Built in 1979, the 173-room Ixtapa property is located in a master planned area developed by Fonatur, the Mexican Government's agency for the development of resort areas. The four-star hotel sits adjacent to the Presidente Intercontinental and the Dorado Pacifico hotels.
The Mazatlan property, built in the 1960s, has 134 rooms and is located in the center of the hotel zone of Mexico's largest port city. The three-star property includes two buildings, the hotel in the oceanfront building and 41 time-share units in the building across the beachfront avenue.
To effect the disposition, HSBC has retained Jones Lang LaSalle Hotels in partnership with Jones Lang LaSalle Mexico. The lead brokers involved in are JLL Hotels VP Christian Charre and JLL Mexico directors Ander Legorreta and Mauricio Lozano.
The properties are being offered individually or as a portfolio with vacant possession. All parties involved declined comment on the target price HSBC hopes to achieve, but other sources tell GlobeSt.com the properties should sell for a combined price of between $9 million and $12 million.
Legorreta says the properties offer a host of upside potential investors, including affiliation of the properties with a national or international brand; substituting the existing management company with a national or international management company, and; joint ventures with predominant tour operator's active in both markets. "Ixtapa is one of the fastest growing resort destinations in Mexico," adds Charre, "while Mexico as a whole offers … higher returns than in the United States" because the costs are in pesos and the income typically in dollars.
The properties are expected to sell fairly quickly, likely by this summer, as there has been a fair amount interest in hotels in Mexico as of late, say the brokers. JLL Mexico is currently in the process of selling the JW Marriott in Mexico City and another property in Puerto Vallarta, and last week JLL sold the 600-room Mexico City Airport Marriott to an upscale Mexican-owned chain for $30 million on behalf of Host Marriott and Marriott International.
"We've been pretty stable of the past few years, and people are getting comfortable with Mexico as an investment grade country," says Charre. "Years ago US pension funds would never invest in Mexico; now they're not just talking about it, they're doing it."
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