Economic Recovery Fuels Hotel Chain Expansion
<B> Economic Recovery Fuels Hotel Chain Expansion</B>
By Glenn Carter
With Mexico's economy having rebounded from its currency crisis, hotel chains are taking a renewed interest in the country, exemplified by development plans just announced by Hilton Hotels .
Under a franchise agreement with local developer Grupo Chartwell de Mexico, Hilton will open a total of 20 Hilton Garden Inn hotels across the country over the next five years, some in cities that have had few business accommodations. In addition, Grupo Chartwell will develop and acquire full service hotels under the Hilton brand. Destination sites include Guadalajara, Guanajuato, Hermosillo, Puebla, Mexico City, Tijuana and Veracruz.
Jim Abrahamson, senior vice president of franchising for Hilton Hotels, said one major reason for the development is that under last year's strategic alliance with Hilton International, Hilton Hotels Corp. gained the right to franchise properties in Canada and Mexico.
At the same time, corporate demand is on an upswing. "We have a vast market of 95 million people with no Hilton product, although the Hilton name is well known in Mexico because of Mexicans who have traveled elsewhere," Abrahamson said.
Added Francisco Zinser Cieslik, chief operating officer for Grupo Chartwell, "Since the majority of hotel rooms in Mexico are in resort locations, business travelers have few options for accommodations--especially in smaller cities. This demand, coupled with the economic growth potential of these secondary markets, holds tremendous potential for the Hilton Garden Inn product line."
Rooms at Garden Inns feature large work desks with pull-out shelves for laptops, adjustable lighting, ergonomic chairs, electrical outlets and phone jacks at desk height, two phones with two lines and data ports, sitting areas, coffee makers and coffee, refrigerators and microwave ovens.
The first Hilton to open here in several years was the Mexico City Airport Hilton, a full-service hotel located in the airport terminal. The property features concierge services, 24-hour food service, a health club and a 24-hour business center.
Hilton's plan, Abrahamson noted, is to grow along with Mexico's economy, adding three or four Garden Inns in each of the next five years.
Abrahamson said the new Garden Inns will be similar to their U.S. counterparts, except for "back-of-house" elements such as different fabrics. Each property also will incorporate "Mexicanized" design features.
Other Chains' Developments
Another chain, Holiday Hospitality, is staking out its own plans south of the border. According to regional sales director for Latin America, Samuel Quesada, Holiday has built 24 hotels in the past five years, and currently has 39 properties with over 6,000 rooms--mostly Holiday Inns. Other Holiday brands include six Crowne Plazas and Holiday Inn Expresses
"We have 21 hotels with 2,500 rooms under construction and are hoping to add many more," Quesada said, adding, "we see a lot of potential for Staybridge Suites," Holiday's extended stay brand.
Meanwhile, other major chains are seeing moderate development in Mexico. Sheraton recently added a new resort in trendy Los Cabos, adding to that chain's seven other properties, which include several in business destinations like Mexico City and Monterrey.
Another chain with a large Mexican presence is Inter-Continental, which has seven properties here. All the hotels offer the chain's "Business Options" plan, which features upgrades, double airline miles and an American-style breakfast for two.
Marriott, which has an upscale J.W. Marriott in Mexico City, is proposing to develop another Mexico City hotel and hopes to open one of its Executive Residence upscale extended-stay properties in the next two years.