OHL Desarrollos accepts an offer from RLH Properties for the acquisition of majority shareholding in Proyecto Mayakoba Hotels, in Mexico

Obrascón Huarte Lain Desarrollos, S.L. (“OHLD”), subsidiary developer and investor in top-quality tourism and hospitality projects, has accepted a binding offer not subject to financing or due diligence from RLH Properties, S.A.B. de C.V. (“RHL”), a company created by BK Partners and specialized in the management of top-quality hotels operated under the main brands of the industry, and listed on the Mexican Stock Exchange (BMV).

The offer involves a 100% valuation of Proyecto Mayacoba´s hotel assets, in more than 500 million dollars as enterprise value, and  includes the indirect acquisition by RLH of a stake of up to 80% of the social capital of the proprietary companies of Rosewood Mayakoba hotels and Fairmont Mayakoba (with a minimum guaranteed of 51%), assets with a highest degree of maturity, as well as 51% of the capital stock of the proprietary companies of the Banyan Tree Mayakoba and Andaz Mayakoba hotels, actives in stage of maturing. According to the offer, in addition to the proprietary companies that own the hotel assets, holding companies, services companies and the other companies belonging to the hotels referred previously are transferred to RLH.

The operation will generate a 218 million euros’ profit for the seller, with a minimum guaranteed of 158 million, and a capital gain, including the value of the unsold share, of 71 million euros.

Reinforcement of OHLD’s business model

From a strategic point of view, this operation is relevant to both companies. For OHLD, the operation consolidates and strengthens its business model as a developer of tourism and hotel projects of the highest quality that, after starting and consolidating them, proposes initiatives for partial divestment and rotation of those assets deemed to have reached an appropriate degree of maturity.

OHLD maintains this particular project, in addition to a significant participation in Mayakoba hotels, the management of the comprehensive destination Mayakoba, the investment and development in the projects associated with the hotel brands (“branded”), as well as their total involvement in the already successful project City Mayakoba, where it is expected to develop up to 15,000 adapted homes to the different segments, a Country Club, and a commercial area in “village” format.

Furthermore, OHLD has expanded its experience and reputation through two of the most emblematic urban projects in Europe: the Canalejas project in Madrid, and the Old War Office, in London.

RLH consolidates its leadership in Mexico

On its part, for RLH, this opportunity represents the materialization of its strategy of expansion and the diversification of its portfolio of hotels in property as well as its consolidation as a leading company in the management of hotels in the high segment in Mexico.

RLH Properties currently owns the Four Seasons Hotel in Mexico City, as well as the Hotels One&One Mandarina, and Rosewood Mandarina, both located in the Mandarina Development in the Nayarit Riviera, in construction and development stages, respectively.  

With the announced operation, RLH reinforces itself as one of the most active luxury hotel investment firms in Mexico, with a highly specialized focus on high-quality and prestige hotel and tourism projects, with solid backing from investors of the highest prestige and solvency and an ambitious expansion plan.

Strategic Alliance

Furthermore, with this operation OHLD and RLH lay the foundation of a strategic partnership of growth in the high-quality hotel and tourism market in Mexico, OHL Desarrollos being one of the most prestigious developers in the high-quality market internationally (both leisure and urban projects) and RLH one of the most active luxury hotel investment firms in Mexico, with a very specialized focus on high quality and prestige hotels and tourism projects with solid backing from investors of the highest prestige and solvency and an ambitious plan of expansion.

Background of the operation

OHLD has received numerous expressions of interest from potential investors of recognized prestige for the acquisition of a stake in one or more of the existing hotels in the Mayakoba Project. The investment profile of RLH Properties, profile, coupled with its deep knowledge of Mexico’s hotel and vacation market, its solid backing of financial groups of its highest level and prestige, and its long-term growth and expansion commitment, have led, along with the economic valuation presented by assets, to opt for its offer.

Closing Calendar

The signing of the corresponding sales contract, which main terms and conditions have been agreed by the parties, will occur as soon as the RHL’s shareholder’s assembly ratifies the signing of the transaction, which is expected to take place before the end of the year.

The closing of the transaction will be subject to the prior fulfilment of typical conditions of this type of transactions, among which is the approval of the Mexican Federal Competence Commission. No difficulty is expected in the fulfilment of these conditions.