MEXICO CITY Grupo Posadas, Mexico’s largest hotel company, posted impressive gains in RevPAR across its Latin America portfolio in the second quarter, an encouraging bellwether for markets largely dependent on visitors from the United States and Europe.
Posadas saw a RevPAR increase of 24% across its portfolio year over year, including a boost of 37% in South America.
The company is largely pleased with the results, particularly given the difficult security situation related to drug wars in areas of Mexico and the resulting negative publicity north of the border.
Urban hotels, which represent 81% of Posadas’ inventory, continue to show recovery signs, while since coastal properties are also performing better than the same period of last year—RevPAR there is up 16%.
Revenues for owned and leased hotels increased 24% in the second quarter, even though ADR remained steady and despite a 1.6% reduction in the average number of available rooms.
Posadas’ current development pipeline totals 36 hotels with approximately 4,888 guestrooms to be opened within the next three years, most under management contracts.