Fairfield Alajuela

in implementation

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.