Xcaret Hotels (IFC-46438)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Specific Location
Quintana Roo, Mexico
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 31, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
DESTINO XCARET, S.A.P.I. DE C.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 520.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 31, 2023

Disclosed by Bank Sep 21, 2022


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Founded in 1985, Grupo Xcaret S.A.P.I. de C.V. (the “Group”,or “company”) has been the leading owner and operator of an integrated ‘all fun inclusive’ tourism offering in the Riviera Maya (Mexico), gradually becoming one of the largest tourism groups in Mexico. Their businesses include parks, tours,hotels, and other support units. The Group employs more than 14,000 workers (colaboradores) across four main business lines (Hotels, Parks, Tours and Sailing). Xcaret is an IFC client, with two existing loans: (i) the first, consisting of US$70 million, committed on May 29, 2021 and fully disbursed by December 2021, and (ii) the second, executed under the RSE COVID-19 facility for US$20 million, committed on December 22, 2021, with disbursement planned in the coming months.

Please refer to the environmental and social review summary for the project at: https://disclosures.ifc.org/project-detail/ESRS/44383/grupo-xcaret The Group’s Master Plan envisions the construction of a total of nine developments inside the property owned by Destino Xcaret (‘DX’), home to four of Xcaret’s theme parks (Xcaret, Xenses, Xplor and Xplor Fuego) and its three hotels (Hotel Xcaret Mexico, Hotel Xcaret Arte and La Casa de la Playa).  The company works with two construction companies named Xdifica and Grupo Pole. Together, these provide the Group with architectural design, civil engineering, procurement, and construction (EPC) services on all new developments. 

The proposed investment is for an up to US$300 million A and parallel loan package to the hotel companies of the Group, where IFC will provide US$70-100 million in the form of an A-Loan for the construction of phase 2 of Hotel Xcaret Mexico (HXM), doubling the hotel’s existing capacity from 900 to 1,800-rooms. This is a greenfield project, with construction commencing in January 2023, and commissioning sometime in mid to late 2025.  The hotel will include public areas, lobbies, pools, restaurants, bars, a convention center, transportation station, underground parking, a new spa, and ‘back of house’ areas connected to phase 1 of HXM by an underground service tunnel accessible only to colaboradores where all supporting services are located.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project according to IFC’s Policy on E&S Sustainability. The project’s key E&S risks are expected to include; (i) the company’s capacity, commitment, systems and governance structures to assess and manage E&S risks and impacts; (ii) management of labor and working conditions; (iii) occupational health and safety (OHS); (iv) management of third parties and suppliers; (v) pollution prevention, including the generation, recycling and reuse of materials and waste; (vi) resources efficiency of water supply and energy consumption; (vii) community health and safety; (viii) emergency preparedness and response, including life and fire safety; (ix) management of impacts to biodiversity and ecosystems; (x) use of security forces; and (xi) potential impacts to cultural heritage.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is US$520 million, which is expected to be financed with long-term debt of US$300 million. The proposed IFC investment is an up to US$100 million A Loan, and the remaining US$200 million will be parallel loans. 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Xcaret is an IFC client, with two existing loans: (i) the first, consisting of US$70 million, committed on May 29, 2021 and fully disbursed by December 2021, and (ii) the second, executed under the RSE COVID-19 facility for US$20 million, committed on December 22, 2021, with disbursement planned in the coming months. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - GRUPO XCARET, S.A.P.I. DE C.V. Undisclosed -

Contact Information
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ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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