Posadas currently operates around 185 hotels and resorts in Mexico and Latin America. The company has a portfolio of brands ranging from luxury to more affordable options that cater to both leisure and business travelers.
Overview of Posadas
Founded in 1967, Posadas is the largest and longest-running hotel operator in Mexico. The company’s headquarters are located in Mexico City and it employs around 15,000 people. Posadas operates hotels under eight different brands:
- Live Aqua – Luxury all-inclusive resorts for adults
- Grand Fiesta Americana – Upscale luxury hotels and resorts
- Fiesta Americana – Upscale hotels and resorts
- The Explorean – Boutique all-inclusive resorts
- Fiesta Inn and One Hotels – Midscale business and leisure hotels
- Gamma – Affordable business hotels
- Krystal Grand and Krystal Beach – Affordable beach resorts
- Krystal Urban and Krystal Satelite – Affordable city center hotels
This diversity of brands allows Posadas to cater to a wide range of travelers and budgets. The company has an extensive footprint across Mexico, with resorts located in popular beach destinations like Cancun, Riviera Maya, Los Cabos, and Puerto Vallarta. Posadas also operates urban hotels in all major cities in Mexico as well as key business centers.
In addition to Mexico, Posadas has been expanding its operations in Latin America. It currently operates hotels in countries like Brazil, Chile, and Argentina. International expansion is a key part of Posadas’ growth strategy moving forward.
Posadas’ Hotel Portfolio
As of 2022, Posadas operates around 185 hotels and resorts across Mexico and Latin America. Here is an overview of the number of properties under each brand:
- Live Aqua – 9 resorts
- Grand Fiesta Americana – 16 properties
- Fiesta Americana – 51 properties
- The Explorean – 7 resorts
- Fiesta Inn and One Hotels – 63 properties
- Gamma – 28 hotels
- Krystal Grand/Beach – 7 resorts
- Krystal Urban/Satelite – 4 hotels
So the total number of properties across all Posadas brands is approximately 185 hotels and resorts. The company has over 28,000 rooms in its portfolio.
In Mexico, Posadas has hotels located in all major tourist and business destinations including:
- Riviera Maya – 23 properties
- Cancun – 16 properties
- Puerto Vallarta – 12 properties
- Los Cabos – 9 properties
- Mexico City – 20 properties
- Guadalajara – 7 properties
- Monterrey – 9 properties
The company also has resorts located in other popular beach locales like Acapulco, Mazatlan, Veracruz, and Cozumel.
In terms of international presence, Posadas operates hotels in countries like:
- Brazil – 13 properties
- Chile – 4 properties
- Argentina – 3 properties
Some of the key cities where Posadas hotels are located include Rio de Janeiro, Sao Paulo, Santiago, and Buenos Aires.
Recent Growth and Expansion
Over the past five years, Posadas has focused heavily on expansion through new construction and strategic acquisitions. Here are some key highlights:
- In 2018, Posadas opened Live Aqua Beach Resort Cancun, a luxury all-inclusive resort with 361 suites.
- In 2019, the company acquired the Fiesta Americana Condesa hotel in Mexico City, addingvarkund 500 rooms to its portfolio.
- In 2020, Posadas continued expanding its Fiesta Inn brand, opening 7 new properties across Mexico.
- In 2021, the company opened two Grand Fiesta Americana properties – one in Chile and one in Brazil as part of its South American expansion.
- In 2022, Posadas plans to open 10 new properties adding over 1,500 rooms to its portfolio.
Posadas currently has around 10 properties scheduled to open in 2023 and beyond. The company also has long-term plans to expand into new markets like the Caribbean, Central America, and the United States.
Future Expansion Plans
Posadas aims to have over 200 hotels and 35,000 rooms in operation by 2025. Here are some details on the company’s future expansion plans:
- In Mexico, Posadas will continue growing, especially in major tourist hubs like Cancun, Riviera Maya, and Los Cabos. Brands like Live Aqua, Grand Fiesta Americana, and Fiesta Americana will see new luxury properties.
- In Latin America, Posadas will add 8-10 new hotels per year across Brazil, Chile, Argentina, and Colombia. The company sees significant potential for growth in this region.
- New markets Posadas is considering expanding into include Peru, Ecuador, Panama, and the Dominican Republic.
