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NHG advised Grupo Murano
NHG advised Grupo Murano (through certain subsidiaries) in the negotiation of: (i) two hotel management, technical services and trademarks agreements with Hyatt of Mexico, and Ennismore Holding, US INC, to operate the Andaz and Mondrian hotels, respectively, located in Mexico City; and (ii) the amendment of the loan documents (and security package thereto) to build and refurnish the hotels.
NHG’s team involved in this transaction had to simultaneously negotiate terms and conditions of the agreements related to the hotel operation and those related to the loan, while coordinating Murano’s team in the negotiation of the relevant agreements.
The hotel located in Mexico City was initially intended to be a single hotel to be operated by Wyndham and all financing documents were prepared considering this hotel. However, pursuant to the Covid-19 Pandemic and the existing business conditions, Murano decided to build and operate two luxury hotels instead of the Wyndham hotel. This change lead to design and implement a new complex structure that is efficient for tax purposes and attractive to hotel operators and the lender under the loan documents. The security package of the facility includes amendments to reflect the relevant new structure. Negotiations were highly-specialized and technical, especially regarding the hotel management agreements.