Luxury Cancun Hotel | Offering Memorandum

Luxury Hotel IN CANCUN HOTEL ZONE OFFERING MEMORANDUM

The Agency is proud to present an extraordinary opportunity to acquire a fully renovated Luxury Hotel nestled along Mexico’s picturesque Caribbean Coast. Centrally located in Cancun’s coveted Hotel Zone, the resort property features 700 impeccably designed rooms, 39 beachfront villas, a world-class spa and multiple restaurants, providing an allinclusive experience in one of the world’s most celebrated vacation destinations.

LUXURY CANCUN HOTEL

An Introduction

With renovations set for completion in 2024, the property remains unbranded, providing the chance to partner in a joint venture, take over the property in its entirety, or purchase the resort as a completed Mondrian Hotel. Hotel properties of this caliber located along Mexico’s pristine coast rarely become available, making this a truly unique and exclusive opportunity.

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LUXURY CANCUN HOTEL

The Opportunity

Luxury Hotel Offering

700 HOTEL ROOMS 39 BEACHFRONT VILLAS 21,258-SQUARE-FOOT SPA

14,617 SQUARE FEET OF MEETING & EVENTS SPACE 10 ONSITE RESTAURANTS & BARS Xtabay | All-day café featuring Yucatecan cuisine Barrio | Three-meal restaurant offering regional, casual fare and several live-cooking stations Chef Lab | A specialty restaurant for dinner Manga Bistro | Three-meal restaurant offering flavorful Asian cuisine Taman | Beachfront bar Living Room | Lobby and coffee bar The Playroom | Subterranean lounge and bar

LUXURY CANCUN HOTEL

3,200-SQUARE-FOOT FITNESS CENTER

Beach Shack | Three-meal restaurant offering Mediterranean cuisine Rooftop | Two rooftop venues, Cantil a Japanese restaurant open for lunch and dinner and the Sky Deck | Lounge and restaurant with all-day service The Judgement | Lounge and bar

THE DETAILS Initially acquired in 2012 The first phase of expansion was completed in 2017 Current renovations are scheduled for completion in April 2024 Updates to safety and HVAC infrastructures Updated lobby and porte cochere arrival experience Furniture and fixtures updated throughout, unifying the expansion with the existing hotel

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LUXURY CANCUN HOTEL

Location

Mexico is one of the most important hotel markets in Latin America, with over 400,000 hotel rooms within branded and independent properties. Branded rooms represent 60% of the hotel inventory and are located primarily in Cancun, Riviera Maya and Mexico City. Over one-third of Mexico’s hotel supply is within resort destinations, with Cancun and Riviera Maya holding the largest concentration of rooms in the country, followed by Mexico City, and the Puerto Vallarta and Riviera Nayarit regions.

The pipeline of new hotels is close to 14,000 rooms currently under construction, and an additional 10,000 rooms are in the planning stages, expected to be delivered by the end of 2023. Many projects in the early planning stages were delayed as a consequence of COVID lockdowns and overall travel uncertainty. However, many of the delays were reactivated as restrictions were relaxed. This is a clear indicator of investors’ strong belief in the long-term outlook for Mexico’s lodging sector.

LUXURY CANCUN HOTEL

Spotlight Mexico

In 2019, Mexico was named the Number 1 visited destination by foreign tourists within Latin America, the Number 2 most visited destination in the Americas, and the Number 7 most visited country in the world. Despite the pandemic and occupancy declines, the country managed to reach average daily rates that surpassed 2019 levels in the key markets of Los Cabos, Cancun, Riviera Maya and Mexico City.

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Destination Cancun

The greater Cancun area is comprised of three distinct areas: downtown Cancun, ecological reserves (lagoons and mangroves), and the Cancun Hotel Zone.

LE BLANC SPA RESORT

CANCUN HOTEL ZONE 6 miles of shopping, dining, hotels and nightlife destinations.

Luxury Avenue Boutique Mall houses high-end shops such as Burberry, Fendi, Hermes and Cartier.

A 20-minute drive from the Cancun International Airport, which operates more than 500 flights a day and is accessible from nearly every major city in the world, including 40 US Cities, 17+ Canadian cities and 20+ European cities.

Development is designed around an ecologically sensitive master plan.

White-sand beaches, cenotes and calm, clear waters are ideal for snorkeling, diving and water adventures.

LUXURY CANCUN HOTEL

JW MARRIOTT CANCUN RESORT & SPA

SECRETS THE VINE KEMPINSKI HOTEL NIZUC RESORT AND SPA LIVE AQUA BEACH RESORT SANDOS LUXURY RESORT

Year-round sunshine and water temperatures in the 80s.

Home to several 5-star luxury resorts and hotels.

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Cancun Tourism Cancun Non-Resident Air Arrivals 2022

USA Canada U.K. Colombia Argentina France Spain Peru Brazil Germany Rest of the World Total

2023

NUMBER

% SHARE

NUMBER

% SHARE

% CHANGE

5,669,408 971,124 438,089 398,404 180,316 160,808 159,457 138,831 129,434 128,488 989,861 9,364,220

60.5 10.4 4.7 4.3 1.9 1.7 1.7 1.5 1.5 1.4 10.6 100%

4,764,690 247,470 69,453 205,772 48,927 63,442 78,795 55,954 143,284 66,234 634,512 6,378,533

7470.0% 390.0% 110.0% 320.0% 80.0% 100.0% 120.0% 90.0% 220.0% 100.0% 990.0% 100.00%

19 292.4 530.8 93.6 268.5 153.5 102.4 148.1 -9.7 94 56 46.80%

As the world emerged from the pandemic, Mexico and Cancun in particular, saw a dramatic increase in tourism between 2021 and 2022. In 2022, an estimated 9,364,220 international air arrivals were recorded at the Cancun Airport, which was a 46.8% increase from 2021.

