensive capital than Mexico itself receives as a sovereign nation in the global markets.”