Large hotel investments bring back confidence to the Mexican real estate market

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Private investors in Mexico will allocate 22,727 million pesos in the construction of hotels that will be operated by Grupo Posadas.

“ As of June 30, 2019, the company continues with a development plan that includes agreements, with varying degrees of commitment, to operate 45 new hotels with seven thousand 854 rooms.

“ Of the total investment of 22,727 million pesos, Posadas will contribute 1 percent of the resources and 99 percent will be made by independent investors. This will represent an increase in the supply of quarters of 27 percent, ” Grupo Posadas, of the Azcarraga, said yesterday in its quarterly report published on the Mexican Stock Exchange.

Posadas is the largest Mexican hotel chain, with 180 hotels and 29 thousand 188 own rooms, leased, franchised and managed in the city and beach destinations.

Of the new hotels, openings will begin during the third quarter of 2019, and according to the commitments assumed by the owners, it is estimated that most of the properties are in operation in 2022, with an average life of more than 15 years.

NOTICE OF INSECURITY

Grupo Posadas warned investors that the situation of insecurity in the country can damage the tourism business in Mexico.

“ A high percentage of the hotels we operate are luxury or are located in places that have been impacted by the current economic slowdown, the perception of violence or guests come from places affected by these contingencies, which has had and continues to have a significant adverse result in the operating and financial results of our businesses, ” says the report.

The document adds that the perception of national and international violence, as well as alerts issued by other countries about Mexico, can adversely affect the decision of tourists to travel to certain places in the country or to maintain their lodging plans in their hotels.

In the second quarter of 2018, the company reported a 12 percent increase in revenue guided by the new operation of 16 hotels.

Source: heraldo de mexico

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