- In the United States, Posadas is eyeing growth opportunities in markets with strong Mexican and Hispanic populations like Los Angeles, Miami, and Texas.
- The Caribbean region is also attractive for Posadas’ beach resort brands like Live Aqua and Krystal Grand.
Posadas has the experience and scale as Mexico’s largest hotel operator to continue successfully expanding its portfolio through a mix of new construction and acquisitions. The company’s multi-brand strategy gives it flexibility to enter diverse markets across different segments. With tourism rebounding strongly post-pandemic, Posadas is well positioned for rapid growth in the coming years.
Posadas’ Market Position
As the largest and oldest hotel company in Mexico, Posadas holds a commanding position in the domestic lodging industry. Some key facts about its market position include:
- Posadas has around 13% share of the branded hotel market in Mexico based on number of rooms.
- The company’s brands account for over 20% of rooms in Mexico’s upscale and luxury segments.
- Posadas has among the highest hotel occupancy rates across Mexico averaging around 70%.
- It has a strong presence across every major tourist and business destination in Mexico.
- The Live Aqua and Grand Fiesta Americana brands are leaders in Mexico’s luxury resort market.
Posadas’ focus on Mexico and Latin America gives it an advantage, compared to large multinational chains that operate globally. Its local expertise and scale allows it to cater specifically to regional customer needs and preferences.
As international travel recovers post-pandemic, Posadas is well positioned to capitalize. Mexico is expected to remain a top tourist destination. The company’s strong brands and dominance in the Mexican market will help drive growth.
Here is an overview of how Posadas compares to key competitors in Mexico and Latin America:
- Marriott, Hilton and Hyatt – These multinational chains have 5-10% share each of branded hotels in Mexico. However, their properties are more concentrated in the upper upscale and luxury segments. Posadas competes strongly with its Live Aqua and Grand Fiesta Americana brands.
- AMResorts – Local operator AMResorts is one of Posadas’ top competitors in the luxury all-inclusive resort market, especially in coastal destinations. Both companies race to develop new properties in popular tourist areas.
- InterContinental Hotels Group (IHG) – IHG has around 60 hotels in Mexico under brands like InterContinental, Holiday Inn, and Crowne Plaza. Posadas competes head-to-head in the upscale corporate and leisure travel segments.
- NH Hotels and Barcelo – These Spanish companies are growing their presence in Latin America. However, their footprint remains well behind Posadas which has a commanding market share across Mexico and key South American countries.
While global chains continue growing in the region, Posadas maintains a strong competitive edge from its scale, local expertise, and strength of its brands. The company is focused on leveraging these advantages to expand its industry leadership position in the coming years.
Posadas Financial Performance
Here is a brief overview of Posadas’ recent financial performance:
- Revenue in 2021 totaled over $660 million, which represented a 20% decline vs 2019 pre-pandemic levels.
- Occupancy in 2021 recovered to 43%, after bottoming out at 11% in 2020 during peak Covid impacts.
- EBITDA in 2021 was $123 million, compared to $267 million in 2019 before the pandemic.
- As of Q3 2022, occupancy has recovered to 66% systemwide and Posadas has generated over $540 million in revenue year-to-date.
- The company expects full recovery to pre-pandemic performance levels by late 2023 or early 2024.
Posadas maintains a healthy financial profile based on the strength of its brands and portfolio. The company has successfully navigated the challenges of the pandemic through cost controls and liquidity management.
As the travel industry continues rebounding, Posadas is well positioned to deliver improving profitability. Its new properties in the pipeline will also drive revenue and earnings growth. Long-term prospects remain strong based on the company’s leadership position in Mexico and Latin America.
Recent Financial Results
Here are some key highlights from Posadas’ Q3 2022 financial results:
- Consolidated revenue totaled $538 million pesos, up 50% year-over-year.
- Systemwide occupancy reached 66%, compared to 48% in Q3 2021.
- Revenue per available room (RevPAR) increased 55% year-over-year.
- EBITDA was $155 million pesos compared to $72 million pesos in Q3 2021.
- Net income totaled $24 million pesos vs a $210 million peso loss last year.
Posadas continues making strides on its recovery, benefitting from robust leisure travel demand. Hotel occupancy has nearly reached pre-pandemic levels. The company’s continued discipline around costs and efficiency has also boosted profitability.
