IDB Invest Supports Viajero Hostels Expansion in Latin America, Commitment to Sustainability
- The financing will help create quality jobs, activate local supply chains, and further solidify the lifestyle hostel model in the region
IDB Invest is providing an up to $5 million financing facility to Viajero Hostels, a Colombia-based hostel platform sponsored by Grupo Pegasus with market presence throughout Latin America. The seven-year tenor loan will enable Viajero to broaden its regional portfolio in Colombia, Peru, and Mexico while enhancing its commitment to sustainability standards and practices.
The global hostels segment continues to expand, especially in Latin America and the Caribbean. Viajero offers a curated lodging concept with unique experiences that allow for cultural immersion and connecting with local communities.
The company has taken a proactive approach to embrace an environmental, social and governance (ESG) agenda to ensure that social and environmental considerations permeate throughout its operations and guest experiences are actively managed and promoted within the organization and its stakeholders.
IDB Invest’s financing will solidify Viajero’s visibility within the hostel segment and help augment its market share and regional positioning. This asset class continues to evolve and is gradually becoming institutional grade, attracting interest and capital from global impact investors, as hostels play a vital role in creating jobs and business opportunities for local communities.
This project demonstrates IDB Invest’s continued support for the tourism sector, recognizing its significant role as a key contributor to income and employment generation in the region. Viajero sources around 85% of its goods and services from domestic suppliers, of which approximately 60% – 90% are micro, small and medium-sized enterprises (MSMEs), depending on each location. This helps MSMEs and women-led businesses grow and participate in the tourism value chain.
Travelers who stay in hostels seek an authentic and immersive local experience, which in turn supports local businesses and entrepreneurs, thus promoting economic growth and creating sustainable livelihoods for locals. The company operates 21 hostels in Latin America and has a dynamic growth pipeline. By 2030, an anticipated 930 jobs will be created, with approximately 53% being for women. Furthermore, Viajero aims to foster gender equality by obtaining an international gender certification.
IDB Invest is also offering advisory services to develop a comprehensive decarbonization plan. Viajero will use a carbon footprint calculator to estimate its carbon emissions, including scope one and two, but also a pilot to calculate scope three emissions. Once these are identified, an investment plan will be developed to address the mitigation measures. The advisory support also includes implementing sustainable development guidelines to promote resilient and low-carbon emissions from the refurbishment of existing assets and construction of new properties.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in various industries.
About Viajero Hostels
Founded in 2005, Viajero is a hostel platform with 21 properties in seven countries in the Americas, including popular destinations such as Cartagena, Buenos Aires, Oaxaca, Medellin, and Cusco. In 2018, Grupo Pegasus, a Latam-based private equity firm, became Viajero’s lead investor and since then, has played a strategic role in the expansion and institutionalization of the company. All of Viajero’s properties operate under the Viajero brand with local operating teams and centralized management support in Bogota. It offers a broad range of room options, from shared dormitories to private rooms, and caters to digital nomads, modern-day explorers, and solo and group travelers. Viajero stands out by creating a social and communal environment where travelers can mingle and exchange experiences. (@viajerohostels)