Marriott To Triple Mexico Portfolio By 2013
Marriott International Inc. -- Hotels, 7/16/2008 1:07:00 PM
Marriott International, Inc. (NYSE:MAR) announced today four signed agreements that it expects will nearly triple its lodging presence in Mexico over the next five years.
The agreements involve plans to add 29 branded Marriott hotels in Mexico, create an estimated 3,000 new jobs and represent a total investment of more than $1 billion by the owners of the Marriott properties.
“These agreements reflect a huge investment being made by our partners in the future of Mexican tourism and are in response to the growing attractiveness of Mexico as a tourist destination,” said Ed Fuller, president & managing director of international lodging for Marriott International.
Fueling Marriott’s global growth, the Mexico announcement is part of its pipeline of 130,000 new rooms that the company expects to be added to its system by the year 2010. Marriott anticipates that more than a quarter of its new rooms will be located outside the U.S.
Currently, Marriott’s portfolio in Mexico consists of 16 hotels and resorts including the JW Marriott, Marriott, Courtyard, Residence Inn and Fairfield Inn brands.
Announced today are the following:
• A multi-unit development agreement with Caribe Hospitality that will result in 20 upper-moderately-priced Courtyard by Marriott properties over the next five-to-seven years throughout Mexico, which Marriott International will manage.
• A management agreement with Grupo Questro for the upscale 250-room Puerto Penasco Marriott Resort on Mexico’s Pacific coast. Earlier, Grupo Questro and its partners signed a management agreement for the 170-room The Ritz-Carlton Mexico City which will have a branded residential component. Both properties are scheduled to open in 2011.
• A management agreement with Desarrollos Turisticos Paso Victoria S.A. for the luxurious 450-room JW Marriott Milla de Oro Resort & Spa and the upscale 150-room Renaissance Milla de Oro Resort, both of which will be located on Mexico’s popular Riviera Maya and are expected to open in 2011.
• A development agreement with Grupo Diestra for at least five and up to 10 franchised hotels over the next five years under the full-service, upscale Marriott brand. Grupo Diestra currently operates the Tijuana Marriott Hotel which opened in 2007. The company expects to open the 320-room Mexico City Marriott Reforma Hotel later this year, the 286-room Aguascalientes Marriott Hotel and the 290-room Merida Marriott Hotel in 2009 and 2010, respectively.
Fuller added, “As a destination, Mexico accounts for almost 16 percent of tourism activity in the Americas, second only to the United States. Mexico also is the primary destination for foreign tourists within Latin America and today ranks eighth for international tourist arrivals worldwide. We are thrilled to be part of these visionary plans that will help Mexico achieve its goal of becoming the fifth most visited destination in the world.”
Marriott has been operating in Mexico for nearly 20 years. “We have watched Mexican tourism evolve into the vibrant, appealing product it is today and are delighted to see Mexico’s growing middle class spurring national tourism as well. In fact, the domestic Mexican market accounts for nearly 40 percent of all our guests at our hotels within Mexico,” he said.
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