BBVA México announced today that the bank has extended a USD127.5 million Sustainability Linked Loan to Hyatt of Baja S. de R.L. de C.V. at a term of 10 years to fund this joint project by Hyatt and SOMA.
The funds will be used to build and operate the Park Hyatt Los Cabos hotel and residential complex located in Los Cabos, Baja California Sur, considered among the world’s ten leading tourist destinations in the premium tourism category. Park Hyatt hotels are located in many of the world’s most sought-after destinations, and this development is set to be transformational for Los Cabos.
“By incorporating environmental, social and corporate governance criteria, this type of financing affords a valuable opportunity to promote regional economic and tourist development, and it also reinforces BBVA’s commitment to standing beside its clients in their sustainable strategies,” remarked Álvaro Vaqueiro Ussel, Head of Corporate and Investment Banking at BBVA Mexico.
Alejandro Cárdenas Bortoni, Head of Business, Government, Mortgage and Automotive Banking at BBVA Mexico, said, “This loan will bring the first Park Hyatt hotel in Mexico, and will mark a landmark in the financing of hotels that incorporate environmental care criteria, developed by SOMA. We are committed to all of our clients and will continue working to contribute sustainable products and services through financial support to all companies and productive sectors in this country that require it.”
“For SOMA, the ambitious Park Hyatt Los Cabos project in such a vibrant and promising area represents a cornerstone in real estate development in Mexico and in the hospitality industry under an environmental vision,” said José Juan Sordo Madaleno de Haro, Vice President of SOMA. “We are thrilled and grateful for the synergies between the parties involved to make this project possible.”
“As Hyatt seeks further growth of its luxury portfolio, we are thrilled to collaborate with BBVA Mexico and SOMA to continue the expansion of the Park Hyatt brand in Mexico,” said Camilo Bolanos, vice president of development for the Americas, Hyatt. “Each Park Hyatt property serves as a luxurious respite for worldly travelers, and we look forward to providing a home-away-from-home for guests looking to enjoy the best that Los Cabos has to offer.”
This transaction was backed by a second opinion from the consulting firm Valores Consultores, who performed the environmental impact study, exceeding the requirements of the Equator Principles (EP) in formulating the compliance criteria by which environmental impact reduction of the hotel operations (reduction of energy consumption per key) will be measured during the life of the loan.
The property will be built over a 27 acre area, combining avant-garde architecture with the desert landscape and seascape to blend in harmony with the environment. The architectural project is being led by Sordo Madaleno Arquitectos (SMA), an internationally acclaimed architectural firm in Mexico, with 85 years of experience. Together with SOMA, its sister company in the real estate development industry, integrates benefits and environmental technologies across their properties.
Among the main sustainability features of this project will be the integration of green rooftops, prioritization of endemic species in the use of landscaping that allows optimization of water demand. The landscape design will be aligned to the species present in the Cabo del Sol development, most of them native and desert tolerant.
In the past 18 months, BBVA Mexico has placed more than 50 billion pesos in sustainability funding, through all of its sales channels: Retail, SMEs, Equity and Private, Business, Government and Corporate Banking.