Starwood Hotels and Resorts has announced a major expansion in Mexico. According to a recent release the firm is set to expand its Mexican portfolio by 30 percent.
Starwood has eight new hotels in Mexico in the company's development pipeline adding almost 1,100 hotel rooms according to the announcement. Mexico is already the firm's largest Latin American market with 24 hotels totalling 4,800 rooms, representing eight of the company's nine brands the release said.
"Mexico has been a central part of our strategy in the Americas for many years, and we are pleased to see an upswing in the country as U.S. tourists return and business travel picks up," said Frits van Paasschen, president of Starwood Hotels and Resorts. "We are seeing strong demand for new hotel development across all of our brands and have the largest pipeline we have had in the country since before the global economic crisis."
Starwood has eight luxury hotels in Mexico and plans to expand its luxury footprint by 50 percent in the next three years to meet increasing demand, the company said.
"Mexico will continue to be a focal point of our expansion strategy in Latin America where we are on track to have 100 hotels in operation and development by the end of 2013," Osvaldo Librizzi , co-president Starwood Hotels and Resorts Americas, said in the announcement.
As the global economy finally looks to be finding its feet, and pockets like Latin America begin their re-emergence, investor interest is centring back on their emerging hotel sectors. According to the latest data from STR global Mexico leads the Dominican Republic and even the Bahamas with 4,025 hotel rooms currently in the construction pipeline.
Meanwhile Jones Lang La Salle recently predicted greater foreign investment in the Mexican hotel sector, owing to the development of new investment models, namely Fideicomiso de Inversión en Bienes Raíces (FIBRAs), which operate similar to REITs.
- Friday 26 July 2013