Impact of Coronavirus Pandemic
The coronavirus pandemic had a severe impact on the global travel industry, and Posadas was no exception. Here is an overview of how the company was affected and how it responded:
- With borders closed and lockdowns enacted, hotel occupancy at Posadas properties dropped to the single digits – as low as 11% – in early 2020.
- Numerous Posadas hotels were forced to temporarily suspend operations during peak lockdowns.
- 2020 revenue declined 70% compared to 2019, totaling just $412 million.
- The company quickly implemented cost reduction strategies, including layoffs, furloughs, salary cuts, reduced hours and closing portions of hotels.
- Posadas accelerated renovation projects while hotels were closed to get properties ready for reopening.
As the public health situation gradually stabilized, domestic leisure travel demand started recovering in mid-2020. Posadas was well positioned to capitalize with its strong resort brands and footprint in key destinations like Cancun, Riviera Maya and Los Cabos.
Occupancy and revenues trended upwards in 2021 and 2022 as borders reopened and more segments of travelers returned. Posadas continues making progress towards a full financial recovery by late 2023.
Here are some key actions Posadas took to navigate the challenges of the pandemic:
- Created a dedicated crisis committee that closely monitored the situation and coordinated the company’s response.
- Developed comprehensive health and safety protocols under the “Stay Safe with Grand Fiesta Americana” program.
- Accelerated digitization initiatives – contactless check-in, digital concierge services, e-menus at restaurants etc.
- Renegotiated contracts with suppliers, landlords and vendors to reduce costs.
- Leveraged government support programs where possible to retain and support employees.
- Managed capacity and staffing levels closely on a weekly basis as demand fluctuated.
- Shifted marketing to target domestic leisure travelers through promotions and partnerships.
- Provided guests maximum flexibility on reservations and cancellations to encourage bookings.
Posadas’ proactive and agile response to the crisis helped minimize disruption to operations and protect relationships with guests, partners and employees. While the pandemic’s impact was unavoidable, the company’s strategies have enabled it to weather the storm and emerge well positioned for recovery.
Outlook for the Future
Posadas has endured one of the most challenging periods in its history over the past few years. However, the outlook going forward remains optimistic, fueled by a few key trends and factors:
- Pent-up leisure travel demand globally suggests a multi-year run in leisure and vacation travel as consumers prioritize experiences.
- Mexico is well positioned to capitalize as a proven and affordable destination for American travelers.
- Posadas has one of its strongest new property pipelines in years with 10+ hotels set to open by 2025.
- Improving profitability and operating leverage will boost financial performance as demand recovers.
- The company’s strategy to deepen its presence across Latin America will provide new avenues for growth.
In addition, Posadas retains significant competitive advantages as Mexico’s largest domestic hotel operator with deep local expertise, longstanding brand recognition and consumer loyalty.
The pandemic accelerated many consumer and industry trends that Posadas is capitalizing on – the focus on health safety, the shift to digital and increasing appetite for leisure and luxury vacations being prime examples. While risks remain around economic and pandemic uncertainties, the company has proven its resilience.
Posadas is emerging from the crisis well positioned for the long term, underpinned by its strong brands and market leadership in Mexico and Latin America.
Here are some key growth opportunities on the horizon for Posadas:
- Tourism growth in Mexico is projected at 4-6% annually over the next decade, ahead of the global average.
- The luxury resort and boutique hotel segments are recovering strongly and expected to see accelerating demand growth.
- Posadas’ underpenetrated Latin American footprint provides substantial room for expansion across Brazil, Chile, Argentina and more.
- New lifestyle brands targeting younger generations and weekday business travelers offer expansion options.
- Potential for growth in the US Sunbelt region among the Mexican-American population.
Posadas aims to have over 200 hotels and 35,000 rooms by 2025, representing around 30% portfolio growth from current levels. The company is well capitalized after restructuring its debt profile over the past year.
Achieving a 5% net unit growth annually remains a key objective. This growth will be enabled by both new construction within existing brands and potential acquisitions or partnerships to enter new markets and segments.
With one of the strongest development pipelines in its history, Posadas is ready to accelerate expansion across Mexico, Latin America and beyond.