How I Underwrote a $127M Luxury Resort in Mexico

I underwrote a $127M luxury resort in Mexico.

They built this resort with no bank debt.

- 43 residences sold, averaging $1M each
- 30 hotel rooms running at 50% occupancy
- 715 acres of expansion land available
- Funded through presales and found equity

Stage 1 is built, sold, and cash flowing. The $127M funds Stage 2 - 715 acres of coastal expansion land, new hotels, solar infrastructure, and a buyer mortgage program.

To fund deals like this, I ask 4 questions:

1) What stage of risk are we in?

- Stage 1 is operational, so this isn't a concept
- 43 homes delivered, 88% in the rental program
- $3.95M annual revenue running right now
- Stage 2 land is acquisition-ready, not yet built

2) What makes the location work?

- Built in an established Mexican coastal market
- Comparable sites sold at $150-350K/acre
- Stage 2 land acquired at $10/m² (comps $200/m²)

3) How is the downside protected?

- $301M assets backs $81M debt — 3.7x coverage
- Board seats + liquidation preference for investors

4) Can we control the exit?

- Strategic sale to 1Hotels, Auberge, or Six Senses
- Tranche 2 raise gives partial liquidity at 24 months
- Liquidation returns capital before founders get paid
- The goal is an institutional buyout

50% hotel occupancy is respectable for a site still under construction. But most lenders want 70-75%.

My verdict:

- Strong fit for family offices
- Strong fit for equity investors
- Medium fit for private credit

If you allocate to real assets, let's connect 👋