Company name
Inversiones Hoteleras CH de Alajuela S.A.
Project number
12382-01
Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.
E&S category
B
Country
Costa Rica
Sector
Tourism
Status
In implementation
Disclosed date
11/07/2018
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/07/2018
Approval date
12/19/2018
Signed date
12/20/2019
Sponsoring entity
Caribe Hospitality, S.A.
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
USD $ 2,500,000
Financing amount
USD $ 5,000,000
Currency
USD
Project scope and objective
Inversiones Hoteleras CH de Alajuela S.A. (the "Borrower") is a special purpose vehicle established for the development, construction and operation of a 120-room hotel in Alajuela, Costa Rica (hereinafter called the "Project" or "Fairfield Alajuela" or the "Hotel").
This proposed hotel will be developed by Caribe Hospitality S.A., owner of the Courtyard Alajuela hotels in Costa Rica and the Courtyard Kingston in Jamaica (these high-reputation hotels have taken IDB investment loans). Caribe Hospitality is an experienced developer with a solid track record, having developed twelve properties (all under the Marriott brand) in Costa Rica, the Dominican Republic, Barbados, Trinidad and Tobago, El Salvador, Mexico and Jamaica, since 2000.
The proposed hotel will be operated by Marriott International and marketed under the Fairfield Inn brand. This Hotel will be located next to the 127-room Courtyard Alajuela and will be within a short distance of the Juan Santamaría International Airport, customs-free zones, logistics and shared services providers, and the recently inaugurated Convention Center.
The total cost of the Project will amount to up to US$ 14.5 million and will be financed with a combination of the sponsor's share capital, and loans from IDB Invest and a co-lender. IDB Invest will provide a loan of up to US$ 5 million and leverage US$ 2.5 million from a co-lender. The proposed loan will be structured as a secured senior loan with a term of 12 years.
The proposed financing project is aligned with IDB Invest's mandate, as it contemplates sustainable tourism activity in a previously developed urban area, on vacant greenfield land, contributing to the economic development of Alajuela and San José through the generation of direct and indirect jobs, the positioning of the area as an emerging destination for corporate and convention centers, and the integration of local SMEs in the tourism value chain. Finally, the Project will seek LEED Silver certification, further promoting sustainable hospitality in Central America.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Contact information
For inquiries, comments and information requests about the project
Request informationAlternatively, you may also use the following contact information :
Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
97.4 Kb