RLH Properties announced a capital increase of 3.5 billion Mexican pesos ($172 million) for the acquisition and development of hotels. The company, which specializes in the development and management of high-end city and beach hotel assets in Mexico, raised the funds entirely through its current shareholders.
MEXICO CITY, Nov. 16, 2016 -- RLH Properties, a leading Company in the acquisition, development and management of high-end city and beach hotel assets in Mexico, announced today a capital increase for an amount of MXN $3,500 million. This operation has been entirely subscribed by the current shareholders of the Company and will be destined to the acquisition and development of hotels. As such, RLH reinforces its strategy to consolidate itself as a benchmark in the luxury hotel sector through the development of new hotels and the selective acquisition of assets in operation in Mexico, one of the most attractive countries for investments in this kind of assets due to the strength of its tourism sector.
RLH Properties currently owns the Four Seasons Hotel in Mexico City, the full renovation of which ended last July and, since its acquisition, it has increased its EBITDA by around 30%. Moreover, it is currently working on the development and construction of the Hotel One&One Mandarina, located in an area of approximately 33 hectares, in the Mandarina development, where RLH Properties plans to develop another luxury hotel. Mandarina is a development of 265 hectares, with over 2 kilometers of beach and 4.5 km of coast, situated north of Puerto Vallarta, just 40 minutes away from its airport and where, in addition to the One&One Mandarina and the other luxury hotel, several residential projects, as well as a world class equestrian center with polo fields, are planned.
RLH Properties, a company created by BK Partners, debuted on the Mexican Stock Exchange (BMV in Spanish) in November of 2015 as an Anonymous Company of Investment Promotion, taking advantage of the opportunity that the Securities Market Law offers to facilitate access to mid-cap companies. After only eight months, the company successfully completed a Primary Offering of Share Subscriptions (Follow-On) for a total amount of $1,338,430,888.95 MXN (approximately US $73.1 million), becoming a regular Listed Company (SAB in Spanish). With this new capital increase of MXN$3,500 million, RLH's free float assets represent 74.7% of its social capital.
Allen Sangines Krause, President of the Board of Directors, commented: "We are grateful for the support of our stakeholders, that allow's us to boost the growth of the company."
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at firstname.lastname@example.org.