Luxury Hotel IN CANCUN HOTEL ZONE
OFFERING MEMORANDUM
An Introduction
The Agency is proud to present an extraordinary opportunity to acquire a fully renovated Luxury Hotel nestled along Mexico’s picturesque Caribbean Coast. Centrally located in Cancun’s coveted Hotel Zone, the resort property features 700 impeccably designed rooms, 39 beachfront villas, a world-class spa and multiple restaurants, providing an allinclusive experience in one of the world’s most celebrated vacation destinations.
With renovations set for completion in 2024, the property remains unbranded, providing the chance to partner in a joint venture, take over the property in its entirety, or purchase the resort as a completed Mondrian Hotel. Hotel properties of this caliber located along Mexico’s pristine coast rarely become available, making this a truly unique and exclusive opportunity.
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The Opportunity
LUXURY CANCUN HOTEL
Luxury Hotel Offering
700 HOTEL ROOMS
39 BEACHFRONT VILLAS
21,258-SQUARE-FOOT SPA
3,200-SQUARE-FOOT FITNESS CENTER
14,617 SQUARE FEET OF MEETING & EVENTS SPACE
10 ONSITE RESTAURANTS & BARS
Xtabay | All-day café featuring Yucatecan cuisine
Barrio | Three-meal restaurant offering regional, casual fare and several live-cooking stations
Chef Lab | A specialty restaurant for dinner
Manga Bistro | Three-meal restaurant offering flavorful Asian cuisine
Taman | Beachfront bar
Living Room | Lobby and coffee bar
The Playroom | Subterranean lounge and bar
Beach Shack | Three-meal restaurant offering Mediterranean cuisine
Rooftop | Two rooftop venues, Cantil a Japanese restaurant open for lunch and dinner and the Sky
Deck | Lounge and restaurant with all-day service
The Judgement | Lounge and bar
THE DETAILS
Initially acquired in 2012
The first phase of expansion was completed in 2017
Current renovations are scheduled for completion in April 2024
Updates to safety and HVAC infrastructures
Updated lobby and porte cochere arrival experience
Furniture and fixtures updated throughout, unifying the expansion with the existing hotel
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LUXURY CANCUN HOTEL
Location
Spotlight Mexico
Mexico is one of the most important hotel markets in Latin America, with over 400,000 hotel rooms within branded and independent properties. Branded rooms represent 60% of the hotel inventory and are located primarily in Cancun, Riviera Maya and Mexico City. Over one-third of Mexico’s hotel supply is within resort destinations, with Cancun and Riviera Maya holding the largest concentration of rooms in the country, followed by Mexico City, and the Puerto Vallarta and Riviera Nayarit regions.
The pipeline of new hotels is close to 14,000 rooms currently under construction, and an additional 10,000 rooms are in the planning stages, expected to be delivered by the end of 2023. Many projects in the early planning stages were delayed as a consequence of COVID lockdowns and overall travel uncertainty. However, many of the delays were reactivated as restrictions were relaxed. This is a clear indicator of investors’ strong belief in the long-term outlook for Mexico’s lodging sector.
In 2019, Mexico was named the Number 1 visited destination by foreign tourists within Latin America, the Number 2 most visited destination in the Americas, and the Number 7 most visited country in the world. Despite the pandemic and occupancy declines, the country managed to reach average daily rates that surpassed 2019 levels in the key markets of Los Cabos, Cancun, Riviera Maya and Mexico City.
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Destination Cancun
The greater Cancun area is comprised of three distinct areas: downtown Cancun, ecological reserves (lagoons and mangroves), and the Cancun Hotel Zone.
CANCUN HOTEL ZONE
6 miles of shopping, dining, hotels and nightlife destinations.
Luxury Avenue Boutique Mall houses high-end shops such as Burberry, Fendi, Hermes and Cartier.
A 20-minute drive from the Cancun International Airport, which operates more than 500 flights a day and is accessible from nearly every major city in the world, including 40 US Cities, 17+ Canadian cities and 20+ European cities.
Development is designed around an ecologically sensitive master plan.
White-sand beaches, cenotes and calm, clear waters are ideal for snorkeling, diving and water adventures.
Year-round sunshine and water temperatures in the 80s.
Home to several 5-star luxury resorts and hotels.
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LE BLANC SPA RESORT
SANDOS LUXURY RESORT
LIVE AQUA BEACH RESORT
NIZUC RESORT AND SPA
KEMPINSKI HOTEL
SECRETS THE VINE
LUXURY CANCUN HOTEL
JW MARRIOTT CANCUN RESORT & SPA
Cancun Tourism
Cancun Non-Resident Air Arrivals 2022
As the world emerged from the pandemic, Mexico and Cancun in particular, saw a dramatic increase in tourism between 2021 and 2022. In 2022, an estimated 9,364,220 international air arrivals were recorded at the Cancun Airport, which was a 46.8% increase from 2021.
