Iberostar Hotels & Resorts acquired the Hilton Cancun for an undisclosed amount and will rename it the Iberostar Cancun.
Iberostar said when combining the purchase price and the cost of renovations, the hotel is a $100 million investment.
The hotel will be Iberostar's ninth property in Mexico (five at Playa Paraiso in the Riviera Maya; two near Playa del Carmen, also in Riviera Maya; and one in Cozumel).
Hilton will continue operating the 426-room hotel until it closes for renovations in August. It will reopen as an all-inclusive Iberostar resort on Dec. 1.
"Mexico is our priority market, and this acquisition complements our brand's offerings there," said Miguel Fluxa, president of the Iberostar Group.
Renovations include refurbishing the main lobbies and lobby bar, building new pool terraces and adding a buffet restaurant and four specialty restaurants.
Future plans call for the construction of a stage/amphitheater, a water park and a club for teens.