In order to expand in Latin America, the largest hotel chain in Mexico, the Grupo Posadas, has budgeted to open a total of 35 hotels during the next 5 years, which will be in countries such as Peru, Chile, Brazil, Argentina and Uruguay.
The general director of the hotel group, Francisco Rodríguez, commented that his goal for 2016 is to go from 15 to 50 hotels of the Caesar Park, Caesar Business and One Hotels brands: "This year South America should be generating 30 percent of the revenues of Posadas' hotel business. Our challenge is to reach 50 percent by 2016."
The 35 hotels will require an investment of US$500 million of which the group will only contribute 1% and will be in charge of the administration. The rest of the money will come from contributions from local developers and investment funds.
This commitment to the South American region hopes to balance the fall of Posadas in Mexico caused by the international crisis and drug trafficking. In addition, another debt that the group must cover has to do with the airline Mexicana, with which it got rid of near bankruptcy in 2010.
During the third quarter of 2011, the total revenues of grupo Posadas increased by 10%, reporting losses of US$30.78 million.
