Washington, D.C., June 30, 2009—IFC,
a member of the World Bank Group, is providing $17.5 million to Hoteles
City Express for the construction of five new hotels in underserved, mid-sized
cities across Mexico, to help meet the growing demand for quality accommodations
in the country’s budget and mid-market business travel segment.
This investment will not only create over 450 temporary jobs during
construction and 150 permanent jobs but will also enhance the country’s
business and tourism infrastructure.
“City Express looks forward to a long-lasting relationship with IFC,”
said Luis Barrios, Chief Executive Officer of Hoteles City Express. “This
investment will support the local economy and help us expand the availability
of quality accommodation for a vast segment of domestic and international
City Express pioneered the budget business travel concept in Mexico. The
model has shown strength despite difficult economic conditions because
of its value. City Express now operates 42 hotels throughout Mexico, and
with IFC’s support, it is expected to open additional hotels in Ciudad
Juarez, Ciudad Obregon, Los Cabos, Merida and Minatitlan. IFC’s loan will
also enable the company to refinance an existing hotel in Mexico City.
“IFC is pleased to support City Express, which is helping develop the
quality budget business hotel market in Mexico, a market currently characterized
by supply gaps. IFC’s role in this project reinforces its commitment
to supporting much needed business infrastructure in underserved markets,”
said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
IFC’s strategy in Mexico focuses on enhancing the competitiveness of the
private sector, deepening the financial sector, supporting infrastructure
development, and investing in areas newly opened to private-sector participation.
IFC also promotes environmental sustainability, social development, and
corporate governance. Since Mexico became an IFC member in 1956, IFC has
provided more than $6 billion to support the country’s private sector.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About Hoteles City Express
Founded in 2003, Hoteles City Express is a hotel development and management
company that has successfully engaged in the development and operation
of 42 business hotels in 23 of the 31 states in Mexico. The company targets
the middle- and middle-low income traveler segment. It employs over
1,200 people. For more information, visit www.cityexpress.com.mx.