Occidental Completes Long-Term Debt Refinancing

MADRID—Following months of negotiations, Occidental Hotels and Resorts has concluded its long-term debt refinancing process through an agreement with 10 Spanish and International entities which have endorsed the company’s 2012-2016 business plan. The process, supervised by financial advisors of the firm IREA, which is subject to completion of the final terms, will allow the company to refinance its debt, and initiate a significant amount in investments with an intensive renovation and improvement plan of its hotels and resorts within the chain.

Upon the successful completion of the refinance process, with the support of financial institutions, in accordance to its business plan, Occidental will focus the development of its hotel business activities over the coming years in seven countries of the Caribbean and Central America (Aruba, Costa Rica, Colombia, Cuba, Dominican Republic, Haiti, and Mexico), where the company manages 17 hotels, 12 of which are owned by the chain and five are under management agreements. Occidental Hotels and Resorts also has a timeshare unit, Occidental Vacation Club, which has a portfolio of 23,000 members, mostly in the United States and Canada.

The commitment of Occidental shareholders toward the Caribbean, and the agreement to terminate unprofitable operations in Spain, has allowed the company to reposition itself and increase profitability. Between 2010 and 2012 the company completed a consolidation effort that has allowed it to increase its EBITDA from $29 million in 2010 (where the activities in Spain contributed to significant operating loss) to $54 million in 2012. Occidental manages 6,000 rooms in 19 hotels in eight countries in the Caribbean, Central America, and Europe.

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