Brands search for growth opportunities in Mexico
REPORT FROM MEXICO — Like its neighboring countries, Mexico is experiencing high demand growth as supply growth remains incremental. But unlike the United States, brands are eager to boost their presence in the country by way of new development.
“We only have 17 hotels in all of Mexico,” said Alejandro Acevedo, VP of international hotel development in the Caribbean and Latin America regions for Marriott International. “Last year we signed a program to do 36 Fairfield Inns in Mexico. I see so many growth opportunities.”
Hyatt Hotels’ footprint in Mexico consists of only three properties; the company is 12 months into a four-year program to get more hotels out of the ground in Mexico. Hilton Worldwide, meanwhile, currently has 22 hotels in Mexico and 12 hotels in its development pipeline.
“We are looking at tripling our inventory in five years,” said George Massa, newly appointed VP of development in Mexico for Hilton. “The situation and opportunity is very good throughout the country.”
Development from the ground up
Contrary to the U.S., the majority of supply opening in Mexico in the next few years is expected to come by way of new-builds. There are 86 hotels in the Mexico pipeline, which would add to the 2,077 hotels already operating in the country, according to data from STR. Overcoming challenges in the Mexican hotel development arena will be a topic of discussion during the Mexico Investment Summit, 31 January – 2 February, at the JW Marriott Mexico City.
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