The world renowned Hilton hotel group has announced plans to nearly triple its hotel presence in Mexico over the next five years. By 2015,the chain plans to increase their number of properties in Mexico from 22 hotels to 60. Hilton is a privately owned company,and is the latest in a long line of prestigious American companies to invest heavily in Mexico real estate.
Speaking from the Hampton Inn in Mexico City,senior director of development for Mexico,George Massa said it is difficult to put an exact figure on the investment in the new 38 hotels. Each brand requires a different investment,and each property is custom built to that area’s needs. The planned hotel development will help Hilton Worldwide grab onto a piece of the booming tourism industry that has been growing throughout 2010 in Mexico.
According to the Wall Street Journal,the growth will start with the Hilton owned Hampton Inn brand. There will be four new Hampton Inns opened by the end of 2013,with a fifth inn opening shortly after these are completed. Hampton Inns typically have 100 rooms and provide equal care to business and leisure travelers. Each will cost approximately $9 million to $12 million.
“Hampton Inn is the fastest growing brand among the 10 Hilton brands. It requires less resources to build because of the smaller size,and has good returns on investment,” says Massa.
Although the growth will be primarily focused on economy and mid-brand hotel chains in the Hilton product line,Massa noted that they weren’t ruling out a luxury brand hotel for the country.
“In the last four months,” he said,“We have heard a lot of interest in building a Waldorf in Mexico.” If the Waldorf were to come to Mexico,investors would need more than $500,000 per room for development. Massa added that despite the large investment needed,a luxury Waldorf south of the border is not out of question.