Marriott International has planned to greatly increase its number of properties in Mexico due to its confidence in Mexico's economy. In an article in Hotel News Now,Marriott International's VP of international hotel development in the Caribbean and Latin America regions outlined their company's plan for growth in Mexico.
“We have 17 hotels in all of Mexico,” said Alejandro Acevedo,“Last year we signed a program to do 36 Fairfield Inns in Mexico. I see so many growth opportunities.” Fairfield Inns are the corporation's business suite line of hotels. But Marriott International is not the only hotel chain that is seeing promise in Mexico. Hyatt Hotels only has three properties now but their 12 month plan will focus on getting more locations in Mexico. Hyatt plans to use all of their brands in Mexico – from Hyatt Place to Park Hyatt depending on the needs of the market – in order to grab as large a segment of the vacationers as possible.
Hilton Worldwide has a dozen planned for the next year to add to the 22 hotels currently in the country.
“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.”
There are two major sources of the increase in interest in Mexico. The first is consumer demand. Tourism to Mexico increased by leaps and bounds throughout 2010. The second is that Mexico has a low percentage of overly-leveraged hotel mortgages. There are over 2000 hotels operating in the country,but the banks in Mexico are careful to offer low risk loans.
“Banks in Mexico were very careful,” said Acevedo,“Thanks to that we don't have a lot of distressed assets. It's not as severe as what's going on in the U.S.”