A long-term debt refinancing has been concluded by Occidental Hotels & Resorts after months of negotiations, triggering a revamp of properties across the 17-strong portfolio.
The Madrid-based company, known in the UK for its string of seven resorts in Mexico, plans an “intensive renovation and improvement” across the chain, although the level of investment has not been disclosed.
The debt refinancing was agreed with 10 Spanish and other international institutions. They have endorsed a business plan running until 2016.
This follows the termination of unprofitable businesses in Spain and a renewed focus on seven countries in the Caribbean and Central America - Aruba, Costa Rica, Colombia, Cuba, Dominican Republic, Haiti and Mexico,
The consolidation led to an almost doubling in earnings before interest, taxes depreciation and amortization (EBITDA) from $29 million in 2010 to $54 million last year.
The company, which employs 4,300 staff, manages 17 hotels, 12 of which are owned by the chain and five under management agreements.
Its Occidental Vacation Club time-share unit has 23,000 members, mainly in US and Canada.
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