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Current Models for the Tourist Real Estate Market

Published 2 years ago the Oct 28, 2018By Alan Munguia

During the  Real Estate Business Summit  Riviera Maya  2018, experts met, to contextualize the investment moment that is experienced in the sector, participated as a panelist: Rodrigo Meza from GFC Securities , Guillermo Bravo from Fibra Hotel , Salim Dahdah from AP Capital and

Javier Govi by AMAR moderated by Christian Lega from Deloitte .

FROM LEFT TO RIGHT - Javier Govi ​​- AMAR - Guillermo Bravo - FIBRA HOTEL - Salim Dahdah - AP CAPITAl - Rodrigo Meza - GFC SECURITIES

1- The economic outlook of the market has not been favorable with the increase in the interest rate of 3% last year, more than double today, and with positions in emerging markets where it has been decided to withdraw large investments from countries ; even so, the tourism sector continues to have great growth potential.

2- The different costs of land acquisition and construction for a new hotel make it difficult to compete with new investments for

public markets that will demand short-term results.

3- The markets are sufficiently sophisticated or liquid for developers to have access to capital for new projects .

4-  Fibra Hotel invests in the assets of the hotels and works with any operator or brand that it considers provides greater and better value to its assets. They have 87 hotels with 2,700 rooms and they have been growing with the public money that they manage to raise in the markets constantly.

MODERATOR: Christian Lega - Deloitte

5- The capital part, such as supply and demand, must be made more efficient so that it continues to be a profitable market for everyone.

6- “We are going to build a fund of 130 million dollars to start the development of 20 limited service hotels  in 5 years in Mexico. In this way we

show that new players can still enter and bring capital. 80% of that money, equity, comes from outside. Mexico has a

measurable risk with stabilization capacity and has exit strategies. The market is full of possibilities and growing, ”said Salim Dahdah

of AP Capital .

7- There is a lot of ignorance in the institutional part  to finance the growing retirement assistance industry and the

capital has not been opened to detonate it, because it is not understood that it is not about nursing homes or hospitals.

8- “ AMAR begins with a return on investment of 12% the first 3 years and for the fifth year it is calculated to reach 15% and for the eighth year between 18 and 20% depending on the destination. It is a patrimonial business model where the risk is shared, but an operator is in charge of marketing the real estate and carrying out the operations from day to day. If we reach an occupancy percentage of 75% we can assure that the return percentages are real. In the United States, the percentage of occupancy in this type of development is 87% 365 days a year. We currently have projects in the northwest of the country, Bajío and in the Yucatan peninsula, ”said Javier Govi.

Sky Marketing is a leading marketing company working on many real estate projects like smart city, blue world city Islamabad and development housing societies in Pakistan.

9- The 2018 Global Retirement Index indicated that Costa Rica, Mexico and Panama are the ideal retirement destinations. In total there are 114 million

baby boomers (including their parents), which implies that 3.5% of this population in the United States and Canada would be coming to Mexico in the

following decades, so there is great potential for this market.