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Fibra purchases Secrets Silversands Riviera Cancun resort

Cancun, Q.R. — A Mexican real estate investment trust company says they are entering the beach hotel sector with the purchase of the Secrets Silversands Riviera Cancun resort.

Fibra Inn, a Mexican real estate investment trust specializing in the hotel industry, made the announcement earlier this week. They say that given Mexico’s favorable macroeconomic and hotel industry environment, they have decided to venture into the beach hotel market.

The purchase option to acquire the Secrets Silversands Riviera Cancun resort is a $160 million USD investment plus an estimated $20 million USD to be used for the expansion of rooms.

They specified that Fibra Inn will have 33 percent of the total investment, while the rest will be submitted to consideration of two Mexican institutional funds that, in principle, are interested in analyzing the project.

They explained that they decided to enter into the hotel resort sector for several reasons, one of which was beach hotels tend to be highly profitable due to their competitiveness in the international markets. They report that additionally, recent transactions in the luxury and beach segments have better valuation with cap rates below 8.5 percent.

“Fibra Inn finds the acquisition of the Secrets Silversands Riviera Cancun to be a highly attractive opportunity. It is in a top location and has all the characteristics required to generate the expected returns. What is most attractive about this property is that it is currently operating, which leads to an immediate cash flow generation for Fibra Inn’s shareholders,” stated Oscar Calvillo, Chief Executive Officer of Fibra Inn.

“We are pleased to announce this first project that we are confident will be a solid and productive relationship between AMResorts and Fibra Inn,” stated Alex Zozaya, Chief Executive Officer of Apple Leisure Group.