The Posadas Experience

The hotel group plans expansion in the Mexican market and beyond.

- Jack Guy

IN RECENT DECADES, ECONOMIC REFORMS and trade deals brought about a transformation in Mexico. As the country opened up to new business opportunities and wealth increased, the hospitality industry saw plenty of development.

Well-placed to ride the wave, Grupo Posadas flourishes as the leading hotel company in Mexico. Since 1992 the company has been publicly traded, and today it manages nearly 160 hotels with more than 24,000 beds. Posadas focuses on the Mexican hotel market, but it has taken some interesting twists and turns over the course of its history.

Founder Gastón Azcárraga Tamayo set up the company in 1967 and opened the first hotel in 1970. After steady expansion in Mexico, Posadas bought three Caesar hotels in South America in 1998. However, the experiment in foreign markets was short-lived, and Posadas showed a renewed focus on the Mexican market by selling off its South American properties in 2012.

Another interesting episode came in 2005, when Posadas bought the second-largest airline group in Mexico, Mexicana de Aviación. It suspended operations in 2010 following a controversial conflict with staff unions and allegations of asset stripping by the Posadas founder, who faced legal proceedings. However, the current management and Posadas itself have not been linked to any lawsuits.

While these business development efforts didn’t work out, the company now follows an aggressive expansion plan in the Mexican market. “We are concentrating on what we know well, which is operating hotels, developing hotel concepts and brands suited to different situations, and commercializing them so that they are successful,” said José Carlos Azcárraga, CEO, Posadas.