(Source: Mexican Secretary for Home Affairs, SEGOB)
The percentage of hotel occupancy in Cancun jumped from 57.1% in 2021 to 75.9% in 2022. From January to March 2023, the average was 80.5%.
(Source: Datatur)
Cancun is recognized as one of Mexico’s premiere resort destinations in Mexico, coming in only 2nd to Riviera Maya in its number of visitors and tourism dollars generated annually.
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% SHARE 5,669,408 971,124 438,089 398,404 180,316 160,808 159,457 138,831 129,434 128,488 989,861 9,364,220 60.5 10.4 4.7 4.3 1.9 1.7 1.7 1.5 1.5 1.4 10.6 100% 4,764,690 247,470 69,453 205,772 48,927 63,442 78,795 55,954 143,284 66,234 634,512 6,378,533 7470.0% 390.0% 110.0% 320.0% 80.0% 100.0% 120.0% 90.0% 220.0% 100.0% 990.0% 100.00% 19 292.4 530.8 93.6 268.5 153.5 102.4 148.1 -9.7 94 56 46.80% USA Canada U.K. Colombia Argentina France Spain Peru Brazil Germany Rest of the World Total NUMBER % SHARE NUMBER % CHANGE 2022 2023
2021 68% 61.4% 81.3% 77.8% 77.0% 79.3% 84.3% 77.5% 68.7% 70.2% 77.6% 78.1% 75.9% 41% 23.9% 51.1% 53.5% 58% 66.6% 69.0% 58.9% 48.1% 52.8% 71.7% 75.7% 57.1% 27.0% 37.5% 30.2% 24.3% 19.0% 12.7% 15.3% 18.6% 20.6% 17.4% 5.9% 2.4% 18.8% 75.7% 74.2% 43.6% 0.4% 0.0% 5.0% 19.1% 24.0% 28.5% 33.4% 45.0% 47.3% 34.1% -7.7% -12.8% 37.7% 77.4% 77.0% 74.3% 65.2% 53.5% 40.2% 36.8% 32.6% 30.8% 41.8% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2022 2020 % CHANGE 22/21 % CHANGE 22/20 Hotel Occupancy
78.2% 81.4% 80.2% 73.8% 70.5% 73.8% 78.7% 71.1% 58.8% 60.5% 71.7% 74.1% 72.7% 2019 -10.2% -20.0% 1.1% 4.0% 6.5% 5.5% 5.6% 6.4% 9.9% 9.7% 5.9% 4.0% 3.2% % CHANGE 22/19 $ $3,622.49 $599.68 $77.43 $893.29 $4,615.61 $34.26 $10,742.38 $2,654.04 $490.82 $44.82 $44.09 $455.48 $2,745.80 $6,902.56 36.5% 22.2% 75.6% 96.1% 68.1% 192.8% 55.6% $6,075.42 $1,238.79 $109.47 $850.03 $7,140.26 $23.86 $16,645.90 -53.3% -60.4% -59.7% -46.4% -61.5% -51.0% -58.5% Cancun Cozumel Chetumal Isla Mujeres Riviera Maya Bacalar Total $ $ % CHANGE % CHANGE 2021 2020 Economic Impact of Tourism: Mexican Caribbean In Millions of US Dollars 2019 -40.4% -51.6% -29.3% 5.1% -35.4% 43.6% -35.5% % CHG 21/19
Cancun
The Agency
LUXURY CANCUN HOTEL
The Agency Highlights
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BROKERAGE
PRIVATELY
INDEPENDENT BROKERAGE
ON T3 SIXTY’S MEGAL 1000 LIST LA COUNTY RESIDENTIAL BROKERAGE IN SALES VOLUMEBY THE REAL DEAL Ranked #18 Ranked #5 Ranked #23 Ranked #3 AGENTS OFFICES COUNTRIES 2,500+ 85+ $57.4 B 7 GLOBAL SALES VOLUME
IN THE US BASED ON SALES VOLUME BY REAL TRENDS IN 2023
HELD
BY SALES VOLUME BY REAL TRENDS IN 2023
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EXPECTED OPENINGS
Opening in 2023
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NURIT COOMBE Nurit@TheAgencyRE.com 202.888.1127 MAURICIO UMANSKY MUmansky@TheAgencyRE.com 424.230.3701 ALEX MARTINEZ Alex.M@TheAgencyRE.com 240.286.4187 TheAgencyRE.com
