Highland Hospitality Corporation Announces Acquisition of Cancun Hotel and Planned Conversion to Barcelo Brand
biz.yahoo.com
Monday April 18, 8:16 am ET
MCLEAN, Va., April 18 /PRNewswire/ -- Highland Hospitality Corporation, a lodging real estate investment trust, or REIT, announced today that it has acquired the 332-room Tucancun Beach Resort & Villas located in Cancun, Mexico, for approximately $31.0 million, plus customary closing adjustments, or approximately $93,400 per room. The Company purchased the hotel from a private seller based in Mexico. Barcelo Hotels & Resorts, a global lodging company based in Spain, will manage the beachfront property as an all-inclusive resort under the Barcelo brand name.
James L. Francis, Highland's President and CEO, stated, "We are extremely excited about our acquisition of the Tucancun Beach Resort & Villas and the opportunity to strengthen our relationship with our global partner, Barcelo Hotels & Resorts. This acquisition is our first in Mexico and is representative of our strategy to invest a portion of our capital in all- inclusive beachfront resorts outside of the United States. We believe that attractive pricing of this asset, along with Barcelo's ability to efficiently market and operate the resort, will help to generate significant current returns and create value over time for our shareholders."
The Tucancun Beach Resort & Villas is centrally located within the Hotel Zone on Cancun Island, approximately twenty minutes from Cancun International Airport and downtown Cancun. The resort is also closely situated near two of Cancun's premier shopping malls, which offer several luxury retail boutiques and upscale restaurants and bars. The resort complex consists of four multiple-story towers and villas situated on over 4.5 acres of fee-owned land, including approximately 600 feet of direct beachfront. Approximately two- thirds of the 332 rooms have private terraces and ocean views and all guestrooms are finished with stone floors and bathrooms. On-site amenities include three pools (including a lounge pool), four restaurants, three lounges, on-site car rental and travel agencies, concierge services, aqua sports & dive services, fitness room, tennis court, business center and a 3,000 square-foot ballroom. |
