Shares of the Mexican chain Hoteles City Express soared to their best level of the year on Wednesday after announcing the sale of its five brands to the giant Marriott International for 100 million dollars, in a transaction that it said will boost its finances and help it. to expand.
Shares of City Express Hotels, which specializes in business travelers, gained 17% at 5:26 am at 10 am local time, after climbing as high as 31% moments earlier.
The resources obtained by the operation, net of taxes and relevant transaction costs, will help City Hotels strengthen its balance sheet by reducing its leverage levels and improving its liquidity, said the firm, adding that it will have funds to invest in maintenance and reactivate projects. paused due to the pandemic.
"As part of the strategic relationship, both parties are expected to work to expand the presence and strengthen the distribution of the City Express brands in Latin America, the Caribbean and elsewhere," the company added in a statement, adding that it hopes that the operation closes between the end of 2022 and the first half of 2023.