MONTERREY, Mexico–(hospitalitybusinessnews.com)– Fibra Inn announced the development of the JW Marriott Monterrey hotel in San Pedro Garza Garcia, Nuevo Leon, which will have 250 rooms.
Fibra Inn has signed a franchising agreement with Marriott Switzerland Licensing Company SÀ RL for the use of the JW Marriott brand, which will ensure the performance of this iconic hotel in Monterrey’s metropolitan area, attracting the highest level business travelers. The hotel will offer a full range of services, including event and banquet rooms for up to 600 people, and will be operated by Grupo Hotelero Fibra Inn.
Fibra Inn will lead the development of the hotel under a joint-venture agreement with a group of investors. Fibra Inn will have a participation of no less than 25% and no more than 33% of the total investment, and will maintain control and leadership over the project execution, commercial decisions, product and brand definition, as well as the operations.
The total estimated investment by Fibra Inn and its joint-venture partners will be approximately Ps. 1,030.1 million; disbursements will be made in accordance with the progress of construction, of which an estimated Ps. 222.2 million will be allocated to investments related to the condominium area within the “Arboleda” project, which comprises the area corresponding to the hotel’s footprint and common areas. Fibra Inn made a Ps. 55.5 million deposit for the binding agreement for the purchase.
Operations at this hotel are expected to initiate during the third quarter of 2019. The projected cap rate for 2020-2021 is 11.45%.
The hotel will be located within the “Arboleda” project, one of the highest profile areas, on a national scale, for a luxury hotel. The Arboleda project spans over 15 hectares, located in the heart of San Pedro Garza Garcia, N.L., one of the districts with the highest spending power in Mexico. Designed by Pelli Clarke Architects following international design and sustainability standards, this mixed-use project has commercial areas that include offices, stores and restaurants, a residential community with over 500 homes, comprised of six apartment buildings and villas. The mixed use of the property is considered a complement to generate demand for the hotel. The JW Marriott Monterrey hotel will be located in the commercial sector, surrounded by restaurants and high-end boutiques.
The business fundamentals employed by Fibra Inn for the development of this property are the following:
- The Monterrey metropolitan is the third most important city in Mexico based on its population density and economic activity, which is characterized by industrial parks, domestic and international corporate offices, as well as high-end residential developments.
- Solid economic diversification, mainly represented by the automotive, aerospace, food, logistics, distribution, metal-mechanic and steel industries. The main companies include: British American Tobacco, Arca Continental, Vitro, Alfa, Ternium, Cemex, Femsa, Gruma, Navistar, ACCEL Logistica, Bimbo, Sisamex, Tubacero, Mondelez International, Lego, Whirlpool Electronics, Mary Kay Mexico, De Acero, among others. Recently, KIA Motors Corporation and Hyundai Motors Company began their plant operations, which will result in higher business activity for the auto parts industries.
- Arboleda is one of the most iconic projects in the area with the most potential and has a top-notch design from architect Cesar Pelli (whose designs include the Petronas Towers in Kuala-Lampur, Malaysia and the Aria Resort & Casino hotel in Las Vegas), as well as over 22 specialized international consultants.
- Currently, the Monterrey metropolitan area does not have an international luxury brand hotel. The San Pedro Garza Garcia district has a high concentration of corporate offices requiring a hotel of this category.
Fibra Inn has a total portfolio of 42 properties: 40 in operation, one under development and one additional property in development under a binding agreement, with a total of 7,082 rooms; 573 of these are currently under construction.