(Source: Mexican Secretary for Home Affairs, SEGOB)

Hotel Occupancy Cancun

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2022

2021

% CHANGE 22/21

2020

% CHANGE 22/20

2019

% CHANGE 22/19

68% 61.4% 81.3% 77.8% 77.0% 79.3% 84.3% 77.5% 68.7% 70.2% 77.6% 78.1% 75.9%

41% 23.9% 51.1% 53.5% 58% 66.6% 69.0% 58.9% 48.1% 52.8% 71.7% 75.7% 57.1%

27.0% 37.5% 30.2% 24.3% 19.0% 12.7% 15.3% 18.6% 20.6% 17.4% 5.9% 2.4% 18.8%

75.7% 74.2% 43.6% 0.4% 0.0% 5.0% 19.1% 24.0% 28.5% 33.4% 45.0% 47.3% 34.1%

-7.7% -12.8% 37.7% 77.4% 77.0% 74.3% 65.2% 53.5% 40.2% 36.8% 32.6% 30.8% 41.8%

78.2% 81.4% 80.2% 73.8% 70.5% 73.8% 78.7% 71.1% 58.8% 60.5% 71.7% 74.1% 72.7%

-10.2% -20.0% 1.1% 4.0% 6.5% 5.5% 5.6% 6.4% 9.9% 9.7% 5.9% 4.0% 3.2%

The percentage of hotel occupancy in Cancun jumped from 57.1% in 2021 to 75.9% in 2022. From January to March 2023, the average was 80.5%.

LUXURY CANCUN HOTEL

2022

(Source: Datatur)

Economic Impact of Tourism: Mexican Caribbean In Millions of US Dollars

Cancun Cozumel Chetumal Isla Mujeres Riviera Maya Bacalar Total

2021

2020

2019

$

$

% CHANGE

$

% CHANGE

% CHG 21/19

$3,622.49 $599.68 $77.43 $893.29 $4,615.61 $34.26 $10,742.38

$2,654.04 $490.82 $44.82 $44.09 $455.48 $2,745.80 $6,902.56

36.5% 22.2% 75.6% 96.1% 68.1% 192.8% 55.6%

$6,075.42 $1,238.79 $109.47 $850.03 $7,140.26 $23.86 $16,645.90

-53.3% -60.4% -59.7% -46.4% -61.5% -51.0% -58.5%

-40.4% -51.6% -29.3% 5.1% -35.4% 43.6% -35.5%

Cancun is recognized as one of Mexico’s premiere resort destinations in Mexico, coming in only 2nd to Riviera Maya in its number of visitors and tourism dollars generated annually.

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LUXURY CANCUN HOTEL

The Agency

The Agency Highlights GLOBAL SALES VOLUME

AGENTS

$57.4 B

85+

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OFFICES

COUNTRIES

Ranked #18

Ranked #5

BROKERAGE IN THE US BASED ON SALES VOLUME BY REAL TRENDS IN 2023

PRIVATELY HELD INDEPENDENT BROKERAGE

BY SALES VOLUME BY REAL TRENDS IN 2023

Ranked #3

Ranked #23

LA COUNTY RESIDENTIAL BROKERAGE IN SALES VOLUMEBY THE REAL DEAL

ON T3 SIXTY’S MEGAL 1000 LIST

LUXURY CANCUN HOTEL

2,500+

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The Agency Global Reach | Offices SOUTHERN CALIFORNIA Brentwood Beverly Hills Calabasas DTLA Malibu Pacific Palisades Corona Del Mar Laguna Beach Palm Desert Pasadena Santa Barbara San Diego Sherman Oaks Studio City Venice NORTHERN CALIFORNIA Alamo Carmel Healdsburg Los Altos San Francisco ARIZONA Scottsdale COLORADO Aspen Denver CONNECTICUT New Canaan FLORIDA Miami Naples Palm Beach GEORGIA North Atlanta HAWAII Maui IDAHO Boise Coeur d’ Alene INDIANA Indianapolis MARYLAND Frederick MASSACHUSETTS Boston Cape Cod

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EXPECTED OPENINGS Opening in 2023 London, Ontario Northern CT Rhode Island Charleston, NC Dominican Republic Telluride, CO Southern France London Chicago Philadelphia, PA Oahu, HI Westchester, NY Dubai UAE Taiwan Shanghai Hong Kong

TENNESSEE Nashville TEXAS Austin Dallas UTAH Park City Saint George VIRGINIA Chesapeake WASHINGTON Seattle WASHINGTON D.C. D.C. Metro CANADA Brantford Calgary Downtown Toronto Fort McMurray Kitchener - Waterloo Montreal Muskoka Oakville Ottawa Toronto - North York Vancouver Victoria Outaouais Toronto West York Region

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NURIT COOMBE Nurit@TheAgencyRE.com 202.888.1127

MAURICIO UMANSKY MUmansky@TheAgencyRE.com 424.230.3701

ALEX MARTINEZ Alex.M@TheAgencyRE.com 240.286.4187

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