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Posadas, Mexico’s Largest Resort Group, Competes Towards World Giants

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Skift Take

Posadas may very well be a companion for main resort teams for co-marketing offers, given the standard of its Mexican resorts.

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Grupo Posadas is Mexico’s largest homegrown resort operator, however U.S. analysts not often focus on it.

The indifference could also be an oversight as Posadas seems set to develop. Bigger gamers analyzing the world’s sixth-most visited nation for alternatives must hold the corporate in thoughts.

“We’re centered on exponential progress,” stated director and CEO José Carlos Azcárraga Andrade.

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Posadas sees itself as “the Mexico skilled.”

  • The regional resort administration firm has 9 resort manufacturers, together with Reside Aqua Seashore Resort, Grand Fiesta Americana, and One Accommodations in Mexico and the Dominican Republic.
  • “By the top of 2023, we can have greater than 200 inns and over 30,000 rooms,” the CEO stated.
  • Most will probably be managed, and about 30 will probably be franchised.
  • The corporate additionally owns and leases 27 high-performing real-estate property in prime places.
  • “Our present signed pipeline consists of third-party investments totaling $817 million (about $14.4 billion Mexican pesos) to function 21 new inns providing 3,820 rooms,” stated Azcárraga.
Grand Fiesta Americana Oaxaca in Mexico. Supply: Posadas.

Posadas claims some edges over its rivals.

  • It’s the one home participant within the high 8 by way of operated rooms.
  • “We’re aggressive versus all the worldwide rivals by producing the very best RevPAR [revenue per available room] … within the markets we function in,” Azcárraga stated.
  • “We compete with all main gamers with a world distribution and commercialization platform that generates excessive market share on each aggressive set with ranges between 1.10 to 1.35 — which means that we now have between 10% and 30% of the market that we take from our rivals along with our honest market share,” Azcárraga stated.
  • “Our staff are our best aggressive benefit,” he stated. “We have now the perfect within the trade, and we’re well known as one of many high operators by way of customer support and satisfaction within the markets during which we function.”
  • “We have now the manufacturers we’d like in our portfolio to cowl all the principle segments within the markets during which we compete,” stated Azcárraga. “We nonetheless can increase our present manufacturers, a few of that are comparatively new, together with Gamma, Curamoria Assortment, Devossion, Dayforia, and IOH.”
  • In November, Posadas took a step to spice up direct bookings by debuting a cell app for Fiesta Americana Travelty — its centralized digital reservations platform that it unveiled earlier this 12 months.
Opening in 2024 as Grand Fiesta Americana Sumiya Cuernavaca, this 163-room resort in Morelos, Mexico, was initially a house of Woolworth heiress Barbara Hutton Woolworth. Supply: Posadas.

Posadas’ financials look promising.

  • Within the subsequent 12 months, S&P World Scores expects Posadas to take pleasure in occupancy charges above 65% as group journey and occasions recuperate whereas demand for seashore resorts stays resilient.
  • It forecasts Posadas’ income to be above $600 million (10.30 billion pesos) over the following 12 months by way of September, properly above its pre-pandemic ranges.
  • Grupo Posadas has had an EBITDA margin of round 20% over the normalized long-term. That compares favorably to latest margins for Marriott (about 19%) and Accor (16%).
  • Posadas’ margin took a success within the third quarter — and was solely 13% — due to an sudden appreciation of Mexico’s foreign money versus the U.S. greenback. About 30% of Posadas’ income is generated in U.S. {dollars}.

The Acapulco hurricane was solely a small setback.

  • The corporate has 4 inns in Acapulco: Fiesta Americana Acapulco Villas, Gamma Acapulco Copacabana, One Acapulco Costera, and One Acapulco Diamante.
  • All of them suffered harm. The corporate remains to be tallying the prices and doing repairs.

U.S. resort teams ought to eye advertising partnerships with Posadas.

  • In October, Posadas signed a deal to be a industrial arm in America for Kempinski, Germany’s oldest luxurious resort group.
  • Kempinski will probably be a part of Posadas’ Fiesta Americana Travelty Assortment. This can assist the resort benefit from the distribution and advertising energy Posadas has in these markets (together with for conferences and occasions gross sales and gross sales through journey companies).
  • The deal is just like a licensing deal IHG signed with Iberostar a 12 months in the past to co-market inns. The IHG deal features a loyalty program integration. In distinction, Posadas loyalty members can have particular charges for Kempinski’s properties, however they won’t earn factors on their stays.

In Might, Marriott formally acquired Metropolis Categorical, a Mexican model, for $100 million. What is perhaps the following transfer by U.S.-based and Europe-based resort corporations in Mexico?

What do you suppose? Inform me. I’m at [email protected] and on LinkedIn.

Lodging Sector Inventory Index Efficiency Yr-to-Date

What am I ? The efficiency of inns and short-term rental sector shares throughout the ST200. The index consists of corporations publicly traded throughout world markets, together with worldwide and regional resort manufacturers, resort REITs, resort administration corporations, various lodging, and timeshares.

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The Skift Journey 200 (ST200) combines the monetary efficiency of practically 200 journey corporations value greater than a trillion {dollars} right into a single quantity. See extra inns and short-term rental monetary sector efficiency.

Learn the total methodology behind the Skift Journey 200.

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