Basham Advises on $229m Five-Star Hotel Development

Basham Ringe y Correa, through its partner Juan Carlos Serra and associates Jorge Campuzano, Jorge Cobos, José Massas, Jorge Escobedo and Ricardo Evangelista, has advised CM Hotel, S.A. de C.V. in the construction and development of a five-star “Planet Hollywood Hotel”.

Representation involved drafting and negotiating several agreements, including security documents, such as a mortgage agreement, hedge agreement, promissory notes and trust agreement, as well as the execution of a $157m loan agreement with Banco Santander S.A. (Mexico) and Grupo Financiero Santander.

The firm assisted with all the corporate and governmental permits needed, including advice related to regulatory matters such as the required permits from federal, local and municipal authorities for its completion. The firm also secured an environmental impact certificate before SEMARNAT, the Zofemat Concessions (Zona Federal Marítimo Terrestre) and obtained a reclassification of the real estate permit for the use of the land.

CM Hotel, S.A. de C.V., is part of the Sunwing Travel Group, the largest integrated travel company in North America. The company’s expertise and forecasts make this project the cornerstone and signature move that will place them in the spotlight of their sector in Mexico.

The firm has been assisting Sunwing Travel Group since 2010 on several projects, including the development and implementation of their first hotel in Mexico, the Royalton Riviera Hotel. This new hotel is expected to increase their presence and operations in México significantly.

Chancery Chambers acted as special external international counsel to Sunwing and Santander while Holland & Knight as external counsel to Santander in Mexico.

C.G.L.